India Cements Capital Ltd Management Discussions

OVERVIEW OF THE ECONOMY

The global economy in 2026 is navigating an increasingly challenging environment marked by geopolitical tensions, evolving trade dynamics and persistent macroeconomic uncertainties. According to the latest projections of the International Monetary Fund (IMF), global GDP growth is projected at 3.1% in 2026 and 3.2% in 2027, reflecting a moderation from the average growth recorded during 2024–25. The outlook has been influenced by the ongoing geopolitical conflict in the Middle East, which has intensified concerns over commodity prices, inflationary pressures and supply chain disruptions. Global headline inflation is projected to increase to 4.4% in 2026 before moderating to 3.7% in 2027. While technology-led investments, supportive financial conditions and policy measures continue to provide resilience to economic activity, downside risks arising from geopolitical uncertainties, trade-related disputes, fiscal pressures and financial market volatility continue to weigh on the global outlook. Nevertheless, continued structural reforms, prudent macroeconomic policies and increasing adoption of digital technologies and artificial intelligence are expected to support long-term economic resilience and sustainable growth.

INDIAN ECONOMIC OUTLOOK

Indias economy is expected to remain one of the fastest-growing major economies, with real GDP projected to grow by 6.3% in FY 2026–27 and 6.4% in FY 2027–28, supported by resilient domestic demand, continued public investment and ongoing structural reforms. While higher food and energy prices, geopolitical uncertainties and global trade challenges are expected to moderate private consumption and investment, the countrys strong macroeconomic fundamentals continue to provide stability. Inflation is projected to increase to 4.8% in FY 2026–27, driven primarily by higher food, energy and fertiliser costs, although prudent fiscal measures and a calibrated monetary policy are expected to support price stability. Continued emphasis on infrastructure development, regulatory reforms, digital transformation and renewable energy is expected to enhance productivity, strengthen energy security and sustain long-term economic growth. Despite global headwinds, India remains well-positioned to maintain its growth momentum, supported by a resilient financial system, expanding digital economy and favourable demographic profile.

INDUSTRY OVERVIEW

GLOBAL TRAVEL INDUSTRY

The global tourism market was estimated at USD 9,897 billion in 2025 and is projected to grow from USD 10,303 billion in 2026 to approximately USD 14,791 billion by 2035, registering a compound annual growth rate (CAGR) of 4.1% during the forecast period from 2026 to 2035. Tourism encompasses travel undertaken outside an individuals usual place of residence for leisure, business, cultural experiences, medical treatment, religious purposes, and other recreational activities. The industrys growth is being driven by rising disposable incomes, an expanding middle-class population, and the increasing demand for medical and wellness tourism. Furthermore, the tourism sector is undergoing significant transformation through the rapid digitalisation of travel ecosystems, including online booking platforms, mobile applications, artificial intelligence, and digital payment solutions, which have enhanced customer convenience and operational efficiency. The growing adoption of the sharing economy, supported by peer-to-peer accommodation and shared mobility services, has further improved accessibility and affordability, contributing to the sustained expansion of the global tourism industry.

INDIAN TRAVEL INDUSTRY

The Union Budget 2026–27s tourism initiatives present a strategic plan to boost economic growth, employment, and cultural heritage. It combines new schemes with existing programmes to improve infrastructure, heritage conservation, skills, digital systems, and niche tourism segments like spiritual, eco, adventure, and medical tourism. Focus areas include developing Buddhist Circuits in the North-East, upgrading hospitality, digital knowledge, and heritage sites, demonstrating a commitment to sustainable, destination-focused tourism. These measures integrate with schemes like Swadesh Darshan 2.0, PRASHAD, and capacity-building, ensuring policy coherence and resource efficiency. Linking infrastructure, community, and culture establishes a solid base for India to become a competitive, inclusive tourism destination. Successful implementation is expected to enhance visitor experience, create jobs, and promote Indias cultural and natural heritage globally, making tourism a key driver of socio-economic growth.

COMPANY BUSINESS

Your Company is a designated Authorized Dealer (Category-II) from Reserve Bank of India, for money changing which includes buying and selling of Foreign Exchange in retail as well as wholesale to individuals and corporate clients and various permissible outward remittance activities such as remittance for overseas education, medical treatment abroad and for other permissible purposes. Your Company is also one of the Agents of overseas money transfer entities for international inbound money transfer business.

In money changing, the Company provides an array of products and services including buying and selling of foreign currency notes and outward telegraphic remittances, including outbound remittances towards student fees, tour remittances etc. and also extends to forex prepaid cards.

The Companys strength is its service, its brand image and number of allied products being made available to its valuable customers.

OPPORTUNITIES AND THREATS

The Company foresees that the Companys forex business would continue to grow Intune with global economy and growth of travel and tourism sector.

Your company has exposure in foreign exchange and any wide fluctuations in foreign exchange rates have adverse effect on the performance of the company. Further the increase in competition, low entry barriers and change in government policies may affect the operations of the company.

OPERATING AND FINANCIAL PERFORMANCE

REVIEW OF PERFORMANCE

FORXCHANGE

The Gross revenue and net income for the year ended 31st March, 2026 are Rs.25774.79 lakhs and Rs.364.37 lakhs respectively as against Rs. 29764.17lakhs and Rs. 387.22 lakhs during the corresponding previous year. The division has earned other operating income of Rs.75.23 lakhs as against Rs.68.35 lakhs during the corresponding previous year. The Company has also earned other income of Rs.18.89 lakhs as against Rs. 20.66 lakhs during the corresponding previous year. The reason for decrease in volume and profit is due to decline in corporate sales.

Midas Forex, the forex advisory division of the Company has earned a gross income of Rs.5.04 lakhs during the year ended 31st March, 2026 as against Rs.5.60 lakhs of the corresponding previous year.

RISK MANAGEMENT

INTERNAL CONTROL SYSTEM

The Company has already put in place an elaborate Internal Control and Internal Audit systems. The system ensures adequate periodical checks and balances are exercised. Continuous monitoring by the Internal Audit team of these checks and balances ensures compliance of the regulatory framework of RBI & FIU. The Audit team is suitably guided and updated by the Audit Committee in its functions.

The Company has put in place a strict credit policy for extending credit to its corporate customers. The same is continuously monitored and reviewed periodically to ensure funds at Companys disposal are being judiciously utilised and efficiently managed vis-?-vis the business requirements.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The Company being part of the Banking and Financial Services sector, human resources has always been the main pillar for all the activities of the Company. Companys focus have been to improve the staffs contribution towards the various services offered thereby ensuring customer satisfaction. To achieve this objective Company has ensured that all its employees receive continuous update on the Companys policies as well as the regulatory framework.

CHANGES IN KEY FINANCIAL RATIOS

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis Report describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities Laws and Regulations. Actual results may differ materially from those expressed in the statement. As in any other business the performance of the Company is totally dependent on the market conditions of demand and supply, the volatility in exchange rate, the Government policy & regulations, the economy of the country and other factors.