Inter Globe Finance Ltd Management Discussions

ECONOMIC AND INDUSTRY OVERVIEW:

Global Economy

The global economy remained resilient in 2025 despite evolving uncertainty and macro economic volatility. Key challenges included uncertainties surrounding the impacts of tariffs on global growth. However, the effects remained contained, largely due to the agility and responsiveness of fiscal policies and the private sector, which adapted by rapidly and effectively adjusting supply chains and trade flows to mitigate the disruptions. The front-loading of imports in the first half of the calendar year, coupled with the rapid reconfiguration of supply chains helped minimise disruptions. Moreover, the restraint exhibited by the rest of the world in maintaining an open trading system despite the imposition of tariffs, played a crucial role in averting a more pronounced economic downturn. Consequently, global growth is estimated at 3.4%1 in 2025. Larger than anticipated investments in AI and allied sectors surged to unprecedented levels, creating strong global spillover benefits and cushioning economies against headwinds from higher US tariffs. A defining feature of 2025 was the divergence between advanced and emerging economies. Advanced economies grew at a subdued pace of 1.9%1, weighed down by weak manufacturing activity, tighter credit conditions, and slower consumer demand. In contrast, emerging markets and developing economies maintained stronger momentum, expanding at 4.4%1, supported by domestic demand, improving labour markets, and relatively resilient financial systems. Countries like India and parts of Southeast Asia continued to act as global growth engines. However, global trade growth remained at 5.1%1, reflecting supply chain realignments, rising protectionism and a shift toward regionalisation. According to insights from the Press Information Bureau and policy commentary aligned with the Reserve Bank of India, these trends have also influenced capital flows and external sector dynamics for emerging economies, including India. From a macro-financial standpoint, elevated global debt levels continued to pose structural risks. The International Monetary Fund (IMF) estimates that global public debt remained above 90%1 of GDP, limiting fiscal space for many governments, especially in advanced economies. At the same time, tighter global liquidity conditions and higher borrowing costs increased vulnerabilities in highly leveraged sectors and emerging markets with external financing needs. Commodity markets remained volatile, particularly crude oil, where geopolitical developments caused intermittent price spikes, adding to inflationary pressures and impacting current account balances globally. Despite these headwinds, financial systems remained broadly stable, supported by strong bank capitalisation and regulatory oversight in major economies. These global trends influence capital flows, funding costs, and risk appetite in emerging markets including India.

Outlook

As 2026 commenced, this resilience came under strain from escalating geopolitical tensions in West Asia. Disruptions to critical energy infrastructure and a near halt in shipments through the Strait of Hormuz constrained the global flow of crude oil, petroleum products, and liquefied natural gas. This triggered sharp increases in energy prices, accompanied by heightened volatility driven by uncertainty over the duration and impact of the confiict, while also posing broader risks to global supply chains. Assuming a relatively short-lived confiict, the IMF projects global growth to moderate to 3.1%1 in 2026 and 3.2%1 in 2027. However, this masks significant divergence across regions. Lower-income, commodity-importing economies are likely to be disproportionately affected by elevated energy and food prices, as well as currency depreciation. Advanced economies are expected to grow at 1.8%1 in 2026, with the U.S. leading at 2.3%1. Growth in the euro area is projected to ease from 1.4%1 in 2025 to 1.1%1 in 2026, before inching up to 1.2%1 in 2027. Emerging market and developing economies may see growth moderate to 3.9%1, with China expanding at 4.4%1. In the Middle East and Central Asia, growth is expected to decline sharply from 3.6%1 in 2025 to 1.9%1 in 2026, before rebounding to 4.6%1 in 2027 as the region absorbs the immediate impact of the confiict and subsequently recovers.

Global inflation is expected to temporarily stall its downward trajectory, rising from 4.1%1 in 2025 to 4.4%1 in 2026, before easing to 3.7%1 in 2027. Overall, risks remain skewed to the downside. While growth could surprise on the upside if tailwinds such as AI-led investment remain stronger than anticipated or financial conditions stay supportive, these benefits may prove transitory. These are likely to be outweighed by downside risks stemming from the ongoing confiict. Over the medium-term, risks remain elevated, including potential resource misallocation driven by AI exuberance and the persistence of policies that could exacerbate real, fiscal, and financial vulnerabilities, potentially amplified through financial market channels.

Indian Economy

Indias economy in FY26 remained one of the fastest growing among major global economies despite external challenges. The growth was supported by robust domestic demand, sustained government capital expenditure, and macroeconomic stability. The economy is estimated to grow by 7.7%2 in FY26 against 7.1%2 in FY252. High-frequency indicators, including GST collections (averaging Rs. 1.7-1.8 Lakh Crore per month) and e-way bill generation reflected sustained economic activity and formalisation. Among major emerging market and developing economies (EMDEs), India has recorded one of the sharpest declines in headline inflation. Over the past four years, average retail inflation, as measured by CPI, has followed a clear downward trajectory, declining from 6.7%2 in FY23 to 3.40%2 up to March 2026. Inflation eased further to 0.3%2 in October 2025, marking the lowest level recorded in the current CPI series. The Reserve Bank of India initiated a monetary easing cycle in 2025 through calibrated repo rate cuts to support economic growth. A 25-basis-point reduction in February 2025 brought the repo rate down to 6.25%3, followed by another 25-bps cut in April 2025, along with a shift in the policy stance from neutral to accommodative. In June 2025, the central bank accelerated its easing measures with a 50-bps cut and a return to a neutral stance, followed by a further 25-bps reduction in December, bringing the repo rate to 5.25%. In April 20264, the Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.25% and maintained a neutral stance, in line with market expectations. The prevailing rate environment is expected to support economic activity by enabling banks to sustain lending rates, thereby encouraging borrowing and consumption. From a sectoral perspective, services continued to be the primary growth driver, while manufacturing showed gradual improvement supported by Production-Linked Incentive (PLI) schemes and supply chain diversification. Investment activity remained strong, with gross fixed capital formation contributing significantly to GDP growth. Fiscal consolidation also progressed steadily, with the fiscal deficit budgeted 4.4%2 of GDP in FY26, reflecting a balance between growth support and fiscal prudence. FY26 was characterised by resilient growth, macroeconomic stability, controlled inflation, and strong policy support, positioning India as a key driver of global economic expansion despite external headwinds. This macroeconomic environment continues to support credit growth across retail and MSME segments..

NBFC Industry Overview

NBFCs play a critical role in advancing financial inclusion by catering to the unbanked and underbanked population, including informal sector participants and first-time borrowers. Their proximity to customers, underwriting practices, and ability to design customised financial solutions have made them important contributors to bridging credit gaps. This grassroots connectivity also enables NBFCs to support government initiatives aimed at inclusive growth and economic formalisation. Indias NBFC sector has emerged as a vital pillar of the countrys financial ecosystem, demonstrating sustained growth, adaptability, and deepening relevance in enabling credit access. Historically outpacing GDP growth, NBFC credit expansion continues to reflect the sectors structural importance in supporting consumption, entrepreneurship, and financial inclusion. From a modest asset base of less than H 2 Trillion at the turn of the century, the sector has expanded exponentially to approximately H 50 Trillion in assets under management (AUM) by the end of FY25. Between FY19 and FY25, NBFC credit grew at a compounded annual growth rate (CAGR) of around 13%, with AUM doubling from H 24 Trillion to H 50 Trillion-underscoring both scale and resilience. MSME financing remains a core structural growth driver, accounting for approximately 22% of total NBFC credit outstanding in FY25. This segment is projected to grow at a strong pace of 20% in FY26, driven by increasing adoption of loans against property, enhanced policy support, and improving credit penetration. NBFCs are uniquely positioned to serve MSMEs, which often face constraints in accessing formal credit due to limited collateral, lack of formal documentation, or thin credit histories. Corporate and commercial real estate lending is expected to witness a moderate uptick, while infrastructure financing may see some moderation due to higher repayments, declining repo rates, and the completion of certain large-scale government programmes. A defining characteristic of the NBFC sector is its complementary role to the banking system. While banks continue to dominate the financial landscape, their retail loan portfolio accounted for around 40-45% of total credit as of FY25, with a greater focus on large corporates, agriculture, and services. In comparison, NBFCs exhibit a relatively stronger retail orientation, with nearly half of their portfolios dedicated to retail lending.

The growth outlook for NBFCs is supported by Indias strong economic fundamentals. Following a strong double-digit credit growth in FY25, NBFCs are expected to sustain momentum, with overall credit growth projected at approximately 17-18% over the next two years. Retail lending is anticipated to remain the primary driver, reflecting both rising consumer aspirations and the sectors strong distribution capabilities. Segments such as gold loans, personal loans, and auto finance are likely to remain key growth engines. Elevated gold prices, improving consumer sentiments, and rising disposable incomes are expected to support demand, while policy support may drive adoption of retail credit products, especially Gold, Consumer Durable & Personal Loans. The sector has also undergone a significant transformation in terms of technological adoption and operational sophistication. The rise of digital infrastructure, including mobile internet, digital authentication, and neo-banking platforms, has enabled modularisation of financial services, making credit more accessible and efficient. Fintech partnerships have further accelerated innovation, particularly in unsecured lending, where data-driven underwriting models have expanded reach to new-to-credit segments and customers in Tier II and Tier III cities. However, rapid expansion in unsecured lending has introduced emerging risks. The unsecured segment witnessed a sharp expansion over the past five years, with a CAGR of approximately 30% between FY21 and FY25, compared to 15% in the secured segment. This raised concerns around borrower over leveraging, especially in microfinance and personal loans, where rising inflation and stagnant incomes affected repayment capacity. In response, regulatory interventions, including higher risks weights and prudential norms introduced by the RBI has led to moderation in credit growth and recalibration of lending strategies. Consequently, NBFCs have recalibrated their portfolios, reducing exposure to unsecured loans and strengthening risk management frameworks. The share of unsecured lending is expected to stabilise in near terms (25-30%) with gradual expansion supported by industry initiatives, borrower discipline and economic recovery.

Looking ahead, growth across both secured and unsecured segments is expected to remain balanced. Secured lending is likely to be supported by strong demand in gold loans and vehicle financing, while unsecured lending will continue to grow at a healthy pace, albeit with tighter underwriting standards. The regulatory environment is also evolving constructively, with the central bank introducing guidelines on co lending, securitisation, digital lending, and collateral based financing. These measures are expected to enhance transparency, improve underwriting standards, and unlock incremental growth opportunities over the medium term. Overall, NBFCs are well positioned to benefit from continued formalisation, rising digital credit penetration and expanding access to credit across segments, reinforcing their role as a key driver of Indias financial deepening.

Outlook

The outlook for the Indian NBFC sector for FY 2026-27 remains positive, supported by strong credit demand, improving liquidity and continued economic growth. NBFC credit growth reached 14.4% YoY in June 2026, with retail credit growing particularly strongly at 20.3%. Retail NBFC AUM is expected to grow by around 16–18% in FY27, indicating healthy loan demand. Growth is likely to be led by vehicle finance, housing, gold loans, consumer finance and MSME lending. Improving asset quality and better collections should support profitability, although microfinance and unsecured lending remain areas of concern. Funding costs and regulatory tightening could put some pressure on margins, making liability diversification and strong capitalisation important. Competition from banks is also expected to remain high. Overall, NBFCs with strong underwriting, diversified funding, prudent risk management and a focus on secured lending are likely to outperform. Hence, FY27 should see sustainable, quality-led growth rather than aggressive balance-sheet expansion.

INDUSTRY STRUCTURE AND DEVELOPMENT

NBFCs are key pillars of Indias financial intermediation ecosystem. They complement scheduled commercial banks (SCBs) by extending credit to customer segments and geographies where conventional channels are less penetrated. Their specialised underwriting, product innovation and last-mile delivery capabilities — supported by increasing digital origination and servicing — have facilitated greater access to finance for micro and small enterprises, self-employed borrowers, affordable housing customers and microfinance-linked households, thereby advancing financial inclusion and supporting broad-based economic activity. In line with this expanding role, NBFC credit as a proportion of GDP has increased steadily over the past decade from 8.9% in FY2015 to 14.6% in FY2025.

The regulatory landscape for NBFCs has continued to evolve towards a more proportionate, risk-aligned framework under the Reserve Bank of Indias (RBIs) scale-based regulation (SBR), which applies differentiated requirements based on size, complexity, activity profile and systemic importance across base, middle, upper and top layers, with enhanced governance, prudential and disclosure expectations for upper-layer entities.

In addition to statutory oversight, greater emphasis is being placed on industry-led standard setting through self-regulation initiatives, intended to strengthen best practices, transparency and consumer protection. In May 2025, the RBI issued digital lending directions that formalise and consolidate regulatory expectations for the digital credit ecosystem. These measures reinforce conduct standards and customer safeguards by improving transparency, accountability and controls over data practices and servicing as digital first lending models expand. During the year the Reserve Bank of India has undertaken a significant rationalisation of its regulatory framework, including the consolidation of over 9,000 regulatory instructions into 238 Master Directions out of which 35 Master Directions were issued for Non-Banking Finance Companies (NBFCs). The RBI further completed a similar consolidation exercise covering all supervisory instructions, reinforcing consistency and ease of compliance across regulated entities. This simplification enhances regulatory clarity, reduces interpretational complexity and supports more efficient engagement with the regulator. We view these measures as strengthening the operating environment for well governed NBFCs and as being aligned with our disciplined approach to compliance, governance and risk management. The NBFC sector performance indicators have remained supportive of GDP growth. Credit growth for NBFCs in the aggregate upper and middle layers reached 21.3% year-on-year as of September 2025. Asset quality has further improved, with the overall gross non-performing assets (GNPA) ratio declining to 2.9% as of September 2025 from 3.4% a year earlier — which reflects continued strengthening in portfolio performance, underwriting discipline and collection outcomes.

INTER GLOBE FINANCE-AN OVERVIEW

Today, IGFL is one of West Bengals leading & valuable financial management & advisory services company in the eastern region. Through its lending and financing solutions IGFL has enabled its customers to pursue ambitious growth strategies and execute value creating transactions. Our Vision is to become the most respected company in the financial services space in India. Our Business Strategy is to have a steady growth by adapting to the changing environment, without losing the focus on our core domain of financial services.

IGFL is a knowledge driven organization and has over the years developed and institutionalized knowledge about its businesses at all the levels.

Unlike conventional corporate lenders, we provide easy finance with hassle-free documentation through a speedy and transparent process. IGFL is at the right place, at the right time and with the right skill sets. The Government of India is strongly focusing on steps to stimulate the rural economies and we believe that we have a significant part to play. As we diversify our product portfolio to other forms of secured financing, we will soon have an entire spectrum of financial products under the IGFL umbrella.

FINANCIAL REVIEW

The Business strategy of increasing Equity investments and reducing on loan activity helped company deliver robust numbers. The summary of our financial performance is as follows: Our Interest Income stood at Rs. 4.68 Crores during the year.

During the year, the Company booked substantial profits on its equity portfolio. Your Company booked a profit before tax of Rs. 2.25 crores during the year.

During the current financial year ended 31.03.2026, the Companys total turnover amounted to Rs. 179.43 Crores in comparison to Rs. 148.44 Crores in the previous financial year 2024-25.

Basic Earnings per share (EPS) stood at Rs. 2.06 & Diluted Earnings per share (EPS) stood at Rs. 2 during the year under review.

The Key Accounting Ratios for the year under review would provide you a better analysis of your Company –

Current ratio – 12.85 Debt Equity Ratio – 6.14%

Debt Service Coverage Ratio – 0.35 Return on Equity – 1.67% Inventory Turnover Ratio – 2.14 Trade Receivables Turnover Ratio - NA Trade Payables Turnover Ratio - NA Net Capital Turnover Ratio – 1.29 Net Profit Ratio – 1.30% Return on Capital Employed Ratio – 2.05% Return on Investment Ratio – 1.67%

You may please refer page 65 for a better understanding.

ROAD AHEAD & FUTURE OUTLOOK

Core lending: Continue focusing on the existing lending business.

NPA recovery: Intensify efiorts to recover non-performing loans and improve asset quality.

Equity investments: Increase participation in the equity market to capitalize on growth opportunities.

Business diversification: Evaluate entering businesses such as Portfolio Management Services (PMS), Insurance Broking and Merchant Banking, etc

Overall outlook: The company plans to pursue a strategy of combining its established lending business with broader opportunities in the financial-services sector.

INTERNAL CONTROL SYSTEMS AND ADEQUACY OF INTERNAL CONTROL

In any industry, the processes and internal control systems play a critical role in the health of the Company. The Companys well-defined organizational structure, documented policy guidelines, defined authority matrix and internal controls ensure eficiency of operations, compliance with internal policies and applicable laws and regulations as well as protection of resources. Moreover, the Company continuously upgrades these systems in line with the best available practices.

The Board has an Audit Committee with independent directors in majority to maintain the objectivity.

IGFL has proper and adequate system of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded, transactions are authorized, recorded and reported properly, applicable statutes and corporate policies are duly complied with.

The Audit Committee also seeks the views of statutory auditors on the adequacy of the internal control systems in the Company. Moreover, IGFL continuously upgrades these systems in line with the best available practice

OPPORTUNITIES & THREATS Opportunities

Non-Banking Financial Companies (NBFCs) are fast emerging as an important segment of Indian financial system. The Company provides long term financing to the Logistics, Share Brokers, Integrated Steel Plants, Real Estate Developer, Infrastructure Conglomerates, Airport Ground Handling Services, Retail Marts, Iron-ore Mine Industries and Power Sector. Thus, the Company has broadened and diversified the range of products and services ofiered by a financial sector. Gradually, the Company, being recognized as complementary to the banking sector due to its customer-oriented services; fiexibility and timeliness in meeting the credit needs of specified sectors; etc.

Threats

Being a NBFC, the Company has to face various threats as under mentioned-High cost of funds; Slow industrial growth; Stifi competition with NBFCs as well as with banking sector; Non-performing assets

RISK MANAGEMENT

Being in the lending business, risk management forms a vital part of our business. The Company has a well-defined risk management framework approved by the Board of Directors. It provides the mechanism for identifying assessing and mitigating risks.

HUMAN RESOURCES & INFRASTRUCTURE DEVELOPMENT

People are our key pillars of strength. This belief was further strengthened as our people showed tremendous resilience and extraordinary commitment during the pandemic times to bring the Company back to its core performance.

Our people are our key assets. In an increasingly competitive market for talent, we focus on attracting and retaining the right talent and fostering a work culture that is always committed to providing the best opportunities to employees to realize their potential.

IGFL is committed to create a vibrant and inclusive workplace for all its employees and actively takes steps to ensure these are well enshrined in our policies and practices. We remain an equal opportunity employer and follow non-discrimination in all our practices.

CAUTIONARY STATEMENT

The Board of Directors have reviewed the Management Discussion and Analysis prepared by the Management, and the Independent Auditors have noted its contents. Statement in this report of the Companys objective, projections, estimates, exceptions, and predictions are forward looking statements subject to the applicable laws and regulations. The statements may be subjected to certain risks and uncertainties. Companys operations are affected by many external and internal factors which are beyond the control of the management. Thus the actual situation may difier from those expressed or implied. The Company assumes no responsibility in respect of forward looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.

Registered Office :	On behalf of the Board
6B, Bentinck Street	Sd/-
Aloka House	Navin Jain
Kolkata - 700 001	Chairman & Managing Director
Date : August 21, 2026	(DIN - 01197626)