Inventure Growth & Securities Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS

1. Industry Structure and Developments

The Indian securities broking industry is undergoing a structural transformation. Driven by rapid financialization of household savings, widespread smartphone penetration, and instant digital onboarding, the market has expanded exponentially. Total demat accounts in India have crossed record milestones (surpassing 230 million), with unique registered investors crossing the 130 million mark. Tier-2, Tier-3, and beyond cities now drive a substantial portion of new account additions, highlighting deep retail penetration.

The global economy has entered a phase of measured stabilization, with overall output growth averaging around 3.0% to 3.1%. Advanced economies (AEs) like the United States display moderate resilience driven by technology investments and AI-led productivity, while major European economies and Japan face subdued momentum due to sticky energy prices and tighter fiscal cushions. Shifting global yields trigger massive capital reallocations.

For instance, heightened global rate pressures and currency fluctuations drove substantial offshore equity selling (such as cumulative FII equity outflows touching roughly 1.66 lakh crore during calendar year 2025, followed by intermittent high-volatility selling stretches into early 2026).

India continues to cement its status as the fastest-growing major economy globally. Real GDP growth projections for FY 2025–26 comfortably hover between 6.4% and 6.6%, outperforming both advanced economies and regional emerging peers. Macroeconomic stability, combined with moderating inflation and expanding formal employment, has driven a structural shift in household asset allocation. A rapidly increasing share of domestic savings is moving away from traditional physical assets (gold, real estate) toward financial markets, directly catalyzing the exponential surge in retail broking, mutual fund SIPs, and direct equity participation.

2. Opportunities and Threats

Leveraging AI-driven e-KYC solutions, Automated Market Orders (AMO), and predictive analytics to streamline client acquisition, enhance risk management, and optimize trade execution speed. Deploying cross-selling strategies to expand beyond pure-play broking, offering a comprehensive suite of diversified financial services to deepen client lifetime value and strengthen the firms competitive moat. Scaling intuitive, high-performance mobile applications and sophisticated charting tools to capture the rising cohort of tech-savvy, digital-native investors. Capitalizing on the structural shift and rising financialization of savings among retail investors across tier-2 and tier-3 cities to drive robust volume growth and broaden the revenue base.

Navigating evolving regulatory frameworks, stringent compliance mandates, and shifting government policies that directly impact transactional volumes, trading practices, and overall operating margins. Facing continuous pricing pressure from low-cost discount brokers and agile fintech entrants, forcing traditional full-service brokers to compress fees while absorbing heavy capital expenditures for ongoing digital transformation. Mitigating the risks of global geopolitical tensions, fluctuating interest rates, inflationary pressures, and potential economic slowdowns that can erode investor confidence and dampen market participation. Defending against sophisticated cyber threats, data breaches, and platform downtime risks during high-volatility windows that can trigger operational disruptions and regulatory scrutiny.

3. Segment–wise or product-wise performance

Company is engaged in the business of providing stock broking service. Its consolidated quarterly segment performance is mentioned below.

Sales	Q4	Q3	Q4	QoQ %	YoY %
	FY26	FY25	FY25	change	change
Equity/Commodity Broking & Other Related	0.78	0.96	1.15	-18.97%	-21.86%
Financing & Other Related Activity	0.29	0.29	0.57	2%	-21.28%
Merchant Banking & Other related activties	(0.01)	0.06	0.03	-115.65%	-50.92%
Others	0.02	0.33	0.05	-94.61%	168.59%

Figures :- In Crores

More than 70% of the Company revenue comes from Equity/Commodity broking business. 21% of the revenue is obtained from Financing activity and remaining from others.

4. Outlook

The impact of global growth trends and the geopolitical crisis in West Asia Major by global economic bodies (such as the IMF and World Bank) project that global growth is moderating to around 2.5% to 3.0%, heavily constrained by energy supply disruptions and persistent geopolitical uncertainties.

Energy shocks resulting from the regional conflict act as a catalyst for renewed inflationary pressures globally. This complicates central bank policy frameworks worldwide, influencing interest rate trajectories and tightening global financial conditions.

Shifts in international trade policies, bilateral tariffs, and restrictions on critical technologies (such as semiconductors, rare-earth elements, and green tech components) introduce friction and cost unpredictability into international commerce.

Unlike previous decades where heavy FII selling would trigger severe, protracted market crashes, the Indian market has displayed structural resilience. Domestic Institutional Investors (DIIs) and relentless monthly retail SIP inflows (consistently crossing 30,000+ crore) have successfully absorbed foreign liquidations, maintaining market depth.

5. Risks and concerns

The Company recognizes that risk is inherent to all business activities and that effective risk management is critical to its sustained success. Registered and regulated by SEBI for stock broking, depository participant services, investment advisory, and mutual funds, the Company utilizes highly digitalized processes to minimize the scope for errors, omissions, and fraud. Operating within a dynamic business environment, the Company faces various risks—many driven by unpredictable and uncontrollable external factors—that can impact operations and financial results. Because a major share of revenue is derived from the equity brokerage business, our operations are highly sensitive to domestic and global economic and political conditions. Any sustained downturn in the broader economy or Indian equity markets, coupled with severe market volatility, would likely reduce client trading volumes and net revenues, thereby exerting a material adverse effect on profitability. Additionally, the Company is exposed to operational and compliance risks arising from employee or authorized person misconduct, fraud, or trading errors. These include unauthorized transactions, non-compliance with statutory and legal requirements, misuse of confidential information, and operational mistakes. We also extend exposure limits to clients based on collateralized securities received in connection with our brokerage business. Sharp fluctuations in security valuations or the failure of counterparties to fulfill commitments on a timely basis could significantly impact our operational profitability.

To mitigate these challenges, comprehensive risk assessments are conducted at the organizational level and presented directly to the Board of Directors. Consequently, a robust risk management framework has been instituted by management to ensure the Companys financial soundness, long-term success, and resilience against various trade-related risks.

6. Internal control systems and their adequacy

The Company has an internal audit system which is effective and commensurate with the nature of business, regulatory prescriptions and the size of its operations. The scope of internal audit covers all aspects of the business, including regular front-end and back-end operations and internal compliances. The Company also retains specialized audit firms to carry out specific I concurrent audit of some critical functions, such as half yearly internal audit mandated by SEBI/Exchanges, Processes, Know Your Customer (KYC) verifications, demat transfers, payouts verifications, systems audit, branches and authorized person Ds audit and, end use verification audits, among others. In addition, the Company complies with several specific audits mandated by regulatory authorities such as SEBI I Exchanges I Depositories and the reports are periodically submitted to the regulators. The Board/Audit Committee reviews the overall risk management framework and the adequacy of internal controls instituted by the management team. The Audit Committee reviews major instances of fraud periodically and actions are taken on the same. The Board has also put in place state-of threat technology and has automated most of the key areas of operations and processes, to minimize human intervention. The statutory auditors, after reviewing the systems and processes, have confirmed the adequacy and effectiveness of the internal financial controls of the Company.

7. Discussion on financial performance with respect to operational performance.

		Quarterly		Yearly
Particulars	Q4 FY 2026	Q3 FY 2025	Q4 FY 2025	FY 2025-26	FY 2024-25
Total Income	858.16	820.59	914.04	3,451.49	4,289.76
% increase/ Decrease	--	4.58%	-6.11%	--	-20%
Total Expenses	1,230.44	840.34	1,434.33	3,395.36	4,131.28
% increase/ Decrease	--	46.42%	-41.41%	--	-18%
Net Profit	-145.47	-67.34	-436.13	153.63	15.12
% increase/ Decrease	--	116%	-66.65%	--	916%

Figures: - In Lakhs

The revenue posted by the company was 858.16 Lakhs for Q4 FY25-26 which de-grew by 6.11% on YoY basis and grew by 4.58% on QoQ basis. The revenue for the quarter ended 31 st March FY2026 was 3,451.49 Lakhs which de-grew by 20% on YoY basis. Revenue was impacted due to lower fees and commission income. The Total Expenses for the quarter ended 31 st March 2026 was 1,230.44 Lakhs which de-grew by 14% on YoY basis and grew by 46.42% on QoQ basis. For the Year ended FY 2025-26, total expenses of the company de-grew by 18% to 3,395.36 Lakhs.

The Standalone net loss reported by the company for the quarter ended FY2025-26 was 145.47 lakhs which de-grew by 66.65% on YoY basis and de-grew by 116% on QoQ basis. The net profit for the quarter ended 31 st March FY2026 was 153.63 Lakhs.

Tax Expense of the company stood at -164.46 lakhs as compared to 48.14 Lakhs last quarter and 72.88 Lakhs same quarter last year.

8. Material developments in Human Resources/Industrial Relations front including number of people employed.

As of March 2026, the employee strength stood at 105.

9. Key Ratios

Key Ratio	2025-2026	2024-2025
Interest Coverage Ratio	1.92	2.06
Current Ratio	2.45	1.94
Debt Equity Ratio	0.07	0.09
Networth ( in Lakhs)	22,495.37	22,328.62

Note: The change in key Ratios are negligible as compared to previous year.

10. Key Ratios

Your Company in preparation of Financial Statement has followed all the Ind Accounting Standard applicable.

Cautionary Statement

This report contains forward-looking statements extracted from reports of Government Authorities/ Bodies, Industry Associations etc. available on the public domain which may involve risks and uncertainties including, but not limited to, economic conditions, government policies, dependence on certain businesses and other factors. Actual results, performance or achievements could differ materially from those expressed or implied in such forward-looking statements. This report should be read in conjunction with the financial statements included herein and the notes thereto. The Company does not undertake to update these statements.

For lnventure Growth &Securities Limited

SD/-	SD/-
Kanji B. Rita	Kamlesh S. Limbachiya
(Chairman & Managing Director)	(Whole-Time Director)

Place: Mumbai
Date: 03.08.2026