Jindal Leasefin Ltd Management Discussions

The Board of Directors of the Company have pleasure in presenting the Management Discussion and Analysis Report in adherence to the spirit enunciated in the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from to time.

Jindal Leasefin Limited is registered with the Reserve Bank of India as a Non-Banking Financial Company having diversified interests in the financial services sector. The companys long-term aspiration is to play a significant role in meeting the financial requirements of retail customers as well as corporate clients.

FY 2025-26 began on a positive note for the Indian economy, supported by strong domestic fundamentals and continuity in economic policy. Moderating inflation, a normal monsoon and resilient consumption contributed to a stable macroeconomic environment during the early and mid-part of the year. Collectively, these factors underpinned economic momentum and financial stability during the first three quarters of the fiscal year. Reflecting this strength, the Government of India continued its commitment to fiscal consolidation, targeting a fiscal deficit of 4.4% of GDP for FY 2025-26, while sustaining growth-oriented capital expenditure. Supported by healthy domestic demand and proactive policy measures, India remained among the fastest growing major economies globally, with full year GDP growth estimated in the range of 6.8%-7.0%.

Macroeconomic conditions, however, became more challenging in the latter part of the year as global uncertainties intensified. The escalation of geopolitical tensions in March 2026 led to sharp volatility in global energy markets and disruptions across critical supply chains. The resultant increase in crude oil and fuel prices introduced renewed inflationary pressures and heightened external risks, moderating the otherwise favorable domestic economic momentum. Inflation and monetary conditions during FY 2025-26 reflected contrasting trends across the fiscal. During the first three quarters, CPI inflation moderated significantly to an average of 3.7%, aided by a normal monsoon, strong agricultural output and effective supply side interventions. Accordingly, the RBI cumulatively reduced the policy repo rate to 5.25% by December 2025 to support economic activity. In the final quarter, however, inflation dynamics shifted following the geopolitical escalation.

The NBFC sector in India has emerged as a vital component of the financial system, complementing banks in credit delivery, especially to underserved segments. As per RBI, India has over 9,500 NBFCs with AUM of approx. Rs. 54 lakh crores. During FY 2025-26, NBFC credit growth was ~15% driven by retail loans, MSME, gold loans and vehicle finance.

Against this backdrop, the Company remained focused on protecting stakeholder interests and manage near term uncertainties while continuing to create long term value for shareholders.

As per Motilal Oswal/Crisil, NBFCs are expected to report 16-19% AUM growth in FY27 with ~26% PAT growth in Q1FY27 itself, driven by broad-based demand. CRISIL projects NBFC AUM to surpass Rs. 50 lakh crores by March 2027. Despite competitive pressures, the leasing and finance industry outlook for 2026-27 remains robust with healthy credit demand, improving asset quality and margin normalization expected in H2FY27.

The Company closely monitors the potential opportunities and threats that arise from political, economic and regulatory environment, exchange rate fluctuations, technology changes and competition.

Though, the Company is optimistic about its future in the financial services industry but also understands and perceives certain threats as well.

The intensity of competition in capital market has increased and the fluctuations in the equity markets have made investors think twice before put in their hard-earned money. Cyber insecurity continues to be a threat to growth in the digital financial services. Further, uncertainty in the capital markets, owing to slow implementation of regulatory reforms and lack of consensus on important legislations can delay growth. Fluctuations in interest rates could adversely affect borrowing costs, interest income and net interest margins of companies in the financial sector.

The Company has almost three decades of rich experience in the financial sector and in past few years has made substantial investments in people and technology and continues to focus on delivering steady performance. The Company is cognizant of the changes in the financial services sector and has always been well-prepared to overcome challenges and sustain its performance.

The Company seeks to strengthen its position by successfully differentiating service offerings and increasing the scale of operations. To achieve these goals, it seeks to increase business from existing and new clients. The aim is to build enduring relationships with both existing and new clients.

The Company is primarily engaged in the business of "Trading of Shares and Mutual funds" which constitutes a single reporting segment.

Over the last three decades, the Company has experienced various phases in its journey.

Net Worth:

Net Worth for the financial year under review was INR 5,37,48,314/- as compared to INR 6,37,03,950/- for the previous financial year.

Income:

Total revenue for the financial year under review was INR 2,38,99,756/- as compared to total negative revenue of INR 2,93,10,390/- for the previous financial year.

Expenditure:

Total expenses for the financial year under review was INR 25,67,445/- as compared to INR 19,58,730/- for the previous financial year.

Profit/Loss after taxes:

Profit after taxes for the financial year under review was INR 91,88,805 /- as compared to loss after taxes of INR 2,37,66,227/- for the previous financial year.

Since the Company operates in the financial service sector, it is governed by several rules and regulations by various governing bodies. Non-compliance or misinterpretation may lead to inadequate observance. Also, the Company needs to be prepared to follow any new rules introduced or modifications brought about in existing laws. The Company prioritizes compliance with any new guidelines, circulars and notifications.

The financial services of the Company are exposed to various risks that are either inherent to the business or exposed to the changes in external environment.

Operational risks may result from inadequate control of internal processes, people, and systems. External factors also pose a threat to business operations. Changes in consumer preference may pose risk to financial earnings.

Redundancy in technology used or lack of proper technological support may pose risk to business growth. The Company keeps itself sufficiently invested in latest hardware and software to meet the requirements of diversified teams. Continuous efforts to upgrade Information Technology (IT) systems help the Company to avoid any technology-related risk.

The Company is exposed to risk arising out of its major strategic moves and the likelihood of replication by competitors. High growth prospects of the industry make it lucrative for new entrants both from domestic as well as international players.

The Company has a robust risk management framework to identify, monitor and minimize risk and also identify business opportunities.

The internal control systems are designed to safeguard the Companys assets and ensure efficient productivity at all levels. The systems are adequate for the size of business and industry in which it operates. Well-defined processes, guidelines and procedures and adequate internal information systems enable the Company to enhance the internal controls. Decision-making is made easier due to proper information flow. Periodic and frequent audits ensure strict adherence to the set procedures and processes. Internal controls also ensure strict adherence to applicable laws and regulations.

The Audit Committee of the Board keeps a close eye on business operations and functioning of the internal audit function. The internal controls facilitate prompt detection and redressal of deviation(s), if any, in the business operations. The Company believes that these systems provide reasonable assurance that the Companys internal financial controls are designed effectively and are operating as intended.

The Company considers human capital to be a key pillar of growth. Its skilled and professional management team is a strong driving force. The Company ensures a safe, conducive and productive work environment. The aim is to minimize attrition of technologically driven and high performers, especially amidst the rapidly-evolving business environment.

Over a period, it has developed a strong culture of transparency through constant employee communication and has developed strong performance management practices, wherein, best in class reward and recognition systems are deployed. The Company has also set up a scalable recruitment and human resources management process which enables us to attract and retain high caliber employees.

Statements in this report describe the Companys objectives, projections, estimates, expectations and predictions, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. Readers are cautioned not to place undue reliance on forward looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent development, information or events or otherwise.

These statements dont guarantee future performance and are subject to known and unknown risks, uncertainties and other factors such as change in the government regulations, tax laws, economic conditions and other incidental factors.