Mantra Capital Limited Management Discussions

Annexure A

1. Preamble

This Management Discussion and Analysis Report ("MDAR") forms part of the Annual Report of Mantra Capital Limited ("the Company") for the Financial Year ended March 31,2026.

This report has been prepared in compliance with Regulation 34(2)(e) read with Schedule V, Part B of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Section 134 of the Companies Act, 2013, and the applicable directions, circulars and guidelines issued by the Reserve Bank of India for Non- Banking Financial Companies.

This discussion should be read in conjunction with the audited financial statements, notes to accounts and other disclosures forming part of the Annual Report.

2. Economic Overview and Industry Structure

During Financial Year 2025-2026, the Indian economy remained resilient despite global uncertainties, geopolitical tensions, volatile commodity prices, inflationary pressures and supply chain disruptions. Strong domestic consumption, continued public infrastructure spending, stable tax collections, growth in manufacturing and services, and improving investment sentiment supported overall economic activity.

The financial services sector, particularly the NBFC industry, continued to play an important role in credit delivery to underserved and emerging borrower segments. Demand remained steady across MSME finance, vehicle finance, small business lending, affordable credit products and retail finance. Tier 2 and Tier 3 markets continued to emerge as important growth centres due to increasing formalisation, rising entrepreneurial activity, improving digital infrastructure, growing financial awareness and limited penetration of traditional banking channels.

NBFCs continue to be important enablers of financial inclusion by serving self- employed individuals, micro and small enterprises, first-time borrowers and customers outside the formal banking ecosystem.During the year, the regulatory environment for NBFCs continued to evolve with increased emphasis on governance, risk management, customer protection, digital lending compliance, liquidity management and enhanced disclosures.

3. Business Overview

Mantra Capital Limited, formerly known as Savani Financials Limited, commenced active lending operations in September 2024 and has focused on building a scalable, governance-oriented and technology-enabled lending platform.

The Company currently focuses on two core business segments:

1. Small Business Loans to micro and small enterprises in emerging markets; and

2. Financing of Electric Vehicles, particularly passenger and cargo three-wheelers and small commercial vehicles deployed for productive commercial use.

The Companys business strategy is centred around productive-purpose lending, disciplined credit underwriting, financial inclusion, customer-centric operations and long-term portfolio quality.

4. Operational and Financial Performance

During Financial Year 2025-2026, the Company recorded strong operational growth and continued expansion of its lending operations.

The Assets Linder Management crossed ^100 crore during the year and stood at approximately ^110 crore as on March 31, 2026. The Company also expanded its branch network bringing the total number of branches to 20 during the year, thereby strengthening its presence in emerging markets.

The Company continued to invest in credit, collections, risk management, customer servicing, technology, compliance and operational processes.

During February-March 2026, the Company initiated the process for a preferential issue of equity shares and warrants aggregating approximately ^18.65 crore, subject to applicable approvals and regulatory compliance. The proposed capital infusion is intended to strengthen the Companys capital base and support future business growth.

Given that the Company remains in the early stages of active operations and expansion, the financial results for the year reflect significant upfront investments towards branch expansion, technology infrastructure, manpower, operational systems, underwriting capabilities and governance frameworks. Accordingly, the Company has not reported profits for Financial Year 2025-2026.

5. Loan Portfolio and Asset Quality

As on March 31, 2026, the Companys total loan portfolio stood at approximately ^110 crore. The portfolio composition was as follows:

1. Secured Green Loans to passenger and cargo three-wheelers, for productive commercial use. - 53.54%

2. Secured Business Loans to under served MSMEs, supporting business growth and other productive commercial purposes. - 46.46%

The Company has implemented structured credit appraisal mechanisms, portfolio monitoring systems, early warning processes, collection monitoring frameworks and borrower engagement practices. The Management remains focused on maintaining portfolio discipline, improving collections efficiency and ensuring prudent risk management as the loan book scales.

6. Funding, Capitalization and Liquidity

During the year, the Company raised debt through the issuance of Non-Convertible Debentures and borrowings from financial institutions and other NBFCs. It also initiated the process of strengthening its capital base through a preferential issue of equity shares.

The Company remains adequately capitalized for its current scale of operations and planned near-term business growth. The Company is actively engaged in discussions with banks, financial institutions and debt market participants to diversify and strengthen its borrowing profile during Financial Year 2026-2027.

The Company is also evaluating various options for raising additional growth capital, including equity and equity-linked instruments, subject to applicable approvals and regulatory requirements.

Liquidity management remains a key focus area. The Company has implemented Asset Liability Management systems and liquidity monitoring mechanisms to ensure prudent management of funding requirements and regulatory compliance.

7. Technology and Digital Infrastructure

The Company recognizes technology as a key enabler for operational scalability, risk management, customer experience and governance. During the year, the Company continued to invest in technology and operational infrastructure across loan origination, underwriting, collections monitoring, customer servicing, compliance management and management information systems.

The Companys technology initiatives are focused on improving operational efficiency, enhancing control frameworks, reducing manual dependency and building scalable systems capable of supporting future growth.

The Company also remains focused on strengthening information security practices, data governance standards and cybersecurity preparedness in line with evolving regulatory expectations applicable to NBFCs.

8. ESG and Responsible Lending Orientation

The Company remains committed to building a responsible and sustainable lending institution with a long-term focus on financial inclusion, productive-purpose financing and responsible credit deployment.The Companys business model is aligned towards supporting underserved and emerging borrower segments, including micro and small businesses, self-employed individuals, first-generation entrepreneurs and commercial mobility operators in Tier 2 and Tier 3 markets.

A significant portion of the Companys lending activities is directed towards productive economic assets and income-generating activities, including financing for electric mobility solutions and small business enterprises.

The Company believes that responsible lending practices, prudent underwriting standards, customer engagement and transparent business conduct are essential for long-term sustainability and stakeholder trust.

9. Risk Management

The Company recognizes risk management as an integral component of sustainable business operations.

Key risks identified by the Company include credit risk, operational risk, liquidity risk, regulatory and compliance risk, technology and cybersecurity risk, and human resource and execution risk.

The Company has implemented a risk management framework commensurate with the current scale and nature of its operations. Risk oversight mechanisms include defined credit and operational policies, delegation frameworks, internal monitoring systems, periodic management reviews and independent control processes.

The Company continues to strengthen its governance, compliance and risk oversight architecture in line with the evolving regulatory framework applicable to listed NBFCs.

10. Opportunities and Challenges

The Company believes that significant long-term opportunities exist in the segments and geographies in which it operates.

Key opportunities include growing demand for formal credit in Tier 2 and Tier 3 markets, increasing entrepreneurial activity among self-employed and microenterprise segments, expansion of commercial EV adoption, rising preference for organised lending institutions over informal financing channels, and increasing digital adoption among underserved borrower segments.

The Company also recognises the challenges associated with operating in a competitive and evolving financial services environment. These include maintaining asset quality during portfolio expansion, competitive pressure on yields and operating margins, rising compliance and regulatory expectations, operational scalability, funding costs and liquidity management.

Notwithstanding these challenges, the Company remains focused on calibrated growth, operational discipline, strong governance practices and long-term sustainability.

11. Outlook for Financial Year 2026-2027

With the foundational operational infrastructure now substantially established, the Company expects Financial Year 2026-2027 to represent the next phase of calibrated business growth.

The Companys key strategic priorities for the forthcoming year include expansion of the loan portfolio while maintaining asset quality discipline, strengthening branch productivity and sourcing capabilities, enhancing collections efficiency, building deeper relationships with lenders and institutional funding partners, continued investment in technology and governance, and strengthening internal controls and risk management systems.

The Management remains cautiously optimistic regarding the long-term growth potential of the business and remains committed to building a sustainable, governance-oriented and customer-focused financial institution.

12. Internal Controls and Their Adequacy

The Company has established internal control systems commensurate with the size and nature of its operations.

The internal control framework is designed to ensure orderly and efficient conduct of business, safeguarding of assets, accuracy and reliability of financial reporting, compliance with applicable laws and regulations, and adherence to internal policies and procedures.

Key operational functions including credit appraisal, disbursement, collections, accounting, treasury and compliance operate within defined control frameworks and delegated authority structures.

The Company also maintains an internal audit mechanism and periodic review processes to evaluate the adequacy and effectiveness of internal controls and identify areas for improvement.

The Management believes that the current internal control systems are adequate for the present scale of operations and are being continuously strengthened in line with business growth and regulatory expectations.

13. Human Resources

The Company considers its human capital to be one of its most important assets and continues to focus on building a professional, performance-oriented and customer-centric organisational culture. As on March 31, 2026, the Company had strengthened its workforce through the onboarding of experienced professionals and domain specialists across business operations, credit, collections, risk management, finance, compliance and technology.

The Company continues to invest in employee training and capability development through structured learning initiatives focused on product knowledge, regulatory compliance, credit and risk practices, customer service, operational controls and technology adoption.

The Company remains committed to fostering a culture of professionalism, accountability, compliance and responsible business conduct.

14. Financial Performance with Respect to Operational Performance

he Company commenced full-scale lending operations during Financial Year 2024- 2025. Accordingly, the financial performance for Financial Year 2025-2026 represents the initial phase of business operations and portfolio creation.

Given the relatively early stage of business expansion, financial metrics and ratios for the year may not yet be fully reflective of the Companys long-term operational performance or steady-state profitability.

As the business matures and the portfolio seasons over subsequent years, the Company expects financial performance indicators to become more representative of the underlying operating model and business strategy.

15. Governance and Compliance

The Company remains committed to maintaining high standards of corporate governance, regulatory compliance, transparency and ethical business conduct.

The Board of Directors and Management continue to focus on strengthening governance processes, compliance frameworks, risk oversight mechanisms and internal control systems in line with the requirements applicable to listed NBFCs. The Company continues to align its operational and governance practices with evolving regulatory expectations issued by the RBI, SEBI and other applicable authorities.

16. Conclusion

Financial Year 2025-2026 marks an important foundational year for Mantra Capital Limited as the Company continued the process of building a scalable, governance- oriented and customer-focused lending institution.

During the year, the Company established and strengthened its branch network, operational infrastructure, technology systems, governance architecture, compliance framework, risk management processes and lending operations.

While the Company continues to operate in a competitive and regulated industry environment, the Management remains encouraged by the long-term growth potential of underserved credit markets, increasing demand for productive-purpose lending, opportunities in commercial EV financing, continued formalisation of the economy and the Companys differentiated operating approach.

Going forward, the Company remains focused on responsible and sustainable growth, portfolio quality, collections discipline, technology-enabled operations, strong governance and compliance standards, and creation of long-term value for all stakeholders.

The Management remains committed to prudent business practices, transparent disclosures and responsible execution as the Company continues its growth journey.

17. Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations, projections, estimates and outlook may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including changes in economic conditions, government policies, regulatory developments, interest rates, liquidity conditions, competitive pressures, technological changes and other risks and uncertainties beyond the Companys control.

The macroeconomic and industry-related information included in this report has been obtained from publicly available sources believed to be reliable. However, the Company has not independently verified such information and does not make any representation regarding its accuracy or completeness.

This discussion should be read in conjunction with the Companys financial statements and the notes forming part of the Annual Report.