Global Economic Overview
The global economy is expected to experience moderated growth in CY 2026, influenced by geopolitical developments, energy market volatility and persistent trade-related uncertainties. The escalation of tensions in the Middle East during CY 2025, including disruptions around critical energy routes such as the Strait of Hormuz in early CY 2026, contributed to volatility in energy markets and affected global trade flows and supply-chain conditions. As a key transit route for global energy shipments, developments around the Strait of Hormuz added pressure to commodity markets and temporarily interrupted the broader disinflationary trend.
Beyond energy markets, increasing geo-economic fragmentation, trade restrictions and policy uncertainty continue to weigh on productivity and investment decisions across regions. Growth trajectories remain uneven, with advanced economies facing slower expansion while emerging markets continue to navigate tighter global financial conditions, currency pressures and external vulnerabilities. However, easing labour-market pressures and sustained investments in technology are expected to support global economic activity.
2025-26
REAL GDP GROWTH (% ANNUAL CHANGE)
| Region | CY 2025 (Actual) | CY 2026 (Projected) | CY 2027 (Projected) |
| World Output | 3.4 | 3.1 | 3.2 |
| Advanced Economies | 1.9 | 1.8 | 1.7 |
| Emerging Market and Developing Economies | 4.4 | 3.9 | 4.2 |
Global inflation remained impacted by supply-side disruptions, with energy price volatility delaying the pace of disinflation. The effect was more pronounced in commodity-importing economies, where higher input costs and currency movements added to price pressures. While services inflation remains relatively persistent in advanced economies, inflation is expected to gradually moderate as supply conditions stabilise and monetary policy transmission continues.
INFLATION OUTLOOK
| Segment | Inflation |
| Global Headline Inflation | 4.4% |
| Advanced Economies | 2.8% |
| Emerging Market and Developing Economies | 5.5% |
Monetary policy conditions are expected to remain divergent across regions. The US Federal Reserve is expected to pursue gradual rate reductions, while parts of Europe may maintain a more restrictive stance through CY 2026. For emerging markets, tighter global financial conditions, a stronger USD and shifts in capital flows remain important considerations for domestic policy frameworks and investment activity.
Fiscal and financial risks remain elevated as economies balance growth priorities with debt sustainability. Higher public debt levels and fiscal deficits across several major economies continue to exert pressure on long-term interest rates. Sovereign-risk repricing and leverage within non-bank financial institutions remain potential channels through which fiscal stress could influence broader financial stability. Despite these risks, continued policy coordination, resilient investment activity and efforts to strengthen economic frameworks are expected to support global stability over the longer term.
Indian Economic Overview
India continued to remain one of the fastest-growing major economies, supported by resilient domestic demand, sustained investment activity and improving macroeconomic fundamentals. Real GDP growth stood at 7.7% in FY 2025-26, reflecting the strength of domestic consumption and capital formation despite a challenging global environment marked by geopolitical uncertainties and evolving trade dynamics.
Domestic consumption and investment remained key contributors to economic activity during FY 2025-26, with Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) recording growth of over 7.5%. This broad-based momentum supported financial market activity and reinforced investor confidence in Indias medium-term growth prospects.
The inflation environment remained favourable, providing greater flexibility for monetary policy. Retail inflation moderated during the year before rising to 3.93% in May 2026 as food prices recovered from the deflationary trend witnessed in late 2025. With inflation remaining within the Reserve Bank of Indias target range and core inflation relatively contained, monetary policy continued to balance growth support with price stability. The RBI reduced the policy repo rate by 125 basis points since February 2025 to 5.25%, supporting credit availability and economic activity. Meanwhile, core inflation remained contained at 3.7%, despite the gradual re-emergence of input cost pressures.
Indias investment landscape remained robust, with Foreign Direct Investment (FDI) inflows rising 44% to USD 39.1 billion. The country continued to attract global capital amid shifting supply chains and efforts by businesses to diversify manufacturing and investment locations. Strong financial-sector performance, resilient cross-border investment activity and policy support further strengthened Indias attractiveness as a destination for long-term capital.
Continued structural reforms and sustained infrastructure investments are strengthening Indias medium-term growth prospects, supporting healthy investment momentum. The Union Budget 2026-27 places emphasis on expanding manufacturing across strategic sectors and nurturing champion MSMEs to accelerate industrial development. Trade agreements with key global partners, including the EU and US, along with initiatives to attract capital inflows, are facilitating deeper integration into global value chains and enhancing external sector resilience.
Indias digital ecosystem continued to expand, with technology adoption, artificial intelligence and formalisation trends improving productivity and efficiency across sectors. GST rationalisation and ongoing reforms are expected to support consumption, compliance and revenue growth. While growth expectations for FY 2026-27 moderated to 6.6% amid global uncertainties and monsoon-related risks, Indias strong domestic fundamentals, policy continuity and structural advantages provide a foundation for sustained economic growth.
[Source: Provisional GDP Estimates, June 2026 CPI Press Release, June 2026 RBI Monetary Policy Statement, June 2026 RBI repo-rate Cut, June 2026 Business Standard, Core Inflation Unchanged, June 2026 Economic Times, Indias Real GDP, June 2026]
INDUSTRY OVERVIEW
Indias financial services sector maintained strong momentum during FY 2025-26, supported by healthy credit growth, increasing financialisation and rising participation across investment products. The Financial, Real Estate and Professional Services segment recorded robust growth of 11.2% during the year, reflecting continued expansion across financial intermediation activities. Banking sector fundamentals remained stable, supported by healthy credit growth and improving deposit mobilisation, with credit and deposit growth at 13.8% and 10.8%, respectively, as of March 2026.
[Source: RBI Monetary Policy Report, April 2026 Provisional Estimates of Annual GDP, MoSPI, June 2026]
Mutual Funds
The mutual fund industry continued to play a pivotal role in supporting domestic capital markets, with strong investor participation helped offset foreign portfolio outflows. Systematic Investment Plan (SIP) flows continued to reflect a growing preference for disciplined, long-term investing, with monthly SIP contributions remaining close to ?30,000 Cr during FY 2025-26. As of February 2026, SIP contributions stood at ?29,845 Cr, while SIP assets reached ?16.64 Lakh Cr, underscoring the increasing role of mutual funds in household financial savings. Mutual funds also continued to maintain a significant presence in money markets, supporting liquidity management and market efficiency.
Insurance
Indias insurance sector sustained its growth momentum during FY 2025-26. The life insurance segment recorded 18% growth in new business premiums in February 2026, reflecting rising demand for long-term financial protection products. The non-life insurance segment also recorded nearly 10% growth in February 2026 led by 11.61% growth in general insurers and a 29.81% increase in standalone health insurers, supported by deeper penetration across health and general insurance categories.
[Source: Business Standard - Life insurers NBP rises 18% in Feb 2026]
Investment Banking and Primary Markets
Capital market activity remained robust, supported by strong investor participation and continued access to equity markets, with resource mobilisation through primary equity issuances rising to ?2.3 Lakh Cr in H2 FY 2025-26 (up to February 2026), compared with ?2.0 Lakh Cr in the first half of the year. Primary market mobilisation through IPOs, follow-on public offerings, rights issues and qualified institutional placements provided companies with avenues to raise growth capital. While corporate bond issuances moderated to ?3.3 Lakh Cr amid rising funding costs, domestic capital markets continued to play an important role in supporting business expansion and investment activity.
Wealth Management and Alternative Investments
The wealth management ecosystem continued to deepen, supported by rising financial awareness, increased participation in market-linked investment products and wider adoption of digital investment platforms. Growth in SIP participation, capital market activity and technology-enabled investment solutions is reshaping investor engagement and expanding access to financial products. The increasing adoption of digital platforms, data analytics and artificial intelligence is expected to further enhance efficiency, personalise investment experiences and support the next phase of growth across Indias financial services landscape.
Company Overview
Master Trust Limited (also referred to as mastertrust, or The Company) is a diversified financial services institution with a legacy spanning over four decades, delivering research-led trading, investment and advisory services across equities, derivatives, commodities, and currencies for investors seeking long-term wealth creation. Its model pairs personalised advisory with technology-enabled access, anchored to a stated foundation of trust, integrity and ethical practice.
The Companys digital ecosystem, built around its trading and investment platforms, Angik and SinglePoint, extends client reach and improves transaction efficiency, while client-education initiatives such as StreetXperts work to widen financial awareness and draw new participants into the capital markets. The Companys equity shares have been listed on the National Stock Exchange of India Ltd (NSE) since November 2024.
The Company operates across 22 states through 63 branches and a network of more than 1,380 business partners, serving over 4.33 Lakh registered clients across both established and emerging markets.
Backed by an experienced leadership team and a robust digital ecosystem, mastertrust continues to evolve as a comprehensive financial solutions provider, enabling investors to navigate dynamic markets with confidence and informed decision-making.
For the year ended 31st March, 2026, the Company reported consolidated total income of ?5,758.44 million for FY 2025-26, with a net profit of ?1,260.87 million. Its Return on Equity (ROE) stood at 15.43% and Return on Capital Employed at 27.52%.
Diversified Financial Services Offering (Diagram):
SWOT Table:
Opportunities
| Opportunities | Threats |
| Rising retail participation and financial awareness across India, widening the addressable client base. | Geopolitical and macroeconomic volatility that can compress trading volumes and brokerage income. |
| Merchant Banking Division of mastertrust group was actively engaged in merchant banking business during the year ended March 2026. | Rising delinquencies in unsecured personal and business loans may impact the NBFC lending business. |
| Leveraging Mutual Fund AUM growth, which surpassed ?700 Cr in FY 2025-26. | Measures to curb speculative derivative trading could reduce industry-wide F&O volumes and related brokerage income. |
| Scaling fee-based lines such as wealth management, PMS, merchant banking and advisory to reduce dependence on transaction income. | Operational risk, including client defaults, margin shortfalls and system disruption. |
| — | Competition from digital-first discount brokers and large established institutions, pressuring pricing. |
| — | Evolving regulatory and compliance requirements, raising operating cost and complexity. |
| — | Cybersecurity and technology risk across client-facing digital channels. |
FINANCIAL PERFORMANCE
Consolidated Financial Highlights (? million, unless Otherwise Stated)
| Particulars | FY 2025-26 | FY 2024-25 | Y-o-Y Growth (%) |
| Total Income | 5,758.5 | 5,839.4 | (1.4%) |
| EBITDA | 2,361.7 | 2,430.9 | (2.8%) |
| Profit Before Tax | 1,724.8 | 1,787.2 | (3.5%) |
| Profit After Tax | 1,260.9 | 1,312.4 | (3.9%) |
| EPS - Basic (?) | 10.6 | 11.8 | (10.2%) |
| EPS - Diluted (?) | 10.6 | 11.2 | (5.80%) |
SEGMENT-WISE AND PRODUCT-WISE PERFORMANCE
The segment-wise revenue and performance (on a standalone basis) are described in the Financial Statement under Note No. 32 written as Disclosure as per Ind AS 108 Operating Segments, which is part of Annual Report.
The segment-wise revenue and performance (on a consolidated basis) are described in the Financial Statement under Note No. 34 written as Disclosure as per Ind AS 108 Operating Segments, which is part of Annual Report.
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
The financial performance of the Company for FY 2025-26 is described in the Directors Report under the heading Financial Highlights.
Details of Significant Changes in Key Financial Ratios
On a Consolidated Basis
| Ratios | FY 2025-26 | FY 2024-25 | Variance (%) |
| Operating Profit Margin (%) | 39.08 | 40.07 | (2) |
| Net Profit Margin (%) | 21.90 | 22.47 | (3) |
| Return on Capital Employed (%) | 27.52 | 32.69 | (16) |
| Return on Equity Ratio (%) | 15.43 | 20.56 | (25) |
| Basic Earnings Per Share (? per share) | 10.56 | 11.81 | (11) |
| Debt-Equity Ratio (times) | 0.28 | 0.40 | (30) |
| Trade Receivables Turnover Ratio (times) | 0.84 | 1.24 | (32) |
| Inventory Turnover Ratio (times) | 18.41 | 10.81 | 70 |
| Interest Coverage Ratio (times) | 4.28 | 4.23 | 1 |
| Current Ratio (times) | 1.54 | 1.46 | 5 |
On a Standalone Basis
| Ratios | FY 2025-26 | FY 2024-25 | Variance (%) |
| Capital to Risk-weighted Assets Ratio (CRAR) (%) | 4 | 19 | (79) |
| Tier I CRAR (%) | 4 | 19 | (79) |
| Tier II CRAR (%) | 4 | 19 | (79) |
| Liquidity Coverage Ratio (%) | 2.29 | 2.27 | 1 |
(Note: CRAR figures appear as printed in source; likely represents 4% vs 19%, which is unusual for an NBFC and may be a source typo.)
RISK MANAGEMENT
The Company maintains a structured framework to identify, assess and mitigate the market, operational, regulatory and financial risks arising across its businesses. The Board oversees risk through its Risk Management Committee (which was formed for the purpose of evaluating the overall risks faced by the NBFC as per section 9 of chapter III Part B of Reserve Bank of India (Non-Banking Financial Companies - Governance) Directions), supported by defined policies, internal controls and regular monitoring. Risk management systems are technology-enabled, allowing the Company to track market, counterparty and operational exposures and respond as conditions change, while maintaining regulatory compliance.
| Risk | Risk Description | Risk Mitigation |
| Economic Risk | A slowdown in economic activity, or a prolonged low-volatility market, can reduce investor participation and trading volumes, lowering brokerage and transaction-linked income — the Companys principal revenue base. | A diversified model spanning broking, derivatives, commodities, PMS, wealth management and merchant banking reduces dependence on any single revenue line, while fee-based businesses provide income less directly tied to trading volumes. |
| Regulatory Risk | As a regulated financial intermediary, the Company is subject to extensive and changing requirements across its broking and insurance-distribution businesses. | Dedicated legal and compliance functions monitor and implement requirements of the Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority of India (IRDAI), with compliance reporting to the Board. |
| Market Risk | The Company carries price and market risk on its proprietary trading and inventory positions, which can be affected by sharp movements in equity, commodity and currency markets driven by global and geopolitical developments. | Secondary-market operations are governed by a Risk Management System (RMS) with real-time position limits and continuous margin monitoring, supported by research-led internal views that inform position-taking. |
| Competition Risk | The Company competes against both established full-service firms and digital-first discount brokers, the latter exerting downward pressure on pricing. | The Company differentiates on a research-led, advisory-driven model and a full-service platform, supported by proprietary technology including Agnik and SinglePoint, rather than competing on price alone. |
| Operational Risk | Failures in processes, people or systems across the Companys businesses can disrupt service, settlement and reporting. | Documented process controls and segregation of duties govern day-to-day operations, with an independent internal audit function reviewing business conduct, process integrity and adherence to internal policy. |
| Risk | Risk Description | Risk Mitigation |
| Credit and Counterparty Risk | Client defaults or insufficient margin during trading can expose the Company to financial loss. | A Risk Management System (RMS) enforces position limits with real-time margin monitoring, while Know Your Customer (KYC) and Anti-Money Laundering (AML) checks govern client onboarding and ongoing monitoring. |
| Cyber and Technology Risk | The Companys reliance on digital platforms exposes client data and trading systems to cyber-attack, system failure and data breach. | Information-security controls and access management protect platforms like Agnik. System resilience, robust IT solutions, independent audits, Risk Management Systems (RMS) and board-level oversight safeguard client data and ensure long-term operational integrity. |
| Financial and Data Integrity Risk | Inaccurate or incomplete financial reporting would compromise decision-making and regulatory standing. | An independent internal audit function reviews financial processes and reporting, supported by data-analysis and forensic-audit capability to detect and resolve discrepancies. |
| Capital and Funding Risk | The Company must fund working capital and growth requirements while managing the cost and maturity of its borrowings. | The Company maintains a strong capital base with a 19% CRAR and high liquidity to support its expansion. It prioritises internal accruals and proactively manages borrowing costs and repayment profiles to ensure diversified funding avenues and long-term financial flexibility. |
INTERNAL CONTROL SYSTEMS
The Company maintains an internal control framework commensurate with the size, scale and nature of its operations. As a broking and capital markets intermediary, the Company is exposed to operational, financial, regulatory and technology-related risks, and its control framework is designed to identify and mitigate these, including client-funds segregation, margin and trade surveillance, and information-security controls. The Board of Directors oversees the risk-management architecture and ensures that controls remain consistent with the Companys policies, governance standards and applicable regulatory requirements. The internal audit function operates independently to assess the design and operating effectiveness of these controls, reviewing operational processes, safeguarding the integrity of financial reporting, and verifying adherence to statutory and regulatory obligations.
CAUTIONARY STATEMENT
Certain statements made in this Management Discussion and Analysis may be forward-looking in nature, based on current expectations, projections and assumptions about future events. Factors that could cause such variance include changes in market conditions, regulatory developments, competitive pressures and broader economic conditions. The Company undertakes no obligation to update these statements other than as required by law.
DETAILS OF ACCOUNTING TREATMENT
The accounting treatment is as stated in the Financial Statements and Statutory Auditors Report for the year ended 31st March, 2026 which form part of this Annual Report.
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+91 9892691696
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