Mathew Easow Research Securities Ltd Management Discussions

GLOBAL ECONOMIC OVERVIEW:

The global economy faces a delicate balance of risks where downside scenarios now firmly dominate. Downside risks, including further geopolitical escalation in West Asia, financial market corrections particularly in AI-driven valuations and persistent inflation could severely disrupt the current stability. Conversely, a sustained easing of trade tensions and tangible productivity gains from AI adoption could support stronger medium term growth. The trajectory for FY 2026 and ahead will therefore depend on how these interconnected forces evolve, determining whether the current stabilisation transitions into renewed expansion or remains constrained by deepening structural and geopolitical headwinds.

India entered FY 2025-26 as one of the worlds fastest-growing major economies and the year reinforced that position. Real GDP is estimated to have expanded at a robust pace of 7.6% in FY 2025-26, as highlighted in the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) review of April 2026, with growth remaining broad-based across consumption, investment and sectoral activity. Private Final Consumption Expenditure expanded contributing the largest share of GDP, reflecting stable urban demand and a gradual recovery in rural consumption. Gross Fixed Capital Formation rose, sustaining investment levels at around 30% of GDP, driven by infrastructure creation, manufacturing expansion and capacity additions. Services remained the primary growth engine, while industrial growth also strengthened, aided by infrastructure activity, construction momentum and improved capacity utilisation.

Looking ahead, India is positioned to transition from cyclical recovery to a phase of more durable, structurally anchored expansion. Domestic demand is likely to remain the principal growth driver, supported by improving income dispersion across urban and rural segments, sustained public investment in infrastructure and a gradual broadening of private capital formation. Economy-wide formalisation, deepening digital integration and policy emphasis on manufacturing competitiveness and MSME development are expected to strengthen productivity and supply-side capabilities. For financial services institutions operating in this environment, the combination of a growing credit-seeking population, improving asset quality and a supportive policy backdrop present a compelling medium-term opportunity.

Indias NBFC sector is on a sustained growth trajectory, with assets under management (AUM) expected to surpass Rs. 50 Lakh Crore in FY 2026-27 excluding government-owned NBFCs, as per CRISIL Ratings. NBFC credit growth has historically outpaced Indias GDP growth and this trend is expected to continue. The AUM growth trajectory reflects both its expanding relevance and demonstrated resilience within Indias financial ecosystem.

For FY 2025-26, the credit growth of NBFCs is estimated at 16.7% year on year, a slight moderation from 18.4% in FY 2024-25. Amid declining interest rates, NBFCs faced intense pricing competition from banks, particularly in housing, auto and MSME loans. However, NBFCs gained significant ground in the consumer durable segment, with their market share surging to 59% in FY 2025-26. While banks remained dominant in wholesale lending, NBFCs leveraged rising disposable income and rate cuts to drive retail expansion.

The near-term outlook remains constructive. For FY 2026-27, momentum is expected to gain further pace in specialised segments like Consumer Durable financing, with NBFC market share projected to reach 63%. Growth trajectories will nonetheless vary across segments, shaped by risk calibration, regulatory oversight and funding access. Balance sheet strength and funding diversification remain the critical differentiators.

JRD Finance Limited (the Company) is a leading, diversified non-deposit-taking non-banking financial company (NBFC). The Company engaged in financing activities and providing lending solutions to individuals, corporates and emerging businesses and enterprises across India. The Company was listed on Metropolitan Stock Exchange of India Limited. The Company operates financing and investment activities.

We deliver loan products designed to address the needs of the persons or corporate customers. The Company provides tailored financial solutions beyond conventional lending, guided by integrity, transparency and responsible practices.

OPPORTUNITIES AND THREATS:

Your Company is committed to addressing the changes boosted by its strengths in market position, agile execution capabilities, robust early warning systems and extensive use of analytics for risk mitigation and resource allocation. It will ensure to take advantage of the tailwinds that may emerge during the course of the year. The stringent RBI and other regulatory norms governing the functioning of NBFC and certain government restrictions acts as hindrance in smooth functioning of NBFC.

SEGMENT WISE / PRODUCT WISE PERFORMANCE:

The Company is engaged in NBFC activities i.e. financing activities and related products and all other activities revolved around the said business activities, hence the requirement of segment-wise reporting is considered irrelevant. Total Revenue from operations during the year is Rs. 335.66 lakhs against Rs. 324.68 Lakhs in FY 2024-25. The Profit before tax was Rs. 10.68 Lakhs as compared to Rs. 12.18 Lakhs in FY 2024-25.

OUTLOOK:

Indias NBFC sector has emerged as a powerful financial inclusion and economic growth driver. Key segments like housing finance, microfinance, and consumer finance have fuelled its impressive expansion. Lower transaction costs, innovative products, quick decision making, customer orientation and prompt service standards have differentiated NBFCs from banks. This growth can be attributed to a rising middle class, supportive Government policies that promote financial inclusion, and a stable macroeconomic environment.

Mathew Easow Research Securities limited being a financing Company seeks opportunities in the market. While interest rate were steady in 2025-26, the same are expected to decline in the FY 2026-27. The volatility in the market represents both an opportunity and challenge for the Company. We continue to see significant growth in this regard and will use periods of weakness as investment opportunities for long term.

HUMAN RESOURCES:

People remain the most valuable asset of your company. Your company continued to build on its capabilities in getting the right talent to support different products and geographies and is taking effective steps to retain talent. A highly evolved Human Resource Policy has ensured a minimal rate of attrition amongst executives.

INTERNAL CONTROL SYSTEM:

Internal Control measures and systems are established to ensure the correctness of the transactions and safe guarding of the assets. The Company has put in place an adequate internal control system to safeguard all assets and ensure operational excellence. The system also meticulously records all transaction details and ensures regulatory compliance.

Your Management has put in place effective Internal Control Systems to provide reasonable assurance for:

Safeguarding Assets and their usage.

Maintenance of Proper Accounting Records and

Adequacy and reliability of the information used for carrying on business operations.

RISKS AND CONCERNS:

The very nature of the Companys business makes it subject to various kinds of risks. The Company encounters credit risk and operational risks in its daily business operations. Further the performance of the Company is dependent on the market condition for its returns. Even though it is envisaged that Indian market will continue to do well, global concerns can result in sharp corrections.

CAUTIONARY STATEMENT:

Statement in the Management Discussion and Analysis and Directors Report describing the companys strengths, strategies, projections and estimates are forward-looking statements and progressive within the meaning of applicable laws and regulations. The actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors.