Moneyboxx Finance Ltd Management Discussions

GLOBAL ECONOMY

Global growth remained steady at 3.5% in 2025, matching the pace of 2024, supported by Al-led investments, accommodative financial conditions across major economies and a milder-than-expected impact from the US tariff cycle. World trade volume expanded 5.0%, aided by bilateral trade arrangements and exporters advancing shipments ahead of expected tariff measures. The outlook changed in March 2026 following the escalation of the West Asia conflict, which pushed Brent crude prices higher and triggered monthly emerging market portfolio outflows of nearly US$28 billion, among the largest since the pandemic.

Global headline CPI inflation moderated to 4.1% in 2025 from 5.8% in 2024. After reducing policy rates earlier in the year, major central banks largely paused further easing during the first quarter of 2026 to assess renewed energy-driven inflationary pressures, keeping global benchmark yields elevated.

In its July 2026 World Economic Outlook, the IMF revised global growth for 2026 to 3.0%, citing the West Asia conflict, trade

policy uncertainty and elevated public debt across advanced economies. Emerging and Developing Asia is expected to remain the primary driver of global growth at 3.8%, compared with 1.7% for advanced economies and 2.3% for the US. India, with projected growth of 6.4%, is expected to remain the fastest-growing major economy.

For Indias financial sector, the global environment influences performance through three key channels. Higher crude oil prices increase imported inflation and are expected to widen the current account deficit to 2.0% of GDP in 2026 from 0.9% in 2025. Elevated US Treasury yields, alongside the US fiscal deficit projected at 7.5% of GDP in 2026, keep external commercial borrowing costs elevated for Indian financial institutions. At the same time, volatile portfolio flows increase pressure on the rupee, influencing hedging costs and domestic bond market liquidity. For NBFCs focused on domestic funding and lending to semi-urban borrowers, the most significant transmission channel remains higher energy prices and their impact on borrower cash flows and repayment capacity.

Source: IMF World Economic Outlook, April 2026; P = Projection. Figures rounded to one decimal place.

Outlook

The near-term global outlook will largely depend on the trajectory of the West Asia conflict and the pace at which major central banks resume monetary easing. A de-escalation could moderate energy prices, restore the disinflationary trend and support lower global funding costs, while a prolonged conflict may sustain inflationary pressures, delay further rate cuts and keep input costs elevated for energy-dependent sectors. For Indias credit ecosystem, these conditions call for close monitoring of borrowers in transport, logistics and small manufacturing, alongside diversified funding and disciplined credit assessment. NBFCs with secured and diversified loan portfolios, supported by strong on-ground collection capabilities, are expected to be better placed to manage this period of external uncertainty than those with concentrated unsecured exposures.

Sources: IMF World Economic Outlook, April 2026; RBI Bulletin, April 2026 (State of the Economy article); RBI Monetary Policy Report, April 2026.

Indian Economy

India remained the fastest-growing major economy in FY 202526, with real GDP estimated to grow 7.7%, up from 7.1% in the previous year. Growth strengthened from 6.7% in the first quarter to 8.4% in the second before moderating to around 7.3% in the final quarter, supported by resilient consumption and improving investment activity. Despite heightened global uncertainty, Indias domestic demand continued to provide a strong foundation for economic growth and the credit cycle.

Demand remained healthy across both rural and urban markets, supporting the MSME ecosystem. Rural demand benefited from a normal monsoon, healthy reservoir levels, improving agricultural cash flows and positive real rural wage growth during the second half of the year, strengthening repayment capacity across livestock, dairy and agri-allied activities. Urban demand was supported by sustained services-sector activity and the GST rate rationalisation introduced in October 2025, which improved household purchasing power, strengthened cash flows for kirana stores, retailers and small

manufacturers, and encouraged greater formalisation among micro enterprises. Central government capital expenditure grew 14.5% during April to February FY 2025-26, compared with a flat base in the previous year, supporting demand for vehicle, equipment and working capital finance across Tier 3 and Tier 4 towns. Rising GST and Udyam registrations continue to expand the pool of formally verifiable borrowers, increasing the addressable market for structured small-ticket credit.

The inflation environment improved during most of the year, with headline CPI easing to one of its lowest annual levels since the introduction of the current series, supported by lower food inflation following a favourable monsoon. Core inflation remained contained, and fuel inflation stayed moderate until the escalation of the West Asia conflict in March 2026 increased global crude prices and imported cost pressures. The Monetary Policy Committee responded to the favourable inflation trend earlier in the year by reducing the policy repo rate by a cumulative 125 basis points to 5.25% by December 2025, while shifting its stance to neutral in June 2025. The Reserve Bank also reduced the Cash Reserve Ratio by 100 basis points to 3.0%, improving system liquidity and supporting lower funding costs across the credit ecosystem, including NBFCs. Looking ahead, the trajectory of energy prices and the upcoming monsoon, particularly the risk of El Nino, will remain the key determinants of inflation.

India remained the fastest-growing major economy in FY 2025-26, with real GDP estimated to grow 7.7%, up from 7.1% in the previous year.

FY22 FY23 FY24 FY25 (est.) FY26 (est.)

Source: RBI Bulletin, April 2026; RBI Monetary Policy Report, April 2026; Projections based on RBI Monetary Policy Report.

The fiscal and external position remained stable during FY 2025-26.The Central Governments gross fiscal deficit remained within the budgeted trajectory, supported by healthy tax collections. The Union Budget FY 2025-26 retained the fiscal deficit target at 4.4% of GDP while maintaining a strong focus on infrastructure development, MSME credit guarantee expansion and digital public infrastructure. On the external front, Indias foreign exchange reserves stood at US$700.9 billion as on April 10, 2026, providing around 11 months of import cover and covering nearly 90% of total external debt. The current account deficit remained around 1.0% of GDP and is expected to widen modestly during FY 2026-27 as higher energy prices increase the import bill. Overall, fiscal discipline, healthy external buffers and sustained public investment provide the economy with adequate capacity to absorb global uncertainties while supporting domestic growth.

GDP Growth of India (%)

FY23 FY24 FY25 (FRE) FY26 (SAE) FY27 (P)

Source: MoSPI Second Advance Estimate, Feb 2026; RBI Monetary Policy Statement, Apr 2026; IMF World Economic Outlook, April 2026. FRE = First Revised Estimate; SAE = Second Advance Estimate; P = Projection.

Outlook

The Reserve Bank projects real GDP growth of 6.9% and headline CPI inflation of 4.6% for FY 2026-27, with downside risks to growth arising from the West Asia conflict and upside risks to inflation from higher energy and imported input costs. At this pace, India is expected to remain the worlds fastest-growing major economy, continuing its strong structural growth trajectory.

The outlook for the MSME credit segment remains favourable. Rural income is expected to stay supported by an above-normal monsoon forecast and healthy agricultural activity, strengthening repayment capacity across livestock, dairy and agri-allied businesses. Continued government focus on infrastructure, following 14.5% growth in capital expenditure during FY 2025-26, is expected to sustain demand for vehicle, equipment and working capital finance across Tier 3 and Tier 4 markets. In addition, the cumulative 125 basis point policy rate reduction is expected to gradually lower funding costs across the credit ecosystem as monetary transmission improves, supporting NBFC margins. Key monitorables remain crude oil prices, the progress of the monsoon and any El Nino-related disruptions that could affect agricultural output and inflation.

Sources: MoSPI Second Advance Estimate of National Income, Feb 2026; RBI Monetary Policy Statement and Monetary Policy Report, April 2026; RBI Bulletin, April 2026 (State of the Economy); IMF World Economic Outlook, April 2026; Press Information Bureau (Union Budget 2025-26).

Industry Overview

Non-Banking Financial Companies (NBFC) Sector

The NBFC sector further strengthened its role as a complement to the banking system during FY 2024-25 and the first half of FY 2025-26. Aggregate assets increased to Rs. 65.51 lakh crore by end-September 2025 from Rs. 61.09 lakh crore at end-March 2025 and Rs. 51.39 lakh crore a year earlier. Loans and advances grew 19.4% at end-March 2025 and accelerated to 20.5% by end-September 2025, outpacing scheduled commercial banks and increasing the sectors share in total credit to the commercial sector.

Growth remained broad-based across retail and services lending, with NBFCs continuing to address credit demand in segments traditionally under-served by banks. Vehicle finance, gold-backed lending, and MSME lending remained key growth drivers. NBFC lending to MSMEs continued to outpace banks, supported by strong local distribution networks and flexible underwriting capabilities. Within the sector, the Middle Layer recorded credit growth of 12.6% at end-September 2025, while the Upper Layer expanded by 19.8%.

Asset quality remained healthy despite stress in microfinance. The gross NPA ratio improved to 2.14% by December 2025 from 2.9% at end-March 2025, while the net NPA ratio stood at 0.93%. Stress remained concentrated in the microfinance segment, where the GNPA ratio increased to 4.1% from 2.0% a year earlier, while assetfinancing and secured MSME-focused NBFCs continued to report stable portfolio performance.

The sector remained well capitalised and adequately funded. The capital adequacy ratio stood at 25.9% at end-March 2025 and 25.6% by December 2025, comfortably above the regulatory minimum of 15%, while the provision coverage ratio stood at 66.6%. Net interest margin remained healthy at 4.4% and return on assets at 2.7% in December 2025. Funding sources continued to diversify across bank borrowings, non-convertible debentures and securitisation. The restoration of pre-November 2023 risk weights on bank lending to NBFCs from April 2025 further improved access to bank funding and strengthened system liquidity.

Regulatory developments further strengthened the sectors operating framework. During the year, the Reserve Bank continued the implementation of the Scale-Based Regulation framework, issued final co-lending guidelines for banks and NBFCs, and introduced draft directions on lending against gold collateral, non-fund-based credit facilities and the Key Facts Statement.These measures strengthened governance, transparency and risk management, supporting the sectors long-term stability.

Sources: RBI Bulletin, April 2026 (State of the Economy article); RBI Monetary Policy Report, April 2026.

Outlook

The NBFC sector is expected to sustain credit growth of 17-19% during FY 2026-27, supported by improved access to bank funding following the April 2025 risk weight restoration, regulatory clarity under the Scale-Based Regulation framework and the continued under-penetration of formal credit across rural and semi-urban India.

The outlook for secured and MSME-focused NBFCs remains favourable. Indias Rs. 103 trillion MSME credit gap, with formal lenders meeting only 25% of total credit demand, provides significant headroom for growth. The ongoing shift towards secured lending is expected to improve portfolio quality and earnings stability, while greater access to bank funding, an active non-convertible debenture market and expanding co-lending partnerships should support loan book growth and funding efficiency.

The microfinance segment is expected to remain under watch as it continues to recover from the FY 2024-25 stress cycle. However, the impact on secured and MSME-focused NBFCs is expected to remain limited, given their lower exposure to unsecured microfinance lending.

Bank Credit and NBFC Credit Growth (%)

(Source: RBI Report on Trend and Progress of Banking in India 2024-25,

Chapter VI,Tables VI.3,VI.4,VI.5 and Chart VI.2)

Demand Drivers

- Consumption financing momentum: NBFC loan books expanded 19-20% YoY during FY 2025-26, supported by healthy demand for consumer durables, two-wheelers, passenger vehicles and gold loans. Total NBFC assets reached Rs. 65.51 trillion at end-September 2025, with retail loans of approximately Rs. 18.4 trillion. Two-wheeler production increased 22% YoY in March 2026, reflecting healthy rural and semi-urban consumption, the Companys core operating markets.

- MSME credit expansion: MSMEs continue to be the principal growth driver for specialised NBFCs. Outstanding MSME credit reached Rs. 30.5 trillion at the end of FY 2024-25, and is expected to grow at 17-19% annually, reaching around Rs. 42 trillion by FY 2026-27. NBFCs accounted for around 10% of total MSME credit at end-March 2025 and have increased their share of small-ticket MSME loans (below Rs.10 lakh) from 6% to 16% over the past five years. The enhancement of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) credit guarantee limit to Rs. 20 lakh in the FY 2025-26 Budget further supports the Companys core lending segment.

- Agri-allied and rural credit recovery: A normal monsoon, healthy reservoir levels, improving agricultural prices and positive rural wage growth during H2 FY 2025-26 strengthened cash flows across dairy, livestock and agri-allied businesses.The October 2025 GST rate rationalisation and sustained rural infrastructure spending further supported repayment capacity and demand for small-ticket business credit across semi-urban and rural markets.

- Digital infrastructure and borrower formalisation:

Udyam registrations crossed 5.7 crore, expanding the pool of formally verifiable micro enterprises. The Account Aggregator framework, Video KYC and the JAM (Jan Dhan, Aadhaar and Mobile) ecosystem have improved underwriting, reduced onboarding costs and strengthened digital loan servicing and repayments.The RBIs Digital Lending Directions issued in May 2025 provide a clear regulatory framework for technology- enabled lending.

Opportunities and Threats

Opportunities

- Tailored solutions for under-served segments:

Specialised NBFCs continue to address credit gaps across microfinance, consumer durables, vehicle finance and small-ticket business loans, where conventional bank products remain less suitable. Of Indias 63 million MSMEs, around 97% are micro enterprises with turnover below Rs. 50 lakh, while formal lenders meet only 25% of the total Rs. 138 trillion MSME credit demand (CRISIL MI&A). The Companys focus on Rs. 3-25 lakh secured business loans (with Secured ATS reaching Rs. 6.1 lakhs in Q4 FY 2025-26) directly addresses this structural opportunity.

- Retail credit expansion: Retail credit demand across MSME, consumer and vehicle finance continues to outpace banks. NBFC loan books grew 19.4% during FY 2024-25 compared with 14.5% for banks, while NBFCs accounted for 52.1% of the vehicle finance market at end-March 2025. Total systemic credit is projected to reach Rs. 308 trillion by FY 2026-27, with retail credits share increasing from 36% to 39%, creating a favourable growth environment for specialised lenders.

- Untapped MSME credit gap: Indias MSME credit gap is estimated at Rs. 103 trillion, representing around 75% of the total Rs. 138 trillion credit demand, of which Rs. 32.5 trillion is immediately addressable by formal financial institutions.

Strong branch networks, local underwriting capabilities and Al-enabled credit assessment position NBFCs to serve this under-penetrated market. Secured business loans recorded a 55% CAGR between FY 2018-19 and FY 2023-24, highlighting sustained demand for secured small-ticket credit.

- Strategic partnerships: Bank-NBFC co-lending arrangements, fintech collaborations and development finance institution (DFI) partnerships are expanding distribution while improving funding efficiency. The RBIs revised Co-Lending Directions issued in August 2025 provide a stronger framework for priority sector lending partnerships, with co-lending expected to gain further traction during FY 2026-27.

- Digital lending and AI-enabled underwriting: Video KYC, the Account Aggregator framework and Al-based credit assessment continue to improve underwriting efficiency, reduce turnaround time and lower customer acquisition costs. Around 88% of Indias new-to-credit borrowers access their first formal loan through an NBFC (TransUnion CIBIL via CRISIL MI&A), highlighting the sectors strong reach among first-time borrowers. The RBIs Digital Lending Directions issued in May 2025 further strengthen the regulatory framework for technology- enabled lending.

Threats

- Credit, market and liquidity risks: Geopolitical tensions in West Asia, oil price volatility and the IMFs projected 2.0% current account deficit for FY 202627 could increase borrower defaults and funding costs for NBFCs. Higher energy prices may also pressure borrowers in transport, agri-allied and small manufacturing sectors. Diversified funding, conservative underwriting, active liquidity management and a sector CRAR of 25.9%, well above the regulatory minimum of 15%, provide important safeguards.

- Funding access: Elevated system credit-to-deposit ratios continue to constrain the availability and cost of bank funding. Bank borrowings and debentures accounted for 72.9% of total NBFC borrowings at end-September 2025, making funding diversification across NCDs, securitisation, ECBs and Tier II instruments increasingly important. The Companys Rs. 271 crore NCD outstanding as of end- December 2025 reflects this diversified funding approach.

- Policy and regulatory changes: Ongoing regulatory developments, including digital lending guidelines, gold lending directions, microfinance guardrails and changes

in risk weights, may increase compliance costs and affect growth across specific lending segments. The RBIs Scale-Based Regulation framework and revised colending guidelines continue to strengthen governance, transparency and risk management across the sector.

Macroeconomic and interest rate uncertainty: The

IMFs projected global inflation of 4.4% for FY 2026-27 and higher energy prices continue to pose upside risks to domestic interest rates. While the RBIs cumulative 125 basis point policy rate reduction supports lower funding costs, transmission is expected to remain gradual as deposit growth catches up with credit demand.

Competitive intensity: Banks continue to expand their presence in MSME and gold loan financing, with MSME credit growing 27.5% YoY as of February 2026 and gold loan portfolios increasing 121% YoY during FY 2024-25. Fintech lenders are also strengthening their presence in unsecured lending. Specialised NBFCs continue to differentiate themselves through customer proximity, faster turnaround, product customisation and local underwriting capabilities, although pricing pressure on secured lending may moderate net interest margins.

Company Overview

Moneyboxx Finance Limited (Moneyboxx or the Company) is a Base Layer Non-Banking Financial Company (NBFC) focused on addressing the credit requirements of Indias underserved microenterprise segment.The Company remains committed to advancing financial inclusion by providing accessible, technology-enabled credit solutions to small businesses and entrepreneurs. As of March 31, 2026, it operated a network of 156 branches across 12 states.

The Company provides secured and unsecured business loans ranging from Rs. 1 lakh to Rs. 25 lakh to micro-enterprises across semi-urban and rural India. Its borrowers operate across livestock, kirana stores, retail trading, services and small manufacturing, with financing primarily supporting working capital and business expansion requirements. By extending formal credit to economically productive yet under-served segments, the Company contributes to entrepreneurship, livelihood creation and local economic development. As of March 31, 2026, Assets Under Management (AUM) stood at Rs. 893 crore.

During FY 2025-26, the Company continued its strategic transition towards a stronger and more secured lending franchise.The secured share ofAUM increased to 63% (68% including unsecured exposure backed by guarantees) as of March 2026 from 45% a year earlier, alongside a deliberate shift towards higher-ticket lending within the upper tier of the micro-enterprise segment. These initiatives were aimed at strengthening portfolio quality, reducing credit costs and building a more stable lending portfolio to support sustainable longterm growth.

The Company further strengthened its secured lending strategy by positioning Loan Against Property (LAP) as its primary product, under which loans are extended against the mortgage of self

occupied residential property. During the year, credit policies were aligned with secured lending standards through revised loan-to- value (LTV) norms, enhanced documentation requirements and stronger credit filters.

All loans extended by the Company qualify under the Priority Sector Lending (PSL) framework, reinforcing its role in expanding formal credit access across underserved markets.

Target market & product strategy

- Borrower Focus: The Company offers credit solutions to micro and small enterprises, helping them meet capital requirements for their businesses.

- Market Reach: Moneyboxx serves small businesses in semiurban and rural regions of India, where credit demand remains high but largely unmet by formal lenders. Operations span key markets across northern, central, western and southern states.

- Loan Portfolio: Moneyboxx extends secured and unsecured business loans of 1 lakh to Rs. 25 lakh, with a growing emphasis on secured products. Building on the progress achieved during the year, the Company aims to take the secured share ofAUM to around 80% by March 2027, inclusive of exposure backed by Default Loss Guarantee (DLG) arrangements.

- Customer Acquisition: A direct origination model allows the Company to assess customer needs and repayment capacity closely. This approach builds lasting relationships and encourages repeat borrowing. Since its inception, Moneyboxx has reached over 2,29,000 borrowers, with cumulative disbursements exceeding Rs. 2,240 crore as of March 2026. Measured by the AUM mix, women borrowers accounted for 54%, while 20% were new-to-credit customers.

Addressing financial inclusion gaps in India

Indias financial inclusion has advanced significantly, with bank account penetration rising from 53% in 2014 to 80% by January 2026. Initiatives such as Pradhan Mantri Jan Dhan Yojana (PMJDY), Aadhaar and UPI have driven this progress, creating a strong digital ecosystem that supports automation, AI and data-driven financial services.

UPI is now used by nearly 38% of the rural and semi-urban population, strengthening access to digital finance. This expanding digital infrastructure is improving the delivery of formal credit in underserved markets, enabling Moneyboxx to extend technology- enabled credit solutions more efficiently.

Alignment with priority sector lending norms

Reserve Bank of India guidelines on Priority Sector Lending (PSL) direct banks toward inclusive expansion while supporting the UN Sustainable Development Goals (SDGs). Banks allocate 40% of adjusted net bank credit to priority sectors including these areas: 18% to agriculture (10% for small/marginal farmers), 7.5% to micro-enterprises, and 12% to weaker sections. Moneyboxx works alongside banks and funding partners to advance inclusion. All Company loans satisfy PSL requirements.

Operational Overview

Operations & Business	FY 23	FY 24	FY 25	FY 26
Branches	61	100	163	156
States	6	8	12	12
Gross Disbursements ( crore)	341	665	595	440
Cumulative Disbursements ( crore)	543	1207	1802	2,243
AUM ( crore)	344	730	927	893
% Secured Loan Book	6%	24%	45%	68%*

* includes FLDG

The Company operates a technology-enabled, phygital branch network designed to serve demand for small business loans across semi-urban and rural India. Following expansion in prior years, the Company consolidated its position in FY 2025-26 and focused on secured, higher-quality lending, and worked on measures aimed at improving branch productivity, collection efficiency and portfolio quality. The trajectory of AUM and the changing product mix over recent years are set out below.

AUM Growth and Secured Share (%)

- AUM ( Crore) Secured % of AUM

* includes 5% unsecured AUM backed by First Loss Default Guarantee

Source: Company data, Q4 & FY 2025-26 Investor Presentation.

AUM in crore (left axis); secured share of AUM in per cent (right axis).

The portfolio is well distributed across states, with Madhya Pradesh, Uttar Pradesh and Rajasthan forming the largest markets and the southern states adding to geographic diversity. By customer segment, the Company improved segment diversification with reduction in share of livestock in AUM and broadening the mix toward retail trading, services, kirana and small manufacturing. This regional and sectoral spread reduces concentration risk and supports a more stable and resilient loan book.

AUM by Customer Segment distribution (%)

Key competitive strengths

1. Unique hybrid (Phygital) lending approach

Moneyboxx combines a physical branch network with digital processes to simplify small business lending, reduce documentation requirements and support faster credit assessment through data analytics and automation. During the year, the Company strengthened its technology capabilities with the rollout of Moneyboxx One, its inhouse loan origination system integrating origination, underwriting and disbursement on a single proprietary platform, alongside AI- supported cattle underwriting tool and an in-house collections application. These initiatives reduce vendor dependence, improve operational efficiency and support scalable growth.

Customers continue to be served through the Sikka mobile application for loan servicing, top-up loans and micro-savings. The Company also introduced in-house vendor integration for legal, technical valuation and Risk Containment Unit (RCU) checks, supported by a risk-based credit scoring model for the secured micro-enterprise portfolio, reducing turnaround time and cost per disbursement.

2. Borrower-centric operations Direct engagement

- Gains deep customer insights via in-house sourcing

- Prioritises relationship building over mere product sales

Digital operations

- Handles on boarding, credit checks, approvals, payments, collections, reports, and reviews entirely online

- Applies IT solutions for smooth credit processes

Credit evaluation

- Uses alternative financial and non-financial data for solid underwriting

- Examines micro-entrepreneur businesses closely with tailored assessment methods

3. Balanced portfolio across regions and sectors

A wide geographic spread and a focus on essential sectors underpin the strength and stability of the loan book. The progressive shift toward secured products, the move up the credit-quality curve and the reduction in single-segment concentration have together improved the resilience of the portfolio, while the deepening presence in southern markets has enhanced national coverage and diversification.

4. Large market potential

The Rs. 1-25 lakh small business loan segment remains significantly underserved. Backed by a proven operating framework, a maturing branch network and strengthened underwriting, Moneyboxx is well positioned to scale its secured AUM and extend its reach over the medium term.

5. Expanding credit reach

By financing income-generating activity for a large and growing base of micro-entrepreneurs, including a substantial share of women and new-to-credit borrowers, the Company continues to widen access to formal credit in under-served markets. Its lending remains fully eligible for priority sector classification, reinforcing its role as a partner to banks and other institutions in advancing financial inclusion.

6. Support measures beyond loans

Moneyboxx adds value through non-financial programmes. Full-time veterinarians at branches offer free advice on cattle health, feeding, and breeding to livestock clients, lifting milk yields. The Company supplies and tends fruit trees at no charge to farm borrowers, funded by CSR ties and its own resources. By March 2026, over 16,000 fruit-bearing trees had been planted, more than 1,18,000 free veterinary consultations had been provided, and over 6,75,000 free cattle diagnoses had been carried out. These initiatives aim to raise borrower incomes and support environmental and food-security outcomes over the long term.

Operating Performance

Particulars	FY 2024-25	FY 2025-26
Branches	163	156
Active Customers	62,385	50,106
Employees	2,003	1,830
Business ( crore)
Disbursements during the year	595	440
AUM as of March 31	927	893
Fund Raise ( crore)
Equity Capital raised during the year	91.8	33.44
Debt raised during the year	489.0	402.4
Capital Position ( crore)
Equity	261	296
Debt	636	664

As of March 31,2026, Equity rose by 13% YoY and Debt increased by 5%. Financial Performance

Profitability ( crore)	FY 2024-25	FY 2025-26	%YoY
Total Income	199.2	232.1	17%
Finance Cost	63.3	83.6	32%
Net total income	135.9	148.5	9%
Operating expenses	104.8	115.8	10%
Pre-impairment operating profit	31.1	32.7	5%
Impairment on financial instruments	28.1	31.1	11%
Profit before tax (PBT)	3	1.7
Profit after tax (PAT)	1.2	1.3	7%
Profitability ratios (%)
Net total income (% of average AUM)	16.60%	16.4%
Operating expenses (% of average AUM)	12.80%	12.8%
Pre-impairment profits (% of average AUM)	3.80%	3.59%
Impairments (% of average AUM)	3.40%	3.4%
ROA (PAT / average assets)	0.2%	0.1%
ROE (PAT / average equity)	0.6%	0.5%

Operational growth highlights

FY 2025-26 was a year of consolidation and qualitative strengthening for Moneyboxx. Assets under management (AUM) moderated by 4% to Rs. 893 crore as of March 31,2026, as the Company prioritised secured, higher-quality lending over volume growth. The branch network was streamlined from 163 to 156 branches across 12 states, with a focus on secured lending and improving productivity, while recently added branches continue to offer meaningful growth potential as they mature.

The strategic shift towards secured lending and stronger borrower profiles, supported by intensified collection efforts, resulted in a

significant improvement in asset quality. The on-book Gross NPA ratio more than halved to 3.59% as of March 2026 from 6.61% a year earlier, aided by an asset reconstruction transactions and sustained recoveries, providing a stronger foundation for future growth.

Product performance and market positioning

Within its micro-enterprise lending in semi-urban and rural markets, the product mix shifted decisively toward higher-ticket secured loans during the year, with the average secured ticket size at around Rs. 6.1 lakh in the fourth quarter. These loans meet essential capital needs and enable business owners to pursue growth, consistent with the Companys aim of becoming the preferred financier for creditworthy micro-entrepreneurs.

Consistent with this, the share of disbursements to customers with bureau scores above 650 and the proportion of higher-ticket loans both rose during the year, while reliance on new-to-credit and lower-score borrowers declined. This improvement in the underlying customer profile is central to the Companys strategy of building a stronger and lower-risk loan book.

Financial outcomes and expense patterns

Total income rose by 17% over the year, while net total income after deducting finance costs increased by 9%, supported by underlying 13% growth in average AUM. Operating expenses grew by a more measured 10%, reflecting tighter cost discipline alongside the consolidation in operations.

Pre-impairment operating profit improved by 5% to Rs. 32.7 crore. Higher credit costs associated largely with the unsecured portfolio, however, weighed on the bottom-line profitability even as fresh stress formation declined in the financial year.

Net total income (after finance costs) as a percentage of average AUM stood at around 16.4% in FY 2025-26, broadly in line with the prior year as the lower yield on a more secured book was offset by a reduced cost of borrowings. The operating expense ratio held steady at 12.8 % of average AUM, which management expects to reduce as AUM growth resumes, with a stated objective of achieving a sub-10% ratio over the next two years.

Pre-impairment profits as a percentage of average AUM moderated marginally from 3.8% in FY 2024-25 to around 3.6% in FY 202526. Credit costs (impairments) as a percentage of average AUM remained constant at 3.4%. Profitability therefore stayed subdued at the pre-tax level and Return on Equity (ROE) was around 0.4% for FY 2025-26, broadly stable against 0.6% in FY 2024-25.

Asset quality and capital strengthening

Moneyboxx upholds solid asset quality through careful underwriting standards, focus on essential sectors, and growing reliance on secured loans. The Company saw higher delinquency rates and credit costs in the last two financial years, in line with broader industry patterns. Through stronger collection drives, stricter loan approval criteria and focus on secured lending, the management expects improvement in portfolio performance going forward.

Asset Quality	March 31,2025	March 31,2026
Gross NPA Ratio	6.61%	3.59%
Net NPA Ratio	3.42%	1.75%

The increase in delinquencies during FY 2024-25 and FY 2025-26 was in line with the overall stress in unsecured, microfinance and small ticket loans. Following the borrower-level guardrails introduced in July 2024, which capped unsecured microfinance borrowing at Rs. 2 lakh per customer, a large share of these borrowers became ineligible for fresh microfinance loans. The microfinance sectors loan book contracted by about 19% to Rs. 3.59 lakh crore by June 2025 and 30-day-plus delinquency rose from 3.7% in March 2024 to 17.9% by June 2025, with credit costs ranging from about 5% to as high as 22% for microfinance-focused lenders. Against this backdrop, the Companys secured-led model and tighter underwriting contained the impact and supported a faster recovery.

To support recovery, the Company built a dedicated collection vertical of over 300 staff during the year, comprising state and cluster managers, in-house field officers and legal specialists, supported by more than 50 outsourced tele-calling agents. Collections are reinforced by an in-house collections application that enables dynamic allocation of delinquent accounts and integration with early-warning systems, and by an in-house legal team alongside empanelled lawyers that pursues recourse including notices and suits under Section 138 of the Negotiable Instruments Act.

Funding Ratios

Leverage Ratios	31-Mar-25	31-Mar-26
CRAR %	29.25%	29.48%
Tier I CRAR	29.04%	29.35%
Tier II CRAR	0.21%	0.13%
Leverage Ratio (Total Outside Liabilities / Owned Funds)	3.09	3.09
Debt to Equity Ratio	2.42	2.24

Moneyboxx reinforced its balance sheet with a Rs. 33.4 crore equity raise completed in the fourth quarter of FY 2025-26, taking cumulative equity raised since inception past Rs. 300 crore. Net worth advanced from Rs. 260.72 crore as of March 2025 to Rs. 296.23 crore by March 2026. This, together with the consolidation of the book, lowered the debt-to-equity ratio to 2.24 times on March 31, 2026, from 2.42 times a year earlier and strengthened its capital adequacy ratio.

Funding costs continued to decline on the borrowings side, while the lender base remained diversified. During FY 2025-26, Moneyboxx deepened its access to debt capital markets through non-convertible debenture (NCD) issuances, raising Rs. 147 crore in FY 2025-26 following issuance of Rs. 185 crore in the prior year. As of March 31,2026, the Company drew support from 32 active lenders, comprising 11 banks, alongside non-banking financial companies, development institutions, impact funds and debt market partners. The Companys instruments remained in the investment-grade category through the year.

Outlook

The Company enters FY 2026-27 with a healthier and more secured book, a maturing branch network with meaningful productivity headroom, an owned technology platform and a stronger funding profile. Building on the secured-lending target for March 2027, management intends to resume measured growth in assets under management while protecting asset quality, diversify the product mix further, including through newly launched renewable energy loans for micro-enterprises, and lower the operating expense ratio over the medium term. The cost of borrowings is expected to ease further as the funding mix continues to improve, supporting a gradual recovery in profitability.

	31-Mar-24	31-Mar-25	31-Mar-26
Total No. of lenders	32	33	32
Marginal Cost of fund	13.2%	12.3%	11.8%
Total Debt ( crore)	444	636	664
% Debt from banks	30.0%	28.4%	30.5%
% Debt from NCDs	17.9%	34.2%	39.5%
% Debt from Securitisation	11.0%	2.9%	3.3%
% Debt from NBFCs/ FIs/others	41.1%	34.5%	26.7%

Liquidity and asset-liability oversight

Moneyboxx adopts a careful stance on managing liquidity to maintain steady finances. By March 31,2026, cumulative mismatches stayed positive across all time periods, leaving ample coverage for upcoming commitments. The Company raises funds through both fixed-rate and floating-rate options, while extending loans at fixed rates. Regular checks keep lending prices aligned with market shifts, borrowing expenses, and competition offerings.

Human Resources

Moneyboxx regards its employees as central to the Companys achievements and works to build a positive, inclusive work setting. Various measures support staff retention and development, including internal newsletters, performance reviews, feedback collection, skillbuilding sessions, promotion pathways, and team-building events.

Reflecting the years focus on productivity and operating efficiency alongside the transition to a higher-ticket, secured model, the workforce changed from 2,003 employees on March 31,2025, to 1,830 on March 31, 2026. The guiding principle of One Team, One Dream underscores each persons role, irrespective of position.The Company promotes transparency by welcoming diverse viewpoints, experiences, and ideas, helping all staff feel appreciated and included.

For more details on human resources, please refer to the Human Capital chapter on pages 32-35.

Risk Management

Moneyboxx maintains a thorough system to spot and handle operational risks across its activities. In the lending sector, the Company faces credit risk, operational risk, market risk, IT risk, financial risk, compliance risk, and others. Regular reviews identify these challenges, with clear strategies put in place to address them. Credit risk receives close attention through controls at every step, from application to repayment.

Main elements of the framework include:

- Credit assessment practices: Use of alternative and non-financial data alongside sector-specific knowledge to strengthen credit evaluation. During the year, the Company tightened underwriting norms, deployed a decentralised, regionally empowered credit function for higher-ticket secured loans to improve turnaround without diluting quality, and reinforced its Risk Containment Unit and internal audit oversight. Credit policies were realigned to secured-lending market standards during the year, including revised loan-to- value norms, documentation requirements and credit filters, and a risk-based scoring model was introduced to support consistent, collateral-backed underwriting.

- Risk and compliance focus: Builds awareness

throughout operations, matching growth goals with full regulatory adherence.

- Balanced expansion plan: Spread across sectors and areas to limit exposure and support steady performance.

The Risk Management Policy outlines steps for detecting, evaluating, and controlling risks, with proactive oversight. Following scale-based regulations, Moneyboxx established a Risk Management Committee to create, apply, and regularly check the overall risk plan.

mFor more details on human resources, please refer to the Risk Management chapter on pages 24-27.

Internal Control Systems and their Adequacy

Moneyboxx has established strong internal controls and standardised operational procedures to protect assets and improve business efficiency. The Company has put in place thorough internal control measures tailored to its size, operations and complexity. The management regularly monitors controls across different processes and takes corrective actions to address any discrepancies in business activities.The Internal Audit function provides reasonable assurance on the effectiveness of operations, the accuracy of financial records and reports and compliance with relevant laws and regulations.

The Audit Committee conducts a detailed review of the internal control system, incorporating feedback from both external and internal auditors.

Cautionary Statement

Certain statements in this document regarding anticipated future developments, financial performance, and operating outcomes for Moneyboxx Limited qualify as forward-looking in nature. These statements depend on various assumptions made by the Company about market conditions, economic trends, and internal capabilities. However, forward-looking projections always carry inherent risks and uncertainties that could alter expected outcomes.

A significant possibility exists that the underlying assumptions, forecasts, and forward-looking declarations will not materialise as projected. External factors, regulatory changes, competitive pressures, or unforeseen events may lead to substantial differences between anticipated results and actual achievements. Readers should avoid placing excessive weight on these forward-looking statements. Multiple variables could cause real future performance and events to deviate markedly from what appears in such statements.