My Mudra Fincorp Ltd Management Discussions

GLOBAL ECONOMIC OUTLOOK

The global economy remained resilient in FY2026 despite geopolitical conflicts, trade uncertainties and inflationary pressures. According to the IMF World Economic Outlook (July 2026), global GDP growth is projected at 3.0% in 2026, improving to 3.4% in 2027 supported by accelerating investments in Artificial Intelligence (AI), easing financial conditions and , continued digital transformation across industries. However, geopolitical tensions in the Middle East, trade fragmentation and commodity price volatility continue to pose downside risks to global growth.

The IMF expects global headline inflation to increase to 4.7% in 2026 before moderating to 3.9% in 2027, while policymakers remain focused on balancing inflation control with economic growth. Technology-driven investments, supply chain and increasing AI adoption are expected to remain the primary drivers of medium-term economic expansion.

Source: International Monetary Fund (IMF), World Economic Outlook Update July 2026

INDIAN ECONOMIC OUTLOOK

India continued to outperform major global economies during FY2026, supported by robust domestic consumption, public infrastructure spending, rising private investments and sustained growth across manufacturing and services. According to KPMGs Decoding the Indian Economy FY2026, Indias economy is projected to grow by 7.6%, supported by policy reforms, digitalisation and increasing formalisation of the economy.

The country witnessed improving macroeconomic indicators during the year, including 21.7% YoY growth in FDI equity inflows , 17.7% growth in services trade surplus, 5.8% growth in exports, and 2.1% projected retail inflation . Services contributed approximately 53% of Indias Gross Value Added (GVA), highlighting the increasing importance of technology-enabled service businesses within the economy. India also continued to strengthen its global competitiveness through expanding FTAs, digital public infrastructure, AI adoption and government support for MSMEs and startups.

India at a Glance

Indicator	FY26
GDP Growth	7.6%
Retail Inflation	2.1%
FDI Equity Inflow Growth	21.7%
Export Growth	5.8%
Services Trade Surplus Growth	17.7%
Services Share in GVA	53%

Source: KPMG - Decoding the Indian Economy FY2026

INDUSTRY OVERVIEW

Indias Banking, Financial Services and Insurance (BFSI) sector continues to be one of the key pillars of economic growth, supported by rapid digitalisation, increasing financial inclusion and rising credit demand. Strong policy initiatives, widespread smartphone penetration and digital public infrastructure have significantly transformed the delivery of financial services, creating opportunities for technology-enabled financial distribution platforms.

India has emerged as one of the worlds largest digital financial ecosystems. According to IBEF, the country processed over 185 billion UPI transactions during FY2025-26 reflecting continued growth in digital payments and customer adoption. , Digital banking, paperless onboarding and AI-enabled financial services are reshaping customer engagement across lending, insurance and wealth management.

The Indian banking system continues to witness healthy credit growth, driven by retail lending, MSME financing and affordable housing. Government initiatives such as PM Jan Dhan Yojana, Account Aggregator Framework, OCEN, Unified

Lending Interface (ULI) and Digital Public Infrastructure are expanding formal credit access while reducing turnaround time for loan processing.

India also remains among the worlds fastest-growing fintech markets. According to IBEF, Indias market is estimated at approximately US$111 billion and is expected to reach around US$421 billion by 2029, driven by digital lending, embedded finance, payments, wealth-tech, insurtech and AI-led financial services.

Global fintech trends further indicate increasing adoption of embedded finance, AI-powered customer servicing and full-stack financial platforms, which are expected to redefine financial distribution over the coming years.

Key Industry Statistics

Particulars	Latest Position
Indias Fintech Market	US$111 Billion
Expected Market Size by 2029	US$421 Billion
UPI Transactions (FY26)	185+ Billion
Banking Assets (India)	US$3.5+ Trillion (IBEF)
Bank Accounts under PMJDY	55+ Crore
Account Aggregator Ecosystem	Rapidly expanding

Key Growth Drivers

Driver	Industry Impact
Digital Lending	Faster loan sourcing and approvals
Financial Inclusion	Expands formal credit access across India
AI & Automation	Improves underwriting and customer experience
Embedded Finance	Creates cross-selling opportunities
Digital Payments	Higher customer acquisition and engagement
Government Digital Infrastructure	Accelerates paperless financial services

COMPANY OVERVIEW

My Mudra Fincorp Limited ("the Company" or "My Mudra") is one of Indias leading phygital, fintech-enabled financial distribution platforms, connecting borrowers with a wide network of banks, NBFCs, insurance providers and investment partners through a single, technology-driven ecosystem. The Company does not operate as a lender; instead, it functions as a distribution and sourcing platform that bridges customer demand for financial products with the offerings of its institutional partners. This asset-light model enables the Company to scale operations without assuming direct credit risk, while generating commission-based revenue across the customer lifecycle.

Established in 2013 and listed on the NSE Emerge platform in September 2024, My Mudra has progressively expanded into a diversified financial distribution business supported by a growing branch network, a large digital referral ecosystem and robust technology infrastructure. The Companys "phygital" approach combines the convenience, speed and transparency of digital channels with the trust and personalised guidance of an on-ground presence, enabling it to serve individuals, professionals and businesses across urban, semi-urban and emerging markets.

The Company offers a comprehensive suite of financial products, including personal loans, business loans, professional loans, home loans, loan against property, MSME loans, credit cards, overdraft loans, solar loans, machinery financing, mutual funds and insurance, sourced in partnership with leading financial institutions. During the year, My Mudra continued to strengthen this platform through deeper technology integrations, an expanding partner network and enhanced customer experience initiatives.

Business at a Glance

- Established in 2013; listed on NSE Emerge in September 2024

- 165+ branches across India, supported by a pan-India operational presence

- 5,000+ digital referral agents extending reach into emerging markets

- 70+ banking and NBFC partners, and 20+ insurance partners

AMFI-certified and IRDA-licensed, enabling investment and insurance distribution

- Technology-enabled phygital platform operating on an asset-light business model

OPERATIONAL PERFORMANCE

During FY2026, My Mudra continued to strengthen its position as a technology-led financial distribution platform, expanding its digital ecosystem, deepening institutional partnerships and broadening its product offerings. The Company remained focused on improving customer experience, enhancing operational efficiency and reinforcing governance and compliance standards, while extending access to formal credit and financial services across the country.

Strengthening the Digital Ecosystem

A key milestone during the year was the successful integration of HDFC Banks digital lending platform with the Companys proprietary technology ecosystem. This integration enables a 100% digital and paperless loan application process, supported by digital onboarding, Aadhaar-based e-sign verification and faster loan processing without the need to visit a branch. With pan-India pincode coverage, the platform now extends digital lending from metropolitan cities to remote locations, strengthening financial inclusion and expanding access to formal credit.

Expanding the Product and Technology Platform

The Company continued to enhance its flagship mobile application, bringing lending, investments, insurance and credit management together on a single platform. Features such as an AI-powered voice assistant, secure digital onboarding, real-time credit-score tracking across all major credit bureaus, instant loan applications and built-in financial-planning tools further improved customer convenience and engagement, reinforcing the Companys technology-enabled ecosystem.

Strengthening Governance and Compliance

The Company successfully completed the CICRA audit, reflecting its continued focus on strengthening governance, information security and operational excellence. The audit reinforces My Mudras commitment to maintaining robust internal controls, secure technology infrastructure and disciplined operational processes, supporting sustainable growth while enhancing stakeholder confidence. During the year, the Company also strengthened its regulatory capabilities through IRDA licensing and AMFI certification, enabling it to broaden its financial-services offerings.

Operational Highlights

- Integrated HDFC Banks digital lending platform, enabling a 100% digital, paperless loan journey with pan-India pincode coverage.

- Successfully completed the CICRA audit, reinforcing governance, data security and internal controls.

Strengthened regulatory positioning through IRDA licensing and AMFI certification.

- Expanded the branch network to 165+ locations and the digital referral ecosystem to 5,000+ agents.

- Continued to diversify the product portfolio across lending, investment and insurance solutions.

Enhanced the mobile application with AI-enabled assistance, real-time credit monitoring and integrated financial-planning tools.

FINANCIAL PERFORMANCE

The Company delivered a strong financial performance during FY2026, reflecting the scalability of its asset-light distribution model, wider market penetration and increased traction across its diversified product portfolio. Revenue from operations grew by 46.01% to 11,734.18 Lakhs, compared with 8,036.52 Lakhs in the previous year, driven by higher business volumes, an expanding partner network and deeper technology integration.

Operating performance improved in line with the growth in scale, with EBITDA rising by 37.56% to 1,903.11 Lakhs and profit before tax increasing by 32.61% to 1,606.36 Lakhs. Profit after tax grew by 33.22% to 1,200.33 Lakhs, translating into a net profit margin of 10.23%. The moderation in margins relative to the previous year reflects continued investments in expanding the distribution network, strengthening technology capabilities and scaling operations to support future growth. Earnings per share stood at 10.54, compared with 9.96 in the previous year.

The Company continued to maintain a healthy and conservatively leveraged balance sheet, with shareholders funds increasing to 6,541.58 Lakhs as at March 31, 2026 from 5,341.25 Lakhs in the previous year, supported by accretion of profits to reserves. The financial highlights for the year are summarised below:

Particulars ( in Lakhs)	FY26	FY25	Growth (%)
Revenue from Operations	11,734.18	8,036.52	46.01%
Other Income	45.21	30.53	48.08%
Total Income	11,779.39	8,067.05	46.02%
EBITDA	1,903.11	1,383.43	37.56%
EBITDA Margin (%)	16.22%	17.21%	-
Finance Cost	142.86	87.57	63.14%
Depreciation & Amortisation	153.89	84.52	82.08%
Particulars ( in Lakhs)	FY26	FY25	Growth (%)
Profit Before Tax (PBT)	1,606.36	1,211.34	32.61%
Profit After Tax (PAT)	1,200.33	901.02	33.22%
PAT Margin (%)	10.23%	11.21%	-
Earnings Per Share () - Basic & Diluted	10.54	9.96	5.82%

Figures are derived from the audited standalone financial results for the year ended March 31, 2026. EBITDA represents profit before finance cost, depreciation, amortisation and tax.

Product-wise Revenue Composition

The Companys revenue is derived from the distribution of a diversified portfolio of financial products across its partner network. The product-wise composition of revenue for FY2026, compared with the previous year, is set out below:

Product	FY26 (% of Revenue)	FY25 (% of Revenue)
Business Loan	36%	53%
Personal Loan	34%	39%
Loan Against Property (LAP)	18%	3%
Home Loan	5%	3%
Professional Loan	2%	2%
Insurance	5%	-
Total	100%	100%

Figures represent the approximate share of each product in total distribution revenue. Insurance emerged as a distinct revenue stream during FY2026.

The Companys revenue continues to be anchored by its core lending products, led by business loans and personal loans.

During FY2026, the revenue mix diversified meaningfully, with the share of Loan Against Property increasing to 19% (from 3% in the previous year) and Insurance emerging as a distinct revenue stream. This reflects the Companys strategy of broadening its product portfolio and deepening cross-sell across higher-ticket secured products and protection solutions, thereby reducing dependence on any single product category and strengthening the durability of its revenue base.

KEY FINANCIAL RATIOS

In accordance with the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the details of significant changes (i.e. changes of 25% or more) in key financial ratios during FY2026, along with the reasons for such changes, are set out below:

STANDALONE STATEMENT OF OTHER FINANCIAL RATIO
Sr. No. Ratio	31-Mar-26	31-Mar-25	Changes in Ratio	Reason for more than 25%
1 Current Ratio (No of Times)	3.81	7.26	-47.47%	Increase in Current Liabilities
2 Debt Equity Ratio (No of Times)	0.17	0.07	161.48%	Increase in debt
Debt Service Coverage Ratio (No 3 of Times)	4.05	5.32	-23.79%
4 Return On Equity Ratio (%)	20.20%	25.81%	-21.72%
5 Inventory Turnover Ratio (In Days)	NA	NA	NA
Trade Receivable Turnover Ratio 6 (No of Times)	5.88	5.06	16.19%
Trade Payable Turnover Ratio (No 7 of Times)	79.57	132.53	39.96%	Increase in Sales
Net Capital Turnover Ratio (No Of 8 Times)#	2.90	3.30	-12.02%
9 Net Profit Ratio (%)	10.23%	11.21%	-8.76%
10 Return On Capital Employed (%)	22.71%	22.80%	-0.38%
11Return On Investment/Total As- sets (%)	16.55%	19.64%	-15.72%

The Companys key financial ratios reflect a healthy and well-capitalised financial position. Despite a moderation in the current ratio owing to higher working-capital-linked liabilities taken on to support growth, liquidity remains comfortable. Leverage continues to be conservative, consistent with the asset-light nature of the business, while the improvement in receivables and net capital turnover reflects better working-capital efficiency. Return ratios remained healthy, underpinning the Companys ability to generate sustainable returns on a scalable operating base.

FUTURE OUTLOOK

Indias financial-services landscape continues to evolve rapidly, driven by rising credit aspirations, accelerating digital adoption and an increasing need for accessible, transparent and technology-enabled financial solutions. A large share of borrowers remains new-to-credit and a significant proportion of small and medium enterprises remains underserved, creating a substantial long-term opportunity for platforms that can efficiently connect borrowers with the right financial institutions across geographies.

Against this backdrop, My Mudra is well positioned to capitalise on emerging opportunities through its phygital distribution model, diversified product portfolio and expanding network of banking, NBFC and insurance partners. The Company intends to further strengthen its nationwide distribution network, deepen its digital referral ecosystem and pursue additional technology integrations with lending partners, building on initiatives such as the HDFC Bank digital-platform integration undertaken during the year.

Going forward, the Company will continue to invest in technology, automation and AI-enabled customer journeys to enhance turnaround times and improve customer experience, while expanding cross-sell opportunities across insurance, investment and solar-financing solutions to strengthen customer lifetime value. Combined with disciplined execution and a conservative balance sheet, these initiatives are expected to support predictable, profitable and long-term growth while creating sustainable value for customers, partners and shareholders.

SWOT ANALYSIS Strengths

The Companys core strength lies in its asset-light, technology-enabled phygital distribution model, which enables scalable growth without assuming direct credit risk. A wide network of 70+ banking and NBFC partners and 20+ insurance partners, an extensive branch presence, a large digital referral ecosystem and a diversified product portfolio provide a strong competitive foundation. Deep technology integration, an intuitive mobile platform and a customer-centric approach further reinforce the Companys ability to acquire, serve and retain customers efficiently.

Weaknesses

The Companys revenue is linked to commission-based earnings from partner institutions, making it dependent on the lending appetite, product terms and payout structures of its partners. Continued investments in technology, distribution expansion and brand building remain important to sustain growth, and the Companys scale relative to larger, well-capitalised players in the financial-services distribution space continues to evolve.

Opportunities

Rising credit demand across retail, MSME and professional segments, a large new-to-credit and underserved borrower base, accelerating digital adoption and increasing formalisation of credit present significant long-term growth opportunities. Expanding into adjacent products such as insurance, investments and solar financing, deepening penetration in Tier II, Tier

III and emerging markets, and pursuing further partnerships and API-led integrations offer meaningful avenues for scalable, cross-sell-driven growth.

Threats

The business remains exposed to changes in the regulatory environment, evolving lending norms, intensifying competition from banks, NBFCs and digital-lending platforms, and shifts in partner payout structures. Macroeconomic conditions, interest-rate movements and credit-cycle dynamics may influence lending volumes and, in turn, distribution revenue. Continued innovation, diversification of partners and products, and disciplined execution will be essential to maintaining competitiveness and sustaining long-term growth.

RISK MANAGEMENT

The Company recognises that effective risk management is essential for achieving sustainable growth and creating long-term stakeholder value. It follows a structured approach to identifying, assessing, monitoring and mitigating risks that may impact its business operations, financial performance and strategic objectives. The risk management framework is supported by established policies, internal controls and periodic reviews.

The Company continuously monitors key business, operational, financial, technology and regulatory risks and undertakes appropriate measures to minimise their potential impact. Diversification of business activities, a broad partner network and prudent operational practices help reduce concentration risks and support business continuity.

The Company also places significant emphasis on strengthening its technology infrastructure, information security, data protection and operational processes to ensure efficient and secure business operations. Regulatory and compliance risks are managed through adherence to applicable laws, internal policies and regular monitoring of the evolving regulatory environment.

The Company remains committed to continuously enhancing its risk management practices by strengthening governance, improving operational efficiency and adopting appropriate mitigation measures, enabling it to effectively manage emerging risks while pursuing long-term sustainable growth.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established adequate internal control systems commensurate with the nature, size and complexity of its business operations. These controls are designed to ensure the safeguarding of assets, accuracy and reliability of financial reporting, compliance with applicable laws and regulations, efficient utilisation of resources and adherence to established policies and procedures.

The internal control framework covers key operational, financial, technology and compliance processes, and is supported by clearly defined authority levels, standard operating procedures and regular monitoring mechanisms. Independent internal audits are conducted periodically to evaluate the effectiveness of internal controls, identify process-improvement opportunities and ensure compliance with statutory and regulatory requirements.

The Audit Committee regularly reviews the findings and recommendations of the internal auditors and monitors the implementation of corrective actions wherever required. Based on these reviews, the management believes that the Companys internal control systems are adequate and operating effectively during the year under review.

HUMAN RESOURCES

The Companys employees remain its most valuable asset and play a pivotal role in driving operational excellence and long-term business success. My Mudra is committed to fostering a collaborative, performance-driven and inclusive work environment that encourages continuous learning, innovation and professional development. As on March 31, 2026, the Company had 244+ employees, supported by an extensive network of digital referral partners across the country.

The Company continues to invest in strengthening its human capital through structured recruitment, training, leadership development and skill-enhancement initiatives, while promoting employee engagement, well-being and ethical business practices. The management believes that a motivated and capable workforce, supported by a strong culture and a growing distribution ecosystem, will continue to be a key enabler in achieving the Companys strategic objectives and sustaining long-term growth.

CAUTIONARY STATEMENT

Statements made in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may constitute "forward-looking statements" within the meaning of applicable securities 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, industry dynamics, competitive pressures, interest-rate movements, credit-cycle conditions, changes in partner arrangements, technological changes and other risks beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are advised to exercise appropriate judgement while relying on such statements and should consider the associated risks and uncertainties before making any investment or business decisions.

By order of the Board

For My Mudra Fincorp Limited

Sd/-Date: August 18, 2026 Vaibhav Kulshrestha

Place: New Delhi Chairman & Managing Director

DIN: 06979149