NDA Securities Ltd Management Discussions

1. Macroeconomic Overview & Industry Structure

The Indian economy showed resilient growth throughout FY 2025-26, driven by robust domestic demand, infrastructural pushes, and structured capital market regulations. The capital markets, particularly retail participation in Equity and Equity Derivatives (Futures & Options), witnessed unprecedented traction, extending deep into Tier 2 and Tier 3 geography.

As a long-standing financial services provider primarily anchored in the northern and central regions of India, NDA Securities Limited operates as a vital intermediary in this ecosystem. The stockbroking industry is undergoing a structural shift characterized by extreme digital migration, zero-brokerage models for delivery trades, and intensive margin-pledge system requirements enforced by SEBI.

2. Business Performance & Strategic Initiatives

During the year under review, your Company actively pursued a strategy focused on broad-basing its retail footprint and future-proofing its technology stack.

Digital Transformation

NDA expanded its technology suite- including the NDA Direct-App and customized XTS trading software platforms-to offer seamless on boarding and lower processing friction for first-time investors.

Corporate Restructuring & Expansion

To diversify operational channels, the Companys wholly-owned subsidiary, NDA Capital Advisors Private Limited, incorporated a step-down subsidiary named A lternative Securities Marketplace in early 2026. This setup aims to tap into specialized market spaces outside conventional retail broking.

Institutional Shift

A significant shift in management and internal adjustments led to the Companys de-empanelment by a major legacy institutional client, the Life Insurance Corporation of India (LIC). Your Management is actively executing re-empanelment dialogues and simultaneously re-allocating capacities toward High-Net-Worth Individuals (HNIs) and localized sub-broker alliances.

3. Financial Snapshot & Operational Review

The audited financial results approved by the Board on May 29, 2026, show a mixed fiscal outcome, reflecting high transaction volumes coupled with steep margin pressures and transition costs.

Despite strong top-line growth with Net Operating Revenue rising over 35% to Rs8.48 Crore (FY 2025-26), overall profitability saw a sharp decline due to high trading volumes and steep margin pressures.

5. Segment-wise Performance

The Company operates in a single primary business segment-F inancial Services, which includes Stock Broking, Depository Operations (via NSDL), and Mutual Fund distribution. Therefore, segment-wise distribution metrics are not individually applicable.

6. Internal Control Systems and Their Adequacy

The Company maintains an internal control framework tailored to its micro-cap operating scale. Regular internal audits examine back-office clearing, compliance with the latest SEBI margin pledge mechanisms, and client fund segregation protocols. These systems ensure that assets are safe and transaction entries are completely verified.

7. Human Resources & Industrial Relations

The Company believes its human capital is central to maintaining client retention, which currently stands at an impressive 89%. Industrial relations remained entirely harmonious throughout the fiscal year.

Cautionary Statement

Statements in this Management Discussion and Analysis Report describing the Companys projections and expectations may be forward-looking within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to market risk factors, regulatory changes, and broader economic shifts in India.