Onemi Technology Solutions Ltd Management Discussions

1. Macro-Economic Overview

1.1 Global Economy Overview

The global economy navigated a challenging environment through CY 2025 and early CY 2026, shaped by geopolitical tensions, trade policy uncertainties and supply chain disruptions. Ongoing conflicts in the Middle East and rising protectionist measures, particularly in the United States, impacted global trade, energy markets and investment sentiment. While trade negotiations and policy initiatives in the latter half of 2025 helped ease some pressures, structural challenges and geoeconomic fragmentation continued to weigh on the global outlook.

Growth prospects continue to differ across economies. The advanced economies are expected to witness relatively moderate expansion as higher borrowing costs, ageing demographics and weaker productivity continue to weigh on economic activity. In contrast, emerging market and developing economies (EMDEs) are projected to remain the primary drivers of global growth, supported by favourable demographics, rising domestic consumption, infrastructure investments and continued industrialisation. However, these economies remain more vulnerable to external shocks, including elevated commodity prices, exchange rate volatility, tighter global financial conditions and geopolitical disruptions.

GDP Growth Rate

	CY 2025	CY 2026P	CY 2027P
World	3.4%	3.1%	3.2%
Advanced Economies	1.9%	1.8%	1.7%
(i) United States	2.1%	2.3%	2.1%
(ii) Euro Area	1.4%	1.1%	1.2%
Emerging Markets and Developing Economies	4.4%	3.9%	4.2%
(i) China	5.0%	4.4%	4.0%
(ii) India	7.6%	6.5%	6.5%

(Source: World Economic Outlook by IMF, April 2026) P - Projections

Inflation Trends

After easing steadily during CY 2025, headline inflation is expected to rise from 4.1% in CY 2025 to 4.4% in CY 2026, primarily due to higher energy prices following disruptions in the Middle East, before moderating to 3.7% in CY 2027. Energy prices are projected to increase by nearly 19% during CY 2026, with crude oil averaging approximately US$ 82 per barrel, while higher natural gas, food and fertilizer prices are expected to keep production and transportation costs elevated. Central banks across major economies are therefore expected to maintain a cautious policy stance, balancing inflation control with the need to support economic activity. Although underlying inflation has moderated in several economies compared with the post-pandemic peak, policymakers remain vigilant as supply shocks and geopolitical developments continue to pose upside risks.

Financial Markets & Monetary Policy

Global financial markets remained resilient despite heightened geopolitical uncertainty, although investor sentiment continued to be influenced by inflation expectations, commodity price volatility and policy developments. The escalation of regional conflicts strengthened the US dollar, increased sovereign bond yields and tightened global financial conditions, leading to higher financing costs and increased capital flow volatility, particularly across emerging market and developing economies.

Central banks maintained a cautious and data-driven approach to balancing inflation control with economic growth. According to the IMF, the US Federal Reserves policy rate is projected to decline towards 3.1% by the end of CY 2027, while the Bank of Japan is expected to gradually raise policy rates towards 1.5%. Diverging monetary policy trajectories across major economies are expected to continue shaping global liquidity, investment flows and currency movements.

Global Trade & Supply Chains

Global trade remained resilient despite rising protectionism, geopolitical tensions and higher energy and transportation costs. World merchandise trade volumes expanded by 4.6% in CY 2025, supported significantly by strong demand for advanced technology products, electronic components and digital infrastructure equipment, although growth is expected to moderate to 1.9% in CY 2026 before improving to 2.6% in CY 2027. Technology-intensive products accounted for nearly half of global merchandise trade growth in CY 2025, reflecting the increasing importance of digitalisation, semiconductor investment and data infrastructure in global trade flows. Asia contributed 71% of overall merchandise trade growth, reinforcing its position as a key manufacturing and export hub.

Outlook

The International Monetary Fund (IMF) projects global GDP growth of 3.1% in

CY 2026 and 3.2% in CY 2027, supported by King easing inflation, resilient labour markets and continued investments in artificial intelligence, digitalisation and advanced technologies.

However, elevated interest rates, tighter financial conditions, geopolitical conflicts and evolving trade policies are expected to continue influencing global growth, investment and trade flows. Emerging markets may also face heightened volatility from currency pressures, inflation risks and potential tightening of global monetary conditions.

1.2 Indian Economy Overview

India remained one of the worlds fastest-growing major economies in FY26, with real GDP growth of 7.7%, up from 6.5% in the previous year. Growth was underpinned by resilient domestic demand, supported by sustained private consumption and steady investment activity. Gross Value Added (GVA) expanded by 7.9%, led by robust performance in the services and manufacturing sectors, while nominal GDP grew by 8.9%. In the fourth quarter, GDP growth moderated slightly to 7.8%, reflecting continued investment momentum despite emerging global uncertainties.

The policy environment continued to support growth.

The Union Budget FY27 maintained fiscal discipline, targeting a fiscal deficit of 4.3% of GDP, while increasing capital expenditure by 12% with a focus on infrastructure, manufacturing and defence. The establishment of a Rs. 1.5 lakh crore Economic Stabilisation Fund further strengthened the macroeconomic framework by enhancing resilience against external shocks, particularly energy-related risks.

Inflation

Inflation moderated significantly during FY26, supported by easing food prices, favourable base effects and effective policy measures. Fleadline inflation declined to 2.0% from 4.6% in the previous year, strengthening macroeconomic stability and consumer purchasing power. The benign inflation environment provided greater policy flexibility to support growth while maintaining price stability.

Reflecting the improved outlook, the RBI maintained the policy repo rate at 5.25% and retained a neutral policy stance. Liquidity conditions remained comfortable, supporting credit growth and financial system stability.

(Source: Economic Times)

Consumption

Domestic consumption remained the primary driver of economic growth during FY26, supported by easing inflation, rising disposable incomes and stable employment. Private Final Consumption Expenditure (PFCE) grew 7.0%, accounting for 61.5% of GDP, its highest share since 2012.

Government measures, including higher income tax exemptions, GST rationalisation and infrastructure-led capital expenditure, further strengthened household spending and supported sustained domestic demand.

(Source: Press Information Bureau¹: Press Information Bureau²: Press Information Bureau³: Press Information Bureau⁴)

Digital Economy

Indias digital economy continued to expand, driven by widespread adoption of digital public infrastructure and growing digital payment penetration. The RBI Digital Payments Index increased 11% during FY26, while UPI transaction volumes grew 30%, crossing 200 billion transactions. Supported by the JAM (Jan Dhan-Aadhaar-Mobile) ecosystem, digitalisation continues to enhance financial inclusion and accelerate the countrys transition towards a digital economy.

(Source: NDTV Profit: Press Information Bureau)

Indian Economy GDP Growth Rate

The Reserve Bank of India (RBI), in its first bi-monthly monetary policy review for FY27, maintained the policy repo rate at 5.25% while retaining a neutral policy stance. The RBI projected CPI inflation at 4.6% and GDP growth at approximately 6.9% for FY27, supported by strong domestic demand, sustained growth in the services sector, improving manufacturing capacity utilisation and continued policy measures to strengthen domestic manufacturing.

Despite global uncertainties, Indias medium-term outlook remains favourable, underpinned by sound macroeconomic fundamentals, ongoing structural reforms and sustained government support for infrastructure and manufacturing. These factors are expected to strengthen the countrys long-term growth trajectory while enhancing resilience against external shocks.

2. Industry Overview 2.1 Financial Services Industry

Indias financial services sector recorded another year of robust growth in FY26, supported by a stable macroeconomic environment, sound banking fundamentals and continued policy reforms. Increased digital adoption, expanding financial inclusion and sustained credit demand strengthened the sector, while regulatory initiatives enhanced the resilience and efficiency of the financial ecosystem.

Key industry Developments Included Supportive Monetary Policy

The RBI adopted an accommodative approach by reducing the repo rate by 100 basis points and lowering the Cash Reserve Ratio (CRR), improving systemic liquidity and supporting credit growth.

Resilient Banking System

Scheduled commercial banks further strengthened their balance sheets through improved asset quality, strong capital adequacy and healthy profitability.

Strong Credit Growth

Bank credit expanded 14.1% year-on-year as of March 2026, reflecting sustained demand across retail, corporate and MSME segments.

Resilient Capital Markets

Robust investor participation and healthy primary market activity supported resource mobilisation of approximately Rs.10.7 lakh crore (up to December 2025), reinforcing Indias capital markets.

Growing Financialisation

Household participation in equities and mutual funds continued to rise, with market-linked investments accounting for 15.2% of financial savings, reflecting increasing investor confidence and financial awareness.

Outlook

Indias financial services sector remains well positioned for long-term growth, supported by favourable macroeconomic fundamentals, a strong regulatory framework and increasing digital adoption. Continued expansion of digital financial services, deeper capital market participation and the growth of non-bank financing channels are expected to drive the next phase of development.

Looking ahead, strengthening cyber resilience, consumer protection, responsible adoption of artificial intelligence and robust governance will remain critical to fostering innovation while preserving financial stability and sustaining inclusive growth.

(Source: Times of India, Livemint, Finnovate)

2.2 NBFC Industry

Indias credit ecosystem remained resilient during FY26, supported by sustained economic activity and healthy demand across retail, MSME and corporate segments. Outstanding non-food credit reached approximately Rs.213 lakh crore as of March 31, 2026, registering a robust 15.9% year-on-year growth.

The NBFC sector continued to play a vital role in bridging the countrys credit gap, particularly in underserved and emerging customer segments.

NBFCs Expanding Role in Retail Credit

NBFCs are expected to play an increasingly important role in meeting Indias retail credit requirements. Their retail credit is projected to grow over 6x from Rs.7 trillion in FY20 to Rs.46 trillion by FY30, supported by rising disposable incomes, increasing digital adoption and a favourable policy environment. As the economy becomes more consumption-oriented, NBFCs are positioned to deepen formal credit penetration across emerging and underserved customer segments.

Retail systemic credit: Banks vs NBFCs

Robust Momentum Continues in NBFC Credit Growth (y-o-y, %)

Bank lending to NBFCs witnessed strong traction in FY26, with outstanding credit reaching Rs.20.65 lakh crore in March 2026 and accounting for 9.7% of total bank credit. Growth in bank credit to NBFCs accelerated sharply to 26.3% YoY, compared with 5.7% in the previous year, making NBFCs the fastest-growing segment among NBFCs, Commercial Real Estate and Trade. This reflects the expanding role of NBFCs in the credit ecosystem.

The operating environment for NBFCs was further supported by improving digital adoption, diversified funding avenues and prudent regulatory oversight by the Reserve Bank of India. Continued emphasis on stronger underwriting standards, risk management and governance has enhanced the sectors resilience, positioning NBFCs to support Indias expanding credit needs while advancing financial inclusion and economic growth.

(Source: Hindu Businessline)

Growth Drivers

Policy Support and Monetary Easing

A supportive policy environment continues to strengthen Indias lending ecosystem. During FY26, the RBI reduced the policy repo rate to 5.25%, improving liquidity conditions and lowering borrowing costs across the economy. Together with sustained public infrastructure spending and pro-growth policy measures, these initiatives are expected to support credit demand across retail, MSME and corporate segments.

Financial Inclusion

Indias financial sector continues to benefit from significant structural growth opportunities. With the countrys credit-to-GDP ratio at approximately 93%, considerable headroom remains for credit deepening compared with developed economies. Additionally, nearly 23% of adults remain outside the formal financial system, creating substantial opportunities for banks and NBFCs to expand credr access across rural and semi-urban markets.

Co-lending Partnerships

Co-lending has emerged as an important growth avenue, combining the distribution capabilities and underwriting expertise of NBFCs with the low-cost funding base of banks. The model improves credit penetration across retail, MSME and priority sectors while enhancing capital efficiency and risk sharing for participating institutions.

Digital Transformation

Digitalisation continues to redefine the lending landscape through Al-enabled underwriting, digital onboarding, real-time credit assessment and fintech partnerships. Supported by Indias Digital Public Infrastructure (DPI), these innovations are enhancing customer experience, improving operating efficiency, strengthening risk management and accelerating financial inclusion.

(Source: Wright Research)

Challenges and Risk Factors Asset Quality

While asset quality remains broadly strong, pockets of stress persist, particularly in MSME and microfinance portfolios. Higher borrower leverage, delinquencies in small-ticket loans and global demand uncertainty may continue to impact select lending segments.

Liquidity and Funding

Funding diversification remains critical, especially for small and mid-sized NBFCs. Despite the RBIs withdrawal of additional risk weights on bank lending to NBFCs in April 2025, funding conditions remain selective, driving continued reliance on securitisation, debt markets and external borrowings.

Regulatory Compliance

Evolving regulations are strengthening governance, capital adequacy and risk management across the sector. While enhancing resilience, higher compliance and technology requirements may increase costs for smaller NBFCs and accelerate industry consolidation.

Competitive Intensity

The financial services sector remains highly competitive, with banks, NBFCs and fintech-led lenders increasingly competing across retail, MSME and digital lending segments. Competition for customers, funding and distribution channels may exert pressure on pricing, customer acquisition costs and margins. Continued investment in technology, differentiated products, efficient underwriting and customer experience will remain important to maintain competitiveness.

Cybersecurity & Fraud Risks

The increasing digitisation of lending and greater reliance on technology platforms expose financial institutions to evolving cybersecurity and fraud risks. Digital identity theft, payment fraud, data breaches and cyberattacks could affect customer trust, operational continuity and financial performance. Strengthening cybersecurity infrastructure, fraud detection capabilities, data protection measures and technology controls will therefore remain critical as digital lending continues to scale.

(Source: Wright Research)

Government and Regulatory Initiatives

Scale-Based Regulation (SBR)

RBI continued the implementation of the SBR framework, aligning regulatory requirements with the size, complexity, activities and systemic importance of NBFCs.

Governance and Compliance

Regulatory reforms are enhancing liquidity management, depositor protection, CBS implementation for eligible NBFCs, board oversight, audit practices and risk governance.

Capital and Prudential Norms

RBI has strengthened prudential requirements, including raising the minimum NOF for NBFC- Investment and Credit Companies to Rs.10 crore by March 2027, alongside enhanced capital adequacy, exposure and risk-weight norms.

Digital Public Infrastructure

The JAM ecosystem continues to drive financial inclusion through secure digital authentication and wider access to formal financial services. As of March 2026, over 144 crore Aadhaar numbers had been generated.

Regulatory Sandbox

RBIs Regulatory Sandbox supports responsible fintech innovation by enabling controlled testing of digital lending, cybersecurity and customercentric solutions.

Account Aggregator Framework

The consent-based framework enables secure financial data sharing, facilitating faster credit assessment, reduced documentation and data- driven loan origination.

Customer Protection

Continued emphasis on fair pricing, transparent lending practices and responsible digital lending to safeguard borrower interests.

Cybersecurity and IT Risk

RBI continued to enhance supervisory focus on cyber resilience, information technology risks and operational resilience of NBFCs, recognising the increasing dependence of financial services on digital infrastructure.

(Source: Press Information Bureau)

Outlook

Indias banking and NBFC sectors are positioned for sustained growth, supported by a resilient economy, rising retail and MSME credit demand, increasing financial formalisation and urbanisation. Growing incomes, vehicle ownership and continued government focus on financial inclusion are expected to further deepen credit penetration.

Digital transformation, enabled by Indias Digital Public Infrastructure, will drive faster onboarding, data-led underwriting, operating efficiency and broader credit access. Co-lending, embedded finance and fintech partnerships are expected to further strengthen distribution and capital efficiency. A progressive regulatory framework focused on governance, capital adequacy and risk management will reinforce sector resilience.

With strong structural tailwinds, improving funding access and accelerating digital adoption, the NBFC sector is well positioned to expand formal credit access and support Indias long-term economic growth.

2.3 Personal Loan Industry

Indias personal loan market expanded from Rs.6.5 trillion in FY20 at an approximately 18% CAGR through FY25, driven by rising demand for unsecured credit and increasing penetration across urban and semi-urban markets. The market is projected to reach Rs.36.5-39.6 trillion by FY30, representing an estimated CAGR of approximately 20-22%, supported by increasing participation from Fintechs and NBFCs, deeper digital penetration, Al-led underwriting and a growing preference for instant, collateral-free credit.

Market Drivers

• Rising disposable incomes, urbanisation and increasing consumer spending continue to drive demand for personal credit.

• Growing digital adoption, paperless onboarding and Al-driven underwriting are enabling faster loan approvals and enhancing customer experience.

• Expanding financial inclusion, wider credit bureau coverage and the use of alternative data are improving credit access for first-time and underserved borrowers.

• Continued innovation in digital lending platforms and fintech partnerships is expanding market reach and improving operational efficiency.

Outlook

Going forward, sustained consumption demand, expanding digital lending ecosystems and continued innovation in credit delivery are expected to drive steady growth in the personal loan segment, while disciplined risk management and regulatory oversight will remain critical to maintaining portfolio quality.

2.4 Loan Against Property (LAP) Industry

The India Loan Against Property (LAP) market continues to expand, driven by increasing demand for secured financing solutions among individuals, self-employed professionals and businesses. The organised LAP portfolio grew from Rs.5.3 trillion in FY20 to Rs.12.3 trillion in FY25 at a CAGR of 18% and is projected to reach upto Rs.33.2 trillion by FY30, registering a CAGR of 22% over FY25-FY30.

Growing preference for property-backed financing, rising MSME credit requirements and the need for flexible funding solutions for business expansion, working capital and personal needs are supporting market growth. Digital lending platforms, faster approval processes and technology-enabled underwriting are further improving accessibility across metropolitan and emerging urban centres.

(Source: Equifax, lLattice analysis))

Market Drivers

Rising MSME Credit Demand

Growing financing needs among MSMEs, self-employed professionals and small businesses are driving demand for property-backed loans for expansion and working capital.

Preference for Secured Financing

Borrowers are increasingly leveraging residential and commercial properties to access larger-ticket loans at competitive rates.

Lender Portfolio Diversification

Banks, HFCs and NBFCs are expanding secured non-housing lending, supported by attractive risk-adjusted returns and collateral security.

Digital Transformation

Al-led underwriting, digital platforms, automated valuations and streamlined documentation are improving processing speed and expanding access beyond metros.

Emerging Market Expansion

Business formalisation and rising financial awareness across semi-urban and rural markets are widening the LAP customer base.

Strengthening Real Estate Fundamentals

Rising property values are enhancing borrowing capacity and collateral coverage, supporting growth in LAP.

Outlook

The Loan Against Property segment is expected to witness steady growth, supported by increasing MSME financing needs, rising property ownership, digital adoption and lenders focus on secured retail credit. Continued product innovation, wider geographic penetration and technology-led underwriting are expected to further improve accessibility and strengthen the role of LAP as a key growth segment within secured lending.

2.5 Digital Lending Ecosystem

The lending landscape is undergoing a structural shift as technology becomes integral to credit origination, assessment and servicing. Al, big data and automation are enabling digital platforms to streamline the lending journey, from application and documentation to disbursement, reducing reliance on physical paperwork and branch infrastructure. This is driving faster, paperless and more accessible credit delivery, particularly across collateral-free personal and working capital loans.

Digital channels are gaining significant traction in personal credit. Its share of total personal loan sanctions increased from 7% in FY21 to 15% in FY26. The share is projected to reach 20-21% by FY31, with digital sanctions expected to grow at a 26-27% CAGR, compared with 16-18% for non-digital sanctions.

The growth of digital lending is being supported by digital public infrastructure, evolving consumer behaviour and technology-led credit delivery. Aadhaar e-KYC, UPI and Account Aggregator frameworks are enabling faster verification, consent-based data access and streamlined origination. Meanwhile, rising smartphone adoption and digitally native consumers are accelerating the shift towards digital credit discovery and application. Alternative-data underwriting, automated decisioning and instant onboarding are further enhancing the scalability and efficiency of small- ticket digital lending.

Key Trends Shaping the Market Account Aggregator is moving towards mainstream adoption

The Account Aggregator framework is increasingly moving from experimentation to scaled adoption, enabling lenders to access consent-based, structured financial data for faster credit assessment and ongoing portfolio monitoring.

Integrated technology is becoming critical for partner-led lending

As co-lending and multi-partner models scale, seamless integration across loan origination, servicing and partner systems is becoming increasingly important for data consistency, operational efficiency and regulatory compliance.

Credit assessment is moving beyond traditional bureau data

Lenders are increasingly combining bureau information with banking, transaction, GST and other alternative data to develop a more comprehensive view of borrower behaviour, affordability and repayment capacity.

Collections are becoming increasingly data-led and automated

Technology and predictive analytics are enabling lenders to identify early signs of repayment stress and initiate timely interventions, shifting collections from reactive recovery towards proactive portfolio management.

Data architecture is becoming central to regulatory compliance

As regulatory expectations around data accuracy, reporting and customer protection increase, integrated technology infrastructure is becoming important for maintaining consistent information across origination, servicing, reporting and compliance processes.

(Source: Finezza)

Regulatory Evolution of Digital Lending Regulatory Formalisation

Digital lending has evolved into a more structured regulatory framework, with clearly defined responsibilities for regulated entities, Lending Service Providers (LSPs) and Digital Lending Apps (DLAs).

Responsible Digital Lending

Requirements around Key Fact Statements (KFS), cooling-off periods, direct fund flows and borrower disclosures are strengthening transparency and customer protection across digital lending journeys.

LSP Ecosystem

The framework recognises LSPs across functions such as customer acquisition, credit assessment, servicing and collections, while placing the ultimate responsibility for outsourced activities with the regulated entity.

Multi-lender Platforms

Digital platforms offering loans from multiple lenders are subject to greater transparency requirements around loan offers, enabling borrowers to compare key terms and make informed choices.

DLG Discipline

The regulatory framework places defined conditions and limits on Default Loss Guarantee (DLG) arrangements, supporting greater discipline in risk sharing between regulated entities and their lending partners.

(Source: Press Information Bureau; NBFC Digital Lending 2026)

Outlook

Digital lending is poised for strong growth, supported by rising smartphone adoption, digital public infrastructure, evolving consumer behaviour and increasing access to consent- based financial data. Al-led underwriting, alternative data, automated decisioning and digital collections will further enhance scalability, efficiency and credit access. Regulatory evolution is expected to foster a more transparent, responsible and resilient ecosystem, while co-lending, embedded finance and fintech partnerships will strengthen distribution and capital efficiency.

Opportunity for Kissht

The rapid expansion of digital lending presents a significant opportunity for Kissht to scale its technology- led credit ecosystem, supported by rising digital adoption, growing demand for convenient credit and increasing formalisation of financial services. Its digital- first platform, data-led capabilities and lending partner network position it to expand customer reach, accelerate credit delivery and deepen access to formal credit.

3. Company Overview

Founded in 2016 and headquartered in Mumbai,

OnEMI Technology Solutions Limited ("Kissht" or the "Company"), is a technology-enabled digital lending platform focused on delivering accessible, convenient and personalised credit solutions to Indias mass market and mass affluent segments. Through its NBFC-Middle Layer subsidiary, Si Creva Capital Services Private Limited, our Company offers portfolio of retail lending products, including Personal Loans and Loan Against Property, catering to salaried and self- employed borrowers.

Listed on the NSE and BSE in May 2026, Kissht has built a strong digital lending ecosystem by integrating technology-led customer engagement with a scalable and data-driven lending model. We operate a fully integrated, cloud-based lending platform that manages the entire loan lifecycle, including customer onboarding, credit assessment, origination, disbursement, servicing and collections.

Powered by proprietary artificial intelligence and machine learning-based underwriting models, Kissht enables faster and data-driven credit decisions while maintaining a robust risk management framework. Its technology stack, comprising proprietary Loan Origination and Loan Management Systems, supports operational scalability and delivers a seamless customer experience.

As of March 31, 2026, our Company has served approximately 11.76 million cumulative customers through a digital ecosystem supported by over 45 lending and co-lending partners. With a granular loan portfolio, a predominantly young and digitally connected customer base, and strong analytics capabilities, Kissht continues to expand access to formal credit and is well positioned to benefit from the growing adoption of digital lending in India. We also operate as a Corporate Insurance Agent under an Insurance Regulatory and Development Authority of India (IRDAI) licence, distributing both life and general insurance products.

Business Model

Our Company owns and operates the Kissht technology platform, comprising the customer-facing application, backend systems and collections technology infrastructure. It also drives marketing and customer acquisition activities.

The platform collects limited customer information such as name and contact details, which is used solely to apply preliminary eligibility filters across its network of financing partners. Our Company does not undertake KYC verification, credit underwriting or credit decisionmaking.

Based on these eligibility filters, customers receive loan offers from various regulated lending institutions, including Si Creva, our Companys wholly owned subsidiary, and off-book lending partners. Customers independently select their preferred lender from the available options.

Product Offerings

Personal Loans (PL)

Personal Loans (PL) represent Kisshts core lending segment, catering to salaried and self-employed individuals across India through a digital-first lending platform. The product addresses diverse financial needs, including business working capital, tools and equipment purchases, consumer durables, home improvement, education and medical expenses.

Our Company offers unsecured personal loans of up to Rs.5 lakh with repayment tenures of up to five years through a fully digital and paperless origination journey. Supported by proprietary technology- driven underwriting and risk assessment models, the platform enables efficient customer onboarding, credit evaluation and loan servicing while maintaining portfolio quality.

With a pan-India digital distribution network, the segment has established a wide geographic reach. As of March 31, 2026, the Personal Loans portfolio recorded AUM of Rs.6,548 crore, accounting for 92.7% of our Companys total AUM. The segment remains the key growth driver, supported by a scalable technology platform, diversified borrower base and data-led credit assessment capabilities.

Loan Against Property (LAP)

Kisshts Loan Against Property (LAP) segment represents its secured lending portfolio and addresses the financing needs of property owners (Residential & Commercial Property), MSMEs and self-employed borrowers. The segment caters to requirements such as business expansion, working capital, debt consolidation and other personal financial needs.

The business combines digital lead generation and model-based underwriting with branch-led customer fulfilment, enabling a technology-driven yet personalised lending experience. The product offers loans of up to Rs.30 lakh with repayment tenures of up to 15 years, supported by prudent underwriting practices and an average loan-to- value (LTV) ratio of approximately 48%.

As of March 31, 2026, the LAP portfolio reported AUM of Rs.518 crore, representing 7.3% of our Companys total AUM. Supported by a network of 98 branches across eight states and union territory, the segment strengthens Kisshts physical presence while enabling deeper customer engagement and portfolio diversification.

Opportunities and Threats

Opportunities	Threats
• Expanding digital credit adoption in India- Increasing smartphone penetration, digital payments ecosystem and demand for convenient financial solutions create significant growth opportunities.	• Intensifying competition in digital lending- Increasing participation from fintech companies, banks and NBFCs could impact customer acquisition costs and pricing competitiveness.
• Large underpenetrated consumer credit market- Indias credit penetration remains below global benchmarks, offering substantial headroom for responsible lending growth.	• Regulatory changes- Evolving digital lending regulations, compliance requirements and consumer protection norms may require continuous investments in systems and processes.
• Al and analytics-led lending opportunities- Advanced analytics, machine learning and alternative data models can further improve underwriting accuracy, customer acquisition and portfolio performance.	• Macroeconomic volatility- Economic slowdowns, inflationary pressures or changes in consumer confidence could impact repayment behaviour and credit demand.
• Expansion into new lending segments- Opportunities exist to broaden product offerings across emerging consumer and MSME credit categories.	• Rising cost of capital- Changes in interest rates and liquidity conditions may affect funding availability and borrowing costs.
• Strategic partnerships and embedded finance- Collaborations with merchants, platforms and financial institutions can enable wider distribution and customer acquisition.	• Cybersecurity and data privacy risks- As a technology-driven lender, maintaining robust cybersecurity frameworks remains critical to protecting customer data and sustaining trust.

4. Financial Performance

P&L ( Rs. in Crore)	FY26	FY25	YoY A
Total Income	2,209	1,353	63%
Finance cost	282	165	72%
Net Total Income	1,927	1,188	62%
Operating expenses	1,091	645	69%
Pre-provisioning operating profit	836	543	54%
Credit cost	459	327	40%
Profit before tax	377	216	74%
Tax expense	96	55	71%
Profit after tax	281	161	75%
Basic EPS ( Rs./ Share)	46.8	33.1	41%
Diluted EPS ( Rs./ Share)	21.4	12.8	67%

 

Ratios	FY26	FY25	YoY A
Return on Avg. AUM (%)	5.05%	4.80%	+ 25 bps
Return on Avg. Equity (%)	23.97%	17.74%	+ 622 bps
GNPA(%)	2.12%	2.89%	- 77 bps
NNPA(%)	0.29%	0.25%	+4 bps
Debt-to-Equity	1.78	1.50	+ 0.29 x
Capital to Risk Assets Ratio (%)*	25.28%	25.18%	+ 10 bps

? Pertains to subsidiary NBFC

Analysis of Financial Performance

Total Income

Total Income increased by 63% to Rs.2,209 crore in FY26 from Rs.1,353 crore in FY25, supported by the expansion of our Companys lending portfolio and higher business volumes. This growth was primarily driven by the expansion of our Companys Assets Under Management (AUM) increasing to Rs.7,066 crore in FY26 from Rs.4,087 crore in FY25, representing a growth of 73%. The increase in AUM was driven by healthy disbursement volumes with continued customer acquisition during the year. Our diversified lending partnerships and scalable digital origination platform further enabled it to expand its lending operations and income base.

Finance Costs

Finance Costs increased to Rs.282 crore in FY26 from Rs.165 crore in FY25, reflecting a growth of 72%. The increase was primarily attributable to the increased funding requirements associated with our Companys business expansion. Total borrowings stood at Rs.2,396 crore in FY26 from Rs.1,508 crore in FY25.

Operating Expenses

Operating Expenses increased by 69% to Rs.1,091 crore in FY26 from Rs.645 crore in FY25, reflecting the costs associated with scaling our operations and strengthening its operating infrastructure. We continued to invest in technology, automation, digital capabilities and customer servicing infrastructure during the year, while expanding our lending operations across products and distribution channels. These investments supported our ability to handle higher business volumes and build capabilities for future scale.

Credit Cost

Credit Cost increased by 40% to Rs.459 crore in FY26 from Rs.327 crore in FY25, in the context of continued expansion of our lending portfolio. However, the growth in credit cost remained lower than the growth in AUM. Our disciplined underwriting framework, continuous portfolio monitoring and automated collections infrastructure supported portfolio performance during the year. This was reflected in the improvement in GNPA, while NNPA remained at a low level, supported by prudent provisioning and credit risk management.

Profit Before Tax (PBT)

Profit Before Tax (PBT) increased by 74% to Rs.377 crore in FY26 from Rs.216 crore in FY25, reflecting the strong growth in our income base and the resulting improvement in earnings. The increase in PBT was achieved despite higherfinance costs, operating expenses and credit costs, supported by our ability to scale our lending operations and maintain disciplined portfolio and cost management. Improved asset quality and operating leverage further supported the overall improvement in profitability. Continued investments in technology and automation also enhanced productivity and operational efficiency, contributing to the improvement in PBT.

Profit After Tax (PAT)

Profit After Tax (PAT) increased by 75% year-on- year to Rs.281 crore in FY26, broadly in line with the growth in PBT discussed above. Return on Average AUM (RoAA) improved to 5.05% in FY26 from 4.80% in FY25, registering an improvement of 25 bps. Return on Average Equity (RoAE) improved to 23.97% in FY26 from 17.74% in FY25, representing an improvement of 622 bps.

Assets Under Management (AUM)

Our Assets Under Management (AUM) grew 73% year- on-year to Rs.7,066 crore as of March 31, 2026, driven by strong disbursement momentum, customer acquisition and deeper engagement with our existing customer base. The growth was supported by ourtechnology- enabled origination platform, data-driven underwriting capabilities and diversified lending partnerships, enabling scalable expansion while maintaining portfolio quality.

Funding Model and Co-lending Partnerships

As of March 31, 2026, approximately Rs.3,510 crore, representing ~50% of the total AUM, was managed through the off-book model in partnership with eight lending institutions. Supported by over 45 lending and co-lending partners, the partnership-led model enables us to expand our lending footprint, optimize capital utilization and enhance balance sheet efficiency.

The diversified funding ecosystem provides operational flexibility while supporting sustainable portfolio growth.

Asset Quality and Collections

Our GNPA ratio improved to 2.12% as of March 31, 2026, registering a 77 bps improvement over the previous year. The improvement reflects the effectiveness of our underwriting framework, portfolio monitoring capabilities and robust collection infrastructure.

NNPA remained low at 0.29%, supported by prudent provisioning practices and disciplined credit risk management.

We continued to strengthen our collections framework through our proprietary Automated Collections System, with over 95% of collection activities managed in- house and digital collections accounting for 99.2% of total collections.

The adoption of digital collection channels, supported by data-driven monitoring and customer engagement initiatives, improved repayment efficiency and enabled disciplined portfolio management.

Capital Position

Our Companys net worth increased 33% year-on-year to Rs.1,343 crore, built on retained earnings and organic profitability generated prior to the Initial Public Offering (IPO), a testament to the capital efficiency of the business model.

As of March 31, 2026, the Capital to Risk Assets Ratio (CRAR) stood at 25.28%, with Tier-1 capital at 24.40%, reflecting a strong capital position and adequate headroom forfuture growth. The debt-to-equity ratio remained comfortable at 1.78x, enabling us to pursue expansion opportunities while maintaining financial flexibility.

5. Risk Management

We have established a comprehensive risk management framework to identify, assess, monitor and mitigate key risks across our operations. The framework is designed to support prudent growth, maintain portfolio resilience and ensure adherence to regulatory and internal risk standards.

The risk management structure comprises the Risk Management Committee, Audit Committee and IT Strategy Committee. Each committee oversees specific aspects of our risk profile, including credit and portfolio risk, liquidity and funding, technology and information security, internal controls and regulatory compliance.

The Board of Directors provides overall oversight of the risk management framework, including review of the Companys risk appetite, policies and risk profile. Our approach combines data-driven monitoring, technology- enabled controls, regular risk assessment and defined escalation mechanisms to identify emerging risks and enable timely mitigation.

Risk Description 3
Risk arising from a borrowers inability or unwillingness to meet repayment obligations, impacting portfolio quality and profitability.	• Integrated fraud and credit risk models: Fraud detection is driven by a combination of facial recognition, identity triangulation and digital data analysis to detect and prevent fraud with high precision. Credit underwriting utilises bureau information, alternative data sources, and automated decision engines to assess borrower creditworthiness.
	• Portfolio monitoring: Technology-enabled dashboards and risk indicators track delinquency trends, vintage performance, customer segments, bureau score movements, geographic exposure and repayment behaviour.
	• Collections & recovery: Data-driven collection strategies, digital tools and customer engagement initiatives support timely recoveries and asset quality management.
Portfolio concentration risk
Risk arises from excessive exposure to a particular geography, customer segment, product, ticket size or lending partner, which could amplify portfolio impact if conditions deteriorate in any one segment.	• Geographic & product diversification: Maintain exposure across multiple geographies and products, including personal loans and LAP, to reduce dependence on any single market or product segment.
	• Multi-partner lending model: Leverage multiple lending partners and a mix of on-book and off-book origination to diversify portfolio and funding exposure.
	• Data-led exposure monitoring: Monitor portfolio concentrations across key customer and risk segments using defined thresholds, early-warning triggers and periodic portfolio reviews to enable timely corrective action.
Liquidity risk
Risk of inability to meet financial obligations or support business growth dueto inadequate liquidity orfunding availability.	• Diversified funding: Maintains a broad funding profile through banks, financial institutions and lending partners to reduce concentration risk.
	• Asset-liability management: Regular monitoring of asset and liability maturity profiles, cash flows and funding requirements to manage liquidity gaps.
	• Liquidity monitoring: Defined internal thresholds, stress assessments and liquidity buffers ensure business continuity.
Market risk
Risk arising from changes in interest rates, economic conditions and market dynamics impacting funding costs, margins and portfolio performance.	• Interest rate monitoring: Evaluates interest rate movements and their impact on borrowing costs, pricing and spreads.
	• Macroeconomic assessment: Monitors economic indicators such as growth, inflation and employment trends to assess potential impact on credit demand and repayment behaviour.
	• Portfolio management: Mitigates exposure through prudent risk-based pricing, product diversification and regular portfolio reviews.
Operational risk
Risk arising from inadequate processes, human errors, system failures or external disruptions affecting business operations.	• Process controls: Standard operating procedures, approval frameworks and automated workflows enhance efficiency and control.
	• Business continuity: Disaster recovery plans and periodic testing ensure operational resilience during disruptions.
	• Third-party risk management: Vendor due diligence, service-level agreements and performance reviews manage outsourcing risks.
	• Internal controls: Maker-checker controls, segregation of duties, audits and policy reviews strengthen governance.
Technology and Cybersecurity risk
Risk arising from dependence on digital platforms, cloud infrastructure and potential cybersecurity threats.	• Digital infrastructure: Investments in scalable technology architecture support operational efficiency and growth.
	• Data protection: Encryption, access controls, vulnerability assessments and monitoring mechanisms safeguard customer information, supported by ISO 27001 and SOC 2 certifications.
	• Technology governance: Periodic security reviews, system upgrades, employee awareness programmes and disaster recovery mechanisms strengthen cyber resilience. Independent audits covering KYC, information systems, cybersecurity and data localisation provide additional assurance over our technology and control environment.
Regulatory and Compliance risk
Risk arising from changes in regulatory requirements, impacting business operations and compliance obligations.	• Regulatory compliance: Adherence to applicable guidelines issued by the Reserve Bank of India including the Digital Personal Data Protection Act, 2023, to strengthen data privacy, security and responsible handling of personal information.
	• Compliance framework: Documented policies, regulatory tracking, periodic reviews and reporting mechanisms ensure compliance.
	• Governance oversight: Board and senior management oversight through defined governance structures and internal controls.
Fraud risk
Risk of financial loss or operational impact arising from fraudulent activities across customer onboarding, lending and servicing processes.	• Fraud prevention: Digital verification, automated validations and risk-based authentication mechanisms reduce fraud exposure.
	• Monitoring & detection: Analytics, transaction monitoring and exception reporting identify suspicious activities.
	• Investigation & response: Established investigation procedures and corrective actions strengthen controls and prevent recurrence.

6. Internal Control System, Adequacy and Compliance

The Company has established an adequate system of internal controls commensurate with the nature, scale and complexity of its operations. The internal control framework is designed to ensure the orderly and efficient conduct of business, safeguarding of assets, accuracy and reliability of financial reporting, compliance with applicable laws and regulations, and timely identification and mitigation of operational risks. Standard operating procedures, defined authority matrices and technology-enabled controls govern critical processes across customer onboarding, KYC, credit assessment, loan disbursement, servicing, collections, treasury and financial reporting. The Company has an independent internal audit function with periodic audits conducted based on an audit plan approved by the Audit Committee. The internal audit framework is aligned with applicable regulatory requirements and relevant guidance, including the ICAI Guidance Note on Audit of Internal Financial Controls. Audit findings and recommendations are reviewed by the management and the Audit Committee, and corrective actions are implemented and monitored to strengthen the overall control environment. The management believes that the existing internal control systems are adequate and effective in supporting the Companys business objectives and governance framework.

7. Technology & Digital Infrastructure

Technology is at the core of our operating model, enabling seamless execution across the lending lifecycle, including customer acquisition, digital onboarding, underwriting, disbursement, servicing and collections. Through continuous investments in technology, data science and automation, we have developed a proprietary digital lending ecosystem that enhances operational efficiency, strengthens risk management and supports scalable growth.

Our integrated technology platform connects customers, merchants, lending partners and internal teams through scalable backend systems, enabling faster processing, improved decision-making and a seamless lending experience. Cloud-based infrastructure, advanced analytics and automation capabilities continue to drive process optimisation and business expansion across products and channels.

Focus area	Key highlights
Technology infrastructure	We operate a secure, cloud-native and scalable technology architecture designed to support multiple products and lending partnerships. Our configurable Business Rules Engine (BRE), modular Loan Origination System (LOS) and flexible Loan Management System (LMS) enable efficient partner integration, regulatory compliance and operational control. Continuous investments in in-house technology development have strengthened product agility and reduced dependence on third-party solutions.
Digital lending platform	Our end-to-end digital lending platform integrates customer acquisition, credit assessment, loan origination, servicing and collections through a unified ecosystem. Digital interfaces for customers, merchants, field teams and lending partners enable real-time lead management, faster approvals, improved visibility and enhanced operational productivity.
Artificial intelligence & data analytics	We leverage Artificial Intelligence (Al), Machine Learning (ML) and advanced analytics across credit underwriting, fraud detection, customer segmentation and collections. We also reduced average response time from approximately 200 seconds to less than 90 seconds, enabling faster and more consistent customer interactions. Additionally, proprietary models, developed using insights from more than 10 billion data points, strengthen credit assessment and risk differentiation.
Data security, privacy and regulatory compliance	We have embedded enterprise-grade security and compliance controls across our technology platform to safeguard customer data and strengthen regulatory adherence. These include encryption of data at rest and in transit, secure data storage, cybersecurity measures and continuous compliance monitoring to proactively identify and manage risks while reinforcing trust in the digital platform.
Technology- enabled customer experience	Digital onboarding, automated workflows and integrated customer servicing platforms enable faster processing and seamless engagement throughout the loan lifecycle. Technology-driven capabilities have improved turnaround times, reduced operational friction and enhanced customer convenience.

We will continue to strengthen our technology capabilities through investments in artificial intelligence, automation, cloud infrastructure and advanced analytics. These initiatives are expected to enhance underwriting capabilities, improve operational efficiency, accelerate product innovation and enable scalable growth, reinforcing our position as a technology-led financial services platform.

8. Human Resources

We are committed to building an entrepreneurial, inclusive and innovation-driven workplace that fosters collaboration, continuous learning and professional growth. Our merit-based culture emphasises diversity, equal opportunity and respect, creating an environment where employees can thrive and contribute meaningfully.

Attracting and Retaining Talent

We continue to strengthen ourtalent pipeline through fair and inclusive hiring practices, robust background verification and engaging candidate experiences. Informal coffee chats and structured interactions help build meaningful connections with prospective employees even before they join.

Learning and Development

Structured learning programmes focus on technical, functional, managerial and behavioural capabilities, supporting continuous skill development and future readiness. Mandatory training covers critical areas such as regulatory compliance, POSH, AML, KYC and cybersecurity.

Employee Engagement and Well-being

A range of engagement initiatives across the corporate office and branch network foster collaboration, celebrate diversity and support employee well-being. These initiatives help build a connected, motivated and inclusive workplace.

Recognising Performance and Excellence

Our Company reinforces a strong performance- driven culture through monthly, half-yearly and special recognition programmes. High-performing employees and branches are recognised through certificates, awards, performance-linked incentives and other rewards, encouraging meritocracy and continuous improvement.

Supported by competitive compensation, performance- linked incentives and employee welfare initiatives, we continue to strengthen engagement, build organisational capabilities and attract and retain talent. As of March 31, 2026, we have 2,081 employees.

For more information, refer to page 38

9. Corporate Social Responsibility

We believe that sustainable growth is driven by responsible business practices and meaningful contributions to society. Through our Corporate Social Responsibility (CSR) initiatives, our Company aims to support social and economic development in the communities we serves, in accordance with the provisions of the Companies Act, 2013 and our approved CSR Policy.

During the year, we undertook CSR initiatives across identified focus areas, with an emphasis on creating measurable and long-term impact. The CSR Committee of the Board provides oversight on programme selection, implementation and utilisation of funds, ensuring effective governance and transparency. Going forward, we remain committed to supporting impactful initiatives that align with our values and contribute towards inclusive and sustainable development.

For more information, refer to page 34

10. Outlook

The long-term outlook for Indias digital lending industry remains favourable, supported by increasing formalisation of credit, rising digital adoption and expanding financial inclusion. While the operating environment may continue to be influenced by macroeconomic developments and evolving regulatory requirements, our technology-led business model, prudent risk management framework and diversified product portfolio position us well to capitalise on emerging opportunities.

During FY27, we will remain focused on delivering strong AUM growth while maintaining disciplined underwriting standards and portfolio quality. Strategic priorities include scaling the secured lending portfolio, strengthening Al-driven credit underwriting and collections, enhancing customer experience through digital innovation, and improving operating efficiencies through automation and data analytics.

Our Company expects to further strengthen its asset quality by maintaining prudent risk selection, reducing credit costs and improving portfolio resilience. At the same time, we will continue to focus on profitable growth, supported by disciplined capital allocation, robust governance practices and a scalable technology platform.

Over the long term, our strategy remains centred on building a resilient and sustainable lending franchise capable of delivering consistent value across economic cycles. By combining technology, responsible lending practices and customer-centric innovation, Kissht is well positioned to strengthen its market position and create sustainable long-term value for all stakeholders.

11. Cautionary Statement

Statements made in this Management Discussion & Analysis describing the Companys objectives, projections, estimates, expectations or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events and are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. Factors that may influence the Companys performance include, but are not limited to, changes in economic conditions, regulatory developments, competitive intensity, interest rate movements, availability of funding, technological advancements, customer preferences and other factors beyond the Companys control. Readers are therefore advised not to place undue reliance on these forward-looking statements. 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, except as required under applicable law.