Optimus Finance Ltd Management Discussions

The Indian economy is growing driven by domestic players across expanding industries and an accelerating finance & service sectors. India is the worlds sixth-largest economy in 2026, with a GDP of $4.15 trillion and the fastest-growing major economy at 6.5% growth.

The Governments initiatives, supported by political stability, have yielded positive outcomes, allowing us to effectively engage with various segments of society and business.

Global growth in 2026 is projected around 3.0–3.1%, with uneven recovery across regions amid geopolitical tensions, energy market volatility, and technological shifts.

The war in the Middle Eastand ongoing geopolitical fragmentation are key downside risks, potentially disrupting energy supplies, trade flows, and financial markets. Restoring confidence, predictability, and sustainability remains a key policy priority.

Overall, 2026 is expected to be ayear of cautious recovery, with policymakers, businesses, and investors needing to balance growth opportunities against persistent geopolitical and economic risks.(Source: IMF)

The overallNBFC AUM is projected to exceed 50 trillion by March 2027 , representing around 18–19% of systemic credit, with retail loans (~60% of NBFC credit) continuing as the fastest-growing segment and expected to surpass 40 trillion in CY2026 Secured lending, including housing finance, MSME loans, and retail finance, is increasingly prioritized, while unsecured small-ticket loans remain cautiously managed due to asset quality concerns.

NBFCs are increasingly diversifying their funding mix, leveragingsocial bonds, alternative investment funds, and offshore lending , following the 2026 ECB reforms that removed all-in-cost caps and allowed commercial negotiation for non-resident funding .

Incremental funding needs for retail NBFCs are estimated at 4.1–4.3 trillion (~USD 44–46 billion) in FY27, highlighting the sectors reliance on wholesale and private credit sources. Repo rate cuts since February 2025 have reduced borrowing costs by ~60 bps, improving net interest margins by 30–40 bps QoQ

NBFC ROA declined slightly from 2.6% in FY25 to 2.3% in FY26, reflecting cautious lending and competitive pressures

Digital adoption is accelerating, withmobile app penetration and Operational efficiency is improving through tighter credit underwriting, cost management, and expansion into MSME and rural markets.

The NBFC sector benefits fromreduced risk weights for bank credit , GST rate cuts, and supportive monetary policy, which are expected to stimulate credit demand for private capital expenditure and retail consumption . However, uncertainties around tariffs and asset quality in smaller-ticket unsecured loans may keep the sector cautious. # Reported by IMF/WB/Deloitte/Boston Consulting /India Times

Thepresent and future of NBFCs inIndia are characterized by their significantrole in driving credit growth, funding small businesse s, and supporting financial inclusion. By 2030, NBFCs are expected to contribute moreto Indias financial sectorprofits than manytr aditional banks. They serve millions ofcustomers who banks oftenmiss, suchas small shop owners, farmers, students, and househ oldsin tier -2 and tier 3 towns. The sector is set for a decade of strong expansion, with NBFCs growing faster than banks and growing faster than the entire financial sector.

NBFCsare also adapting tomarket conditions through customized product offerings and quick service delivery to diverse and niche s egments. The growing systemicsignificance of NBFCs is underscored by the vigilant and nuanced regulatory oversight adopted by th e Reserve Bank. The implementationof the ScaleBased Regulation (SBR) framework since October 2022signifies a shiftto a more n uanced, risk-alibratedsystem that acknowledges the heterogeneity withinthe NBFC sector.

In202 6, NBFCsare not just complementing banks; they areactively shaping the future by offeringagile, innovative, and deeply speci alizedfinancial solutions. The post-2025 budget landscape further solidifiesthe position of NBFCs, with a renewed focus oneconomic growth and infrastructure develo pment.

(Source: PWC/Univest)

Your Companys performance during the Financial Year 2025-26 is as follows:

( in Lakh)

Total revenue from operations on a standalone basis for the current year is 129.21 Lakhs as against 148.72 Lakhs in the previous year.

Net profit for the current year is 47.25 Lakhs as against the net profit of 53.22 Lakhs in the previous year.

Earnings per share stood at 0.06 on Face Value of 1each.

Total revenue from operations on a consolidated basis for the current year is 18,594.13 Lakhs as against 15,826.79 Lakhs in the previous year.

Net Profit for the current year is 975.84 Lakhs as against 960.09 Lakhs in the previous year.

Earnings per share stood at 0.78 on Face Value of 1 each.

Non-banking finance companies (NBFCs) play a significant role in the financial sector and they have tremendous opportunities in the retail sector. Non-banking finance companies higher level of customer orientation, fewer pre and post-sanction requirements, simple and speedy tailor-made services and higher rate of return on small savings have assured them a loyal clientele despite higher costs. Non-banking finance companies have been instrumental in providing funds and small savings avenues to various sectors. These companies constitute an important link between banks and customers in look out for more services. They have become an accepted and integral part of the Indian financial services in view of their complementary as well as competitive role. Tremendous opportunities are unfolding for NBFCs in the retail lending business consequent to a cultural change sweeping across the country.

NBFCs act as a perfect substitute for banks for facilitating the poor and underprivileged who could not get access to banks. Thus, banks could be termed as competitors.

The unorganized money lenders have a strong presence in the rural markets. They pose a big threat to the NBFCs in the rural areas.

The bargaining power of suppliers/depositors is quite high since they have many alternatives at their disposal to invest their money depending on their risk appetite.

The service offerings by NBFCs are almost the same. Thus, there is a low level of service differentiation.

Due to the increased rivalry among the NBFCs, there has been use of aggressive selling & intensive marketing strategies by the companies to gain the market share.

The Company has an adequate internal control system commensurate with its size and the nature of its business in order to achieve efficiency in operation and optimum utilization of resources. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information. Internal audits are conducted in the Company on regular basis.

Every business has both Risk and Return and they are inseparable. As a responsible management, the Companys principal endeavor is to maximize returns. The Company continues to take all steps necessary to minimize its expenses through detailed studies and interaction with experts. Our senior management identifies and monitors the risk on regular basis and evolves process and system to control and minimize it. With regular check and evaluation business risk can be forecasted to the maximum extent and thus corrective measures can be taken in time.

Human resources are valuable assets for any organization. The employees of the Company have extended a very productive cooperation in the efforts of the management to carry the Company to greater heights. As at 31^st March, 2026, the Company had 2 employees. The Company is giving emphasis to upgrade the skills of its human resources and continuous training down the line is a normal feature in the Company to upgrade the skills and knowledge of the employees of the Company.

Statement in this Report describing the Companies objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those either expressed or implied.