P. H. Capital Ltd Management Discussions

Global Economic Overview

The global economy is projected to grow by 3.1% in 2026, reflecting resilience despite heightened geopolitical tensions, trade policy uncertainty and conflict-related disruptions. Global inflation is expected to increase modestly in 2026 before resuming its downward trajectory in 2027, as central banks continue to calibrate monetary policy in response to evolving inflationary pressures. India is expected to remain the worlds fastest-growing major economy, with projected growth of 6.5% in 2026, supported by strong domestic demand and continued public investment. However, downside risks persist due to geopolitical conflicts, elevated public debt, supply chain disruptions, tighter financial conditions and renewed trade restrictions. The International Monetary Fund (IMF) emphasizes the need for credible macroeconomic policies, fiscal prudence, structural reforms and enhanced international cooperation to strengthen economic resilience. Continued investment in digital infrastructure, clean energy, artificial intelligence and resilient supply chains will remain critical to fostering sustainable, inclusive and long-term global economic growth.

Indian Economic Overview & Outlook

India continued to be one of the fastest-growing major economies during FY2025-2026, demonstrating resilience despite global economic uncertainties arising from geopolitical tensions, trade-related disruptions and volatile financial markets. Strong domestic consumption, sustained public capital expenditure, robust growth in the services sector and a gradual recovery in manufacturing supported the countrys economic momentum. According to the International Monetary Fund (IMF), Indias GDP is projected to grow by 6.5% in 2026, reaffirming its position as the fastest-growing major economy. Continued emphasis on infrastructure development, digital transformation, ease of doing business and structural reforms is expected to strengthen Indias long-term growth prospects. Policymakers remain focused on maintaining macroeconomic stability, fiscal prudence, price stability and fostering private investment while promoting inclusive and sustainable economic growth.

Financial Performance

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS), notified under section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, under the historical cost convention on accrual basis, except for certain financial instruments comprises of stock in trade of shares and securities, which are measured at fair values, as specified at places of respective categories.

Key Financial Ratios:

The key financial ratios for the financial year 2025-26 and 2024-25 are as under:

Ratio	FY 2025-26	FY 2024-25	Reason for change beyond 25%
Debt Equity Ratio	0.0	0.01	The Company has prematurely foreclosed the borrowings in the current year
Debtors Turnover/ Trade receivables Turnover	19,11,28,338.78	91.28	There is reduction in average trade receivables as at the closing balance sheet date.
Current Ratio	51.66	7.80	Due to significant decrease in trade payables
Inventory Turnover	3.41	3.96	Not applicable
Interest Coverage Ratio	19.69	26.12	Not applicable
Operating Profit Margin (OPM) %	5.76	8.11	Decrease in sales and operating profit during the current year
Net Profit Margin (NPM)%	2.87	4.23	Decrease in sales and net profit during the current year
Return on Net worth	0.08	0.20	Decrease in EBIT as compared to last year

Internal Control Systems and their Adequacy

The Company has satisfactory internal control system commensurate with its business, size and operations, the adequacy of which has been mentioned in the Auditors Report.

Human Resources

There has been no material development on the Human Resource / Industrial relations front during the year. The Company had five employees as on March 31,2026.

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Opportunities

Indias sustained economic growth, supported by strong domestic demand, continued infrastructure investments and favourable policy initiatives, presents significant opportunities for the financial services sector. Rising credit demand across retail, MSME and corporate segments, coupled with increasing financial inclusion, is expected to drive the need for innovative and customer-centric financial products and services. The rapid adoption of digital technologies, artificial intelligence, data analytics and digital public infrastructure is transforming lending, underwriting and risk management processes, enabling enhanced operational efficiency and improved customer experience. Additionally, increasing formalisation of the economy, expanding capital markets and greater participation by domestic and global investors are expected to create new avenues for financing, investment and wealth creation. As India progresses towards becoming a developed economy, the financial services industry is well positioned to support sustainable economic growth while capitalising on emerging business opportunities.

Threats

Persistent geopolitical tensions, evolving trade policies and heightened global economic uncertainty continue to pose challenges for the financial services sector. Although inflation has moderated in several economies, relatively elevated interest rates and tighter global financial conditions have increased borrowing costs and affected credit demand across certain sectors. Ongoing supply chain realignments, commodity price volatility and fluctuations in energy costs continue to influence business profitability and investment decisions. In India, while macroeconomic fundamentals remain strong, risks arising from global economic slowdown, market volatility, inflationary pressures and geopolitical developments may impact asset quality, credit growth and investment activity. In addition, the increasing focus on sustainability, climate - related risks and evolving regulatory requirements necessitates continued investments in technology, risk management and compliance frameworks, which may increase operating costs in the near term.

Risk Management

Risk management remains an integral part of the Companys business strategy and governance framework, with risk considerations embedded across all key functions and decision-making processes. The Company is committed to maintaining an optimal risk-return balance while ensuring compliance with applicable laws, regulations and internal policies. A robust risk management framework enables the timely identification, assessment, monitoring and mitigation of strategic, operational, financial, compliance and emerging risks. The Company continues to strengthen its risk management capabilities through investments in skilled talent, technology-driven monitoring systems, data analytics and well-defined internal processes. This proactive approach enhances organisational resilience, supports informed decisionmaking and enables the Company to effectively navigate an evolving business, regulatory and economic environment while safeguarding stakeholder interests.

Outlook

The outlook for Indias financial services sector remains positive, supported by strong economic fundamentals, increasing financialisation of savings, robust domestic investor participation and continued policy support. Capital markets are expected to witness sustained activity, driven by a healthy pipeline of initial public offerings (IPOs), fund-raising initiatives and growing participation from retail and institutional investors. The rapid adoption of digital technologies, artificial intelligence, automation and data analytics is expected to further enhance operational efficiency, strengthen risk management and improve customer experience across the financial services ecosystem. Going forward, companies that continue to invest in technology, strengthen governance and compliance frameworks, expand digital capabilities and offer innovative, customer-centric products and services will be well positioned to capitalise on emerging opportunities. While global macroeconomic uncertainties and market volatility may present near-term challenges, Indias strong growth prospects, favourable demographics and ongoing structural reforms are expected to support the sectors long-term growth trajectory.

Forward-looking statements

This Management Discussion and Analysis contains statements about expected future events and financial and operating results of P H Capital Limited, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Do not place undue reliance on forward looking statements as a number of factors could cause assumptions and actual future results or events to differ materially from those expressed in these forward-looking statements.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Place : Mumbai Date : August 11,20

Aditya Himmat Bhansali	Disha Singhvi
CFO & Additional	Additional
Whole-time Director	Whole-time Director
DIN: 03184474	DIN:11751597