Sera Investments & Finance India Ltd Management Discussions

FOR THE FINANCIAL YEAR ENDED ON MARCH 31, 2026

Regulation 34(2)(e) read with Paragraph B of Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements)

In terms of the provisions of Regulation 34(2)(e) of the Listing Regulations, the Managements discussion and analysis are as follows:

GLOBAL ECONOMY OVERVIEW:

Global economic activity is expected to maintain moderate but uneven momentum in 2026 and 2027. According to the latest projections, global real GDP growth is expected to reach around 3.0% in 2026 and 3.4% in 2027, following estimated growth of approximately 3.3% in 2025. The global outlook continues to be shaped by geopolitical tensions, the economic effects of conflicts, elevated policy uncertainty, trade-policy changes, financial-market volatility, and divergent growth and inflation dynamics across economies. At the same time, strong technology-related investment, particularly linked to artificial intelligence, is providing an important offset to some of these headwinds.

Regional growth patterns remain fragmented. Advanced economies are generally experiencing more moderate growth, while emerging markets and developing economies continue to show varying degrees of resilience. Economies exposed to higher energy costs and geopolitical disruptions face greater downside risks, whereas countries benefiting from technology investment and resilient domestic demand are experiencing relatively stronger growth.

On the inflation front, the global disinflation process has stalled in 2026. Global inflation is expected to rise modestly in 2026 before declining again in 2027. Higher energy prices and supply disruptions associated with geopolitical tensions have renewed inflationary pressures, particularly in emerging markets and developing economies. At the same time, the effects of tariffs and changing trade policies remain uneven: tariffs can raise production and consumer costs in economies imposing them, while weaker external demand can weigh on inflation in economies affected by reduced trade.

Overall, global headline inflation is projected to increase from approximately 4.1% in 2025 to 4.7% in 2026, before declining as inflationary pressures gradually ease in 2027. However, the path of disinflation remains vulnerable to renewed geopolitical tensions, energy and commodity price shocks, foreign-exchange volatility, trade-policy changes, financial-market repricing, and further supply-chain disruptions.

Overall, the global economy in 2026 remains resilient but faces significant downside risks. The balance between technology-led investment and productivity gains on one side, and geopolitical tensions, energy-price pressures, trade uncertainty, and financial-market volatility on the other, will be critical in determining the pace and sustainability of global growth through 2027.

OUTLOOK:

At the midpoint of 2025, the global economy remains resilient but fragile, with growth momentum diverging across regions and sectors. Mounting policy uncertainty from shifting trade relationships, fiscal realignments, and financial market repricing is adding to business complexity.

Companies face challenges from supply vulnerabilities, volatile inflation, and inconsistent central bank signals, even as selective strength in emerging markets and key sectors offers some support. Risks from geopolitical tensions, tariffs, and commodity swings continue to weigh on the global outlook.

Indias economy continues to grow at a steady and confident pace, standing out as the fastest growing major economy in the world. In 2025-26, real GDP growth was estimated at 6.8 per cent. The Reserve Bank of India expects the same rate to continue in 2025-26. This performance comes at a time when the global economy faces uncertainty, making Indias steady momentum all the more significant.

Supported by strong domestic demand, easing inflation, robust capital markets and rising exports, the broader economic picture is one of resilience and balance. Key indicators such as record foreign exchange reserves, a manageable current account deficit, and increasing foreign investment reflect growing global trust in Indias long-term prospects. Together, these trends show an economy that is not only expanding but doing so with strength across sectors.

OUTLOOK:

Indias economic performance over the past year reflects not just growth, but a deeper sense of stability and direction. With real GDP rising at 6.8 per cent and inflation easing to its lowest in years, the country has shown that it can balance expansion with price stability. At the same time, strong participation in capital markets, record levels of exports, and healthy foreign exchange reserves point to growing confidence both at home and abroad.

Key sectors such as manufacturing, services, and infrastructure are pushing ahead, supported by steady investment and policy focus. External risks remain, but Indias fundamentals are sound. As the global economy continues to face challenges, Indias consistent performance offers reassurance that it is well placed to lead from the front and keep building a stronger, more inclusive future.

INDIAN FINANCIAL SERVICE SECTOR SCENARIO:

Indias financial services industry continues to demonstrate strong and broad-based growth, supported by rising incomes, increasing financialisation of household savings, rapid digital adoption, and continued regulatory support. The sector is becoming an increasingly important pillar of Indias economic expansion, with strong momentum across wealth management, insurance, mutual funds, banking, and digital financial services.

The private wealth management segment remains a significant growth opportunity, driven by the expansion of Indias affluent and high-net-worth population, rising investable wealth, and greater demand for professional investment and advisory solutions. Increasing participation in capital markets, alternative investments, and digital wealth platforms is further supporting the evolution of Indias wealth-management ecosystem.

The insurance sector is also expanding steadily, supported by rising awareness, increasing insurance penetration, digital distribution, and regulatory reforms. A major policy development has been the increase in the foreign direct investment limit in the insurance sector from 74% to 100%, creating greater scope for foreign capital, technology, and expertise. Indias insurance industry recorded total premiums of approximately ?11.23 lakh crore in FY2025-26, while insurance penetration has continued to improve, although it remains below global averages. These developments provide significant long-term potential for both life and non-life insurance businesses.

The mutual fund industry has continued to reach new milestones. As of July 2026, total mutual fund assets under management stood at approximately ?85.76 lakh crore, compared with ?35.32 lakh crore in July 2021, representing nearly a three-fold increase over five years. The number of mutual fund folios also reached approximately 28.09 crore, highlighting the rapid expansion of retail participation and the growing financialisation of household savings. Systematic Investment Plans (SIPs), passive investment products, and participation from investors in smaller cities are expected to remain important drivers of future industry growth.

Digital financial services continue to transform the sector, with mobile payments, digital banking, fintech platforms, and online investment solutions becoming increasingly integrated into consumers financial lives. The expansion of digital infrastructure and rising smartphone and internet penetration are enabling financial institutions to reach a wider customer base while improving convenience, accessibility, and financial inclusion.

With strong economic growth, increasing investor participation, expanding insurance coverage, rising mutual fund penetration, and continued digital transformation, Indias financial services sector is well-positioned for sustained expansion. The combination of regulatory reforms, technological innovation, growing household wealth, and deeper participation in formal financial markets is expected to strengthen the sectors contribution to Indias long-term economic growth and financial resilience.

COMPANY OVERVIEW:

Sera Investments & Finance India Limited, is a non-deposit taking Non-Banking Financial Company registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). It is a prominent NBFC has emerged as a progressive and growth oriented Non-Banking Financial Company (NBFC) over the past few years. The Company is primarily engaged in providing retail loans. It has established a diversified business management system which enables optimal balance of risk and profitability to deliver a sustainable business. The Company is focused on continuous innovation to transform customer experience and create sustainable and profitable growth opportunities. The Company is optimistic about its growth potential in the future years, with its strong financial position, low NPAs, growth momentum, well provisioned balance sheet, strong capital adequacy, omnichannel business approach and strong start into FY2026.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL

PERFORMANCE:

Financial and operational performance forms part of the Annual Report and is presented elsewhere in the report.

HUMAN RESOURCES:

Sera Investments & Finance India Limited highly values its human capital, recognising that the organisations success hinges upon the competencies, capabilities, contributions and experiences of its employees. Rooted in a core philosophy of fostering a safe, healthy, and joyful workplace, the Company prioritises nurturing an environment that supports employee well-being and productivity.

The Company actively nurtures a culture of integrity, honesty and continuous learning, while upholding principles of equality and preventing harassment and strives for promoting trust, confidence and transparency. In line with this philosophy, the Companys Human Resource policies are tailored to empower its workforce with the knowledge and skills needed to thrive in a supporting work environment. Through a culture that values performance, the Company inspires its employees to pursue excellence, thereby enhancing the organisations brand and effectively addressing business challenges.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: “

The Company maintains a well-defined organisational structure, documented policy guidelines to ensure operational efficiency, compliance with internal policies, laws and regulations, as well as the protection of resources. The Company believes that a robust internal control system and processes are vital for its day-to- day operations.

In pursuit of this goal, Company established an effective internal control system to align its business processes, operations, financial reporting, fraud control and compliance with regulatory guidelines. Stringent internal control measures are in place to uphold the highest standards of governance. The Company ensures the implementation of a standardised and effective internal control framework across the organisation, ensuring the protection of assets and precise transaction execution in accordance with authorised procedures. The Companys internal control system is

complemented by comprehensive internal audits, regular management reviews and standardised policies and guidelines, all aimed at ensuring the accuracy and reliability of financial and other records.

The Company maintains, in all material respects, adequate internal financial control over financial reporting, which operates effectively.

SWOT ANALYSIS: _ _

Strengths:

• Prioritises serving underserved retail markets through a unique relationship-based business

model;

• Boasts a strong brand pedigree and successful track record in credit appraisal and collection processes;

• Operates with a well-defined and scalable organisational structure based on product and process knowledge; .

• Employs an integrated technology platform for streamlined processes and customer on boarding;

• Supported by an experienced management team;

• Nurtures strong relationships with all the stakeholders including lenders, investors, fixed deposit

holders etc.

Weaknesses:

• Business and growth correlate closely with the countrys GDP growth rate;

• Companys customer base is particularly susceptible to the adverse impacts of economic

downturns;

Opportunities:

• Providing financing solutions to face challenges accessing credit from traditional banks. Opportunities of co-lending with the Banks to the end customer;

• Boosting MSME spending, government initiatives encourage demand for MSME loans, while Indias financial inclusion remains at an early stage, offering NBFCs opportunities to reach the unbanked and underbanked population;

• Rising disposable income, evolving consumption patterns and a shift towards spending drive demand for consumer loans;

• Expanding geographical reach and customer base facilitates deeper penetration into hinterland

markets;

• Streamlining customer on boarding process through the technology platform;

• Forming partnerships with private financiers to expand reach without substantial investments;

• Presenting financial opportunities, growth in the financial markets remains significant;

Threats:

• Facing competition from captive finance companies, small banks, Fintechs and emerging players;

• Managing limited access to bank finance, expected rise in the borrowing cost and incremental borrowings;

• Addressing external risks related to liquidity strain, political uncertainties and fiscal instability;

• Navigating intense competition from global and local rivals in product innovation and technological advancements, resulting in narrow margins;

• Adapting to regulatory and compliance shifts impacting the NBFC sector;

• Confronting the increasing challenge of financial product commoditisation;

RISKS MANAGEMENT:

The Company places a high priority on risk management to safeguard the interests of customers, colleagues, shareholders, and the organisation itself, all while promoting sustainable growth. The Companys risk management framework strictly adheres to industry standards, with a robust control framework serving as its foundation.

The Risk Management Committee oversees major risk categories, encompassing credit, market, legal and regulatory, operational, liquidity, interest rate, cybersecurity, information technology, strategic and economic risks. To effectively address these increasingly intricate risks, the

Companys risk management system conducts thorough risk analysis and proactively implements

measures.

Risk Management Framework

Process

• Identification of cause of the risk and its effect as it is vital for appropriate plans and controls to address the risk.

• Assessment of risk considering all possible scenarios and thoroughly examine every aspect of

the risk.

• Respond to Risk: Develop strategies to minimize, accept, transfer, or avoid the risk.

• Continuous risk monitoring.

• Evaluation of risk management processes & update.

Key Risks and Mitigation

a) Interest Rate Risk: The risk arising from a financial loss, owing to unfavourable interest rates for both lending and treasury operations. It has a significant influence upon a Companys net- interest income and profitability.

Mitigation: The Company has implemented comprehensive policies and procedures to ensure compliance with regulatory guidelines concerning asset and liability exposure.

b) Credit Risk: This is the risk arising from the potential loss due to borrowers and/or counterparties failing to fulfil their contractual obligations. This risk stems primarily from the Companys lending activities.

Mitigation: With operational expertise, Company effectively manages credit risk through stringent credit protocols and robust procedures. This involves various measures like a rigorous credit assessment process, meticulous evaluation of borrowed capital considering customer cash flows. Furthermore, Risk exposures are carefully managed through a comprehensive analysis of counterparty fundamentals, industry dynamics and sector-specific risks.

c) Operation Risk: This risk is about failure of processes and controls in operations, which can also have an adverse impact on business continuity, reputation and profitability of the Company.

Mitigation: A robust control and audit mechanism has been implemented to identify and mitigate operational risks. The Company has a strong operating model and well-documented Standard Operating Procedures and a good reporting framework. This ensures that operational risks are minimised at any given point of time.

d) Regulatory Risk: A complex regulatory framework exists in the financial sector. Any noncompliance with regulations could result in monetary losses and has the capability to damage the Companys reputation.

Mitigation: The Company ensures strict adherence to applicable rules and regulations owing to a strong internal control framework, robust IT systems and an expert team. It closely monitors actions and proactively responds to changes in government policies to keep a tab on regulatory risk.

e) Fraud Risk: We may face fraud risks such as loan fraud, identity theft, internal fraud, and cyber fraud. These risks pose the threat of financial loss and reputation loss, resulting from intentional deception or misrepresentation by individuals or entities, internally or externally.

Mitigation: We have implemented a control framework to prevent, detect, investigate and deal with fraud. We maintain a zero-tolerance policy towards fraud, actively raising awareness and implementing robust controls to prevent any occurrence. Our Fraud Risk Management reports to the Chief Risk Officer and monitors all fraud risks, while our Audit Committee and Board of Directors monitor frauds specified by the regulator.

f) Liquidity Risk: The risk arises when Company is unable to fulfil its financial obligations as required or within predetermined timelines.

Mitigation: The Company has implemented various policies, procedures and controls to effectively handle liquidity risk. To standardise the assessment of liquidity risk on specific maturity dates, the Company has established a contingency plan for liquidity management during crisis situations. Furthermore, proactive monitoring of capital adequacy and asset exposure levels allows the Company to evaluate potential funding requirements. Company maintains a diversified funding base, which includes borrowings from banks, financial institutions, capital markets and public fixed deposits, ensuring flexibility in meeting funding needs.

g) Cash Management Risk: Cash management risk related to the collection of loan instalments denotes the possible obstacles and risks encountered by a financial institution. It pertains to ensuring the timely and complete receipt of payments from borrowers.

Mitigation: The Company maintains an indomitable focus on customer on boarding onto its technology platform, emphasising digitisation.

h) Information Technology Risk: This risk stems from IT infrastructure failure or threats to data integrity, leading to operational disruptions and financial losses.

Mitigation: To effectively manage potential IT risks associated with such a setup, the Company has established a robust IT risk management mechanism with comprehensive measures, checks and controls in place. In the event of any functional section becoming non-operational, Company has contingency plans in place to ensure the continuity of critical business functions for its customers.

i) Cybersecurity Risk: The risk stemming from cyberattacks and hacking has escalated due to the heightened reliance on the internet and digital platforms.

Mitigation: The Company has implemented a robust cybersecurity framework to effectively manage and mitigate cyber threats. To ensure comprehensive information security throughout the organisation, Company has established a detailed security framework, policies and procedures aligned with industry best practices. The Company scrutinizes fraud protection measures to authenticate risk-based transactions effectively.

SEGMENT-WISE OR PRODUCT WISE PERFORMANCE:

The Company operates in single business segment i.e. NBFC, it has witnessed considerable growth in the last few years and is now being recognised as complementary to the banking sector due to implementation of innovative marketing strategies, customer-oriented services, attractive rates of return on deposits and simplified procedures, etc.

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Your Company is a Non-Banking Financial Company (NBFC), therefore, disclosure of significant changes in key financial ratios is not applicable to our Company as our Company.

DISCLOSURE OF ACCOUNTING TREATMENT:

Sera Investments & Finance India Limited has prepared financial statements for the F.Y. 2025-26 in accordance with the Indian Accounting Standards (INDAS) as specified under Section 133 of the Companies Act, 2013.

CAUTINARY AND FORWARD-LOOKING STATEMENTS:

Statements made in this Management Discussion and Analysis Report may contain certain forwardlooking statements based on various assumptions about the Companys present and future business strategies and the environment in which it operates. Actual results may differ substantially or materially from those expressed or implied due to risk and uncertainties. These risks and

uncertainties include the national and global effects of economic conditions, political conditions, volatility in interest rates, changes in regulations and policies impacting Companys businesses and other related factors. The information contained herein is as referred to. The Company does not undertake any obligation to update these statements. The Company has obtained the data and information referred here from sources believed to be reliable or from its internal estimates, the accuracy or completeness of which cannot be guaranteed.

Place: Ahmedabad	SHWETA SAMIR SHAH
Date: September 08, 2026	CHAIRPERSON & MANAGING DIRECTOR
	DIN: 03082967