Stellant Securities India Ltd Management Discussions

<dhhead-MANAGEMENT DISCUSSION AND ANALYSIS REPORT</dhhead-

Industry Structure and Development:

• Global Economy

Financial Year 2025-26 saw the global economy navigating a complex transition. While central banks globally initiated rate-cut cycles to support growth, structural shifts in global supply chains, geopolitical tensions, and persistent volatility in capital flows created an intricate operating environment. Global private equity and venture capital deployments showed signs of recovery, with a sharp focus on technology-enabled platforms, clean energy transitions, and infrastructure financing.

• Indian Economy & Financial Sector

India remained one of the fastest-growing major economies in FY 2025-26, driven by robust domestic consumption, government-led capital expenditure, and strong corporate balance sheets.

The Indian financial services landscape underwent significant evolution during the year:

- Capital Markets Expansion: Strong retail participation through direct equity and SIP routes, alongside expanding institutional and Alternative Investment Fund (AIF) platforms, deepened domestic capital markets.

- Credit & Advisory Demand: Middle-market companies and high-growth startups scaled up fundraising, driving strong demand for corporate structuring, debt syndication, and strategic transaction advisory.

- Regulatory Enhancements: SEBI and RBI introduced key regulatory updates focused on digital onboarding integrity, stringent disclosure requirements, and enhanced oversight over financial advisory services, reinforcing long-term market transparency.

Opportunities and Threats:

Opportunities

- Alternative Investments & Wealth Solutions: Expanding demand for structured coinvestment platforms gives our investment arm higher yield opportunities.

- Digital Transformation: Deploying AI-assisted analytics tools for market insights, risk modeling, and due diligence enhances advisory turnaround time and operational efficiency.

- Mid-Market Corporate Restructuring: A growing base of mid-sized Indian businesses seeking institutional capital, joint ventures, and balance-sheet debt restructurings creates expanded mandates for our advisory division.

Threats

Some of the threats to which the Company is exposed to include Regulatory Changes, Execution risk, competition from local and multinational players, Inflationary pressure, slowdown in policy making and reduction in household saving in financial products, Increasing competition from local and global players etc.

Internal Control Systems and their adequacy:

The Company is focused on its internal control systems and their adequacy by ensuring timely compliances of all statutory requirements as well as taking a strict view on client positions.

Outlook:

With anticipated moderation in inflation and stable interest rates, FY 2026-27 is expected to offer sustained investment opportunities in both public and private markets. The Company aims to strengthen its research capabilities, diversify its investment portfolio, and enhance its risk-adjusted return profile.

Risk and Concerns:

The Company has laid down several measures for risk management to ensure timely collection of margins and their replenishment from time to time. Market volatility plays a major role in the variation in margins.

Material developments in Human Resources/Industrial Relations front including number of people employed:

There are no material developments in Human Resources / industrial relations front.

Discussion on financial performance with respect to operational performance

The financial performance of the Company for the financial year 2025-26 is described in the Directors Report under the head "Financial Result".