The Investment Trust of India Ltd Management Discussions

OVERVIEW OF INDIAN ECONOMY

In 2025, the global economy recorded resilient yet uneven expansion, with global GDP growth estimated at around 3.4%, reflecting a broadly stable outlook despite multiple divergent forces. Key advanced economies experienced moderate growth, while many emerging markets grew above 4%, keeping the world economy on a steady path. Fiscal policy remained generally measured across major economies, with governments balancing consolidation with targeted support to sustain investment and long-term competitiveness. Monetary conditions gradually eased as inflation moderated, although the pace of disinflation continued to vary across regions, prompting central banks to normalise rates cautiously. Private-sector investment strengthened, driven by surging investments in the technology domain. At the same time, earlier trade realignments and evolving industrial policies continued to reshape global production networks. Geopolitical tensions, tari_-linked trade realignments and supply chain vulnerabilities, remained the most significant watch-outs for the global outlook, with the potential to re-ignite volatility in energy markets, capital flows and global demand.

Chart: Indias GDP growth highest amongst major peers

GDP growth rate	2025	2026	2027
World Output	3.4%	3.1%	3.2%
USA	2.1%	2.3%	2.1%
China	5.0%	4.4%	4.0%
Japan	1.2%	0.7%	0.6%
Germany	0.2%	0.8%	1.2%
India	7.6%	6.6%	6.7%
UK	1.3%	0.8%	1.3%
France	0.9%	0.9%	0.9%
Italy	0.5%	0.5%	0.5%
Canada	1.7%	1.5%	1.9%
Russia	1.0%	1.1%	1.1%

Source: IMF World economic outlook, Apr26

OVERVIEW OF INDIAN ECONOMY

FY2025-26 was a year in which India reafirmed its position as one of the worlds fastest-growing major economies, delivering real GDP growth of around 7.4%. This year was shaped by a combination of strengthening domestic demand, robust public investment and resilient macroeconomic fundamentals, even as the global economy navigated persistent uncertainties.

Growth was supported by the continued strength of the services and industrial sectors. High-frequency indicators such as GST collections, power demand, mobility data, and cement and steel production, pointed to broadening activity. Rural and urban demand remained stable although signs of moderation persisted in select segments. Together, these trends reflected an economy expanding at a healthy pace, while still navigating pockets of variability across regions, income groups and sectors. Policy support played a pivotal role in sustaining Indias growth trajectory during the year. The Governments fiscal stance remained growth-oriented yet disciplined, with capital expenditure rising year-on-year, reinforcing the multi-year push to build infrastructure, expand capacity and lift long-term competitiveness. Budget measures focused on strengthening manufacturing, promoting innovation, accelerating digital infrastructure and enabling clean-tech transitions, all of which continued to bolster the investment climate. On the consumption side, GST rate rationalisation across several essential and mass-consumption categories, combined with targeted reductions in personal income taxes, created conducive environment to improve disposable incomes and support household spending.

At the same time, the monetary environment turned more accommodative as headline inflation softened to around 2%, enabling the Reserve Bank of India to reduce the repo rate in a calibrated manner during 2025, along with liquidity injections to ease financial conditions. These measures improved credit availability, lowered borrowing costs for consumers and businesses, and helped reinforce broader financial-sector stability. Together, these fiscal and monetary actions acted as complementary levers — improving consumer sentiment, supporting investment momentum and creating the conditions for a more durable, broad-based recovery. In March however, the escalation of the Middle East crisis led to a sharp spike in crude and crude-linked commodity costs, along with supply-side disruptions and continued Rupee depreciation. Together, these forces shaped the nation that continued to demonstrate resilience, despite global trade fragmentation, shifting tari_ landscapes and volatility in commodity and financial markets.

India retained its position as the 5th largest economy and have maintained its status as the fastest growing amongst large economies and is expected to be the third largest economy by 2029 (crossing GDP of $6 Tn) after USA and China. The Indian economy is expected to grow by 6.6% in CY26.

Rank	2020	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030
1	USA	USA	USA	USA	USA	USA	USA	USA	USA	USA	USA
2	China	China	China	China	China	China	China	China	China	China	China
3	Japan	Japan	Japan	Germany	Germany	Japan	Germany	Germany	Germany	India	India
4	Germany	Germany	Germany	Japan	Japan	Germany	India	India	India	Germany	Germany
5	UK	India	India	India	India	India	Japan	Japan	Japan	Japan	UK
6	India	UK	UK	UK	UK	UK	UK	UK	UK	UK	Japan
7	France	France	France	France	France	France	France	France	France	France	France
8	Italy	Italy	Russia	Italy	Italy	Italy	Italy	Italy	Italy	Italy	Italy
9	South Korea	Canada	Canada	Canada	Canada	Russia	Russia	Russia	Russia	Canada	Canada
10	Canada	South Korea	Italy	Russia	Russia	Canada	Canada	Canada	Canada	Russia	Russia

Source: (as per latest IMF database)

OUTLOOK ON INDIAN ECONOMY

The Indian economy continued to demonstrate resilience during FY2025-26, supported by strong domestic demand, sustained public capital expenditure, robust financial sector performance, and easing inflationary pressures. Despite persistent geopolitical uncertainties, global trade disruptions and volatile commodity prices, India remained one of the fastest-growing major economies, underpinned by prudent macroeconomic management and structural reforms.

The outlook for the economy remains positive, with continued emphasis on infrastructure development, digital transformation, manufacturing under the "Make in India" initiative, and expanding private sector investments. Healthy corporate balance sheets, rising consumption, improving rural demand, and increased credit penetration are expected to further support economic activity. The banking and financial services sector is likely to benefit from stable asset quality, adequate capitalisation, and sustained credit demand across retail, MSME, agriculture, and infrastructure segments.

However, the growth trajectory may be influenced by global economic uncertainties, evolving geopolitical developments, fluctuations in crude oil prices, exchange rate volatility, and changes in global monetary policy. Nevertheless, supported by a stable policy environment, ongoing reforms, and strong domestic fundamentals, India is expected to maintain its position as one of the worlds fastest-growing large economies, providing significant opportunities for businesses across sectors.

This positive macroeconomic environment is expected to create favourable conditions for the financial services industry, with increasing financial inclusion, rising investor participation, growing demand for credit and investment products, and continued expansion of digital financial services. Companies with robust governance, prudent risk management practices, diversified business models, and technology-driven capabilities are well positioned to capitalise on these opportunities.

INDUSTRY OVERVIEW

Indias financial services sector entered FY2025-26 on a stronger and more stable footing, underpinned by resilient economic activity, sustained credit demand and a more balanced interest rate environment. The central bank has highlighted that the banking system remains well-capitalised and adequately liquid, even as credit and deposit growth normalised from the elevated levels seen in the previous year.

Financial Inclusion Driving Expansion Structural drivers such as financial inclusion and digital adoption continued to reinforce sectoral momentum. The RBIs Financial Inclusion Index improved to 67 in 2025, reflecting broader access to formal financial services. At the same time, Indias digital payments ecosystem maintained its rapid expansion, with total transactions reaching 22,831 Crores in FY2024-25. UPI remained a key enabler of this transformation, recording 20,394 Million transactions in February 2026 alone, underscoring its central role in everyday financial activity and the ongoing shift towards a less-cash economy. Additionally, the sector maintained a strong focus on prudence and risk management. Policy Support with Regulatory Vigilance Policy discussions around enhancing credit access for small businesses, including proposals to increase collateral-free loan limits, signal continued support for inclusive growth. However, regulatory guidance and supervisory assessments also emphasised the need for caution in select lending segments, particularly within non-bank financial institutions where pockets of stress have emerged. Overall, Indias financial services sector continues to play a pivotal role in supporting economic expansion, while adapting to evolving credit dynamics, accelerating digital transformation and a progressively strengthening regulatory framework.

NON_BANKING FINANCIAL SERVICES BUSINESS OVERVIEW

The Non-Banking Financial Company (NBFC) sector has emerged as a vital pillar of Indias financial ecosystem, complementing the traditional banking system by expanding credit access across underserved and niche segments. Over the past two decades, NBFCs have demonstrated strong and sustained growth in assets under management (AUM) and credit disbursement, driven by rising demand across retail, MSME, infrastructure and consumer financing. By 2025, the sectors total assets had reached approximately Rs. 45 Trillion, reflecting its deepening role in Indias credit landscape and its increasing relevance in bridging structural financing gaps.

Sustained Growth Momentum

NBFCs are expected to continue outpacing traditional bank credit growth, with loan books projected to expand at a healthy 15–17% through FY2025-26. This growth momentum is underpinned by their ability to operate in specialised niches, adopt agile underwriting models, and leverage digital distribution channels to penetrate deeper into underbanked markets. Their focus on segments such as small business financing, vehicle loans, consumer credit, microfinance and co-lending partnerships with banks and fintech players has significantly strengthened financial inclusion across rural, semi-urban and urban geographies. The integration of technology, particularly through digital lending platforms, has further accelerated credit delivery, enabling faster onboarding and broadening access to formal finance for millions of borrowers. However, the sectors rapid expansion, particularly in unsecured lending segments such as small-ticket personal loans, fintech-originated credit and certain microfinance portfolios have introduced emerging asset quality pressures. Rising delinquencies in these segments highlight the need for calibrated growth and stronger risk frameworks. In response, the regulatory landscape has evolved significantly, with the Reserve Bank of India introducing the Scale-Based Regulatory (SBR) framework to enhance oversight, strengthen governance standards, and align prudential norms with the systemic importance of NBFCs. This framework ensures that larger and more complex entities maintain robust capital adequacy, liquidity bu_ers and risk management practices, while also extending supervisory attention to smaller NBFCs.

Way Forward

The medium-term outlook for the sector remains constructive yet balanced. As per CRISIL, NBFC AUM is expected to grow at a mid-teen rate through FY2026-27, potentially surpassing Rs. 50 trillion, supported by strong consumption demand and the ongoing formalisation of credit in the economy. At the same time, factors such as elevated funding costs, intensifying competition and tighter regulatory compliance requirements may exert pressure on margins. Continued investments by corporates and fintech players in digital lending ecosystems are also likely to reshape the competitive landscape. Overall, while the Indian NBFC sector remains structurally resilient and well-positioned for growth, its long-term sustainability will depend on disciplined underwriting, prudent capital management and close alignment with an evolving regulatory environment.

OUR VEHICLE FINANCING BUSINESS

The Groups lending business is carried out through its Non-Banking Financial Companies (NBFCs), which offer a diversified range of credit solutions catering to the financing needs of retail and commercial customers. The NBFCs continue to focus on building a well-diversified loan portfolio, supported by prudent underwriting standards, disciplined risk management practices, and a customer-centric approach.

ITI Finance Limited, the Groups NBFC, has established a strong presence in the vehicle finance segment through a comprehensive portfolio of financing solutions for pre-owned Three-Wheelers, Private Cars, Small Commercial Vehicles (SCVs), Light Commercial Vehicles (LCVs), Tractors, and Two-Wheelers, with a strategic focus on the pre-owned Private Car segment. The Company has steadily expanded its geographic footprint through an extensive branch network across multiple states, enabling deeper market penetration and improved customer accessibility. Its business strategy is centred on serving underserved and emerging customer segments by offering customised financing solutions, faster credit assessment, and efficient loan processing.

The Company continues to strengthen its operational capabilities through sustained investments in technology and digital infrastructure. The adoption of technology-driven platforms across the lending lifecycle—including customer onboarding, credit appraisal, loan origination, documentation, collections, and customer servicing—has enhanced operational efficiency, improved turnaround times, and strengthened risk monitoring.

Going forward, the NBFC remains focused on expanding its lending franchise through calibrated business growth, geographic diversification, enhanced digital capabilities, and disciplined portfolio management.

Loan disbursement:

The lending business demonstrated resilience and steady growth throughout FY2025-26. Despite periodic fluctuations in monthly disbursements, the Company maintained a healthy origination pipeline and concluded the financial year on a strong note, recording its highest monthly disbursement of Rs. 137.19 crore in March 2026. This performance was supported by robust customer demand, an expanding distribution network, technology-enabled loan processing, and a disciplined approach to credit risk management, reinforcing the Companys commitment to sustainable portfolio growth.

BROKING BUSINESS & CAPITAL MARKET OVERVIEW India is 7th Largest Market by Market Cap

Global equity market capitalization has expanded steadily over time, supported by economic development, improved corporate profitability, and broader investor participation. Although markets remain influenced by pandemic rebound and technology-driven investments have sustained valuations. Recent movements suggest stabilization in a higher interest rate environment, underpinned by resilient earnings and long-term structural growth drivers. Indias domestic equity markets is ranked seventh largest globally with $4.9 Tn on market cap.

Table: India is the 7th largest market by Market Capitalisation

Country	US$ Tn Market Cap
USA	79.1
China	16.3
Japan	8.9
Hong Kong	7.6
Taiwan	5.0
South Korea	5.0
India	4.9

During FY26, global equity markets reflected divergent performance amid ongoing geopolitical tensions and heightened uncertainty, with FY25 trends providing context to these movements. In Europe, the DAX recorded a modest gain of 2.3% following strong growth in FY25, while the FTSE 100 accelerated to 18.6% compared to relatively moderate gains in the previous year. In Asia, the Nikkei 225 rebounded sharply by 43.4% after a decline in FY25, and the KOSPI surged by 103.6% following a contraction in the prior year. The Hang Seng Index rose by 7.2%, moderating from strong gains in FY25, while the Shanghai Composite maintained steady momentum with a 16.7% increase, building on consistent growth in the previous year. In the United States, the S&P 500 advanced by 16.3%, improving over FY25 performance. In contrast, Indian markets declined, with the BSE Sensex falling by 7.1% and the Nifty 50 declining by 5.1%, after moderate gains in FY25. Overall, FY26 performance highlights sharp recoveries in select Asian markets, continued strength in developed markets, and relative weakness in India, reflecting the uneven impact of global uncertainties and geopolitical developments.

FY26 witnessed a broad-based correction across key Indian equity indices following the positive returns delivered in FY25. The BSE Smallcap declined by -3.3% in FY26 compared to a strong 8.0% gain in FY25, indicating heightened volatility in the broader market segment. Similarly, the BSE Sensex and Nifty 50 fell by -7.1% and -5.1%, respectively, against gains of 5.1% and 5.3% in the previous year.

The active client base on National Stock Exchange (NSE) increased steadily, registering a CAGR of 24% from 5.17 million in Mar16 to ~46 million in Mar26. The rise in Tier-2 and Tier-3 cities, increasing participation from young investors, and the ongoing financialization of savings are expected to drive future expansion. However, market volatility and fluctuations in FII flows remain key risks. A fundamentally earnings-led market outlook should help sustain resilient investor participation in the medium term.

In FY26, the Indian equity markets displayed a resilient but uneven trajectory, absorbing global uncertainties including commodity volatility, geopolitical developments, and fluctuating foreign investor flows. Benchmark indices such as the Nifty 50 and BSE Sensex were largely supported by robust domestic participation, steady liquidity, and active primary market issuance. Over the course of the year, market behavior evolved into a more range-bound and rotation-driven phase, with heightened sensitivity to global cues. Looking ahead, the outlook remains stable with moderated expectations, anchored in earnings visibility and domestic flows, while foreign institutional activity is expected to remain opportunistic. Overall, compared to the previous broadbased upcycle, FY26 reflects a more selective and fundamentally driven market environment.

Regulatory Developments Affecting Indian Capital Markets

During FY2025-26, Indias capital market regulatory framework continued to evolve, with policymakers placing greater emphasis on market stability, stronger risk controls in derivatives, and enhanced safeguards for retail investors. Regulatory initiatives undertaken by SEBI, RBI, and the Government focused on improving transparency, managing leverage, and supporting sustainable participation in equity and F&O segments. Together, these measures contribute to a more robust and well-regulated market environment.

The measures were as below:

• SEBI strengthened derivatives risk norms to curb excessive retail speculation.

• Intraday monitoring introduced for index derivative position limits.

• Expiry-day calendar spread margin benefit removed in single-stock derivatives.

• Retail algorithmic trading brought under formal regulatory oversight.

• Standardised derivatives expiry days to improve liquidity and risk control.

• RBI tightened bank funding norms for brokers and market participants.

• Securities Markets Code proposed.

Our Broking Business:

The Groups broking business is carried out through its subsidiaries, Antique Stock Broking Limited ("ASBL") and ITI Securities Broking Limited ("ITISBL"), catering to the diverse requirements of institutional, retail, and high-net-worth investors. Together, these entities offer a comprehensive suite of broking and capital market services, supported by robust research capabilities, advanced trading platforms, and a client-centric approach.

ASBL has established a strong presence in the institutional broking segment, providing execution services across equity cash and derivatives markets to a broad base of domestic and foreign institutional investors. The Company has built a reputation for delivering efficient trade execution, particularly in large and block transactions, supported by experienced dealing teams and deep market expertise.

The institutional franchise is complemented by an in-house research platform that provides sector-specific investment insights and actionable recommendations across a wide range of industries, including financial services, information technology, consumer goods, industrials, infrastructure, logistics, healthcare, defence, power, oil and gas, metals hotels, autos and chemicals. The research-driven approach enables clients to make informed investment decisions and reinforces the Companys position as a trusted capital market intermediary.

The Groups retail broking operations are conducted through ITI Securities Broking Limited, which offers equity, derivatives trading services through technology-enabled platforms. The Company continues to focus on enhancing customer experience through seamless digital onboarding, efficient trade execution, personalized service, and comprehensive investment solutions tailored to the needs of retail and a_uent investors.

Going forward, the Group remains focused on strengthening its broking franchise by expanding its client base, enhancing digital capabilities, deepening research coverage, and leveraging cross-selling opportunities across the Groups wealth management, asset management, merchant banking, and lending businesses. The integrated business model is expected to support sustainable growth and reinforce the Groups position across the capital markets ecosystem.

During FY2025-26, the broking segment witnessed significant expansion in its client base, reflecting increased market confidence and the Companys enhanced service capabilities. Research and advisory services continue to form the cornerstone of ASBLs value proposition, catering not only to institutional clients but also to mass a_uent and high-net-worth individuals (HNIs) seeking strategic investment guidance.

Details required:

Client segments served (Retail, HNI, Institutional, Corporate) Increase in demat accounts Market turnover and trading volumes Institutional vs. Retail contribution Broking income

GOLD LOANS BUSINESS OVERVIEW

The Indian gold loan industry recorded robust growth during FY2025-26, supported by elevated gold prices, increasing demand for secured retail credit, and wider acceptance of gold loans as a convenient source of short-term financing. Gold loan NBFCs continued to play a significant role in meeting the credit requirements of individuals, small businesses, traders and the rural and semi-urban population by providing quick, collateral-backed loans with minimal documentation.

The sharp appreciation in gold prices during the year enhanced the collateral value of pledged jewellery, enabling borrowers to access higher loan amounts while improving the security cover available to lenders. This favourable environment contributed to strong growth in gold loan assets under management (AUM), improved customer acquisition and healthy portfolio expansion across the organised gold loan sector. Industry estimates projected the organised gold loan market to reach approximately Rs. 15 trillion during FY2025–26, driven by sustained demand from both banks and NBFCs.

The sector also benefited from continued formalisation of credit, digitalisation of lending processes and expansion of branch networks, particularly in Tier II, Tier III and rural markets. NBFCs increasingly leveraged digital onboarding, automated valuation processes and customer-centric service models to enhance operational efficiency while maintaining quick loan disbursement timelines.

During the year, the Reserve Bank of India (RBI) continued to strengthen the regulatory framework governing gold loans, with increased emphasis on prudent loan-to-value (LTV) management, transparent valuation practices, proper collateral handling, robust internal controls and enhanced risk management systems. The regulatory focus aims to promote sustainable growth, improve governance standards and safeguard customer interests without affecting the sectors long-term growth prospects.

The demand for gold loans remained resilient despite changing macroeconomic conditions, as borrowers increasingly preferred secured lending over unsecured credit due to comparatively lower borrowing costs and faster access to funds. Gold loans also served as an important liquidity source for micro, small and medium enterprises (MSMEs), self-employed individuals, farmers and households requiring short-term working capital or emergency funding.

The industry remained highly competitive, with established gold loan NBFCs, banks and new market entrants focusing on branch expansion, digital customer acquisition, competitive pricing and enhanced customer experience. While rising gold prices supported portfolio growth, lenders continued to closely monitor fluctuations in gold prices, collateral valuation, auction mechanisms and portfolio quality to mitigate potential credit risks.

Looking ahead, the outlook for the gold loan NBFC sector remains positive, supported by favourable demographic trends, increasing financial inclusion, continued demand for secured retail lending and rising consumer awareness of organised lending channels. Continued investments in technology, strong risk management practices and regulatory compliance are expected to further strengthen the industrys resilience and support sustainable long-term growth.

Our Gold Loans Business:

The Groups gold loan business is conducted through its associate company, ITI Gold Loans Limited, which offers secured lending solutions against gold jewellery. The business is founded on a customer-centric approach, providing quick, convenient, and transparent access to credit while maintaining prudent lending and risk management practices.

India is one of the worlds largest repositories of privately held gold, with households possessing significant quantities of gold jewellery that serve as an important store of wealth. This presents a substantial and sustainable opportunity for organized lenders to address the short-term liquidity requirements of individuals, small businesses, self-employed professionals, traders, and the rural and semi-urban population. The inherent security of gold-backed lending, coupled with shorter loan tenures and relatively lower credit risk, makes the segment an attractive business proposition for NBFCs.

ITI Gold Loans Limited continues to strengthen its presence by expanding its branch network, enhancing customer accessibility, and leveraging technology-enabled processes to deliver faster loan origination and efficient customer service. The Company remains focused on maintaining prudent loan-to-value (LTV) ratios, robust collateral management practices, and strict regulatory compliance, while offering competitive products tailored to diverse customer requirements.

Going forward, the Company aims to capitalize on the growing acceptance of organized gold financing by expanding its geographic footprint, strengthening digital capabilities, and broadening its customer base. With favourable industry fundamentals, increasing formalisation of the lending ecosystem, and sustained demand for secured credit, the gold loan business is well positioned to contribute meaningfully to the Groups long-term growth strategy.

Asset Under Management:

The Companys AUM witnessed robust and consistent growth over the last five years, increasing from Rs. 81.13 crore in FY2021-22 to Rs.1,138.38 crore as at the end of Q4 FY2025-26. This significant expansion reflects the Companys focused business strategy, enhanced customer acquisition, expanding distribution network, and prudent credit underwriting practices. The sustained growth in AUM demonstrated the Companys ability to scale its lending operations while maintaining a disciplined approach to portfolio quality and long-term value creation.

Customer base and Loans Disbursement:

The Company continued to expand its customer franchise during the period under review, reflecting the strength of its distribution network, customer-centric approach, and focused business strategy. The total customer base increased steadily from 5,414 customers in FY2021-22 to 34,990 customers as of Q4 FY2025-26, representing more than a six-fold increase over the period. This consistent growth was supported by enhanced market penetration, prudent customer acquisition, and sustained expansion across key lending segments.

The Companys loan disbursements witnessed robust growth over the last five years, demonstrating sustained business momentum and successful execution of its lending strategy. Net loan disbursements increased from Rs. 37.77 crore in FY2021-22 to Rs. 609.34 crore as of Q4 FY2025-26, reflecting a significant expansion in lending activities. This growth was driven by a calibrated approach towards portfolio diversification, deeper market penetration, and increased demand across key lending segments. The consistent rise in disbursements highlighted the Companys strengthened origination capabilities while maintaining prudent credit underwriting and risk management practices.

INVESTMENT BANKING

The Indian merchant banking and investment banking industry continued to demonstrate resilience during FY2025-26, supported by sustained economic growth, favourable government policies, increasing domestic investor participation, and the continued development of Indias capital markets. Corporate fund-raising activity remained healthy across equity and debt markets, while businesses continued to access capital for expansion, deleveraging, and strategic acquisitions. The period also witnessed steady activity in mergers and acquisitions, private equity investments, qualified institutional placements (QIPs), rights issues, and advisory mandates, reflecting continued confidence in Indias long-term growth prospects.

The primary capital market remained an important avenue for capital mobilisation, supported by a healthy pipeline of public issues and increasing participation from retail as well as institutional investors. At the same time, companies increasingly sought strategic advisory services for capital restructuring, valuation, mergers and acquisitions, and regulatory compliance, thereby expanding opportunities for merchant banking institutions.

The industry continued to benefit from regulatory initiatives aimed at enhancing transparency, strengthening investor protection, and improving market efficiency. Increased adoption of technology, digital execution platforms, data analytics, and automation has further improved transaction efficiency and client engagement, enabling merchant bankers to offer integrated and value-added advisory solutions.

Looking ahead, the long-term outlook for the merchant banking and investment banking industry remains positive. Indias robust economic fundamentals, expanding corporate sector, growing entrepreneurial ecosystem, rising private capital investments, and deepening capital markets are expected to sustain demand for capital raising and advisory services. However, global geopolitical developments, interest rate movements, market volatility, and evolving regulatory requirements may continue to influence transaction volumes and deal activity in the near term.

Our Investment banking business:

The Groups investment banking business is carried out through its wholly owned subsidiary, ITI Capital Limited, which offers a comprehensive suite of advisory and capital market solutions to corporates, financial institutions, and other clients. The Company has established a well-recognised investment banking franchise with strong capabilities across Equity Capital Markets (ECM), Debt Capital Markets (DCM), Mergers & Acquisitions (M&A), and Corporate Advisory.

Over the years, ITI Capital Limited has developed long-standing relationships with a diversified client base by delivering strategic, bespoke, and execution-focused solutions aligned with clients business and financial objectives. Its client-centric approach, combined with a deep understanding of industry dynamics and evolving market conditions, has enabled the Company to serve as a trusted advisor throughout the corporate lifecycle—from capital raising and strategic partnerships to mergers, acquisitions, restructurings, and other transformative transactions.

The investment banking platform is supported by a team of experienced professionals with deep domain expertise, strong execution capabilities, and well-established relationships across the institutional investor ecosystem. Leveraging its sectoral knowledge, transaction experience, and disciplined execution, the Company has successfully advised on and executed complex, value-accretive transactions across a wide range of industries while maintaining the highest standards of professionalism, corporate governance, and regulatory compliance.

Going forward, ITI Capital Limited remains focused on strengthening its investment banking franchise by expanding sector coverage, enhancing advisory and execution capabilities, deepening client relationships, and capitalising on the opportunities presented by Indias rapidly evolving capital markets. With its integrated platform, experienced team, and client-focused approach, the Company is well positioned to support clients in achieving their strategic and financial objectives while contributing to the sustained growth of the Groups financial services business.

ASSET MANAGEMENT

The Indian mutual fund industry exhibited steady progress in FY2026, supported by continued retail participation, rising financialisation of savings, and resilience in systematic flows, even as overall market conditions were relatively more volatile compared to FY2025. While FY2025 was characterized by stronger market performance and accelerated growth across key metrics, FY2026 reflected a phase of consolidation, with flows remaining stable and investor participation continuing to broaden. A key feature of the year was the contrasting behaviour of institutional flows—FIIs remained relatively volatile, influenced by global macroeconomic factors and risk-o_ sentiments at intervals, whereas DIIs, led by mutual funds and insurance players, provided consistent support to the markets through steady domestic inflows. This increasing role of domestic capital has enhanced market stability and reduced dependence on foreign flows.

Looking ahead, the medium-term outlook for the industry remains structurally positive over the next five years. Continued expansion in SIP penetration, growing participation from beyond the top cities, increasing digital adoption, and rising investor awareness are expected to sustain inflows. Additionally, the strengthening presence of DIIs alongside a gradual normalization of FII flows is likely to create a more balanced and resilient market environment. Collectively, these factors position the Indian mutual fund industry for sustained, long-term growth despite intermittent market cycles.

Strong Growth in Mutual Fund AUM and Investor Participation

The Indian mutual fund industry sustained its growth momentum in FY2025-26, driven by rising retail participation, continued financialisation of savings, and steady inflows through systematic investment plans (SIPs). Assets under management (AUM) expanded on the back of consistent net inflows, particularly into equity-oriented schemes, supported by improving investor awareness and wider distribution reach. The increasing contribution of SIPs highlights a growing preference for disciplined, long-term investing, reinforcing the industrys role as a key avenue for household savings.

Industry AUM Expansion

The mutual fund industrys assets under management (AUM) stood at Rs. 73.7 lakh crore as of March 2026, registering a strong increase of Rs. 8 lakh crore over March 2025 levels. The sustained rise in AUM highlights the growing acceptance of mutual funds among investors as an effective vehicle for long-term capital formation and structured investing.

Steady Growth in SIP Inflows:

SIP inflows continued to scale new highs in FY26, rising by 21% to R3,49,589 crore. While the pace of growth moderated compared to the strong 45% expansion recorded in the previous year, the milestone underscores the sustained strength and maturity of retail participation. The steady rise in SIP contributions highlights an increasing preference among investors for disciplined, long-term investing, reinforcing SIPs as a core driver of incremental flows into mutual funds.

Challenges and Opportunities for Future Growth

The Asset Management industry in India continues to navigate margin pressures from regulatory oversight by Securities and Exchange Board of India, rising competition, and market-linked volatility. Despite these headwinds, structural drivers such as increasing financialisation of savings, steady SIP inflows, expanding retail participation, and growing digital penetration remain supportive of long-term growth. Additionally, the rising adoption of passive products and ongoing product innovation provide further avenues for scalable AUM expansion.

Our Mutual fund business

The Groups asset management business is conducted through ITI Mutual Fund, which offers a diversified range of investment solutions designed to cater to the evolving financial goals of retail, high-net-worth, and institutional investors. The Company is committed to creating long-term value for investors through disciplined investment processes, robust risk management practices, and a research-driven investment philosophy.

The investment management platform is supported by an experienced team of professionals with deep expertise in equity and fixed income markets, credit research, portfolio management, and macroeconomic analysis. Leveraging comprehensive research capabilities and a rigorous investment framework, the Company seeks to identify sustainable investment opportunities and construct portfolios that aim to deliver consistent risk-adjusted returns across market cycles.

ITI Mutual Fund continues to focus on expanding its product portfolio, strengthening its distribution network, and enhancing investor engagement through technology-enabled platforms and digital initiatives. Its agile operating model, coupled with an investor-centric approach and prudent investment discipline, enables the Company to respond effectively to changing market dynamics while delivering innovative and relevant investment solutions. ITI Asset Management Limited serves as the Asset Management Company (AMC) for ITI Mutual Fund, appointed by the Trustee under the Investment Management Agreement (IMA) dated April 7, 2017.

The Companys Asset Management business offers a comprehensive range of investment solutions across Equity, Debt, Hybrid and Liquid Funds, catering to the diverse investment objectives and risk profiles of investors. The product portfolio serves a broad customer base comprising Retail Investors, High Net-worth Individuals (HNIs), Corporates, and Institutional Investors.

As on March 31, 2026, the AMC manages 20 Mutual Fund Schemes and one Specialised Investment Fund (SIF) investment strategy, reflecting its continued focus on offering diversified investment opportunities across asset classes.

During the year, the AMC further strengthened its product suite with the launch of two new offerings- Diviniti SIF Equity Long Short Fund and ITI Business Cycle Fund. These launches were aligned with the Companys strategy of expanding its investment offerings, addressing evolving investor preferences, and enhancing its presence across differentiated investment segments.

Diviniti Equity Long Short Fund-

The Diviniti Equity Long Short Fund, launched under SEBIs Specialized Investment Fund (SIF) framework, combines the discipline of mutual funds with the flexibility of long-short investing. It aims to generate long-term capital appreciation through a diversified portfolio of equity and equity-related instruments while actively managing market risks using derivatives. With active risk management, tactical flexibility, and diversified exposure across market capitalizations, the fund is designed for investors seeking long-term wealth creation with a professionally managed, risk-aware investment approach.

ITI Business Cycle Fund-

The ITI Business Cycle Fund is an actively managed equity fund that seeks long-term capital appreciation by investing in sectors and companies positioned to benefit from different phases of the business cycle. Unlike traditional funds, it dynamically adjusts sector allocation based on macroeconomic trends, policy changes, interest rates, and market conditions. Designed for investors with a long-term investment horizon, the fund offers diversified equity exposure, flexible sector allocation, and active portfolio management to capitalize on evolving market opportunities while managing risk.

Asset Under Management (AUM):

The Companys AUM continued its upward trajectory during FY2025-26, reaching Rs. 9,994.75 crore as against Rs. 9,273.62 crore in the previous year, reflecting a growth of 7.8%. Over the last five years, AUM has grown significantly from Rs. 2,712.06 crore to Rs. 9,994.75 crore, supported by strong investor inflows, a diversified product portfolio, and consistent focus on investment performance and distribution expansion.

BUSINESS STREAMS

The Company, through its subsidiaries and associate, has established a diversified presence across the financial services sector with interests spanning capital markets, lending, asset management, wealth management, and advisory services. This diversified business model enables the Group to cater to a broad spectrum of customer needs while leveraging synergies across its various business verticals.

The ITI Group operates through specialized entities engaged in stock and commodity broking, asset and wealth management, investment banking, lending, and other financial services. Each business is managed independently with a focused strategy, allowing the Group to strengthen its market position, enhance customer reach, and pursue sustainable growth opportunities across its operating segments.

The principal business activities of the Companys subsidiaries and associate are outlined below:

Sr. No. Name of the Company	Activities
Wholly Owned Subsidiaries:
1 ITI Securities Broking Limited	Securities Broking and DP (CDSL)
2 ITI Credit Limited	NBFC- Micro loans
3 Fortune Management Advisors Limited	Advisory Services
4 Antique Stock Broking Limited	Securities Broking and DP (CDSL)
5 ITI Capital Limited	Category I Merchant Banker
6 Distress Asset Specialist Limited	Debt Recovery Agent
7 ITI Mutual Fund Trustee Private Limited	Trustee Company
8 ITI Wealth Management Limited	Advisory services relating to wealth management
9 ITI Gilts Limited	Debt Recovery Agent
10 ITI Alternate Funds Management Limited	Portfolio Management Services
11 ITI Jewel Charter Limited	Jewel and Ornament Renting
12 ITI Asset Management Limited	Asset Management Company
Subsidiaries :
1 ITI Growth Opportunity LLP	Investor Manager of ITI Alternate Fund Manager
Step-down Subsidiaries :
1 Intime Multi Commodity Company Limited	Commodity Broking
2 Neue Allianz Corporate Services Private Limited	Corporate Services
3 Antique Stock Broking (IFSC) Limited	Securities Broking
Associate :
1 ITI Finance Limited	NBFC - Vehicle finance
2 ITI Gold Loans Limited	NBFC - Gold loans

 

SEGMENT-WISE PERFORMACE
Particulars	FY2025-26	FY2024-25
1 Segment Revenue (Income)	Figures are in lakhs
1 Broking and related services	15,185.44	18,868.16
2 Investment and Advisory services	4,012.35	6,148.92
3 Trading activities	0.00	6.27
4 Financing activities	9,521.18	11,110.03
5 Asset Management activities	3,728.83	2,484.72
Total Segment Revenue	32,447.80	38,618.10
Less: Inter segment revenue	2,276.90	2,119.01
Revenue from operations	30,170.90	36,499.09
2 Segment Result (-) Profit/ Loss before tax and interest from each segment
1 Broking and related services	3,226.89	6,060.02
2 Investment and Advisory services	486.52	1,529.70
3 Trading activities	0.00	0.19
4 Financing activities	4,743.75	4,421.42
5 Asset Management activities	(1,997.21)	(2,691.39)
Total Segment Result	6,459.95	9,319.94
Less: Finance cost	3,684.80	3,702.63
Profit before tax	2,775.15	5,617.31
3 (Segment Asset - Segment Liabilities)
Segment Asset
1 Broking and related services	68,226.82	89,975.80
2 Investment and Advisory services	53,188.13	52,854.95
3 Trading activities	1,098.26	1,153.34
4 Financing activities	28,319.80	82,217.05
5 Asset Management activities	9,111.01	9,470.31
6 Inter segment assets/liabilities	(60,134.09)	(81,437.57)
Total Segment Asset	99,809.93	1,54,233.88
4 Segment Liabilities
1 Broking and related services	33,269.96	56,715.92
2 Investment and Advisory services	4,590.69	4,684.85
3 Trading activities	0.00	0.00
4 Financing activities	2,112.46	46,017.26
5 Asset Management activities	1,911.81	1,951.82
6 Inter segment assets/liabilities	(15,601.88)	(30,454.34)
Total Segment Liabilities	26,283.04	78,915.51

During FY2025-26, the Groups operating performance reflected a mixed trend across its business segments. While revenues from the Broking, Investment & Advisory, and Financing businesses moderated during the year, the Asset Management business recorded healthy growth. The Financing segment continued to be the largest contributor to segment profitability, demonstrating operational resilience despite a challenging business environment. Overall profitability was impacted by lower segment earnings, while the balance sheet reflected a reduction in segment assets and liabilities in line with the Groups business and capital allocation strategy.

KEY RATIOS

The ratios are given under note 44 of the consolidated financial results of the company.

OPPORTUNITIES & THREATS _ Opportunities

• Strong economic growth to drive financial services demand.

• Rising disposable incomes to expand market opportunities.

• Regulatory reforms to strengthen market participation.

• Technology adoption to improve efficiency and customer experience.

Threats

• Regulatory Changes

• Interest Rate Movement

• Intensifying Competition

• Macroeconomic Slowdown

STREGNTHS

• Established and Trusted Brand Presence

The ITI Group has built a credible and trusted presence in the financial services industry through its customer-centric approach, strong governance standards, and consistent service delivery. Its reputation for professionalism, innovation, and ethical business practices has strengthened stakeholder confidence and enhanced brand recognition. This established market presence supports business growth, enables deeper customer engagement, and helps attract skilled professionals, thereby reinforcing the Companys long-term competitive position.

• Modern Infrastructure

The Company operates from a centralized corporate office equipped with robust technology and operational infrastructure that supports seamless business execution. Its integrated operating environment facilitates efficient collaboration across business functions, enhances service delivery, and enables the Company to respond effectively to the evolving needs of customers and business partners.

• Experienced Leaders

The Company is led by a highly experienced leadership team with extensive expertise across financial services, capital markets, investment banking, and the NBFC sector. The promoter, Mr. Chintan Valia, is a Commerce Graduate, a Chartered Accountant from the Institute of Chartered Accountants of India (ICAI), and holds an MBA from IIM Bangalore. The leadership team comprises seasoned professionals with diverse industry experience and a proven track record of driving business growth and operational excellence.

The Company believes that the collective experience, strategic vision, industry knowledge, and execution capabilities of its leadership team provide a strong foundation for sustainable growth. Their focus on innovation, prudent risk management, and customer-centric decision-making enables the Company to effectively execute its business strategy while creating long-term value for all stakeholders.

• Robust Risk Management Framework

The Company has established a comprehensive risk management framework designed to identify, assess, monitor, and mitigate key business risks. Dedicated processes and internal controls oversee credit, market, operational, liquidity, compliance, and legal risks, ensuring adherence to regulatory requirements and promoting prudent business practices. This disciplined approach strengthens the Companys resilience and supports sustainable long-term growth.

• Diversified Financial Services Platform

The Company offers a comprehensive suite of financial products and services through its Group entities, enabling customers to access multiple financial solutions under one platform. Its diversified portfolio spans lending, capital markets, wealth and asset management, investment banking, distribution, trustee services, debt recovery, and other financial solutions, allowing the Company to address varied customer requirements while fostering long-term relationships.

• Research-Driven Approach

The Company places significant emphasis on research and market intelligence to support informed decision-making and value creation. Its experienced research team undertakes in-depth analysis across equity, debt, commodity, and other financial markets, providing timely insights that assist in identifying opportunities, managing risks, and delivering superior solutions to clients.

RISK & CONCERN

Given the increasing volatility in the operating environment, the Company has adopted a proactive and comprehensive risk management framework to identify, assess, monitor, and mitigate risks that could impact its operations, financial performance, and strategic objectives. The key risks faced by the Company include, but are not limited to, Credit Risk, Digital Lending Risk, Liquidity Risk, Interest Rate Risk, Operational Risk, Business and Strategic Risk, Compliance Risk, Human Capital Risk, Information Technology Risk, and Market Risk.

To strengthen risk governance, the Company has constituted a Board-level Risk Management Committee to assist the Board in overseeing the Companys overall risk profile. The Committee periodically reviews key risk exposures, evaluates emerging risks, and ensures that appropriate mitigation measures are implemented to safeguard the Companys interests.

Further, the Companys subsidiaries have dedicated risk management teams responsible for identifying, assessing, monitoring, and managing principal risks in accordance with established policies and procedures. This enables a consistent, enterprise-wide approach to risk management across the Group and supports informed decision-making and long-term business sustainability.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has implemented a comprehensive internal control framework to ensure operational efficiency, regulatory compliance and adequate financial reporting. The Company also has an internal audit program, conducted with the help of external experts i.e. MAKK & Co. Chartered Accountants, to check adherence to policies and procedures and to suggest improvements. The Audit Committee approves this program and oversees the implementation of recommendations arising from the internal audits.

The internal audit function operates as per Board approved internal audit charter, supported by a risk-based internal audit policy that defines the departments purpose, structure, authority and responsibilities.

To enhance audit quality and efficiency, while ensuring extensive data coverage, the internal auditors utilises advanced data analytics tool. Additionally, recognising the evolving industry scenario, Information Systems (IS) audits have become a key component of the internal audit function. This comprehensive audit strategy not only strengthens risk management practices but also reinforces the Companys ability to navigate technological advancements and emerging challenges.

HUMAN RESOURCES

Human capital remains integral to Companys operating model, given its focus on retail and field-led lending. it places strong emphasis on continuous training and development to enhance employees skills and competencies, thereby ensuring effective job performance. Key pillars of the Companys human resource strategy include employee incentivisation, professional growth, and recognition.

Workforce and Capability Development

During the year, the Company continued to align its workforce with evolving business requirements, with emphasis on role based capability building:

• Role-based Training: Programmes aligned with functional needs.

• Skill Development: Ongoing capability enhancement.

Workplace Framework

The work environment is supported by established governance frameworks and policies covering workplace conduct, employee well-being, safety, and grievance redressal, along with ongoing communication across the branch network.

Performance and People Strategy

Performance management remains aligned with business outcomes, linking individual objectives to organisational priorities to drive accountability and execution. As the Company scales its people strategy remains focused on:

• Attracting relevant talent

• Strengthening managerial depth

• Ensuring consistency in frontline delivery

This is supported by a balanced approach to development and retention. As of March 31, 2026, the total employee strength of the Company stood at 19.

OUTLOOK OF THE COMPANY

During the year under review, the Company delivered a resilient performance across its diversified financial services businesses, reflecting the strength of its business model, prudent risk management practices, and customer-centric approach. Despite a dynamic operating environment, each of the business verticals continued to strengthen its market position by leveraging technology, expanding customer reach, and maintaining operational discipline.

Our Stock Broking business continued to perform strongly, supported by increased investor participation in the capital markets, strong institutional relationships, and enhanced digital capabilities. The business remained focused on delivering comprehensive investment solutions through research-driven advisory services, advanced trading platforms, and superior client service. Continued emphasis on client acquisition, engagement, and product diversification has enabled us to strengthen our presence across retail, institutional, and high-net-worth investor segments. The Asset Management business recorded another year of encouraging growth, with Assets Under Management (AUM) increasing to Rs. 9,994.75 crore during FY2025-26. The sustained growth in AUM was driven by consistent investor inflows, disciplined investment management, an expanding distribution network, and a diversified portfolio of investment products across equity, debt, hybrid, and liquid fund categories. During the year, the business further strengthened its product offerings through the launch of new investment strategies while continuing to enhance investor engagement and distribution capabilities.

Our Gold Loan and Vehicle Finance businesses also delivered healthy growth while maintaining a balanced risk profile. The Gold Loan portfolio expanded steadily, supported by growing customer acceptance, faster loan processing, and an increasing branch network, resulting in an AUM of Rs. 1,138.38 crore. The Vehicle Finance business continued its growth trajectory with an AUM of Rs. 2,425.79 crore, driven by calibrated expansion, improved collections, disciplined underwriting standards, and a continued focus on portfolio quality. Both businesses remained focused on strengthening asset quality, enhancing operational efficiency, and improving customer experience.

The long-term outlook for the financial services sector remains favourable. Rising household financial savings, increasing formalisation of the economy, deeper financial inclusion, expanding digital adoption, and growing participation in capital markets continue to create significant opportunities across our businesses. At the same time, increasing demand for retail credit and investment products is expected to support sustainable growth across our lending and asset management platforms.

Looking ahead, the Company will continue to focus on strengthening its core businesses through technology-driven transformation, disciplined capital allocation, prudent risk management, and operational excellence. The Company remain committed to enhancing customer experience, expanding our distribution footprint, introducing innovative products, and pursuing sustainable growth opportunities that create long-term value for our shareholders and other stakeholders.

CAUTIONARY STATEMENT

This Management Discussion and Analysis (MD&A) contains forward-looking statements that involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed or implied in these statements due to various factors including economic conditions, regulatory changes, market dynamics and other unforeseen circumstances. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are advised to exercise caution and not to place undue reliance on these forward-looking statements.