The Investment Trust of India Ltd Management Discussions

OVERVIEW OF INDIAN ECONOMY

Indias economic prowess is not just evident domestically but also on the global stage. Despite global headwinds, domestic consumption, strong services growth, manufacturing resilience, and public capex are driving momentum. Infiation has moderated but remains a concern due to weather-driven food price shocks. Monetary policy remains tight but stable. The long-term outlook is robust, though near-term risks exist from global uncertainties and monsoon variability. According to the IMF, India climbed to the fourth position in nominal GDP in 2025, surpassing Japan. Moreover, in terms of purchasing power parity, India ranks third globally, following China and the United States. Domestically, key economic indicators paint a positive picture. Infiation, as measured by the Consumer Price Index, saw a decline in March 2025 compared to the previous month, attributed to various factors including government measures to stabilize fuel prices and a softening in global raw material costs. This is the lowest year-on-year inflation after August 2019.

The Reserve Bank of India (RBI) responded aptly to global economic shifts by adjusting monetary policy throughout FY 2023 and FY 2024, with notable management of the repo rate. This proactive approach aimed to navigate the complexities of the global economic landscape. Looking forward, the IMFs economic outlook for India is optimistic, with revised growth estimates for fiscal in the range of 6.8 – 7.0%, citing resilient domestic demand and rising working age population as a driving force. In contrast, global economic growth is expected to slow down, highlighting Indias relative strength amidst global challenges. Despite the broader economic slowdown, Indias trajectory remains promising, reflecting its ability to navigate and thrive in turbulent times.

INDUSTRY OVERVIEW

Indias financial services sector is entering FY2024-25 on a strong footing, marked by consistent credit growth, improved asset quality, rapid digital adoption, and proactive regulatory oversight. The sector remains a core enabler of Indias broader economic objectives, including inclusive growth, capital market deepening, and enhanced financial access. Institutional resilience, public-private digital infrastructure, and strong consumer demand are anchoring this momentum.

The banking sector continues to show robust growth, particularly in the retail and MSME segments. Overall credit growth in FY2023-24 stood at around 16%, with personal loans growing by nearly 20%. Asset quality has significantly improved, with gross NPAs across the banking system falling to around 2.8%—a decade low—thanks to aggressive provisioning and recoveries. Public sector banks, after years of stress, have become profitable and are contributing meaningfully to credit expansion. However, overexposure to unsecured personal loans and stress among restructured MSME accounts present emerging risks. Banks are also investing in digital transformation and risk management systems to stay competitive and resilient.

Non-Banking Financial Companies (NBFCs) remain critical to credit delivery, especially in semi-urban and rural India. FY2024-25 will likely see further segmentation within NBFCs: larger, well-capitalised players are aligning more closely with banks under RBIs scale-based regulation, while smaller NBFCs face margin compression and funding constraints. Co-lending models between banks and NBFCs are gaining traction, helping manage risk while extending credit reach. The regulatory push is toward stronger governance, better provisioning, and systemic stability. Indias fintech sector continues to lead globally in scale and innovation. The UPI ecosystem has reached over 12 billion transactions monthly, with the digital lending book surpassing _2.4 lakh crore. Account Aggregator (AA) frameworks, embedded finance, and Open Credit Enablement Networks (OCEN) are shaping new credit models based on data consent and interoperability. However, regulatory scrutiny is increasing, especially around digital lending practices, data privacy, and credit underwriting standards. Only compliant, capital-backed fintechs are expected to thrive in this evolving environment.

Capital markets are seeing growing retail participation, supported by robust SIP inflows (_18,000+ crore/month), new-age investing platforms, and a favourable IPO pipeline. Mutual fund AUM now exceeds _52 lakh crore. Retail and HNI interest in REITs, InvITs, and passive products like ETFs is rising. However, regulatory tightening by SEBI around market influencers, pump-and-dump schemes, and secondary market reforms (such as ASBA-like settlement) are reshaping market behaviour. Valuation pressures, especially in midcap and small-cap segments, may pose volatility in FY2024-25.

Several key policy reforms will shape the financial ecosystem in FY2024-25. RBIs digital lending guidelines, SEBIs reforms for greater transparency in capital markets, IRDAIs vision for inclusive insurance, and the governments push to develop GIFT City into a global financial hub are noteworthy. Additionally, the adoption of AI in risk management, acceleration in ESG-linked financing, and increased financialization of household savings will further redefine the landscape.

Looking ahead, FY2025-26 presents a blend of opportunities and emerging challenges. On the one hand, Indias demographic dividend, digital public infrastructure, and shift of household savings toward formal channels are powerful tailwinds. On the other hand, risks from unsecured retail lending, limited rural credit deepening, and the need for sharper financial literacy efforts must be carefully managed. Overall, the financial services sector is poised for sustainable growth, and will play a pivotal role in Indias journey toward becoming a $5 trillion economy.

UNION BUDGET FY2025_26

The Union Budget for FY 2025–26 underscores the Governments continued the governments emphasis on fiscal consolidation and middle-class relief, setting a clear path toward moderate growth and inclusive development. The fiscal deficit target was maintained at a prudent 4.4% of GDP, reduced from the revised estimate of 4.8%, while the revenue deficit was trimmed to 1.5%

On the revenue side, total non-borrowed receipts are expected to be _34.96 lakh crore, a growth of ~11%, led by healthy upticks in income and corporate taxes (14.4% and 10.4%, respectively) and GST collections (~10.9%). Borrowing needs remain stable at _15.69 lakh crore, balancing the fiscal deficit. Expenditure priorities remain well-balanced: total outlay for 2025–26 is pegged at _50.65 lakh crore (+7.4%), with capital spending rising by over 10% to _11.21 lakh crore (3.1% of GDP). Revenue expenditure is growing modestly to support ongoing scheme implementation. Priority sectors include infrastructure, green energy, affordable housing, agriculture, and digital transformation. The government has also announced measures to support MSMEs, encourage private investment, improve ease of doing business, and rationalize tax compliances. Key policy initiatives include increased allocation for PM Gati Shakti, continuation of Production Linked Incentive (PLI) schemes, expansion of renewable energy capacity, and targeted social welfare programs. The Budget reflects a balanced approach between growth orientation and fiscal discipline, setting a positive tone for economic resilience and investor confidence.

EQUITY MARKETS

The Indian equity market in FY 2024–25 displayed a year of two distinct halves, ultimately closing the fiscal with modest gains. The Nifty 50 index rose by approximately 5.3%, while the BSE Sensex gained around 5.1% over the full year. The first half (H1: April to September 2024) was characterized by a strong rally, driven by robust domestic sentiment, resilient corporate earnings, and growing expectations of global interest rate cuts. During this period, the Nifty surged by 16% and the Sensex by 14.5%, with mid-cap and small-cap stocks significantly outperforming large-cap indices—some rallying over 25–30%.

However, the second half of the year (H2: October 2024 to March 2025) saw a sharp correction. The Nifty declined by 9%, and the Sensex fell by 8.8%, as concerns over high market valuations, profit booking, and geopolitical tensions began to weigh heavily. Foreign Portfolio Investors (FPIs) turned net sellers during this phase, leading to a net outflow of approximately $14.6 billion over the fiscal year. Despite this, strong support from domestic investors—especially mutual funds and retail participants—helped cushion the decline. Notably, March 2025 witnessed a strong rebound, with the Nifty rising over 6%, driven by renewed optimism and fresh buying in financial and infrastructure stocks.

Throughout the year, IPO activity remained robust, with Indian markets witnessing capital raising of nearly R 56,000 crore, making it one of the highest globally outside the U.S. Sector-wise, financials rebounded strongly in late FY25, while infrastructure and auto stocks showed consistent strength. In contrast, the IT and pharma sectors remained volatile due to global demand fluctuations and currency effects. Mid- and small-cap segments, although correcting in the second half, delivered respectable full-year returns.

Looking ahead, market experts maintain a cautiously optimistic outlook for FY 2025–26. While Nifty is projected to scale towards 26,500 levels and Sensex towards 85,000, the path forward depends on factors such as corporate earnings revival, inflation trends, global interest rate movements, and political stability. Market valuations remain slightly elevated, with Niftys trailing PE around 23–24x, suggesting limited upside unless supported by a strong earnings cycle. Despite global uncertainties, the continued strength of domestic flows and policy stability offer a supportive base for long-term growth.

NON-BANKING FINANCIAL SERVICES BUSINESS

The Non-Banking Financial Companies (NBFC) sector continues to serve as an indispensable pillar in Indias financial framework, playing a pivotal role in enhancing financial inclusion and broadening access to credit. Indias NBFC ecosystem is navigating a transitional phase in FY 2025 marked by moderating growth, evolving funding dynamics, and heightened regulatory scrutiny. Gross AUM growth has slowed to approximately 13–15% from FY 2024s robust ~18%, as credit demand adjusts to tighter funding conditions and higher borrowing costs. As of FY 2024-25, the sector has expanded to approximately USD 350 Billion, marking a consistent increase from the previous years USD 326 Billion. However, the growth of the sectors Assets Under Management (AUM) is forecasted to moderate, with year-on-year growth projections for FY 2024-25 and FY 2025-26 ranging between 15-17%, a decline from the robust 23% recorded in FY 2023-24. This deceleration is attributed to mounting challenges such as rising delinquencies, intensi_ed regulatory frameworks, and tighter funding conditions. Despite these obstacles, essential lending verticals, including SME financing, loans against property (LAP), and used vehicle financing, are poised to continue their growth trajectory, demonstrating the sectors resilience in the face of adversity.

Regulatory and Market Dynamics: Regulatory reforms continue to reshape the NBFC landscape, with the Reserve Bank of India (RBI) implementing scale based regulations to enhance governance, risk management, and operational stability. The focus on diversifying funding sources to reduce reliance on traditional banking channels has become more critical in ensuring liquidity and financial health. Additionally, the sector faces increasing competition from traditional banks and fintech players, necessitating strategic realignments to maintain market relevance. The RBIs emphasis on prudent lending practices, particularly in unsecured loan segments, highlights the need for NBFCs to strengthen their risk assessment frameworks and financial prudence.

Our Vehicle Financing Business

The Non-Banking Financial Companies (NBFCs) under the ITI Group continue to offer a comprehensive suite of financial products tailored to meet diverse customer needs across the country. Among these, ITI Finance Limited has emerged as a key player in the vehicle financing segment, supported by a robust and growing network of branches spanning multiple geographies across India.

As part of its digital transformation and drive for operational excellence, ITI Finance Limited has implemented a tech-enabled system to manage its customer interface more efficiently. Additionally, the Company has introduced an automated Bank Statement Analysis tool that helps detect potential fraud and serves other critical verification purposes, thereby enhancing the robustness of its credit assessment processes.

As of March 31, 2025, the Assets Under Management (AUM) in the vehicle finance segment stood at R 1,946.67 crores, underscoring the strength and scale of the business. Notably, the segment achieved its highest-ever monthly loan disbursement of crores during FY 2024–25 of R 135.48 crores, reflecting strong customer demand and the success of the Companys refined go-to-market strategy.

BROKING BUSINESS

During FY 25, Indias broking sector faced significant pressure as regulatory reforms and market dynamics reshaped revenue and profitability trends. The Securities and Exchange Board of India (SEBI) introduced several policy measures—including increased Securities Transaction Tax (STT) on derivatives, higher exchange infrastructure charges, and larger F&O contract sizes—that dramatically reduced F&O trading activity by up to 70%, particularly impacting daily index options volumes. That drop heavily dented traditional broking revenues, pushing firms to pivot towards margin trading facilities (MTF) and other fee-based income streams. MTF assets rose sharply—from R 57,000 crores in FY 24 to R 81,300 crores by January 2025, with projections reaching R 90,000 crores by end FY 25.

Meanwhile, listed brokerage firms continued to exhibit earnings weakness: In Q4 FY 25, many reported declining sequential and year-over-year net profits due to curtailed trading activity in mid- and small-cap segments, stringent regulations, slower IPO issuance, and broader market volatility. Staff incentives were also affected across the industry: average employee salary increments dropped from around 11–15% in FY 24 to approximately 8–10% in FY 25, with bonuses expected to be trimmed by 1.5–2 percentage points—some firms anticipating cuts as deep as 5–7 percentage points.

In summary, FY 25 was a transitional year for the broking business—marred by defensive profit measures and shrinking F&O activity but softened by diversification into MTF, credit services, and tech-driven platforms. Sustainability going forward depends on regulatory stability, revival in market participation, and successful evolution toward non-transactional income models. Let me know if youd like a breakdown cluster by brokerage model—full-service vs discount vs hybrid—or data plots for volumes, revenues, and MTAs.

Our Broking Business:

ITI Group conducts its broking operations through its wholly owned subsidiary, Antique Stock Broking Limited (ASBL). Over the years, ASBL has established itself as a culturally robust and professionally driven financial services entity, emerging as one of Indias leading institutional brokerage houses for cash equities and derivatives.

The segment is supported by a strong distribution franchise that services over 250 institutional investors, offering deep market access and execution expertise, particularly in block trades. ASBLs success is underpinned by its specialized research and advisory team, which delivers high-quality insights to guide investment decisions across multiple sectors. The firm is recognized for its sector-specific investment strategies, helping both potential and existing investors identify high-growth opportunities.

ASBL maintains comprehensive research coverage across a wide spectrum of industries, including agrochemicals, building materials, FMCG, information technology, power, industrials and engineering, logistics, media, infrastructure, banking, defence, and several others—providing clients with informed perspectives rooted in data and market intelligence.

During FY 2024–25, 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.

GOLD LOANS BUSINESS

The landscape of the Indian gold loan market is undergoing a paradigm shift, with a growing trend of urban and semi urban consumers opting for gold-backed credit financing solutions. Traditionally dominated by rural borrowers and small-scale businesses, the sector is now witnessing an increasing adoption among salaried professionals and self-employed individuals to address their immediate liquidity needs. The convenience of gold loans, facilitated by minimal paperwork and rapid approval processes, has contributed significantly to their rising popularity. Furthermore, the advent of digitalisation has played a key role in enhancing the efficacy of loan applications and disbursements, thereby broadening access through online channels and mobile apps.

Additionally, NBFCs are concentrating their efforts on product innovation to cater to an increasingly diverse customer demographic. New gold loan products, featuring flexible repayment schedules, reduced interest rates, and enhanced loan-to-value (LTV) ratios, are being introduced to appeal to a wide array of borrowers. The growing trend of digital gold loans, which allows customers to electronically pledge their gold, is reshaping the landscape of the industry. Additionally, synergies between fintech companies and conventional lenders are enhancing the customer experience by offering streamlined loan processes and real-time valuation of gold assets.

Although the sector has demonstrated significant growth, it continues to contend with obstacles like regulatory tightening and the inherent volatility of gold prices. The Reserve Bank of Indias intensi_cation of regulatory supervision has enforced stricter compliance protocols for lenders, thereby promoting transparency and fostering equitable lending practices. Additionally, fluctuations in gold prices present a double-edged sword: rising valuations encourage greater loan disbursements, yet price declines may expose lenders to ampli_ed risks.

Our Gold Loans Business:

The gold loan vertical is managed by ITI Gold Loans Limited, a subsidiary specializing in this sector. Indian households hold substantial amounts of gold in the form of jewellery, making the gold loan business an attractive opportunity for financial institutions.

From 2018 to 2025, the gold loan business experienced significant growth, expanding to 63 branches as of March 31, 2025. Assets under Management reached at Rs 527.90 crore as on March 2025, a YOY increase of 91%. During the year, the company achieved impressive financial performance, with revenue increasing by over 100% and profit rising by more than 164% compared to the previous year.

INVESTMENT BANKING

The Investment Banking (IB) industry in India witnessed a moderate recovery and strategic realignment in FY 2024–25, supported by improved market sentiment, stable interest rates, and renewed activity in capital markets. The year saw a healthy rebound in equity capital market (ECM) transactions, including initial public offerings (IPOs), qualified institutional placements (QIPs), and rights issues, driven by strong domestic liquidity and increased participation from institutional and retail investors.

Mergers & Acquisitions (M&A) activity gained momentum across sectors such as banking and financial services, technology, healthcare, renewable energy, and infrastructure. Both strategic and private equity players actively pursued acquisition opportunities to expand capabilities, scale operations, and consolidate market positions. However, deal-making was selective, with heightened emphasis on due diligence, valuation discipline, and regulatory compliance.

Private equity and venture capital firms remained active, albeit with a focus on late-stage and profitable businesses, particularly in fintech, SaaS, consumer-tech, and climate-focused enterprises. Structured deals and distressed asset resolutions also contributed to advisory revenues for investment banks.

Investment banks continued to diversify their revenue base by expanding into debt syndication, structured finance, and advisory mandates for ESG and sustainability-linked instruments, as businesses realigned their capital strategies to meet new regulatory and market demands.

In terms of revenue, the overall investment banking fee pool in India saw modest growth compared to the previous year, with leading players strengthening their pipelines for future deal activity. The industry is increasingly adopting technology, data analytics, and automation tools to streamline deal execution, enhance client servicing, and ensure regulatory adherence.

With a resilient domestic economy and strong capital inflows, the Indian investment banking sector is well-positioned for further expansion in FY 2025–26, especially as global investor confidence improves and India continues to emerge as a preferred investment destination in Asia.

Our Investment banking business:

Investment banking division is one of the business areas within the ITI Group managed by ITI Capital Limited, a wholly owned subsidiary company. It has investment banking franchise present across products viz. equity capital markets, debt capital markets, mergers and acquisitions and private equity syndication with a strong track record for over decades.

The Investment banking segment shares a deep relationship with its clients and have acted as their advisors. These relationships have strengthened over time and have enabled to be the advisor of choice for managing marquee clients. The clients have benefited from its deep industry expertise, extensive transaction experience and investor network built over the years. The expertise and relationships have helped to handle some of the most complex, innovative, challenging transactions in India.

ASSET MANAGEMENT

ITI Mutual Fund, a subsidiary company in the ITI group aims to offer high-quality investment solutions to investors seeking long term wealth creation. It has access to some of the finest minds in the Investment Management, Equity Research and Credit Research space that enables it to run a very unique investment philosophy and also deploy robust investment strategies that can stand the test of time. The agility, no baggage and fresh perspective can help investors get ahead in a rapidly evolving economy.

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. As of now, ITI AMC manages a total of 19 schemes, comprising 12 equity-oriented schemes, 5 debt-oriented schemes, and 2 hybrid schemes.

OUTLOOK ON INDIAN ECONOMY

Indias economy is set on a steady - if cautious - growth trajectory through FY 2025–26, shaped by strong domestic demand, public investment, and temperate inflation. The RBIs latest monetary policy pivot, including a significant 100 bps rate cut during the year and a shift to a neutral stance, is now expected to support annual real GDP growth near 6.5%, aligning with forecasts from RBI, OECD, and Deloitte. While growth cooled to a four-year low of ~6.5% in FY 2024 25, a broad-based recovery - supported by ongoing capital expenditure, rural revival via a good monsoon, and resilient services activity - underpins forward-looking optimism. In FY 2024–25, the Indian economy demonstrated strong resilience and maintained its position as the fastest-growing major economy globally. The growth momentum was largely driven by robust rural consumption, increased government capital expenditure, and a revival in manufacturing and construction activities, particularly in the latter half of the fiscal year. The final quarter (Jan–Mar 2025) recorded a sharp acceleration, with GDP expanding by 7.4%, reflecting strengthening domestic demand and policy effectiveness. Infiation remained within the Reserve Bank of Indias target range, with headline retail inflation easing to a multi-year low of around 3.2% by the end of the fiscal year, though core inflation stayed relatively sticky near 4.5%. This favourable inflation environment allowed the RBI to adopt a more accommodative stance, cutting the repo rate by 50 basis points in June 2025. However, private sector investment and exports showed limited recovery, amid global uncertainties and trade headwinds. Despite these external challenges, the Indian economy continued to benefit from macroeconomic stability, fiscal discipline, and strong domestic fundamentals, laying a solid foundation for sustained growth in FY 2025–26.

BUSINESS STREAMS

The Company is a diversified financial services entity focused on wealth management, advisory services, and strategic investments in its subsidiaries. Through its various subsidiaries, the Company operates across multiple business segments, including equity and commodity broking, mutual funds, financial services, lending, housing finance, and investment banking.

Each business vertical is structured to offer a distinct value proposition, enabling the Company to establish a strong foothold and carve out a niche within each segment. The diversified operations of the Companys subsidiaries and associate entity collectively form the ITI Group, which continues to expand its presence and offerings across the financial services spectrum.

The details of the businesses carried out by the subsidiaries and associate company of the ITI Group are as follows:

Sr.No. Name of the Company	Activities
Wholly Owned Subsidiaries :
1 ITI Securities Broking Limited	Securities Broking and DP (CDSL)
2 ITI Credit Limited (Formerly known as Fortune Credit Capital Limited)	NBFC - Micro finance 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 (Formerly known as ITI General Insurance	Advisory Services
Limited)
9 ITI Gilts Limited	Debt market
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
2 ITI Gold Loans Limited (Formerly known as United Petro Finance Limited)	NBFC – Gold loans
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 (Formerly known as Fortune Integrated Assets Finance	NBFC - Vehicle finance
Limited)

SEGMENT-WISE PERFORMACE

Particulars	F.Y. 2024-25	F.Y. 2023-24
1 Segment Revenue (Income)	Figures are in lakhs
1 Broking and related services	18,868.16	16,918.55
2 Investment and Advisory services	6,148.92	4,775.45
3 Trading activities	6.27	2,675.49
4 Financing activities	11,110.03	6,001.34
5 Asset Management activities	2,484.72	2,153.06
Total Segment Revenue	38,618.10	32,523.89
Less: Inter segment revenue	2,119.01	1,956.70
Net Income from operations	36,499.09	30,567.19
2 Segment Result - Profit before interest and tax
1 Broking and related services	6,060.02	5,056.16
2 Investment and Advisory services	1,529.70	1,834.28
3 Trading activities	0.19	15.15
4 Financing activities	4,421.42	1,591.10
5 Asset Management activities	(2,691.39)	(2,711.37)
Total	9,319.94	5,785.32
Less: Finance cost	3,702.63	2,701.90
Profit before tax	5,617.31	3,083.42
3 Segment Asset
1 Broking and related services	89,975.80	71,350.06
2 Investment and Advisory services	52,854.95	52,289.40
3 Trading activities	1,153.34	1,696.06
4 Financing activities	82,217.05	56,656.94
5 Asset Management activities	9,470.31	9,472.97
6 Inter segment assets/liabilities	(81,437.57)	(61,243.99)
Total	1,54,233.88	1,30,220.44
4 Segment Liabilities
1 Broking and related services	56,715.92	41,720.86
2 Investment and Advisory services	4,684.85	5,833.03
3 Trading activities	0.00	9.52
4 Financing activities	46,017.26	25,421.68
5 Asset Management activities	1,951.82	1,690.85
6 Inter segment assets/liabilities	(30,454.34)	(13,205.99)
Total	78,915.51	61,469.95

Amidst persistent inflationary pressures and challenges faced by financial institutions both in India and globally, the Company achieved a remarkable turnaround in its financing business during the year. This growth, significantly surpassing the previous years performance, was driven by a well-executed strategy focused on enhanced recoveries and prudent disbursements.

KEY RATIOS

The ratios are given under note 34 of the consolidated financial results of the company.

OPPORTUNITIES & THREATS -Opportunities

• A strong and sustained long-term economic outlook is expected to generate significant opportunities across the financial services landscape.

• The growing share of disposable income being allocated to financial services presents a substantial opportunity for expansion and product diversification.

• Progressive regulatory changes are anticipated to enhance market depth and encourage broader participation across all classes of investors.

• Advancements in technology can be leveraged to adopt industry best practices, streamline operations, and deliver superior customer experiences.

Threats

• Periodic increases in competitive pressure.

• Industry-wide or macroeconomic challenges that may negatively impact performance.

• Economic slowdowns or natural disasters that could impair asset quality.

STRENGTHS

• Emerging as Strong Brand name

The ITI Group is steadily emerging as a strong and recognisable brand in the financial services sector. The Group is widely associated with high-quality research, sound financial advice, and a commitment to core corporate values such as integrity and excellence in execution. This strong brand equity has enabled the Company to expand its business footprint, foster lasting client relationships, and attract and retain top-tier talent across its operations.

• Experienced top management

The promoter, Mr. Chintan Valia is Commerce Graduate, Chartered Accountant from the Institute of Chartered Accountants of India (ICAI) and MBA from IIM Bangalore, expertise in capital market, investment banking and FMCG industry with rich experience in NBFC and finance business. The top management team comprises qualified and experienced professionals, with a successful track record. The company believes that its managements entrepreneurial spirit, strong technical expertise, leadership skills, insight into the market and customer needs provide it with a competitive strength, which will help to implement its business strategies.

• State of art infrastructure

Company has consolidated its businesses under one Corporate Office – at ITI House. The integration of multiple ITI Group businesses provides a great opportunity to present a holistic solution to client needs. The infrastructure has been extensively leveraged upon to build deeper connect with our customers, business partners and corporates.

• Integrated financial services provider

The broad range of offerings under Broking and Distribution, Institutional Equities, Gold loan, SME Loan Vehicle Loan, Debt Recovery Agent, Trustee Company, Global Receivable Management Services, Real Estate, Debt market, Portfolio Management Services, Securities Broking Asset Management, and Merchant Banking helps to foresee client requirements and provide full-_edged services under single platform. The production and distribution of all financial products and services helps the companys advisors and clients to attain clients financial objectives with best in class services.

• Independent and insightful research

ITI Group believes that its understanding of equity as an asset class and business fundamentals drives the quality of its research and differentiates it from its competitors. The research team is focused on equities, derivatives and commodities.

• Strong risk management

Risk exposure is monitored and controlled through a variety of separate but complementary financial, credit, operational, compliance and legal reporting systems. Risk management department analyses this data in conjunction with the companys risk management policies and takes appropriate action where necessary to minimize risk.

RISK & CONCERN

Given the increasing volatility of the operating environment, your Company has adopted a proactive and robust risk management and mitigation framework. This approach is designed to identify, assess, monitor, and manage potential risks that could impact the Companys operations and strategic objectives.

Key risks that may affect the business include, but are not limited to Credit Risk, Digital Lending Risk, Liquidity Risk, Interest Rate Risk, Operational Risk, Business/Strategic Risk, Compliance Risk, Human Capital Risk, Information Technology Risk and Market Risk.

To ensure effective governance, a Board-level Risk Management Committee has been constituted to assist the Board in overseeing the Companys risk profile. The Committee is responsible for reviewing and analysing risk exposures and ensuring the implementation of appropriate mitigation strategies.

At the subsidiary level as well, dedicated risk management teams are in place to identify, evaluate, and monitor principal risks in line with defined policies and procedures, thereby ensuring a consistent and enterprise-wide approach to risk management.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has established a strong internal control system designed to provide reasonable confidence in maintaining accurate accounting, monitoring operations, safeguarding assets, complying with regulations, and ensuring reliable financial reporting. They have documented procedures for all financial and operational activities. The Company also has a comprehensive 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.

HUMAN RESOURCES

The Company recognises that the competence of its talent pool is fundamental to its success. Accordingly, 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.

Over the years, the Company has fostered a work culture that encourages enthusiasm, provides exposure to diverse market environments, promotes emotional engagement, and empowers individuals at all levels. As of March 31, 2025, the total employee strength stood at 16.

OUTLOOK OF THE COMPANY

We have achieved broad-based performance across our key business verticals, underscoring the resilience of our operating model and the effectiveness of our strategic initiatives.

Our Stock broking business has delivered exceptional results, driven by disciplined execution, enhanced client engagement, and a deep understanding of market dynamics. This business continues to be a delivering consistent profitability and reinforcing our leadership position, particularly in catering to the evolving needs of the mass a_uent and high-net-worth individual (HNI) segments. Our focused advisory approach, supported by advanced digital platforms and personalized services, has enabled us to deepen client relationships and increase wallet share in a highly competitive environment.

The performance of our Asset Management business has been particularly noteworthy. We have achieved a significant milestone with Assets Under Management (AUM) crossing R 9,242.25 crores, reflecting both organic growth and improved inflows across various product categories. This growth is a testament to the strength of our investment strategies, the credibility of our fund management team, and the trust we continue to build with our investors. We have also undertaken initiatives to enhance distribution reach, improve operational efficiency, and introduce differentiated products that align with evolving investor preferences and risk appetites. Our Gold Loan and Vehicle Finance businesses have demonstrated remarkable improvement in performance during the period under review. These businesses are benefiting from improved asset quality, expanded geographic reach, and streamlined credit assessment and collection processes. We continue to focus on risk-calibrated growth, ensuring a balanced approach between expansion and asset quality with an AUM of R 527.90 crores and R 1,946.67 crores respectively. We expect the AUM to grow by about 35 – 40% on both the businesses.

Across all segments, we remain optimistic about the growth opportunities that lie ahead. Indias expanding financial ecosystem, growing formalization of credit, increasing retail participation in capital markets, and rising household financial savings create a favourable macro backdrop for our businesses.

As we look forward, our strategic priorities remain firmly centered around scalable growth, technology-led innovation, prudent risk management, and delivering superior value to all stakeholders. We are committed to deepening our presence in existing segments while selectively exploring new avenues for expansion that align with our long-term vision.

With a strong foundation, experienced leadership, and a client-centric approach, we are confident of building on this momentum and delivering sustained growth, operational excellence, and long-term value creation.

CAUTIONARY STATEMENT

The Management Discussion and Analysis sections contain the Companys objectives, projections and estimates which are forward-looking within the meaning of applicable laws and regulations. The statements in the management discussion and analysis report could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operation include economic and political conditions in India, volatility in interest rates, changes in the governmental regulations, tax regimes, forex markets, economic developments within India other incidental factors.