Titan Securities Ltd Management Discussions

Indian Economy - FY 2024-25

India is poised to lead the global economy once again, with the International Monetary Fund (IMF) projecting it to remain the fastest growing major economy over the next two years. India is projected to remain the fastest-growing large economy for 2025 and 2026, reaffirming its dominance in the global economic landscape. The countrys economy is expected to expand by 6.2 per cent in 2025 and 6.3 per cent in 2026, outpacing many of its global counterparts. In contrast, the IMF projects global economic growth to be much lower, at 2.8 per cent in 2025 and 3.0 per cent in 2026, highlighting Indias exceptional outperformance.

Source: International Monetary Fund (IMF); Global Economic Prospects - World Bank.

2. INDUSTRY STRUCTURE AND DEVELOPMENT

Non-Banking Financial Companies (NBFCs) have been an integral part of Indias formal credit ecosystem since independence, complementing banks by reaching underserved segments and contributing meaningfully to economic growth.

While larger NBFCs cater to retail and MSME segments, smaller or captive NBFCs have focused operations and are not engaged in public deposit mobilization or widespread lending.

The historical evolution of the sector has been marked by a shift from lightly regulated niche players to more structurally integrated and regulated institutions. Regulatory reforms over the past decade, especially post the introduction of the Scale-Based Regulatory (SBR) Framework by the Reserve Bank of India (effective October 2022), have helped reduce arbitrage with banks and enhanced the systemic resilience of NBFCs.

Non-banking financial companies (NBFCs) outpaced commercial banks in credit growth during fiscal year 2025, clocking a sharp 20% increase compared to the banking sectors 12% rise, according to a report by the Boston Consulting Group (BCG). While banks have offered better investor returns over the past three years, NBFCs strong FY25 credit growth underscores their growing importance in Indias financial ecosystem.

Source: The Times of India

The introduction of the Scale-Based Regulatory (SBR) Framework is a turning point in NBFC regulation. The classification into base, middle, upper, and top layers aims to align regulatory intensity with risk exposure and size. The Company continues to fall under the base layer and remains fully compliant with SBR mandates.

3. COMPANY OVERVIEW

Titan Securities Limited is a Non-Deposit Taking, Non-Systemically Important Non-Banking Financial Company (NBFC-NSI-ND), registered with the Reserve Bank of India (RBI). Pursuant to the RBI Master Direction - Scale Based Regulation (SBR), 2023, the Company is categorized under the Base Layer.

The Company does not accept public deposits and operates with a prudent investment philosophy, focused on making profitable and secure investment decisions. Since its listing on the BSE Ltd. on May 09, 1995, Titan Securities Limited has accumulated deep experience in the capital markets and financial services industry, enabling it to navigate the dynamic financial environment effectively.

4. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company is primarily engaged in a single reportable segment—Non-Banking Financial Company (NBFC) activities. All operations of the Company revolve around investment activities and financial services falling within this business segment.

Accordingly, no separate segment reporting is required, and the financial performance is reflected as a whole under this single business activity.

5. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company has delivered a commendable performance during the financial year ended March 31, 2025.

The Profit After Tax (PAT) increased to Rs113.25 lakhs, compared to Rs107.39 lakhs in the previous year, reflecting an improvement in profitability.

The operational income grew significantly to Rs1,042.23 lakhs, as against Rs699.99 lakhs recorded in the previous financial year. This growth is attributed to the Companys prudent investment strategies and efficient management of financial resources.

The consistent upward trajectory in both income and profit underscores the Companys robust operational framework and disciplined approach to business.

6. OUTLOOK FOR FY25

The outlook for FY2025 remains optimistic, supported by the Companys stable financial foundation, prudent investment strategies, and continued focus on risk management.

The management is confident that the experiences and learnings from FY 2024 have strengthened the Companys ability to navigate emerging challenges in the financial and regulatory landscape. With a strong capital base, disciplined operations, and deep insights into the capital markets, the Company is well-positioned to seize new opportunities, respond to market dynamics, and deliver steady performance.

Titan Securities Limited will continue to prioritize value creation for shareholders, maintain regulatory compliance, and strive to stay ahead in a competitive and evolving financial market environment.

7. RISK MANAGEMENT

Risk is an inherent part of any business; however, it can be effectively identified, assessed, and mitigated through structured policies and proactive governance.

Titan Securities Limited has established a comprehensive Risk Management Framework designed to identify, evaluate, manage, and mitigate various types of risks that may arise in the course of its business operations. The framework is aligned with the Companys overall strategy and regulatory requirements, ensuring that all material risks are addressed in a timely and effective manner.

Key features of the Risk Management approach include:

> Regular risk assessments and internal reviews

> Defined risk tolerance levels approved by the Board

> Strong internal controls to manage financial, operational, market, and compliance risks

> Ongoing monitoring and reporting of potential threats and exposures

The Company believes that a well-implemented risk management process not only protects assets but also supports sustainable value creation for its stakeholders.

7. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Titan Securities Limited has established and maintains an adequate system of internal control that is designed to ensure:

> Orderly and efficient conduct of business

> Adherence to the Companys policies and procedures

> Safeguarding of assets against unauthorized use or disposal

> Prevention and detection of frauds and errors

> Accuracy and completeness of accounting records

> Timely preparation of reliable financial information

> Compliance with applicable laws and regulations

The internal control framework is implemented and monitored by the management and is supported by robust internal audit practices. Policies, procedures, and authorization guidelines are in place to ensure that all transactions are properly approved, accurately recorded, and adequately reviewed.

The internal control system is further supplemented by periodic internal audits, which are reviewed by senior management and the Audit Committee of the Board. Any significant findings or deviations are reported to the Audit Committee, and appropriate corrective actions are recommended and implemented as necessary.

For the financial year 2024-2025, the internal audit was conducted by PGM & Associates, Chartered Accountants. The internal audit reports were duly reviewed by the Audit Committee, and actions were taken on the recommendations provided by the auditors to strengthen the existing control systems.

The Company remains committed to continuously enhancing its internal control framework to ensure business integrity, operational efficiency, and regulatory compliance.

8. HUMAN RESOURCES AND EMPLOYEE RELATIONS

Titan Securities Limited fosters a corporate culture that blends challenging work with a professional, collaborative, and friendly environment. The Company believes that its employees are vital to its success and continues to focus on their development, engagement, and well-being.

Employee well-being has always been a key priority. The Company is committed to providing a workplace that ensures equal opportunities irrespective of gender, age, nationality, religion, or creed, and promotes an inclusive, respectful, and merit-based environment

As on March 31, 2025, the Company had 02 (two) employees. The human resource function continues to emphasize skill development, accountability, and a performance-driven culture.

The relationship between the management and employees remained cordial throughout the financial year 2024-2025. The Company appreciates the continued dedication and contribution of its employees toward achieving organizational goals.

9. KEY RATIO ANALYSIS

The key financial ratios for the financial year ended March 31, 2025, along with the comparison for the previous year, are as follows:

Particulars	Standalone			Consolidated
	FY 2024-25	FY 2023-24	Variance	FY 2024-25	FY 2023-24	Variance
Current Ratio(in times)	196.05	250.98	-21.89%	196.05	250.70	-21.80%
Debt-Equity Ratio (in times)	-	-	-	-	-	-
DebtTurnover Ratio (in times)	-	-	-	-	-	-
Inventory Turnover Ratio (in times)	0.64	0.43	48.84%	0.64	0.43	48.84%
Interest Coverage Ratio (in times)	-	-	-	-	-	-
Return on Net Worth (%)	2.81%	2.90%	-0.09%	1.11%	1.20%	-0.09%
Net Profit Margin (%)	10.89%	15.34%	-4.45%	10.89%	15.34%	-4.45%
Operating Profit Margin (%)	14.10%	14.09%	0.01%	14.10%	14.09%	0.01%
Capital to Risk-Weighted Assets Ratio (CRAR) (%)	72.58%	78.84%	-7.94%	82.85%	86.29%	-3.98%
Tier I CRAR(%)	72.58%	78.84%	-7.94%	82.85%	86.29%	-3.98%

7. RATIOS WHERE THERE HAS BEEN SIGNIFICANT CHANGE (i.e. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) FROM FY 2023-24 TO FY 2024-25:

a) Inventory Turnover Ratio:

On a standalone basis, the Inventory Turnover Ratio for the year ended March 31, 2025 were

0.64 as against 0.43 for the year ended March 31, 2024. The increase in the ratio indicates an improvement in inventory management and a more efficient utilization of inventory, resulting in faster movement of stock and reduced holding periods.

8. CAUTIONARY STATEMENT

This report contains forward-looking statements based on certain assumptions and expectations of future events. Actual results may differ materially due to changes in regulations, market conditions, or economic developments.

	For M/s. Titan Securities Limited
	Manju Singla	Naresh Kumar Singla
	(Managing Director)	(Director)
	DIN:00027790	DIN: 00027448
Date: 25/08/2025
Place: Delhi