Transcorp International Ltd Management Discussions

(Within the limits set by Companys competitive position)

BUSINESS REVIEW GENERAL ECONOMY

The Indian economy continued to demonstrate strong resilience and growth during FY 2025-26, supported by robust domestic demand, sustained investments, policy reforms and macroeconomic stability. India remains one of the fastest-growing major economies globally, with broad-based expansion across manufacturing, services, infrastructure and consumption-led sectors.

Real GDP for FY 2025-26 is estimated to have grown by approximately 7.6%, while nominal GDP is projected to reach around US$ 3.9 trillion. Strong industrial activity, healthy tax collections, controlled inflation, rising infrastructure investments and increasing investor confidence have contributed significantly to the countrys economic performance. The economy continues to benefit from favourable demographics, digital transformation, expanding manufacturing capabilities and ongoing government-led reforms.

MARKET SIZE

• Indias nominal GDP is estimated at approximately US$ 3.91 trillion in FY 2025-26.

• India is home to over 126 unicorns, reflecting a vibrant start-up ecosystem and innovation-driven growth.

• Cumulative Foreign Direct Investment (FDI) inflows exceeded US$ 1.14 trillion between April 2000 and December 2025.

• Foreign exchange reserves stood at approximately US$ 688 billion as of March 2026, providing a strong external sector buffer.

• Annual net GST collections reached approximately Rs. 19.35 lakh crore during FY 2025-26, indicating continued economic activity and improved compliance.

• India continues to attract significant domestic and foreign investments across manufacturing, technology, infrastructure, financial services and renewable energy sectors.

RECENT DEVELOPMENTS

During the year, several positive developments reinforced Indias economic growth trajectory:

• Manufacturing activity remained in expansion mode with the Manufacturing PMI consistently staying above the 50-point benchmark, reflecting healthy business conditions and rising demand.

• Consumer inflation remained well contained at around 3.4% in March 2026, supporting household consumption and economic stability.

• Industrial production recorded steady growth driven by manufacturing, mining and infrastructure sectors.

• Foreign Portfolio Investors and Domestic Institutional Investors continued to participate actively in Indian financial markets, demonstrating confidence in Indias long-term growth prospects.

• India achieved a significant milestone by generating 50% of its power capacity from renewable energy sources ahead of its 2030 target.

• The country improved its global innovation standing and continued to strengthen its position as a leading destination for technology, research and entrepreneurship.

• Indias GDP growth remained robust, supported by strong private investment, construction activity and agricultural output despite global economic uncertainties.

GOVERNMENT INITIATIVES

The Government of India continued to undertake several strategic initiatives aimed at accelerating economic growth and enhancing Indias global competitiveness:

• Continued implementation of flagship programmes such as Make in India, Digital India, Startup India, PM GatiShakti and Smart Cities Mission.

• Expansion of the Production Linked Incentive (PLI) Scheme, which has attracted substantial investments, increased domestic manufacturing and generated employment opportunities.

• Approval of the Research, Development and Innovation (RDI) Scheme with an outlay of Rs. 1 lakh crore to promote innovation and deep-tech development.

• Strengthening of semiconductor manufacturing capabilities through the commencement of commercial production at new semiconductor facilities.

• Launch of export promotion measures for MSMEs, including interest subvention and credit guarantee support.

• Increased focus on renewable energy, green infrastructure, food security and agricultural selfreliance through various sector-specific programmes.

• Continued emphasis on infrastructure development, with record capital expenditure allocations aimed at improving logistics, connectivity and industrial competitiveness.

ROAD AHEAD

Indias medium to long-term economic outlook remains positive, supported by strong domestic consumption, favourable demographics, increasing urbanisation, digital adoption and sustained infrastructure investments. Continued government focus on manufacturing, renewable energy, innovation, logistics and ease of doing business is expected to further strengthen economic fundamentals.

Stable inflation, healthy fiscal management, strong foreign exchange reserves and ongoing policy reforms are expected to support sustainable growth in the coming years. While global geopolitical and economic uncertainties may pose short-term challenges, Indias structural growth drivers, expanding consumer market and investment opportunities are expected to maintain the countrys position among the worlds fastest-growing major economies.

Source: https://www.ibef.org/economy/indian-economy-overview

BUSINESS AND INDUSTRY DEVELOPMENTS. OPPORTUNITIES & THREATS

OUTLOOK, OPPORTUNITIES AND THREATS

The principal focus areas of the company are money changing, remittance and pre-paid payment systems.

1. Foreign Exchange Business:

Your Company is designated Authorized Dealer (Category II) from Reserve Bank of India, for money changing which includes buying and selling of Foreign Exchange in retail as well as wholesale to individuals and corporate clients and various permissible Outward Remittance activities such as remittance for overseas education, medical treatment abroad, emigration and emigration consultancy fees and for other permissible purpose.

The company continues to steadily grow and be profitable on an ongoing basis. The Company has added many new clients and done several strategic businesses tie ups to increase market share and Transcorp received a Recognition Award from Thomas Cook Forex Cards Division for its Superlative Performance.

Financial Performance Highlights:

Standalone (Q4 FY26):

• Profit Before Tax (PBT) stood at Rs511.25 Lakhs:

o Representing a 2.8x increase over the immediately preceding quarter (Rs 179.64 lakhs in Q3 FY26). o A fourfold year-on-year growth compared to Rs125.46 lakhs in the corresponding quarter of the previous year.

• Finance Costs reduced by over 30% compared to the previous quarter.

Financial Year FY26:

• Profit Before Tax (PBT) increased significantly to Rs897.79 Lakhs:

o Representing a robust 2.5X increase over Rs356.52 Lakhs PBT reported in the previous FY25. o Marking the Companys highest ever profitability from business operations.

Shareholder Value Creation:

• Interim Dividend Declared: 10%

• Final Dividend: 20%

• Total Dividend for FY26: 30%

2. Setting up and operating payment systems:

The companys Payments Division added that the Payments Systems division of the Company, which includes the Prepaid Payment Instruments (PPI) license continues to flourish with tremendous growth in transaction volumes and issuance. The company has over 50 lac instruments issued.

Significant Developments:

Bank Account at RBI and IFSC Code: Transcorp has emerged as one of the first non-Bank entities to have an operative bank account held with the Reserve Bank of India and has also been allocated its own IFSC code. This will allow the company to initiate and settle RTGS / NEFT transactions, and participate in inter-bank and direct network settlements; amongst other banking advantages. The development reinforces the Companys position as a trusted and regulator-aligned participant within Indias evolving digital financial services ecosystem and strengthens its regulated banking and payments infrastructure.

New regulatory framework for Trade / Business related Remittances: Empowered with the Reserve Bank of Indias progressive policies and its AD2 license; the Company is now authorized to facilitate trade / business related outward and inward remittances (both to and from India). So far, this authorization has been reserved exclusively for Banks.

NIL Public Fixed Deposits and Long-term Borrowings: The Company has no outstanding public fixed deposits or long-term borrowings as on date, having fully repaid all such liabilities. Consequently, finance and related costs for FY26 have been optimized to their lowest levels.

During the year, the Company achieved important milestones in strengthening its payment systems infrastructure and regulatory positioning. The Company received an ‘In-Principal Approval from the Reserve Bank of India in January 2026 for participation in the Centralized Payment Systems (CPS) framework, marking a significant step towards deeper integration within Indias digital payment ecosystem and earning the regulators trust.

These developments reinforce the Companys long-term commitment towards building a robust, compliant, and scalable payments platform aligned with the evolving regulatory framework. Transcorp has emerged as the largest non-bank entity in terms of transaction value for various payment networks in India.

The Payment Systems divisions income from operations has more than doubled; demonstrating the lucrative prospects of the business and the Companys resilience in a competitive industry. Following strengthened and novel integrations with ecosystem partners including RBI, networks, and marquee fintech clients - consistent growth is in line with expectations.

SEGMENT WISE REPORTING

Segment wise revenue, results and capital employed are provided in the notes on account forming part of the Annual Report.

RISK AND CONCERNS

Your company has exposure in foreign exchange and any wide fluctuations in foreign exchange prices have an adverse effect on the performance of the company. Further the increase in competition, reduction in profit margins and change in government policies may affect the operation of the company.

Your Company has satisfactory internal control systems, the adequacy of which has been reported by the Auditors in their report as required under Companies (Auditors Report) Order, 2020. The discussion on the financial performance of the company is covered in the Directors Report.

FORWARD- LOOKING STATEMENTS

This report contains forward-looking statements, which may be identified by use of words like plans, expects, will, anticipates, believes, intends, projects, estimates or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the Companys strategy for growth, market position, expenditures and financial results, are forward-looking statements.

These statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements could thus differ materially

from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

CHANGES IN THE KEY FINANCIAL RATIOS