Trustedge Capital Ltd Management Discussions

1. OUTLOOK:

During the financial year 2025-26, the global economic environment remained challenging, marked by continued geopolitical uncertainties, evolving monetary policies, inflationary pressures, and uneven growth across major economies. Global trade dynamics continued to adjust amid changing supply chain patterns, fluctuating commodity prices, and varying recovery trends across developed and emerging markets. Central banks across the world maintained a cautious approach towards monetary policy, balancing the objectives of controlling inflation while supporting sustainable economic growth.

Against this backdrop, the Indian economy demonstrated strong resilience and continued to maintain its position as one of the fastest- growing major economies globally. The countrys economic growth was supported by robust domestic demand, stable consumption trends, improving investment activity, infrastructure development initiatives, and continued focus on policy reforms. Government-led measures aimed at strengthening manufacturing, digital transformation, financial inclusion, and ease of doing business contributed towards enhancing economic stability and long-term growth prospects.

During the year, India witnessed sustained momentum in domestic economic activities, supported by healthy consumer sentiment, expansion in key sectors, and increased formalization of the economy. The banking and financial services sector continued to play a critical role in supporting economic growth by facilitating credit availability and enabling greater participation of individuals and businesses in the formal financial system.

The Reserve Bank of India (RBI) continued to adopt a balanced monetary policy approach, closely monitoring inflation trends and growth requirements. The gradual shift towards a more accommodative stance, including measures such as repo rate adjustments, supported liquidity conditions and encouraged economic activity while maintaining focus on price stability.

Indias financial sector remained stable, supported by strong regulatory frameworks, improving asset quality, and prudent risk management practices. The continued emphasis on digital payments, financial inclusion, and technology-driven financial services further strengthened the foundation for sustainable economic development.

For the Company, the overall economic environment provided opportunities for growth while also requiring continued focus on operational efficiency, prudent financial management, customer-centric initiatives, and effective risk mitigation. The Company remains committed to leveraging emerging opportunities, strengthening its business model, and contributing towards Indias evolving growth journey.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Non-Banking Financial Company (NBFC) sector continued to remain a significant pillar of Indias financial ecosystem during the financial year 2025-26, contributing substantially towards financial inclusion, credit penetration, and economic development. NBFCs have continued to complement the banking sector by catering to diverse segments of borrowers, including micro, small and medium enterprises (MSMEs), retail customers, self-employed individuals, and underserved sections of society.

During the year under review, the NBFC industry witnessed steady growth supported by favourable domestic economic conditions, increasing demand for retail and business credit, expansion of digital lending platforms, and improved access to formal financial services. The sector continued to play a crucial role in bridging the credit gap by providing customized lending solutions and reaching customer segments where traditional banking channels have limited penetration.

The Reserve Bank of India (RBI) continued its focus on strengthening the regulatory framework for NBFCs with an objective of ensuring financial stability, transparency, and responsible lending practices. The implementation of a risk-based regulatory approach, enhanced governance standards, improved disclosure requirements, and greater emphasis on asset quality management contributed towards strengthening the overall resilience of the sector.

The year 2025-26 witnessed continued adoption of technology-driven initiatives by NBFCs, including digital onboarding, automated credit assessment, data analytics, and customer service platforms. These developments have enabled faster loan processing, improved operational efficiency, better customer experience, and wider outreach, particularly in retail and MSME lending segments.

Asset quality across the NBFC sector remained a key area of focus, with companies continuing to strengthen credit monitoring systems, collection mechanisms, and risk management practices. The industry maintained a cautious approach towards underwriting standards, portfolio diversification, and liquidity management to navigate changing economic conditions and evolving customer credit behaviour.

The increasing penetration of digital financial services, growth in consumer credit, demand for affordable financing solutions, and government initiatives supporting entrepreneurship and financial inclusion are expected to provide sustained growth opportunities for NBFCs. At the same time, the sector continues to remain mindful of challenges such as regulatory changes, cost of funds, competition from banks and fintech players, and the need for maintaining prudent risk management practices.

For the Company, the evolving NBFC landscape presents opportunities to expand its customer base, strengthen operational capabilities, leverage technology, and deliver responsible financial solutions. The Company remains committed to maintaining sound governance practices, regulatory compliance, effective risk management, and sustainable growth while contributing to the broader objective of financial inclusion and economic development.

3. SEGMENT WISE AND PRODUCT WISE PERFORMANCE:

The Companys business activity falls within a single business segment i.e. Non-Banking Services. The performance of the business is as below:

		(Rs. in Lakhs)
Particulars	2025-26	2024-25
TOTAL INCOME	537.09	109.32
EBDITA	36.28	22.04
PBT	36.28	22.04
PAT	54.60	16.49
EPS (Basic)	0.72	0.31

4. OPPORTUNTIES & THREATS:

Opportunities

The NBFC sector continues to offer significant growth opportunities driven by increasing credit demand, financial inclusion initiatives, technological advancement, and evolving customer preferences. During the financial year 2025-26, the sector witnessed various opportunities arising from the expanding formal credit ecosystem and the growing need for accessible and customized financial solutions.

1. Growing Credit Demand and Financial Inclusion

The increasing requirement for retail, MSME, and small business financing continues to create significant opportunities for NBFCs.

With a large section of the population and small enterprises seeking convenient access to credit, NBFCs are well positioned to bridge the credit gap by providing flexible and customer-focused lending solutions.

2. Expansion of Digital Lending and Technology Adoption

Rapid digital transformation in financial services has created opportunities for NBFCs to improve operational efficiency, reduce turnaround time, enhance customer experience, and expand outreach. Adoption of digital platforms, data analytics, artificial intelligence-based credit assessment, and automated processes can enable better risk evaluation and scalable growth.

3. Untapped Rural and Semi-Urban Markets

The increasing penetration of formal financial services in rural and semi-urban regions presents substantial growth potential.

NBFCs with strong local understanding and customer-focused models can leverage these opportunities by providing credit access to underserved segments.

4. Growth in MSME Financing Segment

The MSME sector remains a key driver of economic growth and continues to require timely and accessible financing solutions. NBFCs have an opportunity to strengthen their presence in this segment by offering customized loan products, faster processing, and relationship-based lending approaches.

5. Supportive Regulatory Framework and Improved Market Practices

Continued emphasis by regulators on transparency, governance, responsible lending, and financial inclusion is expected to strengthen the long-term sustainability of the NBFC sector. Improved compliance standards and professional practices can enhance customer trust and sector credibility.

6. Partnership Opportunities with Fintech Companies and Financial Institutions

Collaboration with fintech companies, technology service providers, and other financial institutions provides opportunities to enhance digital capabilities, improve distribution networks, and develop innovative financial products.

Threats

While the NBFC sector presents significant growth opportunities, it also faces various challenges that require continuous monitoring and proactive risk management.

1. Regulatory and Compliance Challenges

The NBFC sector operates under an evolving regulatory environment. Changes in regulatory requirements, reporting standards, governance norms, and compliance obligations may increase operational complexity and require continuous adaptation.

2. Asset Quality and Credit Risk

Credit risk remains one of the key challenges for NBFCs. Changes in borrower repayment capacity, economic conditions, or customer credit behaviour may impact portfolio quality. Maintaining prudent lending standards, effective monitoring, and strong collection mechanisms remain critical.

3. Competition from Banks, Fintechs and Other Financial Players

Increasing competition from banks, digital lenders, and fintech companies has resulted in pressure on pricing, customer acquisition costs, and product innovation. NBFCs need to continuously enhance service quality and operational efficiency to remain competitive.

4. Cost of Funds and Liquidity Management

Fluctuations in interest rates, availability of funding sources, and changes in market liquidity conditions may impact borrowing costs and profitability. Effective asset-liability management and diversified funding strategies remain important for sustainable growth.

5. Cybersecurity and Data Privacy Risks

With increasing reliance on digital platforms, NBFCs face heightened risks related to cybersecurity threats, data protection, and technology disruptions. Strengthening information security frameworks and technology controls is essential.

6. Macroeconomic and External Factors

Global economic uncertainties, inflationary pressures, changes in consumer behaviour, and domestic economic fluctuations may impact credit demand and repayment trends.

The Company continues to focus on leveraging available opportunities while maintaining a balanced approach towards risk management, regulatory compliance, technology adoption, and sustainable business growth. Through prudent lending practices and customer-centric initiatives, the Company aims to strengthen its position in the evolving NBFC landscape.

5. RISK AND CONCERNS:

The Company operates in the financial services sector and is exposed to various business, financial, operational and regulatory risks inherent to the NBFC industry. The Company has established appropriate risk management systems and internal controls to identify, assess, monitor and mitigate such risks on an ongoing basis.

Credit Risk and Asset Quality Risk

Credit risk remains one of the key risks for NBFCs as lending activities involve the possibility of delay or default by borrowers. Changes in borrower repayment capacity, economic conditions, sector-specific challenges and customer indebtedness may impact the quality of the loan portfolio. The Company continues to focus on prudent credit appraisal processes, customer assessment, portfolio monitoring and collection mechanisms to maintain healthy asset quality. Industry-wide concerns around borrower over-leveraging and potential stress in certain lending segments continue to require close monitoring.

Liquidity and Funding Risk

As an NBFC, the Company relies on various sources of funding for business growth and lending operations. Any disruption in access to funds, increase in borrowing costs, tightening of liquidity conditions or mismatch between asset and liability maturities may impact business operations and profitability.

Interest Rate and Market Risk

Fluctuations in interest rates and changes in market conditions may impact borrowing costs, lending yields and net interest margins. Any adverse movement in interest rates may affect profitability and capital planning. The Company continuously monitors interest rate movements and adopts suitable measures to manage interest rate exposure.

Regulatory and Compliance Risk

The NBFC sector is governed by a dynamic regulatory framework issued by the Reserve Bank of India and other regulatory authorities. Changes in regulatory requirements, reporting obligations, prudential norms, capital requirements and compliance expectations may require continuous adaptation of policies and systems. The Company remains committed to maintaining strong governance standards and ensuring compliance with applicable laws and regulations.

Competition Risk

The financial services industry continues to witness increasing competition from banks, NBFCs, fintech companies and other digital lending platforms. Competitive pressures may impact customer acquisition, pricing, margins and growth opportunities. The Company focuses on customer-centric lending practices, operational efficiency and technology adoption to remain competitive.

Operational and Technology Risk

Increasing dependence on digital platforms, information systems and technology-driven processes exposes NBFCs to operational risks including system failures, cybersecurity threats, data privacy concerns and fraud risks. The Company continuously strengthens its technology infrastructure, internal controls and cybersecurity measures to safeguard business operations and customer information.

Concentration Risk

Exposure to specific borrower segments, geographies, industries or products may increase vulnerability during adverse economic conditions. The Company continuously reviews portfolio composition and risk concentration levels to ensure sustainable growth and balanced portfolio management. The RBI has highlighted the importance of monitoring concentration and interconnected risks within the NBFC ecosystem.

Economic and External Environment Risk

Changes in domestic and global economic conditions, inflation trends, employment levels, consumer sentiment and geopolitical developments may influence borrower behaviour and overall credit demand. The Company continues to monitor macroeconomic developments and align its business strategy accordingly.

The Company believes that a strong risk management framework, prudent lending practices, adequate capitalisation, effective governance and continuous monitoring of emerging risks will support sustainable growth and long-term value creation for stakeholders.

6. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has established a robust Internal Control System commensurate with the size, scale and complexity of its operations. The internal control framework is designed to ensure operational efficiency, reliability of financial reporting, compliance with applicable laws and regulations, safeguarding of assets, and prevention and detection of errors and irregularities.

The Companys internal controls are supported by well-defined policies, procedures, approval mechanisms, segregation of duties and monitoring systems. These controls are implemented across key operational areas including lending operations, credit assessment, loan documentation, collections, accounting, financial reporting, information technology and regulatory compliance.

The Company follows a structured credit appraisal and risk management process to ensure prudent lending practices. Regular monitoring of the loan portfolio, borrower performance, collection efficiency and asset quality indicators is undertaken to identify and address potential risks at an early stage.

The Internal Audit function plays an important role in evaluating the effectiveness of internal controls, adherence to established policies and procedures, and compliance with applicable regulatory requirements. Internal audit observations and recommendations are reviewed by the appropriate management personnel and corrective actions are implemented wherever required.

The Company has adequate systems and processes in place to ensure compliance with the applicable provisions of the Companies Act, 2013, Reserve Bank of India regulations applicable to NBFCs, and other statutory and regulatory requirements. The Company continuously reviews and strengthens its internal control framework in line with business growth, regulatory developments and emerging risks.

Based on the assessment carried out during the financial year, the management is of the view that the Company has adequate internal financial controls and operational controls commensurate with its operations, and such controls are operating effectively.

7. DISCUSSION ON FINACIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the financial year 2025-26, the Company continued to focus on strengthening its lending operations, improving operational efficiency and expanding its business activities while maintaining prudent risk management practices.

The Companys financial performance during the year reflects the impact of its operational initiatives, business growth strategies and focused approach towards portfolio quality. The revenue from operations increased during the year, supported by growth in lending activities, improved customer engagement and effective management of the loan portfolio. The Company continued to enhance its operational capabilities through disciplined credit processes, efficient collection mechanisms and improved monitoring systems.

The Company recorded revenue from operations of Rs. 522.33 Lakh during FY 2025-26 as compared to Rs. 109.32 Lakh during FY 2024-25, representing a growth of approximately 377.80% over the previous year. The increase in operating income was primarily attributable to expansion in business operations and growth in the loan portfolio. The Company reported a profit of Rs. 54.60 Lakh during FY 2025-26 as against a profit of Rs. 16.49 Lakh during FY 2024-25, reflecting improvement in overall operational performance and profitability.

The Company continued to maintain focus on sustainable growth by balancing business expansion with asset quality management. The operational performance was supported by effective credit appraisal procedures, timely monitoring of customer accounts, cost optimisation initiatives and strengthening of internal processes.

The Company remains committed to enhancing operational efficiency, improving customer service, maintaining regulatory compliance and pursuing growth opportunities while ensuring prudent management of financial and operational risks.

8. HUMAN RESOURCES:

Human resources continue to be one of the key pillars supporting the Companys growth and operational effectiveness. The Company believes that a skilled, committed and motivated workforce is essential for achieving sustainable business growth and delivering value to stakeholders.

During the financial year 2025-26, the Company continued to focus on strengthening its organisational capabilities by developing a competent team aligned with its business objectives. The Company has adopted appropriate human resource practices relating to recruitment, employee development, performance management and employee engagement.

The Company encourages a work environment that promotes professionalism, teamwork, ethical conduct and continuous learning. Employees are provided with opportunities to enhance their knowledge and skills through on-the-job learning and training initiatives, enabling them to effectively perform their roles and responsibilities.

The Company continues to emphasise building capabilities in key areas such as credit operations, risk management, customer servicing, compliance and technology-driven processes, which are critical for the growth of an NBFC.

The management appreciates the contribution and dedication of all employees and acknowledges their continued support in strengthening the Companys operational performance and achieving its business objectives.

9. INDUSTRIAL RELATIONS:

The Company maintained cordial and harmonious relations with its employees during the financial year 2025-26. The management believes that a positive and collaborative work environment is essential for achieving organisational objectives and sustaining long-term growth.

The Company continues to promote open communication, mutual respect and employee engagement across all levels of the organisation. The working environment remains professional and conducive to productivity, with emphasis on teamwork, discipline and adherence to the Companys values and policies.

During the year under review, there were no major issues relating to industrial relations, and the Company continued to receive the support and cooperation of its employees in carrying out its business operations effectively.

The management acknowledges the efforts and commitment of its employees and remains focused on maintaining a healthy and productive relationship with its workforce.

10. CAUTIONARY STATEMENT:

The statements made in this Boards Report describing the Companys objectives, projections, estimates, expectations, plans and other forward-looking statements may constitute "forward-looking statements" within the meaning of applicable laws and regulations.

Such statements are based on the Companys current expectations, assumptions and available information regarding future events, economic conditions, regulatory environment, business strategy and operational performance. These statements are subject to various risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied in such forward-looking statements.

The Company does not undertake any obligation to publicly update or revise any forward-looking statements based on subsequent developments, events or circumstances, except as may be required under applicable laws and regulations.

	By order of the Board of Directors
	Trustedge Capital Limited
	(Formerly known as Adinath Exim Resources Limited)
	Sd/-
	(Manoj S. Savla)
	Chairman & Managing Director
	DIN - 01529306
Date : July 29, 2026
Place : Ahmedabad