Vedant Asset Ltd Management Discussions

Vedant Asset Limited (the Company), CIN: U74900JH2015PLC003020, incorporated in 2015 and headquartered in Ranchi, Jharkhand, is a financial services company operating in the Finance - Others sector. The Company is engaged in providing financial advisory and wealth management services, and acts as a Corporate Business Correspondent (BC) for banking partners, including Bank of India and NSDL Payments Bank Limited. The equity shares of the Company are listed on the Bombay Stock Exchange (BSE). During FY 2025-26, the Company continued to strengthen its core business correspondent and brokerage operations, which together now form the mainstay of its revenue base.

INDUSTRY AND ECONOMIC ENVIRONMENT

The Indian financial services sector continued to see steady growth during FY 2025-26, supported by expanding financial inclusion initiatives, deepening of the banking correspondent network in semi-urban and rural areas, rising digital adoption, and continued growth in retail participation in capital markets. The Business Correspondent (BC) model, in particular, has benefited from the sustained push towards last-mile banking penetration, while the wealth management and broking segments have gained from a broadening investor base and higher retail engagement with financial products.

At the same time, the sector remains exposed to regulatory tightening, margin pressure from competition among BC and fintech intermediaries, and volatility in capital markets that can affect brokerage and commission income. The Company has sought to navigate this environment by deepening its BC partnerships and diversifying revenue across brokerage, commission and collection-based services.

FINANCIAL PERFORMANCE

The financial results for Vedant Asset Limited for FY 2025-26 reflect a mixed performance, with growth in revenue and increase in profitability compared to the previous year. Below is a summary of key financial metrics based on standalone audited financial results for the year ended March 31, 2026:

REVENUE:

Total income for FY 2025-26 stood at Rs.497.05 lakhs, up 29.6% from Rs.383.56 lakhs in FY 2024-25. Revenue from operations grew 40.2% to Rs.474.81 lakhs (FY 2024-25: Rs.338.74 lakhs), while other income declined 50.4% to Rs.22.24 lakhs (FY 2024-25: Rs.44.82 lakhs), largely on account of a lower non-cash recognition of BC infrastructure fund income (CSP Plus Fund) as compared to the previous year.

Brokerage & commission income grew 65.5% YoY and B.C. collection income more than doubled (up 122.2% YoY), reflecting an expanding BC network and higher transaction throughput. B.C. commission, the single largest revenue line, grew 37.0% YoY. Business consultancy income (Rs.35.00 lakhs in FY 2024-25) did not recur in the current year, being a one-off engagement in the prior year.

Total expenses increased to Rs.443.28 lakhs, a 27.9% rise over Rs.346.51 lakhs in FY 2024-25, broadly in line with revenue growth. Key movements were:

• Employee benefit expense: Rs.147.02 lakhs, up 18.7% YoY (FY 2024-25: Rs.123.84 lakhs), reflecting continued investment in manpower to support the BC and brokerage network.

• Other expenses: Rs.287.84 lakhs, up 50.7% YoY (FY 2024-25: Rs.190.99 lakhs), the largest single component being BC commission (pass-through) of Rs.155.13 lakhs (FY 2024-25: Rs.124.19 lakhs), along with a one-time write-off of Rs.34.38 lakhs relating to the CSP infrastructure matching adjustment referred to in Note 1.11 to the financial statements (see Accounting Policies below), and higher consultancy (Rs.24.48 lakhs) and advertisement & marketing (Rs.16.84 lakhs) spends.

• Depreciation and amortisation: Rs.5.10 lakhs, down 81.1% YoY (FY 2024-25: Rs.26.93 lakhs), following the write-off of related CSP fixed assets during the year.

• The Company continues to have no finance/borrowing cost on its books, reflecting a largely equity and internal-accrual funded balance sheet.

PBT grew 45.1% YoY to Rs.53.77 lakhs, and PAT grew 80.6% YoY to Rs.40.07 lakhs, aided by a lower effective tax charge and a sharp reduction in depreciation. Net profit margin improved to 8.06% (FY 2024-25: 5.79%), and Basic & Diluted EPS increased to Rs.1.45 from Rs.0.80 in the previous year, an increase of 81.3%.

OPERATIONAL HIGHLIGHTS

• Continued to operate as a Corporate Business Correspondent for Bank of India (Odisha CSP infrastructure) and NSDL Payments Bank Limited, with B.C. commission and collection income together contributing over 57% of total revenue from operations in FY 2025-26.

• Brokerage & commission income grew 65.5% YoY, reflecting continued strengthening of the Companys wealth-management and broking client base.

REGULATORY COMPLIANCE:

Vedant Asset complied with SEBI regulations, including the submission of a certificate under Regulation 74(5) of SEBI (DP) Regulations, 2018, confirming that all shares are held in dematerialized form.

RISK FACTORS AND MITIGATION

The company operates in a competitive and regulated industry, facing risks such as:

Market Risk: Volatility in financial markets can impact AUM and revenue streams. Mitigation: Diversifying service offerings and strengthening client relationships through partnerships like NSDL Payments Bank.

Regulatory Risk: Changes in SEBI or RBI regulations could affect operations. Mitigation: Robust compliance framework with dedicated auditors and governance committees.

Operational Risk: Rising costs, as seen in employee and other expenses, could erode margins. Mitigation: Focus on cost optimization and operational efficiency.

Liquidity Risk: Negative cash flows from operations pose challenges. Mitigation: Prudent working capital management and exploring new revenue streams.

STRATEGIC PRIORITIES AND OUTLOOK

Vedant Asset Limited is focused on the following strategic priorities for sustainable growth:

Expansion of Service Offerings: Leveraging the NSDL Payments Bank partnership to enhance financial inclusion and tap into new client segments.

Technology Adoption: Investing in digital platforms to improve client engagement and operational efficiency.

Cost Management: Addressing rising operational costs through process optimization and resource allocation

Governance and Compliance: Strengthening internal controls and transparency to maintain investor confidence

Market Penetration: Expanding AUM through targeted marketing and strategic alliances.

Looking ahead, the company anticipates steady growth in FY 2025-26, supported by a favorable economic environment and increasing demand for financial advisory services. The management remains committed to delivering value to shareholders while navigating industry challenges.

REGULATORY COMPLIANCE AND OTHER MATTERS

The statutory auditors, M/s N. K. Kejriwal & Co., Chartered Accountants, have issued an

unmodified (unqualified) opinion on the annual audited financial results for the year ended 31st March, 2026, vide their report dated 29th May, 2026 (UDIN: 26073381RVKRKE9300). The Auditors have drawn attention to the following matters, which the management is addressing in the normal course:

• TDS as per Form 26AS and as per the books of account is not fully reconciled, as Form 26AS may continue to see updates up to 28th May 2026. The Company is in the process of reconciling the same.

• There is an outstanding demand for Assessment Year 2021-22 under the Companys PAN. Management has been advised to take necessary steps to reconcile or respond to the demand the potential impact, if any, has not been accounted for in the financial statements pending resolution.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCE POLICY

Our Company believes that the human capital is key to bring in progress. The Company believes in maintaining cordial relation with its employees, which is one of the key pillars of the Companys business. The Companys HR policies and practices are built on core values of Integrity, Passion, Speed, and Commitment. The Companys focus is on recruitment of good talent and retention of the talent pool. The Company is hopeful and confident of achieving the same to be able to deliver results and value for our shareholders.

ACCOUNTING POLICIES

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The financial statements have been prepared under the historical cost convention on an accrual basis. The management accepts responsibility for the integrity and objectivity of the financial statements, as well as for the various estimates and judgment used therein.

CONCLUSION

Vedant Asset Limited delivered an improved financial performance in FY 2025-26, with revenue from operations growing 40.2% and net profit after tax growing 80.6% over the previous year, supported by strong growth in brokerage and Business Correspondent related income and a correction of a legacy accounting mismatch relating to CSP infrastructure funding. The management remains focused on scaling recurring revenue streams, managing costs, and strengthening governance and compliance to drive long-term value creation for shareholders.

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events.

For and on behalf of the Board of Vedant Asset Limited

Sd/-

Lallit Tripathi

Director

DIN: 07220161

Date: - 04.09.2026

Place: - Ranchi