Voltaire Leasing & Finance Ltd Management Discussions

ANNUAL OVERVIEW AND OUTLOOK

GLOBAL ECONOMY REVIEW

The global economy in 2025 continued to demonstrate underlying resilience, supported by steady consumption, sustained investments in technology and relatively stable financial systems. However, as the world moves into 2026, this

growth trajectory is being tested by heightened geopolitical tensions and disruptions in energy markets, introducing new uncertainties into the macroeconomic environment.

According to the International Monetary Funds (IMF) January Outlook Update, global real GDP growth is projected at around 3.3% in 2026, broadly in line with the estimated 3.3% in 2025 and slightly above earlier forecasts. This stability reflects a balance of forces across the global economy, where continued investments in technology and relatively accommodative financial conditions are helping offset trade policy headwinds, even as geopolitical developments create periodic volatility.

Across major economies, growth dynamics remain uneven. The United States continues to be supported by resilient domestic demand and investment momentum, while Europe faces relatively slower expansion amid cost pressures and structural constraints. In Asia, large economies such as China and India remain pivotal to global growth, supported by domestic consumption and policy measures, although external volatility and trade developments may influence near-term performance. According to IMF estimates, the two economies together are expected to contribute around 43.6% of global real GDP growth in 2026, with India accounting for nearly 17% and China about 26.6% of incremental global expansion. Nevertheless, the outlook remains subject to evolving global conditions, including commodity price volatility, trade realignments and financial market movements.

INDIAN ECONOMY REVIEW

Indias economy continues to demonstrate strong underlying momentum, supported by resilient domestic demand, policy support and structural growth drivers. Economic activity remained robust through 2025-26, driven by consumption led growth, improving financial conditions and sustained government interventions. However, evolving global uncertainties and energy market disruptions have introduced near-term risks, moderating the pace of expansion while leaving the medium-term growth trajectory intact. According to the Economic Survey 2025-26, real GDP growth for 2025-26 is estimated between 6.8-7.2%, while Gross Value Added (GVA) is projected to expand by 7.3%. This performance reflects the economys resilience despite a challenging external environment.

Domestic demand continued to serve as a key growth driver. The share of private consumption expenditure in GDP increased to 61.5%, indicating sustained demand strength. Rural consumption remained supported by robust agricultural performance, while urban demand benefited from tax rationalisation and rising disposable incomes.

Inflation trends also remained favourable, with average headline inflation at around 1.7% during April-December 2025, supported by relatively stable food and fuel prices. Indias external position stayed strong, with foreign exchange reserves rising to USD 701.4 billion as of 16 January 2026, compared with USD 668 billion in March 2025. This provided import cover of about 11 months, strengthening resilience against external volatility.

However, India remains exposed to external vulnerabilities, particularly due to its dependence on energy imports. A significant share of crude oil requirements is sourced from global markets, making the economy sensitive to price fluctuations. Elevated energy prices could exert pressure on inflation, fiscal balances and consumption. Additionally, global financial conditions may influence capital flows, currency stability and investment sentiment in the near term.

INDUSTRY OVERVIEW

The India capital market is experiencing robust expansion, driven by rising retail investor participation, digital transformation of financial services, and strong domestic economic fundamentals. The market benefits from a growing middle class with increasing disposable income, enhanced regulatory frameworks supporting investor protection, and expanding financial literacy initiatives. Government reforms promoting ease of doing business and global bond index inclusions are further catalyzing market growth and foreign investment inflows.

The India capital market is undergoing a transformative phase, characterized by unprecedented retail investor participation and institutional deepening. The market benefits from supportive regulatory frameworks that promote transparency, investor protection, and market efficiency. Digital transformation has revolutionized market access, enabling millions of new investors to participate through user-friendly mobile trading applications and seamless electronic know-your-customer (KYC) processes. As of June 2025, the number of demat accounts in India reached 200 Million, reflecting the remarkable expansion of retail investor base. The integration of technology with financial services has reduced transaction costs and improved market liquidity, attracting both domestic and international capital flows. Government initiatives promoting financial inclusion and investor awareness campaigns have strengthened market fundamentals, while the inclusion of Indian government bonds in global indices has enhanced international investor confidence.

On Financing market point of view, Indias accounting and professional services market is expanding steadily, reflecting strong demand in the financial services sector. As per a Mordor Intelligence report (January 28, 2026), the market is estimated at Rs. 1.47 lakh crore (US$ 15.97 billion) in 2026 and projected to reach Rs. 1.82 lakh crore (US$ 19.66 billion) by 2031 (CAGR 4.25%), driven by stricter compliance norms and rising adoption of technology-led financial and advisory services

Rising income is driving the demand for financial services across income brackets.

Indias financial services sector is projected to nearly double profits by FY30, led by NBFCs growing at 16% annually. Growth drivers include retail credit, wealth management, payments, and insurance.

SEGMENTWISE REPORTING

During the current financial year, the Company has operated in single segment wise, Finance & Investments and hence Segment Reporting is not applicable to the Company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company has in place adequate internal financial controls with reference to the Financial Statements commensurate with the size, scale and complexity of its operations. Your Company has an Internal Audit team that is responsible for independently evaluating the adequacy and effectiveness of all internal control designs and implementation, risk management, systems and processes. Internal Audit team is manned by appropriately skilled, experienced and qualified personnel. The Internal Audit plan is also aligned with the business objectives of the Company which is reviewed and approved by the Audit Committee.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year under review, the Company earned revenue from operations of 68.55 lakh, along with other income of 6.64 lakh, taking the total income for the year to 75.19 lakh. While the Companys total income were more than its total expenses, resulting in a net profit for the year, the revenue generated from operations played a meaningful role in meeting the day-to-day operational and financial requirements of the Company. This, in turn, helped reduce the Companys dependence on additional borrowings from the Directors and from banks/financial institutions to fund its working capital and other requirements.

The management remains focused on improving operational efficiency, expanding revenue streams and exercising tighter control over costs, with the objective of strengthening the Companys overall financial performance in the coming years. These efforts are also aimed at progressively reducing the Companys reliance on external sources of finance and building a more self-sustaining operational and financial structure going forward.

OPPORTUNITIES & THREATS

Opportunities

Record Capital Expenditure (Capex): The Union Budgets allocation of 12.2 lakh crore for infrastructure serves as a major boon for logistics, capital goods, and construction companies, driving underlying earnings growth.

Retail Participation: An expanding domestic investor base—supported by the boom in Demat accounts and consistent monthly SIP inflows into mutual funds—provides a structural buffer against foreign sell-offs.

Fixed Income Deepening: Expanding corporate bond markets, municipal bonds, and alternative instruments like REITs and InvITs offer diversified long-term investment avenues for investors.

Mid & Small Cap Alpha: With large-cap valuations consolidating, fundamentally strong mid and small-cap segments present significant bottom-up stock-picking potential for active fund managers.

Threats

Crude Oil & Currency Risk: India imports nearly 85% of its crude oil. Elevated global crude prices directly inflate the current account deficit and exert persistent downward pressure on the Indian Rupee.

Geopolitical & FII Outflows: Ongoing global geopolitical tensions and shifting central bank dynamics in the US have historically led to significant Foreign Portfolio Investor (FPI) outflows, contributing to domestic market volatility.

Inflation & Interest Rate Sticky: Average CPI inflation is projected around 4.6%. Prolonged inflation shocks could force the RBI to alter its monetary stance, causing borrowing costs to remain elevated.

Regulatory Cost Adjustments: Increased Securities Transaction Tax (STT) on select derivatives and revised taxations on share buybacks require active traders and corporates to recalibrate their financial strategies.

RISKS AND CONCERNS

Voltaire Leasing & Finance Limited (VLFL) has exposures in various line of business. VLFL are exposed to specific risks that are particular to their respective businesses and the environments within which they operate, including market risk, competition risk, credit risk, liquidity and interest rate risk, operational risk, information security risks, regulatory risk and macro-economic risks. The level and degree of each risk varies depending upon the nature of activity undertaken by them.

MARKET RISK

The Company has quoted investments which are exposed to fluctuations in stock prices. GCM continuously monitors market exposure in equity and, in appropriate cases, also uses various derivative instruments as a hedging mechanism to limit volatility.

LIQUIDITY AND INTEREST RATE RISK

The Company is exposed to liquidity risk principally, because of lending and investment for periods which may differ from those of its funding sources. Management team actively manages asset liability positions in accordance with the overall guidelines laid down by various regulators. The Company may be impacted by volatility in interest rates in India which could cause its margins to decline and profitability to shrink. The success of the Companys business depends significantly on interest income from its operations. It is exposed to interest rate risk, both as a result of lending at fixed interest rates and for reset periods which may differ from those of its funding sources. Interest rates are highly sensitive to many factors beyond the Companys control, including the monetary policies of the RBI, deregulation of the financial sector in India, domestic and international economic and political conditions and, inflation. As a result, interest rates in India have historically experienced a relatively high degree of volatility.

The Company seeks to match its interest rate positions of assets and liabilities to minimize interest rate risk. However, there can be no assurance that significant interest rate movements will not have an adverse effect on its financial position.

HUMAN RESOURCE DEVELOPMENT

The Company recognizes that its success is deeply embedded in the success of its human capital. During 2025-26, the Company continued to strengthen its HR processes in line with its objective of creating an inspired workforce. The employee engagement initiatives included placing greater emphasis on learning and development, launching leadership development programme, introducing internal communication, providing opportunities to staff to seek inspirational roles through internal job postings, streamlining the Performance Management System, making the compensation structure more competitive and streamlining the performance-link rewards and incentives.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

There is no material development in Human Resources, Industrial Relations front etc. during the year under review.

OTHER DISCLOSURES IN TERM OF SCHEDULE V OF SEBI LODR REGULATIONS, 2015

Disclosures in regard to following aspects, have been provided in Notes to Account, forming part of Annual Report – a. Debtors Turnover b. Inventory Turnover c. Interest Coverage Ratio d. Current Ratio e. Debt Equity Ratio f. Operating Profit Margin (%) g. Net Profit Margin (%) or sector-specific equivalent ratios, as applicable.

h. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.]

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

The provision of the Companies Act, 2013 relating to CSR Initiatives are not applicable to the Company.

COMPLIANCE

The Compliance function of the Company is responsible for independently ensuring that operating and business units comply with regulatory and internal guidelines. The Compliance Department of the Company continues to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by regulators, the Companys Board of Directors and the Companys Compliance Policy. The Audit Committee of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis.

The Company has complied with all requirements of regulatory authorities except delay in complying with the provisions of SEBI LODR Regulations, 2015. No penalties/strictures were imposed on the Company SEBI or any other statutory authority on any matter related to capital market during the last three years.

Kolkata, September 3, 2026	By order of the Board
	For Voltaire Leasing & Finance Limited
	S/d-
Registered Office :	Alok Kr. Behera
12, Motilal Nehru Road, Ground Floor,	DIN: 00272675
Dover Lane, Kolkata- 700 029	Chairman & Managing Director