Wallfort Financial Services Ltd Management Discussions

During Financial Year 2026, the Indian economy grew at a strong rate of 7.7%, characterized by a resilient domestic economy amidst continued global uncertainties. India remained one of the fastest growing major economies, supported by robust domestic consumption, sustained government capex, healthy corporate balance sheets and a resilient banking system. Inflation moderated during the year due to easing commodity prices and prudent monetary policy, while the RBI maintained its focus on balancing inflation control with supporting economic growth. Indias strong macroeconomic fundamentals, favorable demographics, political stability, expanding manufacturing base and continued emphasis on infrastructure development position the country favorably for sustainable long-term growth.

Globally however, economic conditions remained mixed. Persistent geopolitical tensions, including the recent Middle-East conflict, ongoing Russia-Ukraine conflict has led to continued instability. Uncertainty surrounding international trade policies and tariff measures, impacted investor sentiment across global markets. Elevated interest rates in several advanced economies also moderated global economic activity during the year. On the bright side, India has signed and is on the verge of signing several FTAs and trade deals with major global economies such as US, UK and Europe which are expected to go live in the coming years and significantly open up export opportunities. The Indian BFSI sector continued to demonstrate stability despite periodic volatility in global financial markets. Credit growth remained healthy across retail and corporate segments, supported by improving asset quality and adequate capitalization of banks.

As per the charts extracted from the IMFs World Economic Outlook Report of April 2026, the charts are clearly indicative broadly stable inflation rates over the coming years. Inflationary pressures, which moderated significantly during FY26 are expected to remain contained during FY27 aligned with the RBIs medium-term target, supported by prudent monetary policy, healthy agricultural output and easing commodity prices. Globally, inflation is also expected to remain relatively stable, although geopolitical developments, trade policies and fluctuations in energy prices continue to pose upside risks. Overall, the outlook remains stable providing a supportive environment for economic growth and financial market activity.

Financialization of household savings continued in FY26 with increasing retail participation in capital markets. This structural shift will provide long-term support to Indias financial services industry.

Indian capital markets experienced significant volatility during FY6. While domestic flows remained robust, FPI flows fluctuated in response to global interest rate movements, geopolitical developments and changing risk appetite. The benchmark indices witnessed periods of corrections during the year as investors reacted to elevated valuations, global uncertainties and moderation in corporate earnings growth. However, the Indian equity market continued to demonstrate resilience driven by strong domestic liquidity and favorable long-term economic fundamentals. Primary market activity was impacted year on year, however still remained healthy. Looking ahead, while short-term market movements may continue to remain influenced by global macroeconomic developments, Indias structural growth story, supported by increasing domestic savings, strong corporate balance sheets and policy continuity, provide a favorable long-term outlook.

OPPORTUNITY

Your company continues to identify several long-term opportunities arising from Indias evolving financial ecosystem:

• Strong long-term economic growth is expected to create significant opportunities for the industry.

• Increasing financialization of savings continues to drive sustained inflows into equity markets.

• Continued digitization of financial services is enabling greater client engagement and efficiencies.

• Rising participation by DIIs, family offices and HNIs is expected to create new business opportunities.

• Regulatory initiatives aimed at strengthening transparency, investor protection and ease of doing business are expected to improve overall market efficiency.

We are very pleased to inform you that your company is now servicing 140+ Institutional Clients and looks forward to becoming one of the premier brokerage houses for Institutions/ Corporates /Banks and FIIs in the years to come. The company remains committed to delivering high-quality research, advisory and execution capabilities while leveraging its established market presence to enhance long-term stakeholder value.

THREAT

• Volatility in domestic and global capital markets may adversely affect capital market activities.

• Changes in macroeconomic conditions and geopolitics may influence investment decisions.

• Cybersecurity threats, data privacy concerns and technology related risks continue to exist.

• Ability to attract and retain experienced professionals remain a key challenge.

• Fluctuations in the value of investment portfolio due to market movements may impact the companys performance

STRENGTH

• Strong Brand Name

Over the years, "Wallfort" has established itself as a trusted name in the Indian financial services industry. The companys strong reputation, built on integrity, professionalism and quality of service, has enabled it to develop long-standing relationships with institutional investors, corporates, banks and other market participants. The company continues to enhance its service offerings through quality research, timely market intelligence and efficient execution capabilities.

• Experienced Management Team

The company is led by an experienced management team possessing extensive knowledge of capital markets, broking and financial services. The leadership teams deep industry expertise enables the company to effectively identify emerging opportunities, manage business risks and respond proactively to changing market conditions.

• Robust risk management framework:

Established comprehensive risk management policies and internal control mechanisms covering financial, operational and legal risks. Risk exposures are continuously monitored through structured reporting systems and are reviewed by the management on a regular basis to ensure timely corrective actions wherever necessary.

RISK AND CONCERN

• Impact of markets on our revenues and investments, sustainability of the business across cycles, sharp movements in prevailing interest rates in the market.

• Risk that a client will fail to deliver as per the terms of a contract with us or another party at the time of settlement.

• Risk due to uncertainty of a counterpartys ability to meet its financial obligations to us.

• Inability to conduct business and service clients in the event of a contingency such as natural calamity, breakdown of infrastructure, etc.

OUTLOOK

India continues to remain one of the fastest-growing major economies globally, supported by strong domestic consumption, favorable demographics, sustained government capital expenditure and an increasingly formalized financial system. The continued financialization of household savings, rising participation in capital markets and growing depth of domestic institutional flows are expected to provide long-term support to the financial services industry.

While global uncertainties persist due to geopolitical developments, trade-related issues and evolving monetary policies across major economies, Indias macroeconomic fundamentals remain relatively resilient. Inflationary pressures, which moderated during Fy26 are expected to remain broadly contained going ahead, while the banking system continues to remain adequately capitalized and supportive of economic growth.

The Indian capital markets may continue to witness intermittent volatility in the near term owing to global developments, changing risk appetite and valuation considerations. However, the structural growth drivers remain intact. Increasing participation by retail investors, mutual funds, insurance companies, pension funds and other domestic institutions is expected to continue strengthening the market ecosystem.

During FY 2026, the companys performance was impacted by adverse market conditions and mark-to market losses recognized in accordance with applicable accounting standards. However, the company remains focused on strengthening its core broking and advisory businesses, expanding institutional relationships, enhancing research capabilities and maintaining prudent risk management practices.

RISK MITIGATION

Although the Company has long been following the principle of risk minimization as is the norm in every industry, it has now become a compulsion.

In todays challenging and competitive environment, strategies for mitigating inherent risks in accomplishing the growth plans of the Company are imperative. The common risks inter alia are changing regulations, competition, business risk, technology obsolescence, retention of talent, and expansion of facilities. Business risk, inter alia, further includes financial risk, political risk, fidelity risk, and legal risk. As a matter of policy, these risks are assessed and steps are taken to mitigate the same.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has appointed M/s. Rashmi Jain & Associates., Chartered Accountants as the Internal Auditors as mandated under Section 138 of the Companies Act, 2013 who examine and ensure that internal checks and control procedures are adequate. They also ensure proper accounting, records authorization, control of operations and compliance with law.

An appropriate and adequate system of internal controls exist in your Company to ensure that all assets are safeguarded and protected against loss or from misuse or disposition, and that the transactions are authorized, recorded and reported suitably. Internal control systems ensure effectiveness of operations, accuracy and promptness of financial reporting and observance with laws & regulations. The internal control is supplemented on an ongoing basis by an extensive internal audit which is conducted each year by and independent audit firm.

The internal audit report along with management comments thereon are reviewed by the Audit Committee of the Board comprising of independent and non-executive Directors on a regular basis. Implementation of the suggestions is also monitored by the Audit Committee. The internal controls are designed to ensure that the financial and other records of the Company are reliable for preparing financial statements and other data, and for maintaining accountability of assets.

FINANCIAL PERFORMANCE

Particulars	For the year ended 31 March, 2026	For the year ended 31 March, 2025
Revenue from Operations	48,006.97	3,33,550.96
Other Income	1,12,106.35	2,603.13
Total Income	1,60,113.32	3,36,154.09
Finance Cost	4,126.99	1,683.88
Employees Benefit Expense	50,586.56	48,411.98
Depreciation and Amortization Expense	4,294.15	4,359.92
Other Expense	1,41,092.55	1,32,919.83
Total Expense	2,00,100.24	1,87,357.61
Profit Before Tax	-39,986.92	1,48,778.48
Current Tax	11,598.26	34,276.49
Defered Tax Charge/(Credit)	-22,576.19	(5,269.13)
Short/(Excess) Provision for tax for earlier years	981.95	(277.31)
Total Tax Expense	-9,995.98	28,730.05
Profit After Tax	-29,990.94	1,20,048.43

a) INCOME

The Companys revenue from operations stood at INR 4.80 crore compared to INR 33.33 crore in the previous year. Other income stood at INR 1121.06 lacs compared to INR 26.03 lacs in the previous year.

b) EXPENDITURE

Total expenditure for the year increased by 0.07% to INR 20.01 crore, as against INR 18.71 crore in the previous year. Employee benefit expenses for the year were INR 5.06 crore as against INR 4.84 crore in the previous year - an increase of 0.04%.

Depreciation for the year decreased to INR 42.94 lacs as against INR 43.60 lacs in the previous year - a decrease of 0.02%. Other expenses for the year were INR 14.11 crore as against INR 13.27 crore in the previous year - a increase of 0.06%.

c) PROFIT AFTER TAX

The Loss for the year at INR 3 crore as against Profit INR 12 crore in the previous year. DEVELOPMENTS IN HUMAN RESOURCES

It is your Companys belief that people are at the heart of corporate and constitute the primary source of sustainable competitive advantage. The trust of your Companys human resource development efforts, therefore, is to create a responsive and market driven organization. Your Company continues its focus on strengthening competitiveness in its business. Your directors look forward to the future with confidence. The Company has followed a conscious policy of providing training to management staff through in-hous and external programs for upgrading personal and technical skills in relevant areas of functional disciplines.

SIGNIFICANT CHNAGES IN KEY FINANCIAL RATIOS (25% or MORE)

Additional regulatory requirement under (WB) (xvi) of Division III of Schedule III amendment disclosure of ratios, is not applicable to company as it is in broking business and not an NBFC registered under section 45-IA of Reserve Bank of India Act, 1934.

CHANGES IN RETURN ON NETWORTH

Return on Networth	2025-2026	2024-2025
	-1.89%	7.42%