Wealth First Portfolio Managers Ltd Management Discussions

Indian Economy

Overview

India reaffirmed its position as one of the worlds fastest-growing major economies in FY26, recording real GDP growth of 7.7%, marginally higher than the earlier estimate and the growth recorded inFY25. As per the Provisional Estimates released by the Ministry of Statistics & Programme Implementation (MoSPI), the economy demonstrated resilience despite continued global trade uncertainty, evolving geopolitical conditions and shifting monetary cycles across advanced economies.

Growth remained broad-based, supported by sustained domestic demand, public investment momentum and healthy services activity.

The year witnessed continued strength across sectors. Services remained the principal growth driver, supported by trade, transport, communication and financial activities. Manufacturing also maintained momentum, aided by capacity expansion, domestic consumption and policy-led industrial development.

GDP growth - Quarterly trajectory

Quarter	GDP growth (YoY)	Key contributor
Q1 FY26 (Apr-Jun 2025)	7.8%	Services and manufacturing momentum
Q2 FY26 (Jul-Sep 2025)	8.2%	Domestic demand and investment activity
Q3 FY26 (Oct-Dec 2025)	7.8%	Broad-based sectoral expansion
Q4 FY26 (Jan-Mar 2026)	7.8%	Consumption, services and investment
Full-year FY26 (Provisional estimate)	7.7%	Broad-based growth across sectors

Macroeconomic anchors Monetary policy & Inflation

The Reserve Bank of India (RBI) pursued an accommodative-to-neutral monetary policy trajectory through FY26, cumulatively reducing the repo rate by 100 basis points since February 2025. The benchmark repo rate stood at 5.25% by February 2026, with the Standing Deposit Facility (SDF) at 5.0% and the Marginal Standing Facility (MSF) at 5.50%. A dramatic decline in consumer inflation supported these calibrated reductions. Headline CPI declined to an 8-year low of 1.6% in July 2025, supported by a nine-month consecutive decline in food inflation. For FY26, CPI inflation was projected at 2.1%, remaining comfortably within the RBIs 2-6% tolerance band.

GST rate rationalisation, effective from September 22, 2025, provided an additional direct reduction in consumer prices, impacting approximately 11.4% of the CPI basket across product categories. This reinforced the benign inflation environment and provided real income support to households.

External sector & Sovereign rating

Indias Current Account Deficit (CAD) narrowed sharply to USD 2.4 billion, or 0.2% of GDP, in Q1 FY26, compared with USD 8.6 billion, or 0.9% of GDP, in Q1 FY25. The improvement was supported by higher net services receipts and strong personal transfer receipts, which rose to USD 33.2 billion during the quarter.

Gross FDI inflows remained healthy at USD 37.7 billion during April-July 2025.

In a landmark development, S&P Global Ratings upgraded Indias sovereign credit rating from BBB-to-BBB on August 14, 2025, signalling improved confidence inthe countrys fiscal credibility and long-term capital allocation outlook.

The governments fiscal deficit target of 4.4% of GDP for FY26, combined with a reduced Debt-to-GDP goal of 50%, supports Indias medium-term macroeconomic stability.

Outlook

India enters FY27 from a position of increasing economic maturity, supported by resilient domestic demand, sustained investment momentum and continued structural formalisation across the economy. The convergence of public infrastructure spending, expanding manufacturing capabilities, deepening financial participation and the growing scale of the services economy is expected to reinforce the countrys longterm growth trajectory.

While global conditions continue to remain fluid amid evolving trade dynamics, geopolitical developments and policy recalibrations across major economies, Indias relatively strong macroeconomic fundamentals position it favourably to navigate external volatility. A moderating inflation environment, improving capital formation and continued policy focus on productivity and competitiveness are expected to support economic activity going forward.

As consumption patterns evolve and capital markets deepen further, India remains well placed to sustain broad-based growth and strengthen its standing as one of the worlds most compelling long-term economic opportunities.

A 7.7% GDP growth environment, moderating inflation and a 100-basis-point reduction in the repo rate have a direct bearing on wealth management.

Rising real incomes expand the investable surplus available to households, while falling interest rates encourage a reallocation from bank deposits towards market-linked instruments. For a company such as Wealth First, whose revenues are linked to the scale and complexity of client portfolios, these macroeconomic conditions widen the addressable opportunity.

Indian capital markets

Indian capital markets moved through two distinct phases in FY26. The first half witnessed heightened volatility triggered by U.S. tariff uncertainties, elevated global bond yields and a persistent selling by Foreign Portfolio Investors (FPIs). The Sensex touched an intra-year low of 71,425 in April 2025, before staging a sharp 17.7% recovery to reach 84,099 by June 2025. The second half benefited from GST rationalisation, declining interest rates, an improving earnings trajectory and a recovery in FPI sentiment,with the Sensex reclaiming the 85,000 milestone by November 2025 for the first time in 14 months, and the Nifty 50 scaling a 52-week high of 26,373 in January 2026.

Secondary market performance

Index	H1 FY26 Return/Closing level	Intra-year high	Intra-year low
BSE Sensex	+3.7% --> 80,268	84,099 (June 2025)	71,425 (April 2025)
NSE Nifty 50	+4.6% --> 24,611	26,373 (January 2026)	21,400 (April 2025)
Nifty Midcap 100	Positive [exact % to be confirmed]	14-month high (November 2025)	Correction low (April 2025)
Nifty Smallcap 100	Positive [exact % to be confirmed]	Novvember 2025 highs	April 2025 lows

Despite a muted absolute return environment, the structural story remained robust. The Nifty 50s CY25 gain of approximately 10.7% lagged emerging-market peers. Still, retail investors share of NSE-listed market capitalisation reached a 22-year high of 18.75% in Q2 FY26, underlining the deepening democratisation of Indias equity market. Domestic Institutional Investors (DIIs) consistently absorbed FPI outflows, ensuring market stability and limiting downside.

Primary market - IPO activity

The primary market delivered a landmark year. FY26 witnessed 108 mainboard IPOs, raising H1.76 lakh crore- a historic milestone for Indias primary equity markets. This maintained the momentum of the previous year while indicating a shift towards more mature, value-driven capital flows. Private equity-backed listings rose to 35% of total issuances from 28% in FY25, signalling accelerated exit activity amid favourable conditions. However, average listing-day gains moderated to 8% from 28% in the previous year, reflecting disciplined pricing and a more selective investor approach.

Financial services and consumer discretionary sectors together accounted for more than half of the total capital raised. Indias primary market continued to rank among the top globally- the NSE led the world in IPO deal volumes in CY24, with 268 listings raising H1.67 lakh crore, and this momentum carried into FY26. India secured a 22% share of global IPO activity in Q1 CY25, with 62 IPOs raising USD 2.8 billion, driven in part by marquee deals including Hexaware Technologies USD 1 billion offering.

Two developments in the capital markets landscape carry particular significance for Wealth First. First, the record primary market activity of 108 mainboard IPOs and H1.76 lakh crore in capital raised creates advisory opportunities across pre-IPO allocation, post-listing portfolio construction and sectoral rebalancing. Second, the sustained rise in retail participation to a 22-year high of 18.75% of NSE market capitalisation signals a widening investor base that increasingly requires professional guidance on asset allocation, risk calibration and portfolio diversification.

Broking & Distribution

Indias broking industry entered a phase of structural recalibration in FY26, balancing record-high investor participation with regulatory tightening in the derivatives segment. As of November 2025, the total number of demat accounts neared 21.6 crore, while the SEBI Chairperson noted in October 2025 that over 1 lakh new demat accounts were being opened every day. The total unique investor count rose to 13.6 crore by October 2025, with women constituting nearly one-fourth of this expanding base.

Demat account growth

Metric	FY25	FY26 (Up to December 2025)
Total Demat accounts	19.24 crore	21.6 crore+
New Accounts added	4.11 crore (record)	2.35 crore (April-December 2025)
Unique registered investors	12 crore (September 2025 mark)	l3.6 crore (October 2025)
Daily Account openings	34.2 lakh /month avg	1 lakh per day
Women investor share	20%	25% (one-fourth)

Growth in demat accounts extended beyond metropolitan centres, with younger investors under 30 from smaller towns leading new account creation through digital platforms. This geographic and demographic diversification points to a structural deepening of market participation rather than a cyclical phenomenon.

Regulatory recalibration: F&O reforms

SEBIs comprehensive derivatives trading reforms, implemented through FY25, created a watershed moment for the industry. The reforms, aimed at curbing excessive speculation and protecting retail investors in the futures and options segment, led to a decline in F&O volumes of approximately 27%, with profitability across major players also coming under pressure. These structural changes fundamentally altered revenue dynamics, particularly for brokers heavily dependent on derivatives commissions and accelerated the shift toward a diversified, advisory-led, fee-based revenue model.

Evolving investor behaviour

A significant shift in investor behaviour emerged during FY26. Monthly active investor counts moderated during periods of market volatility, yet overall demat account creation held steady, suggesting longer-horizon holding intent. Systematic mutual fund investing demonstrated far greater resilience than direct equity trading during downturns- an indicator that the Indian retail investor base is maturing. This has opened meaningful cross-sell opportunities for brokers diversifying into wealth management, insurance distribution and MF platforms.

The regulatory recalibration in derivatives is accelerating a structural shift across the broking industry- away from transaction-led revenue and towards advisory-led, fee-based models. Wealth First operates precisely in this space. The Companys absence of subbroker or franchise-led distribution, its relationship managers who operate without revenue targets and its emphasis on client suitability over trading volumes mean its business model is already aligned with the direction in which SEBI is steering the broader industry.

The Mutual Fund industry

Indias Mutual Fund (MF) industry consolidated its position as the primary vehicle for financial savings mobilisation in FY26, demonstrating remarkable structural resilience even amid equity market volatility, FPI outflows and macroeconomic headwinds. The industry closed FY26 with Assets Under Management (AUM) of H73.73 lakh crore (USD 790.07 billion), reflecting 12.2% year-on-year growth and an absolute increase of nearly H8 lakh crore over the fiscal. By April 2026, industry AUM had further increased to H81.92 lakh crore.

SIP - The structural pillar

The Systematic Investment Plan (SIP) channel cemented its role as the bedrock of the mutual fund industrys growth. SIP inflows crossed H32,087 crore in March 2026, marking a new milestone, while May 2026 contributions of H30,954 crore represented a 16% year-on-year increase over May 2025. This consistent upward trajectory across months confirmed that SIP growth is structural, not cyclical. The number of contributing SIP accounts stood at approximately 9.72 crore by March

2026, and SIP AUM of H17.12 lakh crore now constitutes nearly 21% of the total industry AUM- meaning nearly one in every five rupees managed by Indian mutual funds is underpinned by a recurring SIP commitment. Cumulative net equity fund deployment for full FY26 crossed H5 lakh crore, surpassing FY25s then-record of H4.7 lakh crore, demonstrating sustained investor conviction in equity-oriented instruments even through the years volatile stretches.

AUM & Flow highlights - FY26

Metric	FY25	FY26
Industry AUM (March end)	H65.74 lakh crore	H73.73 lakh crore
YoY AUM growth	23.1%	12.2%
Record monthly SIP (March)	H25,926 crore	H32,087 crore
SIP AUM	H13.4 lakh crore	H17.12 lakh crore
Contributing SIP accounts	8.0 crore	9.72 crore
Net Equity deployment (FY)	H4.7 lakh crore	H5.0 lakh crore+
Unique MF investors (December 2025)	5.0 crore	5.9 crore
Total investor folios (December 2025)	24 crore	26.12 crore

Geographic broadening

A transformative trend in FY26 was the widening geographic footprint of mutual fund adoption. As of December 2025, 3.5 crore of the 5.9 crore unique MF investors hailed from non-Tier I and non-Tier II cities - Beyond Tier 30 (B30) locations. This reflects the sustained efforts of AMFIs investor education campaigns, the proliferation of digital MF platforms, and the deepening of financial literacy in semi-urban and rural India.

Regulatory innovation: SIF launch

In October 2025, SEBI introduced Specialised Investment Funds (SIFs), a new product category designed for sophisticated investors with a minimum investment of H10 lakh. The inaugural SIF strategies attracted net inflows of H2,004.56 crore in the launch month, signalling robust demand from the mass-affluent and HNI segments for differentiated, higher-risk-adjusted- return strategies beyond conventional MF categories.

Mutual fund distribution remains a core component of Wealth Firsts trail-based AUM of H5,558 crore. The industrys growth trajectory- SIP contributions crossing H32,000 crore monthly, the unique investor count reaching 5.9 crore and B30 markets driving the next wave of adoption- directly expands this revenue stream. The final approval received for Lakshya Asset Management Private Limited during FY26 positions the Company to move beyond distribution into fund management, participating more directly in the value chain of an industry that added H8 lakh crore in AUM in a single year.

Indian debt market: Government securities & Sovereign debt

The Indian debt market experienced a meaningful improvement in FY26, driven by favourable macro conditions, including declining inflation, a falling interest-rate cycle, government fiscal prudence and Indias growing integration into global bond indices. These factors helped reduce borrowing costs, attract foreign capital and strengthen the credibility of Indias fixed- income landscape for domestic and international institutional investors.

Government Securities (G-Sec) market

The Government of India set a gross market borrowing target of H14.82 lakh crore for FY26, of which H8 lakh crore was planned for H1 FY26 - accomplished through 26 weekly auctions, with the 10-year benchmark accounting for 26.2% of total issuances. The broad maturity spread across 3-to-50-year tenors reflects the governments strategy to diversify its liability profile and develop the term structure of interest rates. Market participants welcomed the borrowing programme as marginally lower than anticipated, leading to a softening of approximately 2 basis points in the benchmark bond yield.

The 10-year G-Sec yield trended downward through much of FY26, stabilising in the 6.47-6.64% band. RBIs liquidity management operations, including Open Market Operations (OMOs) and Variable Rate Repo Auctions, complemented the rate cuts to ensure adequate system liquidity and orderly yield formation. Indias fiscal deficit target of 4.4% of GDP, coupled with a reduced debt-to-GDP objective of 50%, helped ease supply pressure and build investor confidence in government paper.

Sovereign Credit upgrade & Global index inclusion

Two key developments elevated the profile of Indias sovereign debt. First, S&P Global Ratings upgraded Indias long-term sovereign credit rating from BBB-to-BBB on August 14, 2025, reflecting improved fiscal management, robust growth and strengthened institutional credibility. Second, Indian government bonds were included in the FTSE Emerging Markets Government Bond Index (EMGBI), effective from the September 2025 index profiles,with the inclusion phased in over six months. This followed Indias inclusion in the JPMorgan Government Bond Index-Emerging Markets (GBI-EM), which began in June 2024, after its announcement in September 2023. These developments strengthened Indias position in the global fixed- income investment landscape.

Foreign Portfolio Investment in debt

Foreign Portfolio Investors (FPIs) remained constructive on Indian debt through FY26, purchasing approximately H27,567 crore of Indian debt securities during the year, even as they turned net sellers of equities in several quarters. Total foreign holdings under the Fully

Accessible Route (FAR) had more than doubled from H1.74 lakh crore to over H3 lakh crore by March 2025 and continued to grow through FY26. For FY27, the RBI announced expanded FPI investment limits, from H14.70 lakh crore to H15.51 lakh crore in H1 FY27 and H16.32 lakh crore in H2 FY27, signalling confidence in sustained foreign participation.

Outlook

Indias government securities market offers institutional investors access to long-duration sovereign-grade instruments, supported by a benign inflation outlook, falling repo rates, index inclusion flows and the sovereign rating upgrade. These factors are expected to create a constructive environment for debt-market participants through FY27. At the same time, market movements will continue to be influenced by inflation trends, fiscal borrowing, liquidity conditions and global interest- rate cycles.

Government securities & Sovereign debt indicators

Parameter	FY26 details
Gross Govt. market borrowing	H14.82 lakh crore
H1 FY26 borrowing	H8 lakh crore (54% of full-year)
10-Year G-Sec yield range	6.47%-6.64%
Fiscal deficit target	4.4% of GDP
S&P Sovereign rating upgrade	BBB-to-BBB, with stable outlook, on August 14, 2025
FTSE EMGBI inclusion	Effective from September 2025 index profiles; phased in over six months
FPI Debt purchases (FY26)	H27,567 crore (net)
FAR limit (FY27 H1)	H15.51 lakh crore

The Bond market

Indias bond market, broadly comprising government securities, State Development Loans (SDLs), treasury bills and corporate bonds, stood at approximately H238 lakh crore as of March 31,2025, making it one of the largest in Asia. FY26 witnessed continued expansion across all segments, with the corporate bond market, in particular, reaching an inflection point characterised by record issuance volumes, improved retail accessibility and growing global investor participation.

Corporate Bond market

Indias corporate bond market entered FY26 on the back of a record H9.9 lakh crore in fresh issuances in FY25, the highest-ever annual total. Outstanding corporate bonds grew from approximately H17.5 lakh crore at the end of FY15 to H53.6 lakh crore by FY25, compounding at around 12% annually. By the close of FY26, outstanding corporate bonds had expanded to over H59 lakh crore. During FY26, H9.1 lakh crore was mobilised through debt issuance, nearly double the capital raised through equity markets during the same period, underscoring the growing complementary role of bond markets alongside equity markets.

Q1 FY26 alone saw corporate bond issuances of H2.79 lakh crore through private placements. Full-year FY26 corporate bond issuances are expected to reach approximately H11 lakh crore, continuing the upward trajectory. However, the secondary market remained comparatively less liquid, with average monthly turnover at just 3.8% of outstanding value. This remains a structural challenge that regulators and market participants are working to address through improved market infrastructure and widened investor access.

Issuance trends & Rating profile

Listed private placements dominated the mode of issuance in FY26, while public issuances accounted for a small share. AAA-rated entities led the fundraising activity, though lower-rated issuers (below AA) accounted for 16% of total issuances - indicating a gradual broadening of the issuer base. Corporate bond spreads widened modestly by 20-30 basis points across rating categories, reflecting tight liquidity and global uncertainties, even as base yields softened amid RBI rate cuts. Banks, which had been active issuers in FY25, reduced their bond issuance activity in FY26 as competitive bank lending rates offered cheaper funding alternatives.

Digital democratisation & Municipal bonds

The bond market became progressively more accessible during FY26. Online Bond Platform Providers (OBPPs), regulated by SEBI, enabled retail investors to view, compare and purchase bonds electronically, reducing friction and widening the bond investor universe. Municipal bonds also gained traction: municipalities raised approximately Rs 1,000 crore through the corporate bond market between April and November 2025, with CareEdge Ratings estimating that total municipal bond issuances could reach H2,000 crore by the close of FY26. The Economic Survey 2025-26 articulated the transformative potential of a deepened corporate bond market, estimating it could scale to H100-120 lakh crore by 2030.

Corporate Bond market	FY25	FY26
Outstanding stock	H53.6 lakh crore	H59+ lakh crore
Fresh issuances	H9.9 lakh crore (record)	H9.1-11 lakh crore
Q1 FY26 issuances	H3.2 lakh crore	H2.79 lakh crore
Average monthly secondary market turnover	3.8% of outstanding	3.8% (muted)
Municipal Bond issuance	H500-700 crore	H1,000-2,000 crore

Fixed-income products, bonds and treasury solutions have long been a differentiator for Wealth First, distinguishing it from equity-heavy advisory platforms. The convergence of softening yields, the sovereign credit upgrade, global index inclusion and a corporate bond market scaling towards H59 lakh crore strengthens the case for allocation to debt instruments within client portfolios. As the Economic Survey envisions a H100-120 lakh crore corporate bond market by 2030, the Companys established capabilities in fixed-income advisory position it to serve the growing segment of investors seeking capital preservation, predictable income and portfolio stability alongside equity exposure.

Bond Market Vision 2030

Indias Economic Survey 2025-26 estimates that the corporate bond market could reach H100-120 lakh crore by 2030 as market infrastructure deepens, credit ratings broaden and institutional participation widens. This represents one of the most significant opportunities for capital market deepening in the Indian financial system.

Wealth management industry

Indias wealth management industry is at a defining point, poised to benefit from three simultaneous and self-reinforcing structural forces: the rapid accumulation of private wealth, the accelerating financialisation of household savings and; an increasingly sophisticated, digitally native investor base that demands more than transactional product distribution. This confluence is transforming what was once a relatively narrow, relationship-driven advisory business into a large, scalable, technology-enabled wealth services industry with enormous growth headroom.

Scale of opportunity

Deloitte Indias report, "Financial Wealth Management Services in India," estimates a USD 1.6 trillion AUM growth opportunity for wealth management providers between FY24 and FY29. Financial wealth management AUM is projected to almost double from USD 1.1 trillion in FY24 to USD 2.3 trillion by FY29. Indias total investable wealth under management has already crossed USD 3 trillion and is expected to grow at 11-12% annually over the next five y ears. By FY29, India is positioned to become the fourth largest private wealth market globally- a significant re-rating from its current standing.

HNI & UHNI universe

Indias HNI and Ultra-High-Net- Worth Individual (UHNI) population is expanding rapidly. Millionaire households have nearly doubled since 2021, and the countrys HNI base is growing at 8-9% annually. India has approximately 3 million affluent and HNI families and 35,000 Ultra-HNI families. The UHNI population is projected to grow by 50% by 2028- the fastest rate of any major economy globally- driven by economic growth, the unicorn ecosystem, SME IPO exits and increasing entrepreneurial wealth creation. With fewer than 6,00,000 dollar millionaires currently, compared to 3.4 million in the US, India has an enormous structural runway ahead.

Wealth segment	Current landscape	Growth outlook
UHNI (Ultra HNI)	35,000 families	+50% by 2028 (fastest globally)
HNI	3 million families	8-9% annual growth
Affluent / Mass affluent	Rapidly expanding	B30 city contribution surging
Total investable AUM	USD 1.1 trillion (FY24)	USD 2.3 trillion by FY29
Annual AUM growth rate	11-12% CAGR projected	FY29 India = 4th largest globally

Financialisation of Indian savings

The structural shift from physical assets such as gold and real estate to financial instruments is one of the most consequential macro trends reshaping the wealth management landscape. Indias household financial assets grew strongly in 2024, while the wealth-to- GDP ratio remained below the global average, indicating substantial scope for further financialisation. Mutual fund penetration, measured by industry AUM as a proportion of GDP, has expanded from approximately 7% in FY14 to over 20% by FY25, reflecting the increasing role of professionally managed investment solutions in household wealth creation. Despite this progress, India remains underpenetrated relative to mature investment markets, indicating a significant long-term opportunity for advisory-led and organised wealth management platforms.

Technology, Transparency & Advisory shift

FY26 marked a visible shift in the competitive dynamics of wealth management towards technology- enabled, transparent and fee-based advisory models. Clients, particularly younger, digitally native HNIs and mass- affluent investors, are demanding more than product recommendations. They expect integrated financial planning, tax efficiency, estate planning and real-time portfolio transparency. The industry is responding: family offices are multiplying, pure-play advisory platforms are gaining scale, and the shift from product-distribution commissions to fee-for-advice structures is accelerating.

A notable structural gap remains: despite the industrys growth, an estimated 30-40% of the affluent population still does not seek professional financial advice, while nearly 40% of those who do seek advice rely on bank relationship managers who may lack specialised depth. This latent demand represents the largest organic opportunity for independent, specialised wealth management firms- particularly those that combine research rigour, product breadth and personalised service delivery.

Demand for wealth management services is also no longer confined to Tier I & Tier II cities. The Beyond Tier 30 (B30) segment, referring to locations beyond the top 30 cities, is emerging as the new growth frontier, with increasing affluence from entrepreneurial success, agri-surplus wealth and professional savings in smaller towns driving demand for organised financial advice for the first time.

Wealth First operates at the intersection of several of these structural shifts. Its a 21,746-client franchise, spanning direct equity, mutual funds, bonds, PMS/AIF and insurance, positioning it to capture wallet share as clients consolidate financial relationships with fewer, more trusted advisors. The estimated 30-40% of affluent households that still lack professional financial advice represents a specific addressable opportunity for a firm built on direct relationships and suitability-first advisory practices.

The Companys geographic expansion beyond Gujarat, its NRI-focused PMS initiative and the launch of Lakshya AMC and Wealthshield Insurance Brokers are designed to participate in precisely this phase of the industrys evolution.

Industry outlook

Indias wealth management industry is expected to benefit from several long-term structural drivers, including rising household incomes, increasing financialisation of savings, wider capital market participation, sustained mutual fund adoption, growing fixed-income participation and demand for personalised advisory solutions. The expansion of HNI, affluent and mass-affluent investor segments, along with deeper participation from non-metro markets, is expected to create significant opportunities for organised and advisory-led wealth platforms.

At the same time, the industry is likely to remain influenced by market volatility, regulatory developments, product suitability requirements, technology adoption and changing client expectations. Companies with strong research capabilities, transparent advisory processes, diversified product access and deep client relationships are expected to be better positioned to build trust and scale sustainably.

ABOUTTHE COMPANY

The Company offers integrated financial solutions across mutual funds, fixed income, bonds, direct equity, portfolio management, insurance and treasury solutions. Its model is built around research-led product selection, disciplined portfolio monitoring, direct client relationships and a long-term approach to wealth creation.

Its service portfolio spans investment consulting, strategic asset allocation, tax- efficient planning, brokerage services, treasury solutions, risk management and retirement planning. Through a disciplined and insight-led approach, Wealth First Portfolio Managers Limited seeks to create enduring value by aligning financial strategies with clients evolving goals and market dynamics.

A key differentiator for Wealth First Portfolio Managers Limited is its direct- to-client, relationship-led approach. The Company does not rely on sub-brokers or franchise-led distribution, enabling closer engagement with clients and greater control over service quality. Its relationship managers operate without revenue targets, allowing them to focus on client suitability, long-term financial outcomes and transparent advisory practices. Every product recommended by the Company is evaluated through its internal research and suitability framework before being included in client portfolios.

The Company, already recognised as the first independent financial advisor listed on the NSE, is now also listed on the BSE, further strengthening its market presence and visibility.

STRENGTHS

Wealth First Portfolio Managers Limited brings over three decades of operating history, a 21,746-client franchise across 6,889 families and an independent advisory model with no sub-broker or franchise- led distribution. Relationship managers operate without revenue targets, aligning incentives with client outcomes rather than transaction volumes. The Companys multi-product platform spans mutual funds, bonds, direct equity, PMS/AIF, insurance and fixed income, enabling consolidated wealth management within a single advisory relationship. Its trail-based AUM of H5,558 crore provides a growing base of recurring revenue, reducing dependence on transactional income.

WEAKNESSES

Revenue and AUA remain correlated with capital market conditions; prolonged market downturns can compress client activity, trail income and earnings visibility. A meaningful share of the client base remains concentrated in Gujarat, creating geographic concentration risk and limiting brand recognition in other wealth centres. The AMC and insurance broking businesses are in early stages and will require sustained investment in talent, compliance infrastructure, brand building and distribution before contributing meaningfully to profitability. The Companys scale remains modest relative to bank-affiliated wealth managers and large broking platforms, which can constrain its ability to compete on technology spend and brand reach.

OPPORTUNITIES

Indias wealth management AUM is projected to nearly double from USD 1.1 trillion to USD 2.3 trillion by FY29, with an estimated 30-40% of affluent households still lacking professional financial advice. Rising mutual fund penetration, growing SIP adoption beyond Tier I & Tier II cities, and the expanding HNI and UHNI population create a widening addressable market. The launch of Lakshya AMC enables the Company to participate in the asset management value chain. The direct insurance broking licence through Wealthshield opens a new product vertical. The NRI-focused PMS offering targets a specific investor segment with growing demand for structured India-focused portfolios. Together, these initiatives diversify revenue streams and reduce dependence ona single product.

THREATS

Competitive intensity continues to increase as banks, large broking houses and well-funded fintech platforms invest heavily in wealth management capabilities and client acquisition. Regulatory changes, including evolving SEBI guidelines on product suitability, commission structures and distribution norms, could alter revenue economics. Prolonged equity market corrections may slow new client acquisition and compress AUA-linked income. Cybersecurity threats remain elevated across the financial services industry, with potential reputational and operational consequences. Interest-rate reversals or credit-market disruptions could affect client behaviour in fixed- income and bond products, a segment in which the Company has meaningful exposure.

Strategic developments during FY26	Brokers Private Limited, its wholly- owned subsidiary. This development enables Wealth First to expand its insurance distribution capabilities across life, health, motor and general insurance products, strengthening its ability to provide holistic financial solutions.
FY26 marked an important year in Wealth Firsts journey as the Company strengthened its platform beyond its established wealth management operations. During the year, the Company received final approval from SEBI to establish Lakshya Asset Management Private Limited, marking its entry into the asset management space. Wealth First Portfolio Managers Limited has invested approximately H41 crore in the AMC under a joint-venture structure and holds a majority stake in the platform.	During the year, the Company also launched an index-based PMS offering tailored to NRI clients in the United States and Canada, addressing a specific investor segment with growing demand for structured India-focused portfolio solutions. Additionally, Wealth First reduced its trading book to zero, reflecting its strategic intent to reduce earnings volatility and sharpen focus on core recurring and advisory-led revenue streams.
The Company also received the IRDAI licence to operate as a direct insurance broker through Wealthshield Insurance
Business performance	The Company operates from offices in Ahmedabad, Pune and Surat, with plans for further geographic expansion in the coming quarters.
During FY26, Wealth First Portfolio Managers Limited continued to strengthen its integrated wealth management platform, supported by growth in its core business operations, expansion of its client franchise and a disciplined approach to long-term value creation. The Company served 21,746 clients and 6,889 client families as of March 2026, reflecting the addition of 987 individual clients and 311 new client families during the year. Over 80% of clients have been with the Company for more than five years and the primary source of new client acquisition continues to be word-of- mouth referrals, complemented by the Companys Investment Awareness Programmes conducted across professional and corporate audiences. While the Companys roots remain in Gujarat, over 30% of business revenue is now generated from outside the state.	Assets Under Administration stood at H12,157 crore as of March 2026, supported by a diversified product mix across mutual funds, bonds, direct equity, PMS/AIF, fixed deposits and insurance. The Companys trail-based AUM stood at H5,558 crore, indicating the growing contribution of recurring and relationship-led revenue streams.
	The year also saw continued investment in platform expansion, including the AMC and insurance broking businesses. While these initiatives involved additional setup and employee-related costs, they are expected to strengthen the Companys long-term business model and support future scalability.
Financial performance	onwards, the Company has merged business activity income and trading activity income under a single line item titled Revenue from Operations. This reclassification better reflects the evolving nature of the business following the complete exit from equity trading during the year.
For FY26, Wealth First Portfolio Managers Limited reported revenue from operations of H68.4 crore, up 28.57% from H53.2 crore in FY25. Total revenue stood at H71.1 crore, compared with H60.1 crore in the previous year. The growth was driven by strong momentum across core business operations, supported by robust insurance sales and steady net sales performance in recurring-revenue assets. From Q4 FY26	Profit After Tax stood at H38.3 crore in FY26, compared with H34.1 crore in FY25. The quality of earnings improved materially during the year, driven by

the strategic decision to exit the equity trading book and reorient the revenue mix towards advisory-led, recurring income streams. The impact of this shift was most visible in the quarterly trajectory. Q4 FY26 consolidated revenue from operations stood at H16.5 crore, compared with a loss of H3.3 crore in Q4 FY25. Consolidated Profit After Tax for Q4 FY26 was H10.5 crore, a significant turnaround from the loss of H4.3 crore recorded in the corresponding quarter of the previous year.

The quarterly reversal validates the structural move away from mark-to- market-dependent trading income towards fee-based and trail-based revenue. It is important to note that the trading book exit pertains specifically to the equity book. The Companys bond inventory of H27 crore as at 31 March 2026 has been retained, as bond market-making remains an integral part of the Companys wealth management practice, providing liquidity to clients invested in direct bonds.

The capital released from the equity trading book has been strategically redeployed to capitalise Lakshya AMC (H41 crore invested by Wealth First) and to support future infrastructure and inorganic growth initiatives.

Total Assets Under Advisory (AUA) grew 4.6% to H12,157 crore. While the headline growth rate appears modest, it occurred against the backdrop of a 12%-14% correction in broader equity markets during Q4 FY26. Net equity inflows into recurring-revenue assets remained positive at H386 crore during the year, confirming that AUA growth was entirely net-sales-driven rather than a function of market appreciation. Adjusting for the decline in underlying market values, the implied net new money inflow during the year was approximately 18% to 20% of the opening AUA base. This performance-adjusted metric is a more meaningful indicator of franchise health in a wealth management business, reflecting the Companys ability to attract and retain client capital even during periods of market stress.

Across the broader AUA, momentum was visible across asset classes. Trail- based AUM, comprising mutual funds, PMS & AIFs, stood at H5,558 crore. The bond portfolio AUM stood at H4,014 crore, up 7.3% year-on-year. Direct equity AUM stood at H2,272 crore, up 2.2% year-on-year. Fixed deposit AUM grew 10.6% to H234 crore. The insurance book witnessed particularly strong momentum, growing 30% year- on-year to H78 crore. The insurance vertical, which commenced operations under Wealthshield Insurance Brokers Private Limited following receipt of the IRDAI licence in Q2 FY26, contributed approximately H7.5 crore in top-line during the year.

The Cost-to-Income ratio for FY26 was 29.9%, above the Companys historical operating range. The increase was driver by a concentration of foundational, largely non-recurring expenditures during the year. These included expenses related to the BSE listing, one-time PMS renewal and Specified Investment Fund (SIF) registration fees, elevated CSR obligations and the infrastructure and compliance setup costs for Lakshya Asset Management Private Limited. Excluding these items, the underlying cost-to-income ratio of the core wealth management business remained within a sustainable range of 20% to 25%. As these foundational costs normalise in subsequent periods, the Company expects operating efficiency to revert towards its established trajectory.

The Companys focus remains on strengthening the quality, stability and sustainability of earnings by building recurring, advisory-led and platform- based revenue streams. Employee benefit expenses and other expenses increased during the year, primarily due to talent additions and setup costs related to the AMC and insurance broking businesses. These investments are expected to contribute to revenue diversification and operating scale in the medium term. The Board declared a total dividend of H13 per equity share for FY26, representing approximately 35% of consolidated PAT for the year.

Company outlook

Wealth First Portfolio Managers Limited enters FY27 with a broader operating platform than at any previous point in its history. The core wealth management business, serving 21,746 clients with H12,157 crore in AUA, provides a stable foundation. The AMC, insurance broking and NRI-focused PMS verticals, all launched or approved during FY26, are expected to move from the setup phase towards early revenue contribution. Insurance, which contributed approximately H7.5 crore to the top line

in its first effective year, is expected to grow at 20%-25% annually and could account for 15%-20% of total business revenue by FY28. The Companys nearterm priorities include scaling the AMC under Lakshya Asset Management, building the insurance distribution book through Wealthshield across both B2C and B2B channels, expanding trail-based AUM and deepening wallet share within existing client families. The Company is also evaluating inorganic expansion opportunities outside Gujarat to accelerate geographic diversification.

Indias wealth management AUM is projected to double to USD 2.3 trillion by FY29. Rising SIP adoption, growing HNI and UHNI populations, increasing demand from B30 markets, and the continued shift from physical to financial savings create a widening set of opportunities. The Companys independent positioning, direct-to-client model, absence of intermediary-led distribution and expanding product ecosystem equip it to participate in this structural expansion while maintaining discipline, transparency and client suitability at the centre of its operating philosophy.

Human resources

At Wealth First Portfolio Managers Limited, people remain the foundation of sustainable growth and long-term success. In a relationship-driven business where every client interaction reflects the quality of the team, the calibre and stability of the workforce directly influences client retention, advisory depth and business outcomes.

The Company invests in building domain expertise across asset classes, regulatory frameworks and client advisory practices. Relationship managers receive ongoing training in product evaluation, portfolio construction and suitability assessment, ensuring that advisory conversations remain grounded in research and aligned with individual client objectives. Cross-functional exposure across equities, fixed income, insurance and fund management helps develop well-rounded professionals capable of addressing the full spectrum of client financial needs.

Wealth Firsts operating culture emphasises long-term client outcomes over short-term revenue metrics. Relationship managers operate without individual revenue targets, a deliberate structural choice that aligns employee incentives with client interests and supports the Companys suitability-first advisory philosophy. The Company also maintains a commitment to employee well-being, equal opportunity and an inclusive work environment.

As at 31 March 2026, the Company had 81 professionals across the group. The relationship manager count increased from 35 in FY25 to 41 in FY26, with nearly 80% of relationship managers having over five years of tenure with the organisation, a retention metric that reflects the strength of the Companys culture and the stability of its clientfacing team. On the AMC side, Lakshya Asset Management Private Limited has already onboarded nine professionals across key functions and established a dedicated office in Ahmedabad to house its operations. Hiring during the year also focused on building specialised capabilities in insurance advisory, compliance and operations to support Wealthshield Insurance Brokers. Six dedicated insurance professionals have been onboarded, with the team expected to scale to 15-20 professionals over the coming year as the B2B insurance franchise expands.

Technology & Information security

Technology underpins the Companys ability to serve over 21,000 clients across multiple asset classes with consistency and accuracy. The Companys systems support real-time portfolio monitoring, consolidated client reporting, transaction execution across equities, mutual funds and bonds, and compliance-ready documentation. During FY26, the Company continued to invest in strengthening its digital infrastructure, process automation and data management capabilities to support the operational demands of its expanding platform, including the AMC and insurance broking verticals.

Information security is a non-negotiable priority in a business that handles sensitive financial data and client wealth information. The Company maintains access controls, encryption protocols, monitoring mechanisms and incident response procedures designed to protect client information and support secure operations.

Systems and processes are reviewed periodically in line with evolving regulatory expectations and the growing sophistication of cybersecurity threats facing the financial services industry.

Internal control systems and their adequacy

Wealth First Portfolio Managers Limited maintains an internal control framework designed to support operational effectiveness, financial discipline and regulatory compliance across its wealth management, broking, distribution and advisory functions. Controls are embedded within client onboarding, product suitability assessment, transaction processing, portfolio reporting and fee reconciliation processes. These measures safeguard client assets, ensure the integrity of financial reporting and support compliance with SEBI, AMFI, IRDAI and other applicable regulatory requirements.

The framework is reinforced through established policies, governance mechanisms, periodic management reviews and oversight by the Audit Committee and the Board. With the expansion of the business platform to include the AMC and insurance broking verticals during FY26, the Company extended its control environment to cover the compliance, operational and reporting requirements of these new entities. The Company continues to review and strengthen its internal processes to ensure they remain commensurate with the scale and complexity of operations.

Risk mitigation framework

Operating within a dynamic financial services environment, Wealth First Portfolio Managers Limited remains attentive to the principal risks inherent in its operating environment: capital market volatility that can compress AUA and trail-based income; regulatory changes that may alter commission structures, product eligibility or compliance obligations; and competitive intensity from bank-affiliated wealth managers and well-funded fintech platforms.

The Company manages these risks through a structured framework that spans market risk (monitored through portfolio diversification and product suitability controls), regulatory and compliance risk (managed through dedicated compliance resources and periodic regulatory audits), operational risk (addressed through process controls, system redundancies and business continuity planning), technology and cybersecurity risk (mitigated through access controls, encryption and incident response protocols) and talent continuity risk (addressed through team development, succession planning and a culture that aligns employee incentives with client outcomes). The expansion of the business platform during FY26 to include asset management and insurance broking has introduced additional regulatory and operational risk dimensions, which the Company is addressing through dedicated compliance teams and governance structures within each subsidiary. The Companys strategic decision to reduce its trading book to zero during the year also reflects a deliberate effort to lower earnings volatility and concentration risk within the overall business model.

CAUTIONARY STATEMENT

THIS MANAGEMENT DISCUSSION AND ANALYSIS CONTAINS FORWARD-LOOKING STATEMENTS RELATING TO THE COMPANYS BUSINESS OUTLOOK, GROWTH PROSPECTS, FINANCIAL PERFORMANCE AND STRATEGIC INITIATIVES. THESE STATEMENTS ARE BASED ON CURRENT ASSUMPTIONS AND EXPECTATIONS. THEY ARE SUBJECT TO VARIOUS RISKS, UNCERTAINTIES AND EXTERNAL FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED. READERS ARE ADVISED NOT TO PLACE UNDUE RELIANCE ON THESE STATEMENTS. THE COMPANY ASSUMES NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS EXCEPT AS REQUIRED BY APPLICABLE LAWS AND REGULATIONS.