My Money Securities Ltd Management Discussions

Global economy overview

The global economy navigated a fragile, uneven recovery through CY2025 and into 2026 amid persistent trade tensions and tariff-driven uncertainty. The IMFs July 2026 World Economic Outlook Update projects global growth of 3.0% for CY2026 (3.4% for CY2027), still below the 2000-19 average of 3.7%; Indias CY2026 growth was trimmed marginally to 6.4% (6.7% for CY2027), keeping it the worlds fastest-growing major economy. Advanced economies continued to face tariff-driven cost pressures, while emerging markets navigated capital-flow volatility amid shifting U.S. trade policy and West Asia tensions. (Source: IMF, World Economic Outlook Update, July 2026)

Indian economy overview

As per MoSPIs provisional estimates, Indias real GDP grew 7.7% in FY 2025-26 (up from 7.1% in FY 2024-25; Q4 FY26: 7.8%), despite elevated U.S. tariffs and a turbulent equity market during the year, reaffirming its position as the worlds fastest-growing large economy. The Union Budget 2026-27 (1 February 2026) pegged the fiscal deficit at 4.3% of GDP for FY27 (against 4.4% budgeted for FY26), continuing fiscal consolidation alongside sustained thrust on infrastructure, MSMEs, ease of doing business and the Viksit Bharat 2047 roadmap. (Source: MoSPI; Union Budget2026-27)

Indian Economy Outlook

India is expected to remain relatively insulated from global headwinds, with the IMF projecting 6.4% growth for CY2026 and 6.7% for CY2027. Structural drivers - favourable demographics, digital adoption, formalisation and continued reform momentum - remain intact and continue to underpin Indias medium-term growth story.

Capital Markets-Industry overview

Indias equity market now ranks 5th largest globally by market capitalisation, having been overtaken by Hong Kong during the year (4th in the previous years Report):

FY 2025-26 was a turbulent year for Indian equities - their weakest annual performance in a decade barring COVID: the Sensex fell 5.36% (~4,077 points) and the Nifty fell 3.6% (~834 points), driven by fresh U.S. tariff actions, West Asia tensions and sustained FII outflows, partly cushioned by continued DII inflows. (Source: Visual Capitalist, 26 May 2026; Business Today, 31 March 2026)

Strong Addition in Investor Base continues

Indias investor base continued to expand, albeit at a more moderate pace than FY 2024-25s exceptional growth. Combined demat accounts (NSDL+CDSL) crossed ~21.6 crore by December 2025, up from 19.2 crore in March 2025; NSDL alone added a record 59 lakh accounts in FY26 - its highest-ever annual addition - even as industry-wide new- account growth moderated on subdued secondary-market returns and tighter derivatives norms. (Source: Business Standard, Jan 2026; Outlook Money)

NSE active clients see substantial growth

FY 2025-26 saw significant regulatory change: SEBI notified the SEBI (Stock Brokers) Regulations, 2026 on 7 January 2026, replacing the 1992 regulations, with definitional clarity, ease-of-compliance provisions, a "qualified stock broker" framework, greater exchange-level oversight and removal of obsolete physical-settlement provisions; the retail algotrading frameworks roll-out was extended to April 2026. The year also saw episodes of sharp FII outflows, offset by steady DII and retail participation. (Source: ICSI InfoCapsule, January 2026)

Minimal Impact from SEBIs Regulation

Building on FY 2024-25s F&O measures (true-to-label charges, upfront option-premium collection, intraday position monitoring, removal of the calendar-spread benefit, higher minimum contract sizes, weekly-index rationalisation and higher near-expiry margins), the new Stock Brokers Regulations, 2026 and the deferred algo-trading roll-out continued to reshape broker operations in FY26. Your Company remained least impacted, given its higher cash-broking mix and advisory-led model versus volume-driven discount-broking peers.

Capital Market Business Broking Business

Revenue from operations was Rs. 47.71 lakhs (PY: Rs. 1,471.11 lakhs) and total income Rs. 601.10 lakhs (PY: Rs. 1,536.50 lakhs), reflecting the market-wide moderation discussed above; Other Income included a net mark-to-market gain of Rs. 464.74 lakhs on investments (Note 3). PBT stood at Rs. 422.92 lakhs (PY: Rs. 1,050.08 lakhs) and PAT at Rs. 420.69 lakhs (PY: Rs. 689.31 lakhs), with EPS of Rs. 2.50 (PY: Rs. 4.10), per the Audited Standalone Results for FY26 approved by the Board on 30 May 2026 and audited by M/s Sharma Goel & Co. LLP (unmodified opinion). Despite the moderation, the Companys advisory-led, knowledge-based broking model - rather than pure discount broking - helped limit the relative impact of the industry slowdown.

We continue to pursue our "Phygital" model - combining advisory strength, digital initiatives, asset-based product distribution and network expansion - through dedicated desks for mass-retail and affluent clients. We had opened a new office in Emaar Colonade, Golf Course Extension Road, Gurgaon, and plan a few more offices over the next two-to-three years.

SWOT Analysis

Risk Factors

• Market Risk - trading volumes/brokerage income track equity-market performance, as seen in FY26.

• Regulatory Risk - evolving SEBI norms, including the Stock Brokers Regulations, 2026, and taxation policy.

• Technology Risk - cybersecurity and system-continuity exposure in a digital broking business.

• Operational Risk - rising compliance costs pressuring brokerage margins.

• Liquidity Risk - FII-outflow episodes and volatility affecting secondary-market liquidity.

Future Prospects

The medium-term outlook remains positive: Indias securities brokerage market is projected to grow from ~USD 6.98 billion (2026) to USD 13.09 billion by 2031 (CAGR ~13.3%), driven by continued retail participation, rising mobile-first trading (already over 22% of NSE cash turnover), technology-led innovation (AI advisory, algo APIs) and deepening reach into Tier-2/3 cities. (Source: Research and Markets, July 2026)

OUR BUSINESS STREAMS AND OUTLOOK:

The Company has made strategic investments in the following business:

Conclusion

The Company is well-positioned to capture Indias medium-term capital-market growth by leveraging technology, deepening its advisory-led retail franchise and prudently managing its investment portfolio. While near-term risks persist from market volatility, trade/geopolitical developments and regulatory change, the structural, long-term growth trajectory of Indias capital markets remains positive.