Aditya Birla Money Ltd

Dear Shareholders, "

I am pleased to inform you that your Company Aditya Birla Money Limited has achieved a strong FY25 performance despite the challenges that the broking industry faced during the last quarter of FY25. The Company's revenue from operations grew 15% YoY to Rs. 448 Crore in FY25 compared to Rs. 390 Crore in FY24, led by higher interest income. The profit after tax grew 40% YoY to Rs. 74 Crore for FY25 as compared to Rs. 53 Crore in previous financial year.

The Indian broking industry in FY25 was a tale of 2 halves, shaped by a complex interplay of domestic political developments, macroeconomic dynamics and evolving global trade conditions. The first half (H1FY25) was characterized by optimism of political continuity and stability ahead of the general elections. The return of a stable government, boosted the confidence of the markets taking it to an all time high. This along with buoyed strong retail participation and exuberant inflows into SMID space took markets to record highs, with NIFTY 50 touching an all-time high of 26,277 in September 2024. However, irrational exuberance in the SMID space led to valuations reaching unsustainable levels, coinciding with transient economic challenges, including an election- led slowdown in Q1FY25 and supply chain disruptions from excessive monsoon in Q2FY25, weighing on the consumption and capex spends.

The second half (H2FY25) presented a more volatile landscape triggering a broad-based market correction led by deluge of FII selling in the Indian markets regulatory changes by SEBI aimed at curbing speculative activity. This led to NIFTY declining ~16% from its peak and reaching a low of 21,965. This sharp correction significantly impacted trading volumes and sentiment across the broking ecosystem.

Globally, protectionist trade policies initiated by the US under Trump 2.0 administration—particularly broad-based tariffs on key trading partners—and a strong dollar further dampened investor sentiment in emerging markets, including India. Nonetheless, India's capital markets demonstrated remarkable resilience, once again proving that India is no longer dependent on the mercy of strangers. This is reflected in robust net inflows to the tune of ~Rs. 4 Lakh Crore in domestic equity- oriented mutual funds while the overall industry saw net inflows of more than Rs. 12 Lakh Crore, both figures doubling over FY24 numbers. While in FY25, FIIs were net sellers in the Indian equities, offloading stocks worth ~Rs. 1.27 Lakh Crore, DIIs continued to provide stability by investing upwards of Rs. 6 lakh crores in the ensuing period. The overall structural shift in investor behaviour reaffirmed the growing maturity and depth of India's domestic capital base and the shift from foreign capital dependency to domestic capital leadership underscores a structural transformation in India's investment landscape.

Despite the challenges, India's real GDP growth in FY25 is estimated to have grown at 6.4% as per the National Statistical Office. Overall, the Indian economy remained resilient through FY25, despite numerous domestic and global headwinds. While overall inflation had a diverging trend during FY25, most of the central banks in US, EU and UK announced the start of rate cuts. The global economy in 2025-26 is expected to remain volatile owing to several reasons. While disinflationary progress and the expected monetary policy easing are encouraging, risks related to escalation of geopolitical conflicts, energy market volatility, supply chain related disruptions and retaliatory trade policies could cause disruptions in global trade. IMF has projected the global GDP growth to moderate to 2.8% in CY25 as compared to 3.4% in CY24. Looking ahead for India in FY26, improving macroeconomic indicators, including inflation remaining within RBI's tolerance band, potential rate cuts, liquidity infusion by the RBI and expectations of above normal monsoon — are expected to support capital market sentiment. However, sustainability of trading volumes and broader market participation will hinge on corporate earnings momentum, clarity on policy reforms postelections, and the resolution of trade-related frictions with the US. Additionally, geopolitical risks and global monetary policy shifts must be closely monitored, as they are likely to introduce episodic volatility and could suppress trading volumes in the near term.

Yours Sincerely,

Chairman Aditya Birla Money Limited

Dear Shareholders,

I am pleased to present the Annual Report for FY 2024-25, a year marked by resilient performance and transformative growth for our Company. Despite a dynamic and often challenging market environment, ABML has demonstrated strong operational execution, resulting in robust financial outcomes and sustained value creation for our stakeholders.

FY 2024-25 has been a significant year for ABML, marked by consistent growth and strategic execution. Despite market volatility, our operations revenue grew by 15% YoY to Rs. 448 Crore in FY25 compared to Rs. 390 Crores in FY24, driven by increased client acquisitions and higher trading volumes. Our focus on operational efficiency helped improve our profit (after tax) margins by 40% YoY to Rs. 74 Crores for FY25 as compared to Rs. 53 Crores in the previous financial year, while we maintained a strong balance sheet with healthy liquidity and capital adequacy ratios.

We successfully expanded our customer base, demonstrating the market's confidence in our services and the strength of our client-centric approach. Additionally, our diversified product portfolio and risk management strategies enabled us to navigate uncertainties and seize emerging opportunities.

We also made significant progress in expanding our geographical footprint, opening new branches in multiple cities.

This strategic expansion positions ABML to capture long-term growth opportunities across regions.

Overall, ABML delivered solid financial results, reinforcing our position as a leading player in the stock broking industry.

In today's rapidly evolving financial landscape, digitalisation has become not only a strategic imperative but a fundamental driver of competitive advantage in the stock broking industry. The ability to leverage technology to enhance customer experience, increase operational efficiency, and enable data- driven decision-making is critical to staying ahead in this highly competitive market.

Digital platforms have democratized access to financial markets, empowering individual investors with tools and information that were once available only to institutional players. Real-time trading, algorithmic strategies, seamless mobile access, and personalized advisory services have become the new norm, raising client expectations and intensifying competition among brokers.

Furthermore, digitalisation enhances operational efficiency by automating routine processes, reducing errors, and enabling more agile risk management. It also opens the door to leveraging big data and artificial intelligence, which can uncover deeper market insights and improve decision-making.

For stockbrokers, digital transformation is a gateway to building stronger client relationships, expanding market reach, and differentiating themselves in an increasingly crowded marketplace. The firms that successfully integrate digital innovations into their core business models will be best positioned to thrive in the evolving financial ecosystem. It is not just about technology. It's about enhancing trust, improving service, and creating access — for a new generation of investors and seasoned clients alike. It's about being ready for the future, today.

Over the past year, we've witnessed a significant shift in investor behaviour. Clients today expect convenience, transparency and speed — and we are rising to meet these expectations through continuous digital innovation. Our new trading platform, Elevate, reflects this commitment — designed to offer a seamless, intuitive, and intelligent investing experience across channels.

Elevate App by Aditya Birla Money is a next-generation trading platform designed to provide our clients with a all-in-one and highly secure trading experience. The app integrates real-time market data, seamless user experience, and advanced charting tools, enabling investors to make informed decisions on the go. Within its first six months, Elevate App recorded over 1 lakh + downloads, reflecting strong market acceptance

As we move forward, ABML remains dedicated to investing in cutting-edge technology and innovation to further elevate our services, ensuring we continue to meet the evolving needs of our clients and stakeholders in a digital-first world.

Thank you for your continued trust and support.

Yours Sincerely,

Chief Executive Officer Aditya Birla Money Limited