Dear Shareholders,
FY2025 was a year of resilience for the Indian economy, which continued
to grow steadily despite global headwinds stemming from geopolitical tensions and ongoing
trade disputes. Domestic consumption, increased government spending, and sustained
infrastructure development were key drivers of this momentum. Even as corporate earnings
varied across sectors, the robust participation of domestic institutional investors helped
support market stability, offsetting foreign investor outflows. At Centrum, we remained
focused on staying agile and responsive, adapting our strategies to evolving market
dynamics. With a successful year behind us, we look forward to FY 2026 with renewed energy
and optimism.
As I reflect on the past nine years since assuming the role of
Executive Chairman in 2016, I am proud of the progress we have made. Centrum has evolved
into a respected financial services group with growing footprints across advisory, credit,
and banking. I am deeply grateful to our Chairman Emeritus, Mr. Chandir Gidwani, for his
unwavering guidance, to our distinguished Board, partners, and the dedicated Centrum team
for their steadfast support. We have built a strong platform capable of offering
integrated financial solutions to clients across their lifecycle, supported by our
Pan-India presence and expanding capabilities.
Economic Landscape
India continues to be among the fastest-growing major economies, with
GDP growth projected at 6.7% for FY 2026.
As I reflect on the past nine years since assuming the role of
Executive Chairman in 2016, I am proud of the progress we have made.
The country is poised to become the world?s third-largest economy
by 2027, driven by sound economic fundamentals and rising global relevance. Recent tax
reforms have enhanced disposable income, boosting consumption. With inflation expected to
remain within the RBI?s target range and interest rates easing—following repo
rate cuts to 6.00%—the macro environment is conducive to growth. Continued monetary
interventions by the RBI and a vibrant entrepreneurial ecosystem further reinforce
India?s long-term economic prospects.
I now share with you the highlights of your Company?s performance
in FY 2025.
Advisory Businesses – Saw Sustained Growth Driven by Stronger
Industry Partnerships, Wider Product Offerings and Increased Trading Volumes
FY 2025 was marked by three significant political events - the Lok
Sabha elections, the Maharashtra Assembly elections, and the United States presidential
elections. The equity markets witnessed the most successful fundraising through IPOs and
QIPs in the history of Indian capital markets. With India?s economic activity
rebounding rapidly, the corporate sector actively pursued growth and expansion. Taking
advantage of improving sentiments in the capital & bond markets, our teams worked
closely with corporates to assist them in their financial management.
Investment Banking – Gaining Momentum with High Value Mandates
We closed some marquee deals including the H 3,500 Crs. QIP of Bank of
Maharashtra, acted as an Advisor and Manager to the H 366 Crs. Open Offer of Agro Tech
Foods Limited and as the Left Lead Manager to the RS. 225 Crs. Rights Issue of Camlin Fine
Sciences Limited. Our Infrastructure Advisory team advised a leading infrastructure
company in successfully bidding for BOT Project in the North East India with an estimated
project cost of RS. 4,950 Cr. The Debt Capital Markets (DCM) team worked closely with
Private and PSU Banks, NBFCs, AIFs and Credit funds to successfully close mandates on
restructuring, growth financing, refinancing and special situations. All teams have a
strong pipeline of deals in FY 2026.
Centrum Wealth – Building Momentum through Growth and Digital
Innovation
The business made significant progress in its ongoing transformation,
marked by strong client acquisition, a 30% Y-o-Y revenue growth and currently manages
Client Assets of over H 38,000 Crs. It grew its presence and operates from 17 locations
with new offices in Dehradun and Nagpur. Client engagement was deepened through curated
events, while a new Business Intelligence unit was set up to boost analytics. On the
digital front, the business introduced ‘Wealth-Verse 2.0?, a platform which will
help in better servicing clients, leading to greater operational efficiencies.
Centrum Broking – Enhancing Access and Innovation Across Capital
Markets
During the year, our Institutional & Retail Broking team made
significant strides in client engagement, product innovation, and capital market activity.
We hosted multiple dealer conferences across sectors, offering investors insights and
access to key industry stakeholders. Our active role in capital markets included advising
on marquee fundraising transactions and supporting capital raises for mid and small-sized
companies. Institutional relationships too were strengthened with the onboarding of
several new clients. Our Retail Broking team launched the feature-rich Centrum GalaxC
Trading app, combining proprietary research along with an end to end DIY journey for
investing across asset classes.
Additionally, the business is working closely with Unity Bank to
introduce a new 3-in-1 product that will offer streamlined digital onboarding across
banking, broking, and demat services, further enhancing client experience.
Modulus Alternatives – Scaling Private Credit with Strong
Governance and Performance
Our Private Credit business – Modulus Alternatives had an eventful
year, with significant developments. It strengthened its leadership and governance by
welcoming Mr. Alok Agarwal, former CFO of Reliance
Industries, as an Equity Partner, and Mr. Raman Uberoi, former CRISIL
executive, as an Independent Director. The firm successfully concluded its maiden private
credit fund, Centrum Credit Opportunities Fund, delivering a Gross IRR of 17%. Building on
this performance, it is now raising its second fund, India Credit Opportunities Fund II
(ICOF II), focused on high-growth sectors like healthcare and clean energy. ICOF II has
already deployed over RS. 900 Crs. and is tracking a Gross IRR of over 16%. The fund has
been rated CARE AIF 1 by CareEdge, the highest grade for alternative investment funds.
Centrum Housing Finance - Expanding Footprint, Strengthening
Foundations
Our Affordable Housing Finance business focused on strengthening
operational efficiencies to support its next growth phase. With the integration of
NATRUST?s business operations successfully completed, the business expanded its
presence in South India. Despite macroeconomic challenges, Centrum Housing maintained
steady growth, with AUM crossing RS. 1,600 Crs. Looking ahead, the company aims to
leverage its broader reach, capable team, and supportive housing policies to drive further
growth in AUM and disbursements, while prioritizing asset quality.
Unity Bank – Building Banking Momentum through Reach and
Innovation
I am happy to share that, in the Bank?s third full year of
operations growth momentum was maintained across core verticals of business banking,
inclusive banking, digital banking and consumer banking. The Bank remains well-capitalised
with ample liquidity to support its growth over the few years. Deposit mobilisation has
been strong, supported by an expanding retail base, while lending has followed a
calibrated approach in line with market conditions. The Bank?s physical and digital
presence has grown significantly, with over 900 customer touchpoints and the launch of a
new mobile app, net banking services, and digital personal loans. We also opened a
state-of-the-art office in Seawoods and a contact center in Turbhe, Navi Mumbai, further
strengthening our customer service outreach and business operations. We entered SME
financing with plans to scale.
In the microcredit segment, a cautious approach was maintained amid
ongoing challenges, with enhanced underwriting and collections efforts.
FY2026, will see us rolling out our Banking App, with substantial
marketing and promotional support, drawing untapped customers to Unity. Additionally,
branches will be rolled out in existing and new geographies. We are confident that with
our investments on strengthening technology, building brand awareness and creating a
customer friendly banking app, we will further scale up operations.
Financial Performance
During the year, we focused on building a granular loan book in our
Banking and Affordable Housing finance businesses, while continuing with steady
consolidation in our Advisory businesses. Unity Bank?s Net Advances grew ~38% to RS.
10,985 Crs., driven by addition of granular loans to MSMEs and Microfinance borrowers. It
maintains a well-funded Balance Sheet with Shareholder?s Funds at a healthy RS. 2,114
Crs. and tie ups for inter-bank credit lines from various leading banks and refinance
lines from SIDBI and NABARD. Centrum Housing Finance and
Centrum Wealth continued to remain profitable, whereas our
Institutional Business (Investment Banking and Broking) too delivered operating profits.
Our Consolidated Income for the year ending 31st March, 2025 was H 3,661 Crs. up ~64%
Y-o-Y.
Centrum Foundation – Gaining Ground in Social Impact
• 280+ Orthotic devices provided to physically challenged children
in association with Rise Bionics.
• 630+ children supported under healthcare and education
initiatives
• 15 Lac + meals distributed at cancer shelter homes and schools
FY2026 – An Exciting Journey Awaits Us
In FY2026, we plan to infuse up to
400 Crs. into the company. Of this, 200 Crs. has been committed by the
promoters through the issuance of warrants convertible into equity shares and upto 200
Crs. to be raised from other investors. This will help the group manage its financial
obligations in a timely manner as well as provide resources to pursue organic &
in-organic growth opportunities.
Moving ahead, we are geared to leverage the exciting opportunities that
we expect will emerge in the new and improving economy. Our recent efforts in
strengthening our internal capabilities and resources, should stand us in good stead to
deliver and grow. With a competent and committed team, our thrust on using technology and
strong partnerships, we are excited about our journey ahead. Our team?s talent,
expertise, and dedication have been the foundation of our growth so far, and we will
continue to prioritize their development and well-being. We remain committed to creating
value for all stakeholders.
On behalf of the Board, I take this opportunity to thank our clients,
investors, regulators, and you dear shareholders for the continued trust and confidence in
the Centrum Group.
With Best Wishes,
Jaspal Singh Bindra
Executive Chairman