Prudent Corporate Advisory Services Ltd

25 YEARS OF PRUDENT: ROOTED IN CONVICTION, POISED FOR THE FUTURE

Dear Stakeholders,

As we mark 25 years of Prudent Corporate Advisory Services Ltd., I take immense pride in presenting this year's Annual Report—an opportunity not only to reflect on our journey but also to rea_irm our purpose and future aspirations. This silver jubilee is not merely a celebration of time; it is a tribute to resilience, faith, and our unwavering commitment to creating wealth for every Indian household.

From our humble beginnings in 2000, without capital, brand, or legacy, we embarked on a mission anchored in a deep conviction: India's economic ascent was inevitable, and mutual funds—rooted in equities—would emerge as the most inclusive and effective vehicles for long-term wealth creation. At a time when fixed deposits and physical assets dominated household portfolios, this belief was unconventional. Yet, we remained steadfast in our conviction.

Our journey over the past 25 years can be segmented into three defining phases. The formative years (2000–2005) were about survival, learning, and laying a foundation in an era when mutual fund distribution operated with minimal regulatory oversight. Between 2005 and 2015, we focused on institutionalising our processes and investing in people and systems — even during challenging times — laying the groundwork for scalable and resilient growth. Prudent tripled its workforce from 73 in 2007 to 224 in 2010 and doubled its branch network from 12 to 27 locations, marking one of the most aggressive expansions in our history — achieved amidst a challenging and uncertain environment.

Following the 2015 period, we entered our acceleration phase, launching FundzBazar, scaling digitally, expanding our MFD network and product verticals, which led us to achieve several strategic milestones.

Throughout this journey, our deep conviction in India's growth story and belief in the power of financial markets to build wealth have guided us, even in times of market disruption, liquidity crises, or regulatory shi_s. We have not only survived three significant slowdowns but also used them to invest in talent, expand our footprint, and build digital capability. These contrarian investments have consistently generated returns over time.

FY2025 has been a landmark year. Our AUM crossed Rs.1 trillion well ahead of our earlier guidance, and we are on track to achieve a Rs.1,000 crore SIP book. Our equity AUM has expanded nearly 17 times since our digital transformation began, and our total distributor base has grown exponentially. Today, 44% of our total equity AUM comes from Systematic Investment Plans (SIPs) - an indicator of long-term retail participation and our systemic focus on investor discipline.

This milestone is not an end, but a new beginning. We now have the foundation and intent to scale via inorganic growth as well. With a treasury book of over

Rs.500 crore, we are actively exploring strategic mergers and acquisitions (M&A) opportunities.

Celebrating 25 years of resilience and conviction, Prudent has transformed into a technology-led wealth creation platform driven by India's growth and equity belief.

India's mutual fund industry is at an inflexion point. With a ~20% AUM-to-GDP ratio and only 5.4 crore retail investors in a population of over 140 crore, the runway for growth is immense. AMFI projects industry AUM to grow to Rs.2,791 lakh crore by 2047, achieving a 112% MF-to-GDP ratio in line with global benchmarks. This growth will be driven by the formalisation of the economy, rising per capita income (from Rs.1.8 lakh to Rs.16.5 lakh by 2047), digital inclusion, and financial awareness. Prudent is uniquely positioned to participate in—and accelerate—this structural shi_.

FY_2024–25 marked another year of robust performance for Prudent, underscoring the strength of our business model and the operational resilience of our platform. Our Assets Under Management (AUM) from the mutual fund distribution business reached Rs.1,03,515 crore as of March 31, 2025, reflecting a year-on-year growth of 24.1% over the Rs.83,384 crore recorded at the end of the previous fiscal year. This expansion is testament to the consistent faith our partners and their clients place in us, as well as the growing appeal of mutual funds as a long-term wealth creation avenue.

Our Systematic Investment Plan (SIP) flows continued to be a powerful growth engine. In March 2025, monthly SIP inflows stood at Rs.981 crore, up from Rs.726 crore in March 2024. The number of live SIPs rose to nearly 30 lakhs. Notably, SIP-driven investments now contribute to approximately 45% of our equity AUM - a clear indicator of the rising adoption of disciplined investing across our investor base.

Revenue from operations grew significantly to Rs.1,103 crore, an increase of 37.1% over the Rs.805 crore recorded in FY 2024. Our mutual fund trail revenue continued to be the bedrock of our earnings, contributing a substantial majority to the topline. Operating profit rose to 262.4 crore, reflecting a 35.9% increase, while our Profit A_er Tax (PAT) reached Rs.195.6 crore, registering a 41% year-on-year growth.

Looking ahead, we see a landscape rich with possibility. India's financialisation wave is still in its early innings, and our conviction in mutual funds as a catalyst for inclusive wealth creation has never been stronger. Our roadmap includes greater technology integration, sharper focus on underserved markets, and strengthening SIP-led engagement. We are also exploring inorganic growth avenues to complement our trusted platform and deepen value creation for our partners and clients alike. In everything we do, our purpose remains unchanged—to democratise financial wellbeing at scale.

This 25-year journey would not have been possible without the relentless support of our partners, employees, and stakeholders. I thank each of you for your trust and faith. As we move into our next phase, we are not just celebrating a legacy—we are committing to a future filled with purpose, innovation, and impact.

With warm regards and renewed commitment,