DRIVING PROGRESS WITH RESPONSIBILITY

Our journey this fiscal year has been marked by strategic resilience and a proactive response to a rapidly evolving global and domestic economic environment."

Dear Stakeholders,

As we close FY25,1 am delighted to share the encouraging progress that SK Finance has achieved over the past year. Our journey this fiscal year has been marked by strategic resilience and a proactive response to a rapidly evolving global and domestic economic environment. I take this opportunity to reflect on our accomplishments, the broader economic context, and the promising outlook for FY26.

In FY25, the global economy encountered a mix of uncertainties and modest growth. While advanced economies maintained steady, albeit subdued expansion, the emerging markets faced headwinds due to the lingering geopolitical tensions.

Together, these factors put downward pressure on the global GDP growth over the period under review. As per the International Monetary Fund (IMF) (World Economic Outlook - April 2025 outlook), global GDP growth is projected at 2.8% in CY2025 and 3.0% in CY2026.

Despite the global slowdown, India showcased a strong economic performance in FY25 relative to the world economy. The Indian GDP growth remained on an upward trajectory. FY25 was a year of slow credit offtake, led by liquidity squeeze in the banking and financial services industry. Despite these challenges, India demonstrated strong fundamentals and emerged as a critical pillar in supporting the World economic growth.

With a renewed focus on improving consumption, backed by encouraging actions taken by the regulator in the last few months as well as the hope for increased public sector investments and easing liquidity in the economy, Interest rate cuts, income tax relief and easing inflation are expected to provide tailwinds to domestic consumption in Fiscal 2026, while the expected normal monsoon will support agricultural incomes.

Considering the return of a strong domestic demand led by the rural growth and positive market indicators, expectations are for credit growth to accelerate in the near future.

Surpassing Rs 13,000 crore AUM and registering a strong 27% growth as compared to last year, your Company did admirably well despite a tough macro environment.

Strategic investments in technology, people and operational improvements have been instrumental in achieving this while also laying a solid foundation for future growth.

As we step into another year, we remain focused on leveraging new opportunities and delivering sustained value to our stakeholders by strengthening our governance framework, deepening our market reach and reinforcing our commitment to financial inclusion.

I extend my sincere gratitude to our dedicated team, our Board, and all our stakeholders for their continued trust and support. I feel privileged to be a part of SK Finance's story of resilience and success and look forward to breaking many more barriers to achieve unprecedented growth in times to come.

Warm regards,