Segment and Geographical Concentration Risk: The Company's broking segment contributed 64.78%, 68.90% and 71.60% of revenue from operations in Fiscals 2026, 2025 and 2024 respectively, with a significant portion derived from Gujarat (93.74%, 93.30% and 93.53% of western-region revenue in the respective years). Adverse developments in this segment or region could disproportionately affect its business and results of operations.

Regulatory Compliance Risk: The Company's operations are subject to extensive supervision by SEBI, MCX, AMFI, APMI, NSDL and the Stock Exchanges, and it has received regulatory observations and penalties in the past three fiscals, including an SEBI adjudication order of Rs.4,00,000 in February 2025 and NSE penalties of Rs.37,500 and Rs.1,000 in 2025 and 2026. Repetition of such action could adversely affect its business, financial condition and reputation.

Dependence on Authorised Persons: The Company relies heavily on its network of Authorised Persons to generate business. Loss of a significant number of them, or liability arising from their lapses, could adversely affect its business, results of operations and financial condition.

Risk Relating to Licenses, Registrations and Approvals: The Company's business requires various statutory licenses, approvals and registrations, and delays or failures in obtaining or renewing these may result in penalties or suspension. It has received SEBI observations on non-compliance with Investment Adviser regulations and subsequently surrendered its Investment Adviser registration.

Dependence on Stock Exchanges: The Broking Segment relies on NSE, BSE, MCX, NSEIX and MSEI and their clearing corporations to execute and settle client trades. Failure to comply with exchange regulations could lead to fines, suspension or termination of registration, materially affecting its ability to provide brokerage services.

Client Acquisition and Retention Risk: Continued growth depends on the Company's ability to retain and grow its client base through its own branches and its network of Authorised Persons and relationship managers. Failure to do so could materially affect its business, financial condition and growth prospects.

Working Capital Risk: Net working capital increased from Rs.3,962.58 lakhs as at March 31, 2024 to Rs.6,340.93 lakhs as at March 31, 2026, funded through internal accruals and bank credit facilities, with part of the Net Proceeds also proposed for working capital. Failure to arrange adequate working capital could adversely affect operations, cash flows and financial condition.

Risk Relating to Intellectual Property Rights: The Company has applied for registration of certain intellectual property and may lack adequate mechanisms to protect its confidential information. It could face third-party infringement claims, diverting management attention and requiring compensation or changes to its business processes.

Negative Operating Cash Flows: The Company has experienced negative operating cash flows in certain periods due to working capital requirements linked to growth in its MTF book, client debit balances and changes in trade payables. Sustained negative operating cash flows could adversely affect liquidity, financial performance and growth plans.

Interest Rate Risk: Finance costs were Rs.235.49 lakhs, Rs.246.08 lakhs and Rs.90.98 lakhs in Fiscals 2026, 2025 and 2024 respectively, and the Company also charges interest at a fixed rate on its Margin Trading Facility business, which generated revenue of Rs.222.58 lakhs in Fiscal 2026. Adverse interest rate movements beyond its control could affect borrowing costs and profitability.