REG — India CapitalGrwthFd — Interim Results for six months ended 30 June 2026

For best results when printing this announcement, please click on link below: RNS Number: 0602W India Capital Growth Fund Limited 24 September 2026 INDIA CAPITAL GROWTH FUND LIMITED Interim Results for the six months ended 30 June 2026 24 September 2026, London - India Capital Growth Fund ("ICGF" or "the Company"), the LSE premium listed investment company established to take advantage of long-term investment opportunities in companies based in India, today reports results for the six months ended 30 June 2026. 8%. 3% and an average of 11%. 4% against GBP over the six months to 30 June 2026, contributing to a reduction in the Company's NAV when translated into sterling.

* The Board monitors the discount closely and has the necessary permissions to repurchase stock if the Board decides it is in the best interests of the Company and its shareholders. 92p per share were purchased in the six month period to 30 June 2026. 9p per Ordinary Share, payable on 30 October 2026. Elisabeth Scott, Chair of India Capital Growth Fund, said: "Despite heightened geopolitical uncertainty and subdued international investor sentiment towards India, the Company delivered positive NAV and share price returns in the first half of 2026 and outperformed its benchmark.

The Board remains optimistic about the long-term prospects for India, where improving valuations and historically low levels of foreign investor participation provide a compelling backdrop for future growth. com (Company Secretary) Michael Mabaso-Mlilo About India Capital Growth Fund India Capital Growth Fund Limited the London Stock Exchange's Main Market listed investment company registered and incorporated in Guernsey, was established to take advantage of long-term investment opportunities in companies based in India.

ICGF predominantly invests in listed mid and small cap companies, although investments may also be made in large cap and private Indian companies where the Fund Manager believes long-term capital appreciation will be achieved. 3%). Performance was therefore ahead of the benchmark over the six-month period. 6%).

0p). 2%). 9%). 3%).

47). The NAV per share total return is the theoretical return to shareholders calculated on a per share basis based upon the increase or decrease in the NAV over the relevant period. The MSCI India SMID Cap Index return is based upon the increase or decrease in the published Index converted to GBP over the relevant period. The shareholder total return is the theoretical return to shareholders calculated on a per share basis based upon the increase or decrease in the share price over the relevant period.

The discount is shown as a percentage to NAV and is calculated based upon the difference between the Company's NAV and share price. The average discount is based upon the published month end discount for the six month period. The majority of the Company's assets and investments are held in INR whereas the currency of the Company's NAV is GBP. Consequently, any increase or decrease in the value of INR compared to GBP will respectively have a positive or negative impact on the Company's NAV.

The Company's long-standing policy is not to hedge the GBP value of its INR assets and investments. Chair’s Statement India was not at the forefront of investors’ minds in the first half of 2026. Stock markets have been focused on the rapid growth of AI, and the immediate beneficiaries of that growth, and are anxious about the impact of rising energy prices which are a consequence of the war in the Middle East. Indian companies are not regarded as leaders in the AI sector while international investors are concerned that India is negatively affected by rising energy prices.

1%. 9%. 4% decline in the Indian Rupee against the Sterling. In this report our Fund Advisor, Gaurav Narain, provides a clear explanation of events affecting the Indian economy, the currency and the market, along with a discussion of the key drivers behind your Company’s performance.

Key highlights that I have drawn from his report are the divergence between the initial expectations of the impact of the war in the Middle East and the actual impact on the Indian economy, which has shown remarkable agility in its ability to adjust its sources of energy supply; the resilience of corporate earnings in the face of considerable disruption; and the large and stable inflows of domestic funds, largely sourced from small retail investors, into the Indian stock market offsetting departing Foreign Direct Investment which now sits at its lowest level for some considerable time. 4% at 30 June 2026.

The Board monitors the discount/premium closely and has the necessary permissions to repurchase or issue stock if the Board decides it is in the best interests of the Company and its shareholders. 6% of the Company’s share capital. Between 30 June 2026 and 23 September 2026, being the latest practicable date prior to publication of this report, the Company repurchased a further 1,397,000 shares. Discounts generally widened across the sector peer group in the first half of 2026, with all Indian equity trusts trading at a discount to NAV.

Changes to the Company At the EGM held in March 2026, we asked shareholders to vote for a series of measures that the Board hopes will put your Company in a better position to navigate the choppy environment both for investment trusts as a sector and for Indian trusts in particular. As a consequence, the Company has introduced a five yearly conditional Performance-Related Tender offer for up to 25% of the Company’s issued share capital (this replaces the biennial redemption facility); adopted the MSCI India SMID Cap Index as the performance benchmark; introduced a new dividend policy (more on this below); and introduced a Dividend Reinvestment Plan (DRIP).

Changes to the Investment Manager In March 2026, it was announced that Liontrust would acquire River Global, the Investment Manager of India Capital Growth Fund. The acquisition was completed on 1 July. The Board welcomes the deeper resources available to the Company as a consequence of the acquisition. There have been no changes to the Fund Advisor team lead by Gaurav Narain, or to the key personnel with whom the Board works closely.

9p per share. This will be paid to shareholders on the register on 2 October 2026 and will be paid on 30 October 2026. As I wrote to shareholders in March: it is the Board’s intention to pay an annual dividend equivalent to approximately 2% of the prevailing NAV per share and the Board’s hope that this dividend will increase over time if circumstances permit. The annual dividend for the year will be paid split across two payments, comprising an interim dividend in October and a second interim dividend paid in April.

Investor Relations The Board’s focus on ensuring that we communicate with shareholders as effectively as possible remains in place. We were delighted to have the opportunity to meet a number of shareholders at our AGM in June, the second time we have held our AGM in London.

Once again, we were grateful to H/Advisors Maitland for hosting us in their spectacular Kings Cross offices, and for providing an excellent Indian buffet after the formal meeting had taken place, and, of course, to Gaurav and the team for providing such an insightful presentation and for bringing some very interesting products from investee companies which we hope shareholders will have enjoyed at home. We continue to place a great deal of emphasis on expanding the reach of the Company.

So far this year, there have been several articles in the press and in the remainder of the year, Gaurav will participate in a number of conferences in the autumn and the Investment Manager hosts regular webinars during the year. I encourage shareholders who have not yet taken advantage of these webinars to sign up for updates on the India Capital Growth website Looking Forward After a difficult eighteen months, the Board is hopeful about the prospects for the Indian economy and for the stock market in India.

The valuations of Indian companies, which had been regarded as inflated, are now more reasonable, and with foreign interest in the Indian stock market at such a low level, there is every likelihood that a more positive global environment (when it comes) could result in some upward momentum for the Indian stock market. Thank you for your support. The Board is confident that the Investment Manager’s strategy and positioning of the portfolio will stand us in good stead. Investment Manager’s Review Economy The first half of 2026 was volatile, but India began the year on a positive note.

Government measures to support consumer spending including reductions in direct and indirect taxes and lower interest rates, were starting to yield encouraging results. The earnings downgrade cycle of 2025 appeared to be behind us, consumer spending was recovering, investment was improving, and corporate earnings were expected to return to healthy double-digit growth. Real GDP growth was projected at approximately 7%. Sentiment received a further boost when India signed a Free Trade Agreement (FTA) with the European Union in January 2026 and, more importantly, an interim trade agreement with the United States in early February 2026.

Tariffs on Indian exports to the US fell from 50% to 18%, placing India on a more competitive footing relative to other countries. The agreement also removed a significant source of uncertainty and addressed one of the key overhangs from 2025. The conflict in the Middle East, which erupted in March, was a major shock. Brent crude prices rose to US$120 per barrel, disproportionately affecting India because of its reliance on energy imports.

The country imports more than 85% of its crude oil, over 60% of cooking gas and nearly 50% of natural gas, with a large proportion sourced from the Middle East. Almost overnight, India's strong macroeconomic outlook appeared more vulnerable. 5%, while inflation expectations rose sharply. The Indian Rupee, which was already under pressure due to significant foreign institutional investor selling, weakened further.

1% against the US Dollar. GDP growth forecasts were revised downward by 1% to reflect these pressures. The outlook quickly changed from economic recovery to concern that India could be one of the most vulnerable economies. We were also concerned that a prolonged crisis could impact growth because of disruption in supply chains, increases in commodity prices and further currency depreciation.

The sustainability of the anticipated earnings upgrade cycle was called into question. However, developments over the subsequent months have surpassed expectations. Apart from brief shortages of natural gas and fertiliser, there was little disruption to petroleum products. Indian refineries continued to operate normally and remained exporters of refined products.

India's energy supplies have also become increasingly diversified. Today, the United States is the largest supplier of natural gas, Russia is the largest supplier of crude oil, and West African nations provide additional supplies. The government increased subsidies in order to slow the increase in consumer gas prices, thereby limiting the inflationary impact on households. Source: Kotak report, 11 March 2026 At the corporate level, resilience has exceeded expectations.

Companies moved swiftly to reconfigure supply chains and implement price increases to offset higher costs. Even businesses selling to other companies were able to pass through cost inflation with limited resistance from customers. More importantly, demand has remained remarkably robust. Four months into the Middle East crisis, demand strengthened rather than weakened.

Consumer spending has remained healthy across categories despite widespread price increases, while export-oriented sectors such as auto components and textiles have also reported strong demand. This resilience was reflected in corporate earnings. The quarter ended June 2026 delivered the strongest results in the last three years. Companies within the Nifty 500 Indian Stock Market Index (NSE 500) (ex.

Oil companies) reported revenue growth of about 19% and profit growth above 20%. Some of the revenue growth reflects higher prices, but demand remained resilient despite broad-based price increases making the performance particularly noteworthy. The primary area of disappointment has been the IT Services sector which has attracted considerable attention amid concerns that Artificial Intelligence (AI) could disrupt its traditional business model. Industry leaders maintain that AI is simply another technology tool to be adopted and that their competitive advantage lies in specialist sector knowledge and client relationships.

However, given the rapid pace of AI advancement, the long-term impact remains uncertain. The IT sector continues to grow, but growth rates have moderated to low single digits. The implications extend beyond corporate earnings. With a workforce approaching six million people, the IT Services industry remains one of India's largest employers.

The five largest companies have reduced headcount by approximately 50,000 employees over the last three years. To put this into perspective, these companies hired nearly 270,000 employees in financial year ended March 2022 alone. Employment generation therefore remains a key priority for policymakers, particularly as approximately eight million young people enter the workforce every year. This has increased the government's focus on expanding India's manufacturing base, both to meet domestic demand and to position the country as a preferred destination for companies seeking to diversify supply chains away from China.

Over the past five years, the government has launched several initiatives to support this objective, with the Production Linked Incentive (PLI) scheme already delivering meaningful results. 4 million jobs. 0. 0), under which US$10bn of incentives facilitated the establishment of 12 semiconductor fabrication and packaging facilities.

Together, we believe these developments strengthen the foundations for India's long-term growth and support the sustainability of its economic momentum in the years ahead. Markets, Flows and Earnings Indian equities continued to underperform global markets during the first half of 2026. 5%.