Arvind Port & Infra Ltd Management Discussions

The following discussion outlines the operational and financial performance of the Company, as well as its business outlook for the financial year 2025 26. This analysis is based on the prevailing business environment and current Government policies. It should be noted that future economic developments and other external factors may lead to variations in this analysis.

The Managements perspective on the Companys performance and future outlook is presented below:

Economic Overview

Global Economy

The global economy remained resilient during FY 2025 26 despite geopolitical tensions, trade uncertainties, changing financial conditions and disruptions in global supply chains. Economic activity continued to be supported by investment, technological development and improving business adaptability, although the global outlook remained subject to uncertainty.

According to the International Monetary Fund (IMF), global growth is projected at 3.0% in 2026 and 3.4% in 2027. The outlook remains exposed to risks arising from geopolitical developments, trade restrictions, commodity price volatility and changes in global financial conditions.

For the shipping and logistics sector, changes in global trade flows, commodity prices, infrastructure spending and supply-chain patterns may influence cargo movement and demand for marine transportation. At the same time, fluctuations in fuel prices, operating costs and global trade conditions remain important considerations for industry participants.

Indian Economy Outlook

The Indian economy continued to demonstrate resilience during FY 2025 26, supported by domestic consumption, investment, infrastructure development and growth in the services sector. According to the Economic Survey 2025 26, Indias real GDP is estimated to have grown by 7.4% during FY 2025 26, reflecting continued strength in domestic economic activity.

Infrastructure development, industrial activity, urbanisation and public capital expenditure continue to support demand across transportation, construction and related sectors. The Governments focus on logistics infrastructure, multimodal connectivity and development of inland and coastal waterways is also creating opportunities for marine transportation and logistics businesses.

The tourism and hospitality sector continues to benefit from domestic travel, business activity and improving connectivity, providing a supportive environment for hotel businesses, particularly in commercially and industrially active locations.

For Arvind Port & Infra Limited, the overall economic environment remains relevant to both its principal business verticals. Growth in infrastructure and industrial activity can support demand for barge chartering and marine transportation services, while business and leisure travel can support the Companys hotel operations.

The Company remains focused on efficient utilisation of its marine assets, strengthening its logistics operations and improving the performance of its hospitality business. At the same time, fluctuations in fuel and maintenance costs, cargo demand, economic conditions, competition and other operating factors may influence the Companys performance.

Industry Structure and Developments

Shipping and Related Services

Indias maritime and inland water transport sector continued to develop during FY 2025 26, supported by the Governments focus on multimodal logistics, coastal shipping and greater utilisation of inland waterways. Cargo movement through National Waterways has increased steadily, supported by investments in terminals, fairways, navigation infrastructure and improved connectivity.

The development of inland and coastal waterways is creating opportunities for the transportation of bulk, project and construction-related cargo, particularly where waterways offer an efficient alternative for movement of heavy and oversized materials. Government initiatives promoting cargo movement through waterways and greater private-sector participation are expected to further strengthen the sector.

For barge chartering and marine logistics companies, increasing infrastructure activity, industrial development and the expansion of multimodal transportation provide long-term growth opportunities. However, vessel utilisation, waterway conditions, fuel costs, maintenance expenditure, weather conditions and regulatory requirements continue to remain important factors influencing operating performance.

Hotel Business (Tourism & Hospitality)

Indias tourism and hospitality sector continued to benefit from increasing domestic travel, improving connectivity and rising demand for accommodation across established as well as emerging destinations. Growth in business travel, leisure tourism and travel to industrial and commercial centres is supporting demand for hotel and related hospitality services. The sector is also witnessing greater adoption of digital booking platforms, technology-enabled guest services and differentiated hospitality offerings. Government initiatives focused on tourism infrastructure, destination development and connectivity are expected to support the continued expansion of the hospitality ecosystem.

For the Company, locations with strong industrial activity, improving connectivity and sustained business and leisure travel provide opportunities for strengthening its existing hospitality operations. At the same time, occupancy levels, room rates, operating costs and competitive intensity remain key factors affecting the performance of the sector.

Government Initiatives

Shipping and Related Services

The Government of India continues to promote the development of inland waterways and coastal shipping as part of its broader strategy to strengthen multimodal transportation and logistics infrastructure. Various initiatives are being undertaken to improve waterway infrastructure, cargo movement, terminal facilities and connectivity, thereby encouraging greater utilisation of waterways for the transportation of bulk and project cargo.

The Government has also introduced measures to encourage cargo movement through inland waterways and facilitate greater private-sector participation in the development of terminals and related infrastructure. These initiatives are expected to support the gradual expansion of inland and coastal water transportation and create opportunities for barge operators and marine logistics service providers.

Hotel Business (Tourism & Hospitality)

The Government continues to undertake initiatives aimed at strengthening tourism infrastructure, improving connectivity and creating a more conducive environment for investment in the hospitality sector. Union Budget 2025 26 identified tourism as a sector for employment-led growth and proposed the development of 50 major tourist destinations in partnership with States, along with measures to improve connectivity, hospitality skills and private-sector participation.

The Ministry of Tourism has also undertaken digital and regulatory initiatives for the hospitality sector. The NIDHI+ portal facilitates online applications for classification of accommodation units and recognition of tourism service providers, while recent Government consultations have focused on simplifying hotel classification and reducing regulatory requirements.

Further, schemes such as Swadesh Darshan 2.0, PRASHAD and Challenge Based Destination Development continue to support tourism infrastructure and destination development across the country. In July 2026, the Ministry of Tourism reported sanctioning 117 projects involving 5,756.62 crore for tourism infrastructure and related development.

These initiatives are expected to support the growth of tourism and hospitality demand, improve destination infrastructure and encourage investment in accommodation and allied tourism facilities.

Our Business

Your Company was incorporated in 1987 and has evolved from its initial operations as a Shipping and Forwarding Agent into a diversified enterprise with business interests in marine logistics and hospitality. Over the years, the Company has expanded its operational capabilities in response to changing market conditions and emerging business opportunities.

Shipping and Related Services

Shipping and barge chartering constitute the core business activities of the Company. The Company provides barge chartering services for commercial and industrial requirements, with its operations primarily supporting construction, infrastructure and project-related activities.

The Companys barges are utilised for transportation of heavy construction materials, including sand, cement, steel and aggregates, as well as equipment and personnel through inland and coastal waterways. This enables clients to transport heavy and project cargo through waterways, particularly for locations where conventional land-based transportation may be less efficient.

The Company has progressively expanded its fleet, which includes:

Arcadia Sumeru acquired in FY 2021

KB-26 and KB-32 acquired in FY 2022

KB-28 and Arcadia Minica acquired in FY 2023

Arcadia Suparshava acquired in FY 2025

The fleet expansion has enhanced the Companys cargo-handling capacity and operational flexibility. With an established presence in Gujarat, the Company continues to serve government agencies, EPC contractors and private-sector clients.

Going forward, the Company intends to strengthen its barge fleet and operational capabilities to participate in opportunities arising from the development of inland waterways, coastal shipping and infrastructure

As part of its diversification strategy, the Company has expanded its presence into the hospitality sector, which constitutes its second principal business vertical.

The Companys hospitality portfolio includes Hotel Millennium Plaza and Hotel 999, located in Jamnagar. The properties cater to a mix of corporate travellers, industrial personnel, contractors and tourists, offering accommodation and related hospitality services.

The Companys presence in Jamnagar provides an opportunity to serve demand arising from the regions commercial and industrial activity, including activities associated with the oil and gas, refinery and infrastructure sectors.

The Company intends to explore opportunities for strengthening and expanding its hospitality portfolio in strategically relevant locations, subject to market conditions, commercial feasibility and availability of capital.

The Companys presence across marine logistics and hospitality provides diversification across two distinct business segments. The Company remains focused on improving operational efficiency, prudent asset utilisation and sustainable growth across its business verticals.

Segment Wise or Product-Wise Performance

Shipping and Related Services

The Companys principal business activity under this segment is barge chartering, wherein barges are provided to customers based on their project and transportation requirements. The Companys services primarily support construction, infrastructure and other marine-related projects, with barges used for transportation of cargo through inland and coastal waterways.

The Companys work orders generally include the transportation and towing of barges to the locations specified by customers. The tenure of contracts depends on the requirements of individual customers and generally ranges from six to eighteen months. Upon completion of a contract, the barges may be towed to a designated yard or another suitable location until they are deployed for the next assignment.

The Company undertakes necessary maintenance of its barges during periods when they are not deployed, supporting their operational readiness and serviceability.

Hotel Business (Tourism & Hospitality)

Under its hospitality business vertical, the Company operates two hotels, namely Hotel Millennium Plaza and Hotel 999, both situated in Jamnagar, Gujarat.

Hotel Millennium Plaza, operated by the Company since 2021, comprises 72 guest rooms and is spread across approximately 5,882.17 square metres. Hotel 999 also comprises 72 rooms and is currently operational.

The hotels are located in the vicinity of the Jamnagar Khambhaliya Highway, providing access to the citys commercial and industrial activity. The properties cater to corporate travellers, industrial personnel, contractors and other guests.

The Company manages the accommodation and hospitality-related operations through dedicated employees, while the food and restaurant operations are outsourced to third-party contractors.

Segment Wise Revenue Bifurcation

The revenue generated by your Company from its core business segments is summarized below:

Consolidated Financial results for the half year and year ended on March 31, 2026

( In Lakhs)

		Half year Ended		Year Ended
Sr. No. Particulars	31.03.2026	30.09.2025	31.03.2025	31.03.2026	31.03.2025
	Audited	Unaudited	Audited	Audited	Audited
1 Barge hire	710.17	459.19	1,063.92	1,169.36	2,024.55
2 Hotel	139.57	42.94	238.13	182.51	388.20
3 Unallocated	(5.57)	6.33	1.20	0.76	2.06
Total	844.17	508.46	1,303.25	1,352.64	2,414.81

Standalone Financial results for the half year and year ended on March 31, 2026:

		Half year Ended		Year Ended
Sr. No. Particulars	31.03.2026	30.09.2025	31.03.2025	31.03.2026	31.03.2025
	Audited	Unaudited	Audited	Audited	Audited
1 Barge hire	608.96	339.02	762.56	947.98	1,400.29
2 Hotel	136.76	42.94	238.13	179.70	388.20
3 Unallocated	(5.57)	6.33	1.20	0.76	2.06
Total	740.16	388.29	1,001.89	1,128.45	1,789.79

Opportunities and Threats

Your Company operates within the dynamic and evolving landscape of the shipping and hospitality industries. These sectors, while offering strong potential for growth and innovation, also encounter a range of external challenges that influence operational performance and strategic direction.

Opportunities

Your Company has opportunities for growth across both its marine logistics and hospitality businesses. The continued development of inland waterways, coastal shipping and multimodal transportation in India is expected to support demand for barge chartering services, particularly for the movement of bulk, construction and project-related cargo. Increasing infrastructure and industrial activity, especially in coastal and industrial regions, may provide further opportunities for deployment and improved utilisation of the Companys barge fleet. In the hospitality segment, increasing business activity, industrial development and domestic travel, particularly in locations such as Jamnagar, provide scope for strengthening hotel operations and improving occupancy. The Company may also explore selective expansion of its marine and hospitality assets in suitable locations, subject to market conditions, commercial feasibility and availability of capital.

Threats and Challenges

Your Company operates in sectors that are influenced by various operational, market and external factors. In the marine logistics business, fluctuations in fuel prices, repair and maintenance costs, vessel utilisation and availability of suitable charter contracts may impact operating margins and profitability. Adverse weather and marine conditions may also affect vessel movement and project schedules. The hospitality business is exposed to changes in occupancy levels, room rates, customer demand and competitive intensity. In addition, changes in regulatory and safety requirements, economic conditions and customer preferences may affect the Companys operations. The Company continues to monitor these factors and remains focused on prudent cost management, efficient asset utilisation and maintaining operational efficiency across its business verticals.

Financial Performance and Review of Operations

( in Lakhs)

Particulars	Standalone		Consolidated
	2025-26	2024-25	2025-26	2024-25
Revenue From Operations	1,065.48	1788.48	1,286.86	2,412.76
Other Income	62.97	1.31	65.78	2.06
Total Income	1,128.45	1789.79	1,352.64	2,414.82
Less: Total Expenses before Depreciation, Finance Cost and	514.43	426.48	424.13	409.75
Tax
Profit before Depreciation, Finance Cost and Tax	614.02	1363.31	928.51	2,005.07
Less: Depreciation and Amortisation Expense	505.06	366.64	682.84	524.06
Less: Finance Cost	5.44	64.95	41.88	139.97
Profit Before Exceptional & Extra-Ordinary Item & Tax	103.52	931.72	203.79	1,341.04
Add: Exceptional Items	-	-	-	-
Profit Before Extra-Ordinary Item & Tax	103.52	931.72	203.79	1,341.04
Less: Current Tax	-	144.44	-	214.75
Less: Deferred tax Liability (Asset)	41.39	78.57	66.66	111.28
Profit after Tax	62.13	708.70	137.13	1,015.00

Outlook

Your Company has evolved from its initial shipping and forwarding activities into a diversified business with operations in barge chartering and hospitality. The outlook for the marine logistics business remains supported by continued infrastructure development and the increasing focus on inland waterways, coastal shipping and multimodal transportation in India. These developments are expected to provide opportunities for the transportation of construction, bulk and project-related cargo through waterways.

The hospitality business is expected to benefit from continued business and industrial activity in Jamnagar, along with domestic travel and improving regional connectivity. The Company will remain focused on improving the operational performance of its existing hotels and evaluating opportunities for further development of its hospitality portfolio, subject to market conditions and commercial feasibility.

Going forward, Your Company intends to focus on efficient utilisation of its barge fleet, strengthening customer relationships, improving hotel operations and prudent deployment of capital. The Company will also evaluate suitable opportunities for fleet expansion and hospitality investments while maintaining a disciplined approach towards costs and operational efficiency.

While the Company remains positive about the long-term prospects of its business segments, it will continue to monitor factors such as charter demand, vessel utilisation, fuel and maintenance costs, weather conditions, competition, hotel occupancy and regulatory requirements. The Company remains committed to sustainable growth through prudent business decisions and effective management of its resources.

Internal Financial Control Systems and Their Adequacy

Your Company has an internal financial control framework commensurate with the nature and scale of its operations. The framework is designed to provide reasonable assurance regarding the reliability of financial reporting, safeguarding of assets, prevention and detection of errors and frauds, and compliance with applicable laws and regulations.

Your Companys internal financial controls are integrated with its business processes and are periodically reviewed to ensure effective and orderly conduct of operations, proper recording of transactions and preparation of reliable financial information.

During the year under review, the internal audit of the Company was carried out by an external Chartered Accountant firm. The internal audit reports and observations are reviewed by the appropriate management and the Audit Committee, and necessary corrective measures are undertaken wherever required. The Statutory Auditors have also considered the internal audit reports issued during the year.

Based on the reviews undertaken during the year, your Company is of the opinion that its internal financial controls with reference to the financial statements are adequate and operating effectively.

Material Developments in Human Resources / Industrial Relations

Your Company considers its employees an important part of its operations and remains focused on maintaining an efficient and accountable workforce aligned with its business requirements. As on March 31, 2026, the Company had six (6) full-time employees. The Company continues to focus on effective deployment of its human resources and maintaining a professional and collaborative working environment.

Industrial relations during the year remained cordial and harmonious. Your Company will continue to strengthen its human resource capabilities in line with the requirements of its marine logistics and hospitality businesses and its future growth plans.

Key Financial Ratios

Ratio				Figures as at				Figures as at			% Change From			Explanation for Change in Ratio (for more
				31.03.2026				31.03.2025			Last Year			than 25% in comparison with last year)
Current Ratio (in				4.88				3.99			22.24			-
times)
Debt-Equity Ratio				0.006				0.003			113.16			The debt-equity ratio increased from 0.003
(in times)														to 0.006, primarily due to an increase in
															borrowings during the year. However, the
															ratio continues to remain at a very low level
Debt			Service			(6.07)			(4.38)			38.69			As major term loans are repaid in F.Y. 2024-
Coverage Ratio														25 from the issue of shares and warrants,
(in times)														there was significant change in debt service,
															hence the ratio varies .
Return			on Equity			0.01			0.13			(94.06)			The return on equity ratio decreased from
Ratio															0.13 to 0.01, primarily due to a significant
(in times)															decrease in net profit during the year.
Inventory									-			-			-
Turnover Ratio (in
times)
Trade Receivables				0.85				2.10			-59.47			The trade receivables turnover ratio
Turnover Ratio												decreased from 2.10 to 0.85, primarily due
(in times)														to a decrease in net sales and an increase in
															average trade receivables during the year,
															indicating slower realisation of receivables
Trade			Payables			1.40			1.44			-3.08
Turnover Ratio
(in times)
Net		Capital			0.14		0.31			-56.90			The net capital turnover ratio decreased
Turnover Ratio (in													from 0.31 to 0.14, primarily due to an
%)													increase in average capital employed
													relative to the decrease in sales during the
													year.
Net Profit Ratio (in					5.83		39.63			-85.29			Net Profit ratio of the company for the
%)													current period has decreased mainly on
													account of Decrase in in sales and Incraese
													in Depriciation due to Purchase of Fixed
													Assets
Return on Capital					0.01		0.18			-92.09			The decrease in ROCE is therefore mainly
Employed (in %)													attributable to the substantial fall in EBIT
													and increase in average capital employed.
Return		on			-		-			-			-
Investment

Cautionary Statement

This report contains forward-looking statements that reflect your Companys current views and future expectations in accordance with applicable laws and regulations. These statements relate to the Companys strategic objectives, business prospects, plans, projections, estimates, and anticipated financial performance. They are based on certain assumptions and expectations of future events which are inherently subject to risks and uncertainties.

Such forward-looking statements involve known and unknown risks, uncertainties, and other factors both external and internal that could cause actual results, performance, or achievements to differ materially from those expressed or implied in these statements. These may include, but are not limited to, changes in regulatory environment, economic developments, market conditions, interest rates, raw material prices, exchange rate fluctuations, or other factors beyond the Companys control.

Your Company does not undertake any obligation to publicly update or revise any forward-looking statements in light of future events, developments, or new information, except as may be required by applicable law. Readers are advised not to place undue reliance on these statements and to exercise caution in interpreting them.