Autoriders International Ltd Management Discussions

Autoriders International Limited is an established player in Indias organised car rental industry, with operations since 1994 and an all-India presence across 20 cities.

The Company continues to focus on delivering dependable and customer-centric mobility solutions through a combination of fleet strength, service quality, technology and operational experience.

FY 2025-26 was a year of healthy business growth and stronger operating cash generation.

Revenue from operations increased to Rs.100.59 crore, compared with Rs.87.07 crore in FY 2024-25, registering growth of 15.52%. Profit Before Tax increased to Rs.12.14 crore, while Profit After Tax stood at Rs.9.04 crore.

A particularly encouraging indicator was the Companys operating cash flow, which increased from Rs.19.06 crore to Rs.25.30 crore, reflecting improved cash generation from the underlying business.

Car Rental market in India is driven by various factors. Economic and Infrastructure development of country contributes significantly to the growth of car rental business especially of the corporate car rentals. Expansion of Travel and Tourism is another growth driver for the car rental industry. Accelerating urbanization of major cities resulting in increased population density and tourist movement is another factor for creating demand for car rental services. It also support economic expansion and job creation, also of service sectors of airlines, hotel and transportation businesses. Car rental services has expanded to 2 tier and small cities due to urbanization, infrastructure and business expansion. Apart from domestic tourists, it is huge market for international tourists in the form of adventure, leisure, Culture, medical, wellness, eco, wildlife and religious tourism. Rising disposable income in India has made car rental a popular means of transport of population including the middle class.

Car rental market in India has significantly grown over the years as seen in considerable increase in revenues and profits. Now the industry is more organized by adopting to changing demands of technology development in the form of advanced vehicle tracking and monitoring system, improved software, latest reservation and payment and mobile applications, improved fleet management and security etc., all ultimately resulting efficiency in operation and customer satisfaction.

Car rental market in India continues to evolve and grow over the years and is expected to do so in the coming years. With rising economic and industrial growth witnessed in India, has seen new projects and developments across key sectors of manufacturing, services and infrastructure. Civil Aviation industry in India is one of the fastest growing sector aiding connectivity, trade and tourism. India is witnessing fast development of roads, highways, expressways and other initiatives aiding connectivity, reducing travel time and safety and inclusive growth. Travel and tourism Industry has vital role in economic growth with the support of domestic travel, expanding aviation, hotel industry and other hospitality sectors. Travel & Tourism sector in India is fast growing and poised for continued growth. Further emphasis on green initiative by electric mobility, advanced digital experience and accelerated urbanization offers strong potential for car rentals. All these factors present ample opportunities for Car rental business to expand and grow significantly.

The Company has a single segment reporting during the year. The performance of the product is quite satisfactory during the financial year.

The future outlook of travel and car rental business remain positive as evidenced by growth in volume and margin. Overall economic development driven by improvement in infrastructure, Travel & tourism, technology, urbanization, and other key sectors will keep the corporate car rental industry on the growth path. Further, rising disposable incomes, and the expansion of international travel, India is witnessing significant growth in car rental services supported by growing middle class and increased business travel.

Car rental business face certain challenges, foremost being rise in cost of maintenance of fleet, fluctuation in fuel prices, non- availability of chauffeurs, regulatory hindrances etc., despite the positive outlook.

The increase in competition and the input costs could put pressure on the margin. High capital-intensive nature and dependence of vehicle utilization is another factor to confront. Market downturn and supply chain bottleneck can impact operations and margins. Also, there is need to adopt to the fast-changing technology and software upgradation and consumer preferences.

The Company has an internal control system in place which is commensurate with the size and nature of its business. The internal control system ensures that all the assets of the Company are safeguarded from loss, damage or disposition. Checks and controls are in place to ensure that transactions are adequately authorized and recorded and that they are reported correctly. The internal control system is supplemented by an extensive programme of internal audit by a firm of independent Chartered Accountants and external statutory audit which is periodically reviewed by the management and Audit Committee.

> Sales and Profit: During the year Gross Sales has increased by 15.52% and an increase of 12.15% was seen in the Net profit.

> Capital Investment: Capital Investment of Rs. 29.44 Crores were made during the year. The entire capital investment has been made out of financial assistance from Toyota Financial Services India Limited, Sundaram Finance Ltd, Axis Bank, Karur Vysya Bank Ltd, Mercedes Benz Financial Services Ltd and from proceeds from premium of equity on preferential allotment.

As on March 31 2026, the Company had 360 employees on its rolls. The Companys HR philosophy is to establish and build a high performing organization, where each individual is motivated to perform to the fullest capacity: to contribute to developing and achieving individual excellence and departmental objectives and continuously improve performance to realize the full potential of our personnel. Industrial relations were cordial and harmonious throughout the year.

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectation are "forward looking statement" within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.