AVG Logistics Ltd Management Discussions

Economic Overview

Global Economy Overview

In CY 2025, the global economy demonstrated resilience, expanding by 3.4%. Growth was backed by strong performance in major economies, AI advancements, steady trade and tech-driven exports. Global headline inflation moderated to 4.1% in CY 2025 despite persistent geopolitical uncertainties, heightened trade protectionism, supply chain realignments, fuel price volatility and surging labour costs. Merchandise trade volume expanded by 4.6% facilitated by supply chain stabilisation, improving manufacturing activity and inventory levels across key markets. Moreover, services trade augmented by 5.3% in CY 2025 bolstered by sustained demand for digital services, business services and international travel. Escalating U.S tariffs and retaliatory measures disrupted global trade routes, thereby increasing customs and compliance costs. Businesses increasingly relied on diversified sourcing strategies through nearshoring, friend-shoring and multi-country manufacturing networks, reinforcing the importance of multimodal transportation, supply chain diversification and digital logistics capabilities.

Customers prioritised resilient supply chains, real-time shipment visibility and integrated logistics solutions to streamline operations. Demand for specialised transportation, warehousing and project logistics was driven by consistent investments in infrastructure, manufacturing and energy projects, thereby promoting long-term opportunities for organised providers.

Outlook

Global growth is projected to moderate to 3.1% in CY 2026 before improving to 3.2% in CY 2027. Global trade recovery will be catalysed by easing inflation, improving financial conditions and favourable regulatory measures. Merchandise trade is projected at 2.6%, while services trade will augment by 5.1%. Sustained investments in infrastructure, digital technologies, Artificial Intelligence (AI) and energy transition are expected to drive trade stabilisation and enhance industrial production amid geopolitical and trade-related uncertainties. The global logistics sector is well positioned for steady expansion by prioritising supply chain resilience, integrated multimodal logistics and technological transformation.

Global Trade Volume Growth & Global GDP Growth Trend

Global Trade Volume Growth

Segment	CY25	CY26 [P]	CY27 [P]
Merchandise	4.6%	1.9%	2.6%
Services	5.3%	4.8%	5.1%

[P] — Projected figures
Source: WTO

Global GDP Growth Trend

Year	Growth
CY24	3.5%
CY25	3.5%
CY26 [P]	3.4%

[P] — Projected
Source: IMF — World Economic Outlook (July 2026)

Indian Economy Overview

India remained one of the fastest-growing major economies in FY 2025-26. Growth was bolstered by surging domestic demand, sustained infrastructure investments, increasing private sector capital expenditure and robust financial momentum. The economy expanded by approximately 7.7% driven by expanding manufacturing activity alongside favourable policy reforms. CPI inflation was registered at 3.93% indicating macroeconomic stabilisation, enhanced consumer expenditure and investor confidence. Continued implementation of Production-Linked Incentive (PLI) schemes, construction activity expansion and greater private sector investments accelerate economic growth despite global uncertainties. Resilient performance across services, industrial production and consumption further reinforced Indias macroeconomic. Headline CPI inflation maintained the Reserve Bank of Indias (RBI) 4% target. While CPI-General escalated from 2.75% in January to 3.93% in May, remaining well within the tolerance band. Core inflation remained stable, indicating moderate demand, favourable consumer requirements, enhanced manufacturing activity and freight movement while limiting significant cost surges. Additionally, relatively stable inflation minimised interest rate uncertainty, thereby encouraging business investments enabling fleet expansion and infrastructural advancements. Robust economic growth was promoted greater Industrial production and disciplined execution. Government expenditure on roads, railways, ports, Dedicated Freight Corridors (DFCs) and multimodal logistics parks progressively bolstered logistics infrastructure, thereby improving network connectivity and optimising transit timelines. These investments boosted cargo movement, elevated warehouse utilisation and increased demand for integrated third-party logistics (3PL) services.

Outlook

India is expected to maintain sustained growth at an estimated rate of 6.6% driven by resilient domestic demand, consistent public infrastructure investment and enhanced private capital expenditure. Manufacturing, construction and services will lead economic expansion in alignment with ongoing policy initiatives such as PM Gati Shakti, the National Logistics Policy (NLP) and Production-Linked Incentive (PLI) schemes. The greater adoption of electric vehicles for last-mile deliveries along with the prioritisation of sustainable logistics practices are expected to enable the sectors transition towards lower-carbon operations. Advancements in manufacturing, infrastructure and e-commerce is expected to propel freight movement, warehousing demand and integrated logistics service requirements, thereby promoting strategic long-term progress.

Indian GDP Trend

Year	GDP Growth
FY24	6.5%
FY25	7.1%
FY26	7.7%
FY27 [P]	6.6%

Source: MOSPI

Consumer Price Index Inflation & Industry Overview

Consumer Price Index Inflation

Month	CPI-General (%)	CPI-Food (%)
Jan.26	2.74	2.13
Feb.26	3.21	3.47
Mar.26	3.40	3.87
April.26	3.48	4.20
May.26	3.93	4.78
June.26	4.38	5.32

Source: CPI

Industry Overview

Industrial Economic Overview

In FY 2025-26 Indias logistics sector surpassed $380 billion in annual value, positioning it among the five major global logistics markets in terms of size. Logistics costs declined to approximately 8% of GDP, from the 13-14%. This moderation has been facilitated by favourable GST measures and the adoption of digital tracking systems, FASTag and e-way bills along with the extensive development of highways and freight corridors.

Indias logistics sector is backed by steady economic growth, expanding manufacturing activity, surging domestic consumption and sustained public investment in transport infrastructure. Government initiatives including PM Gati Shakti, NLP, DFCs and the Bharatmala and Sagarmala programmes significantly enhanced multimodal connectivity, thereby promoting supply chain efficiency. The implementation of the Unified Logistics Interface Platform (ULIP) gained further traction, enabling greater digital integration and data exchange among logistics stakeholders.

Robust progress across e-commerce, quick commerce, pharmaceuticals, automotive and industrial manufacturing heightened demand for warehousing, last-mile delivery, cold chain logistics and integrated 3PL services. Logistics providers progressively invested in warehouse automation, fleet digitisation, AI-enabled route optimisation and Electric Vehicles (EVs) to enhance operational efficiency and minimise costs. Demand for Grade A warehousing remained steady across major logistics hubs, bolstered by organised retail and manufacturing expansion.

Outlook

Indian logistic Industry is expected to expand to $476 Billion with an estimated annual CAGR of 8.57% till 2031. The sector is expected to maintain its growth momentum in 2027, driven by expanding industrial output, higher infrastructure investments and increasing demand for efficient freight movement. Consistent implementation of the NLP, PM Gati Shakti, multimodal logistics parks and DFCs is expected to promote network efficiency while reducing transit timelines. Surging demand from infrastructure, renewable energy, engineering, automotive and e-commerce sectors will further boost freight volumes and warehousing demand. Increasing adoption of digital technologies, fleet optimisation and integrated logistics solutions will streamline operations, thereby reinforcing service reliability through long-term value creation.

Company Overview

Established in 2010, AVG Logistics Limited, has evolved into one of Indias leading integrated multimodal logistics service providers. Headquartered in Delhi, the Company delivers a comprehensive portfolio encompassing transportation, Full Truckload (FTL), Less-Than-Truckload (LTL), express delivery and multimodal transportation. Additionally, it provides rail services and freight forwarding, project logistics, liquid logistics along with 3PL services. Further, the Company offers Warehouse Management Systems (WMS) to ensure optimal inventory management and storage. It caters to a diversified, Pan-India B2B customer base across the FMCG, food and beverage, pharmaceuticals, automotive and consumer goods industries. The Company has established an extensive Pan-India distribution network with over 70 branches, across 19,000+ serviceable pin codes. It operates over 3,000 partner vehicles and has a fleet capacity exceeding 850 owned dry and reefer vehicles. Its integrated logistics capabilities are further bolstered by eight operational rail routes, transporting capacities ranging from 1 to 40 tonnes. The Companys management, route optimisation and real-time operational monitoring to enhance efficiency and visibility through a customer-centric approach.

Key Highlight: 1 Ton to 40 Tonnes Carrying Capacity

Industrial Production Data

Particulars	%
Index of Industrial Production	5.1%
Manufacturing Demand	5.5%

Source: Index of Industrial Production

Comprehensive Logistics Solutions

AVG Logistics provides integrated supply chain solutions through a diversified portfolio covering:

Service	Description
Multimodal Transportation	Integrated Road and rail logistics enabling cost-efficient and reliable nationwide cargo movement.
Warehousing	Technology-driven warehousing and inventory management facilitating scalable storage and optimised delivery.
Value-added Services (VAS)	Co-packing, labelling, inventory management, reverse logistics, e-commerce operations and customised supply chain solutions.
Cold Chain Logistics	End-to-end temperature-controlled transportation and storage for FMCG, pharmaceuticals, dairy and perishables.

Multimodal Transportation

AVG operates as integrated road-rail logistics network to streamline transit, optimise freight costs and enhance supply chain reliability. The Company offers FTL, LTL, dedicated transportation and multimodal solutions, backed by an expanding fleet capacity and strategic rail partnerships. During FY26, the Company further bolstered its multimodal network through fleet additions, thereby promoting greater agility.

Cold Chain Logistics

AVG delivers end-to-end temperature-controlled logistics solutions for FMCG, pharmaceuticals, dairy, food processing and Quick Service Restaurants (QSRs). Equipped with modern refrigerated vehicles, GPS-enabled fleet monitoring and stringent operating protocols, the Company ensures product integrity across the supply chain while ensuring reliable delivery throughout the supply chain.

Warehousing

The Company operates over 7.40 lakh sq. ft. of warehousing area across strategically located facilities in India, thereby providing dedicated and collaborative solutions. Integrated WMS, inventory visibility and value-added services including sorting, labelling, packaging and cross-docking enable efficient inventory management while optimising delivery timelines.

Technology-enabled Logistics

Digital capabilities including WMS, fleet tracking, shipment visibility and real-time monitoring are pivotal to the Companys operations. They are instrumental in improving operational efficiency, enhancing customer visibility through data-driven supply chain management.

Value-added Services

Beyond transportation and warehousing, AVG offers:

Service	Description
Labelling and assembly
Reverse logistics
Last-mile distribution
Co-packing and packaging
Inventory management
E-commerce fulfilment
Customised supply chain solutions

These services enable customers to effectively optimise costs while ensuring operational excellence through streamlined logistics operations.

Strategic Expansion & Financial Performance

Key Operational Metrics

Metric	Value
Total warehousing area	7,40,571 sq.ft.
Annually Efficient rail cargo transport	2.25+ Lac Tons
Digital Branches	70+
Vehicles	3,000+
Operating daily	1,200+
Owned trucks and reefers	850+

Strategic Expansion

During FY 26, AVG strengthened its market presence by securing new contracts across the FMCG, steel, cement and chemical sectors while expanding its logistics infrastructure and multimodal capabilities. The acquisition of Kaizen Logistics further expanded regional presence through enhanced capabilities, thereby promoting operational scalability. The Company is well positioned for long-term growth through consistent investments in fleet expansion, warehouse infrastructure and green logistics initiatives.

Financial Performance

AVG Logistics demonstrated robust financial performance in FY 2025-26. The Companys revenue and profitability registered steady growth, reinforcing our commitment to deliver long-term value through consistent operational excellence.

Particulars	FY 2025-26	FY 2024-25	Y-o-Y Change
Revenue from Operations	55,741	55,152	1.07%
EBITDA	11,245	9,841	14.27%
EBITDA Margin (%)	19.3%	17.84%	8.18%
Profit Before Tax (excluding exceptional items, share of profit of associates and tax)	3,445.52	2,917.37	18.10%
PBT Margin (%) (excluding exceptional items, share of profit of associates and tax)	5.9%	5.29%	11.53%
Share of (loss)/profit from associates	(0.01)	(0.08)	NA
Exception Item	N/A	-	NA
Profit Before Tax (in ? Lakhs)	3,446	2,917	18.13%
PBT Margin (%)	5.9%	5.29%	11.53%
Profit After Tax (in ? Lakhs)	2,617.21	2,133	22.7%
PAT Margin (%)	4.70%	3.87%	—
Earnings Per Share (Rs)	17.38	15.01	15.79%
Debt Equity Ratio (times)	0.67	0.42	59.5%
Current Ratio (times)	1.97	1.77	11.2%

The Companys Revenue from Operations increased by 1.06% and was estimated at ?55,741 lakh in FY 2025-26 as compared to ?55,152 lakh in the previous year. The growth indicates sustained demand across the Companys integrated logistics portfolio, driven by elevated business volumes, multimodal transportation expansion and strategic expansion across key industry verticals.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) augmented from ?9,841 lakh to ?11,245 lakh registering a 14.27% growth. The improvement was primarily propelled by enhanced operational efficiency, enhanced fleet utilisation, stronger performance from value-added logistics services and disciplined cost management across the Companys operations.

The EBITDA margin improved to 19.3% in FY 2025-26 from 17.84% in the previous fiscal year, indicating an expansion of 146 basis points. The margin improvement enhances business operations by leveraging capacities and capabilities while prioritising productivity, performance and cost optimisation.

During the year under review, Profit Before Tax (PBT), excluding exceptional items, share of profit of associates and tax, experience a 17.2% growth, augmenting from ?2,917.37 lakh to ?3,445.52 lakh. Consequently, the corresponding PBT Margin improved to 5.9% from 5.29%, representing an increase of 61 basis points. The growth was promoted by enhanced operating profitability and efficient cost management across business segments.

Profit Before Tax (PBT) including the share of profit/loss from associates and exceptional items, was approximated at ?3,446 lakh in FY 2025-26 as compared to ?2,917 lakh in the previous year registering a 18.7% growth.

Profit After Tax (PAT) for recorded at ?2,617.21 lakh, as compared to ?2,133 lakh in the previous fiscal year. The PAT Margin was estimated at 4.70% compared to 3.87% in the previous year. The growth was driven by robust performance and enhanced profitability across the Companys core logistics businesses.

Operational Performance & Outlook

2014-25, indicating favourable shareholder profitability.

The Debt-to-Equity Ratio expanded to 0.67 times from 0.42 times as compared to the previous fiscal year. Progress was predominantly facilitated by additional borrowings undertaken to promote fleet expansion, infrastructure development and additional growth initiatives while maintaining a resilient capital structure.

In FY 2025-26, the Current Ratio improved from 1.77 times and was registered at 1.97 times demonstrating robust liquidity and enhanced ability to address short-term requirements through working capital optimisation.

The Company delivered a resilient financial performance reinforced by steady revenue growth, strategic operating margin expansion and improved profitability. Sustained investments in multimodal logistics, warehousing infrastructure, technology integration and operational efficiency have positioned the Companys to capitalise on emerging opportunities while delivering long-term value.

Disclosure of Accounting Treatment

While in the preparation of financial statements, the treatment that has been prescribed in the Accounting Standards has been followed to represent the facts in the financial statement in a true and fair manner.

Operational Performance

During FY 2025-26, AVG Logistics bolstered its operational capabilities by strategically expanding its integrated logistics network while enhancing service efficiency across transportation, warehousing and multimodal logistics. The Company prioritised asset optimisation, technology adoption and customer-centric execution, enabling reliable service across diverse industry segments including FMCG, automotive, pharmaceuticals, retail, chemicals and industrial goods. The multimodal logistics business gained further traction with an expanding rail network, thereby enhancing cost efficiency while minimising transit time for long-haul cargo movement. Additionally, the Company accelerated its warehousing operations through greater capacity utilisation while leveraging WMS, GPS-enabled fleet tracking, Internet of Things (IoT)-based monitoring and digital control systems to ensure inventory visibility and enhance operational productivity. The Company progressively invested in green logistics through Carbonite Logistics, a joint venture initiative. This boosted the transition towards LNG-powered transportation in alignment with evolving customer requirements and environmental objectives. Disciplined fleet management, optimised route planning and consistent expansion into high-growth sectors further enhanced performance. These transition towards technology-driven operations and multimodal integration, strengthened AVG Logistics service capabilities, thereby positioning the Company sustained progress.

Outlook

AVG Logistics Limited is well positioned for strategic expansion in FY 2026-27, driven by expanding multimodal capabilities, sector diversification and technology-led operations. While leveraging business volumes from existing customers, the Company prioritises long-term transportation contracts and greater high-growth sector engagement across steel, cement, chemicals, pharmaceuticals, beverages and industrial operations. The Company will further bolster its integrated logistics platform through the expansion of warehousing infrastructure, cold chain capabilities, liquid logistics and Container Freight Station (CFS) operations. The establishment of Carbonite Logistics Private Limited through a joint venture further reinforces the Companys green logistics initiatives. Through the deployment of LNG-powered vehicles the Company remains dedicated to address the surging demand for low-emission transportation solutions. Investments in digital fleet management, real-time logistics visibility and end-to-end supply chain platforms will optimise operational efficiency while delivering long-term value. In alignment with the Companys Vision 2030 roadmap, AVG Logistics prioritises industrial logistics scaling while strategically expanding its multimodal transportation capabilities, thereby fortifying its domestic supply chain network. Through disciplined capital allocation and strategic partnerships, the Company leverages an asset-efficient growth model to maximise long-term shareholder returns.

SWOT Analysis

Strengths

Area	Details
Integrated Logistics Network Expansion	Robust multimodal capabilities spanning road, rail, warehousing, liquid logistics, cold chain and 3PL services, supported by over 70 branches, 850+ owned vehicles, 3,000+ partner vehicles and 6 Active rail routes.
Diversified Service Portfolio	Expansion into liquid logistics through ISO tank operations, enable the Company to serve a diverse range of industries while minimising dependence on traditional road movement of hazardous material.
Technology-driven Operations	Development of an in-house end-to-end logistics platform, digital fleet management, route optimisation and real-time tracking significantly enhances operational efficiency, customer visibility and service quality.
Strong Customer Relationships	Long-term partnerships and strategic agreements with major FMCG, retail and industrial clients, including transportation contracts with multiple customers ensure stable revenue visibility.
Sustainable Logistics Prioritisation	Adoption of LNG-powered transportation through the Carbonlite Logistics Private Limited joint venture and the transition towards green logistics solutions reinforce the Companys ESG operations.

Weaknesses

Area	Details
Working Capital Intensive Operations	Expansion in warehousing, fleet deployment and integrated logistics requires significant capital investment and escalates working capital requirements.
Dependence on Transportation Business	Road transportation consistently accounts for a substantial share of the Companys revenue, thereby exposing profitability to dynamic freight rates, fleet utilisation and operating costs.
Execution Risk in Expansion Projects	Rapid expansion into liquid logistics, digital platforms and emerging industry verticals require disciplined execution and strategic integration to promote favourable returns.
Margin Sensitivity	Investments in emerging business segments and technology platforms may exert short-term margin pressure before scaling effectively.

Opportunities

Area	Details
Advancing Logistics Sector	Increasing manufacturing activity, sustained infrastructure development, e-commerce growth and NLP implementation continue to drive demand for integrated logistics services.
Expansion into Emerging Industry Verticals	Operations across steel, cement, chemicals, pharmaceuticals, beverages, renewable energy and industrial projects promote significant growth opportunities for revenue diversification.
Green Logistics Transition	Greater customer preference for low-emission transportation generates long-term opportunities for LNG, CNG and EV-powered sustainable logistics solutions.
Digital Supply Chain Solutions	Surging adoption of fleet automation, digital logistics platforms and real-time supply chain visibility streamlines operations while delivering long-term value.
Strategic Partnerships and Acquisitions	The Baidyanath joint venture and expansion initiatives through strategic collaborations fortify market presence and accelerate sustained progress.

Threats

Area	Details
Fuel Price and Operating Cost Volatility	Fluctuations in fuel prices, toll charges and maintenance costs can impact transportation margins.
Geopolitical and Trade Uncertainty	Global trade disruptions, geopolitical conflicts and supply chain realignments may disrupt freight movement and subdue industrial demand.
Significant Industry Competition	Competition from organised logistics players and integrated supply chain companies may heighten pricing pressure and customer acquisition costs.
Execution and Integration Risk	Delays in scaling new businesses including liquid logistics, digital platforms and strategic partnerships may impact shareholder returns.
Technology and Cybersecurity Risk	Growing reliance on digital logistics platforms exposes operations to cybersecurity threats and system disruptions.

Risk and Mitigation

At AVG Logistics, risk management is pivotal to ensure seamless operations. Our robust framework integrates comprehensive risk assessment and mitigation strategies to navigate diverse market risks and ensure business continuity. Our key operational risks and mitigation approach has been enlisted in the following section.

Risk	Mitigation
Transitional Damage Risk	Cargo is susceptible to transit hazards including accidents and theft. To effectively counter these risks, the Company insures every vehicle in our fleet. We utilise advanced surveillance and tracking systems to monitor shipments in real time and train drivers on safety protocols, thereby minimising damage or loss vulnerability.
Fluctuating Fuel Price Risk	Volatility in global fuel prices can disrupt logistics operations. AVG Logistics has developed a fuel surcharge system to fuel cost escalation while maintaining profit margins. Freight rates are revised periodically and the reliance on contractual transportation arrangements minimise the direct impact of fuel price fluctuations, thereby ensuring stable pricing.
Green Logistics Transition	Through a joint venture with the Baidyanath Group, the Company aims to expand its LNG-powered fleet to address the surging demand for sustainable logistics. By deploying alternative fuel vehicles under long-term customer contracts, it minimises diesel dependence while reinforcing its position in the evolving green logistics market.
Audit and Reporting Delays	The Company is optimising its audit and financial reporting processes by enhancing internal reviews and improving coordination across branches. It remains committed to maintaining high standards of corporate governance through timely financial disclosures.
Growth Execution Risk	The Company is strategically mitigating execution risk by securing long-term customer contracts prior to expanding its fleet and infrastructure capacities. Additionally, it is investing in logistics assets and technology while maintaining a favourable order pipeline to support its long-term business priorities.
People Risk	Staffing shortages and the employee attrition can disrupt the Companys operations. AVG Logistics implements systemic staff retention strategies, including health insurance policies and recognition programs while maintaining a competitive compensation structure and a positive work environment to promote acquisition and retention.
Technology and IT Risk	Data breaches and network instability pose significant organisational risks. The Company has implemented advanced technology and information security policies to safeguard customer data. Through regular backups and established contingency plans, the Company ensures seamless business continuity in the event of technological disruptions.
Infrastructure Risk	Inadequate transportation infrastructure can decelerate logistics operations. AVG Logistics aligns its infrastructure strategy with national development programs and has established nationwide state-of-the-art warehouses to facilitate efficient and secure cargo handling.
Competition Risk	The logistics industry is highly competitive. The Company leverages its industry experience, operational excellence and robust brand reputation to consolidate its market position, thereby reinforcing reliability and efficiency.
Environmental and Regulatory Risk	The Company is committed to sustainable environmental practices and complies with applicable regulatory measures across its operations. By consistently prioritising the development of eco-friendly vehicles and conducting regular audits, it ensures strict adherence with necessary legal and financial policies.

Sustainability and Social Responsibility

Sustainability is integral to the Companys long-term growth strategy. During FY 2025-26, the Company strengthened its green logistics initiatives through the deployment of dedicated CNG-powered vehicles in collaboration with Nestle India and Ashok Leyland, thereby reinforcing its commitment to lower-emission transportation solutions. Additionally, the Company expanded its multimodal capabilities through its operations in the rail-based liquid logistics segment. Its ISO tank operations enabled secure, efficient and environmentally responsible transportation of bulk liquids. Further, AVG continued to invest in digital fleet management and logistics platforms to optimise route planning, improve vehicle utilisation, enhance operational efficiency and reduce fuel consumption. Beyond environmental initiatives, the Company remains committed to maintaining high standards of safety, regulatory compliance and ethical business practices across its operations. The Company prioritises cleaner mobility, multimodal logistics and technology-driven operational improvements to deliver sustainable value for its stakeholders.

Technology, Human Resource & Internal Control

Technology

Technology remains pivotal to enhance the Companys operational efficiency, visibility and service reliability across the logistics value chain. AVG Logistics remains committed to strengthen its digital capabilities through integrated technology platforms that support real-time shipment tracking, fleet monitoring, route optimisation and data-driven decision-making. The Company continues to leverage digital tools to improve warehouse operations, inventory management and customer responsiveness while enhancing asset utilisation across its multimodal network. As the logistics industry evolves, technologies including cloud-based platforms, Internet of Things (IoT), AI, advanced analytics and automation are recalibrating supply chains, thereby promoting transparency, predictive planning and operational agility. The Company remains committed to evaluating and adopting relevant technologies to optimise process efficiency, enhance customer experience and drive scalability with resilience and operational excellence.

Human Resource

At AVG Logistics we recognise our people as the cornerstone of our operational excellence, driving sustained, long-term progress. Empowered with a workforce of over 500 employees, the Company continues to bolster its talent base while prioritising expansion across multimodal logistics network, warehousing capabilities and integrated supply chain solutions. Through the acquisition of skilled professionals, the Company streamlines its operations across transportation, warehousing, supply chain management, technology and customer service, thereby delivering efficient, reliable and customer-centric logistics solutions across India.

Talent Development and Capability Building

The Company consistently invests in targeted employee training to enhance operational excellence, facilitate technology adoption while adhering to safety standards to ensure customer-centric service delivery. Regular learning programmes equip employees to manage evolving logistics requirements while promoting productivity and superior service quality.

Employee Engagement and Safety

AVG Logistics remains committed to providing a safe, healthy and inclusive workplace. Sustained emphasis on driver safety, workplace well-being and employee engagement initiatives boost productivity through improved retention and operational reliability across its nationwide network.

Technology-Enabled Workforce

Digital platforms, GPS-enabled fleet monitoring, WMS, ERP, CRM and data-driven operational tools empower employees with real-time information, accelerating decision-making capabilities while promoting greater collaboration and enhanced customer responsiveness.

Performance and Growth Culture

The Company remains dedicated to promote a productive and motivated work culture reinforced by transparent evaluation processes, merit-based recognition and leadership development programmes. Through multimodal logistics expansion and green mobility initiatives, the Company remains well positioned to capitalise on emerging growth opportunities while empowering a capable and agile workforce to consistently deliver long-term value.

Internal Control System and their Adequacy

AVG Logistics has established a robust internal control framework designed to support its expanding multimodal logistics operations while ensuring operational efficiency, financial integrity and regulatory compliance. The Companys internal controls are aligned with the scale and complexity of its business and are periodically reviewed to address evolving operational and business requirements. The Company has implemented well-defined policies, standard operating procedures and delegated authority frameworks across its transportation, warehousing and specialised logistics operations. Leveraging digital platforms such as Transport Management Systems (TMS), Warehouse Management Systems (WMS) and real-time fleet monitoring, AVG enhances operational visibility, process standardisation and timely decision-making across its integrated logistics network.

A risk-based internal audit programme, conducted by an independent firm of Chartered Accountants, evaluates the effectiveness of key financial, operational and compliance controls. The findings and recommendations are regularly reviewed by the Audit Committee, which provides oversight of the Companys internal financial controls, risk management practices and governance framework. Corrective actions are implemented in a timely manner to strengthen the overall control environment. The Company continues to enhance its internal control systems through digitalisation, process improvements and continuous monitoring, ensuring efficient operations and prudent financial management. Based on the reviews conducted during the year, the Board is of the opinion that the Companys internal financial controls are adequate and operate effectively, commensurate with the nature and scale of its operations.

Cautionary Statements

The statements in the Management Discussion and Analysis that describe the Companys objectives, projections, estimates, and expectations are "forward looking" as defined by applicable securities laws and regulations. These projections are not guarantees of future performance and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Key factors that could influence the Companys operational results include varying economic conditions that impact demand, supply, and prices in domestic and international markets where the Company operates, changes in government regulations, tax laws, and other statutory modifications, as well as other incidental factors.