Brace Port Logistics Ltd Management Discussions

<dhhead-MANAGEMENT DISCUSSION AND ANALYSIS REPORT</dhhead-

Brace Port is a service-based logistics company, comprising of 20 plus trained and experienced professionals. The organization has rich industry. Our aim is to provide highly optimized and customized supply chain solutions to our customers with unified technology systems. It has a wholly owned subsidiary i.e. Braceport Logistics L.L.C.-FZ in UAE.

1. Industry Overview- Logistics Sector

Brace Port Logistics Ltd. (Formerly known as BRACE PORT LOGISTICS PRIVATE LIMITED) has continued to consolidate its position as a trusted and emerging player in the port logistics and freight forwarding sector. Amidst global trade challenges, supply chain disruptions, and rising operational complexities, the Company demonstrated robust adaptability, operational excellence, and a relentless focus on customer-centric services.

A landmark achievement during the year was the successful listing of the Companys equity shares on the NSE Emerge Platform in August 2024, marking a significant milestone in Brace Ports corporate journey. This listing not only strengthened the Companys capital base but also enhanced its credibility and visibility in the logistics ecosystem.

Brace Port is actively working to build long-term partnerships with various entities, focusing on delivering seamless logistics support tailored to their operational needs. The Companys objective is to emerge as a preferred logistics partner to various sectors, ensuring transparency, efficiency, and contributing to national logistics infrastructure development.

With a strong foundation, strategic expansions, and a clear growth roadmap, Brace Port Logistics Ltd. remains poised to scale new heights in the logistics sector in the coming years.

2. Industry Structure and Developments

The Indian logistics industry is an essential pillar of the economy, facilitating the movement of goods across domestic and international markets. The sector is highly fragmented but is steadily moving towards organized players due to rising demand for efficient, technology-driven, and cost- effective logistics solutions.

Indias logistics market is expected to reach more than USD 380 billion by 2026, driven by strong economic growth, rising e- commerce penetration, infrastructure upgrades, and government initiatives such as:

PM Gati Shakti National Master Plan for multimodal connectivity. Sagarmala Project for port-led development. Dedicated Freight Corridors (DFCs) to enhance rail-based logistics. National Logistics Policy (NLP) aimed at reducing logistics cost to 8-10% of GDP The Indian logistics industry is an essential pillar of the economy, facilitating the movement of goods across domestic and international markets. The sector is highly fragmented but is steadily moving towards organized players due to rising demand for efficient, technology-driven, and cost- effective logistics solutions.

Indias logistics market is expected to reach more than USD 380 billion by 2026, driven by strong economic growth, rising e-commerce penetration, infrastructure upgrades, and government initiatives such as:

PM Gati Shakti National Master Plan for multimodal connectivity.

Sagarmala Project for port-led development.

Dedicated Freight Corridors (DFCs) to enhance rail-based logistics.

National Logistics Policy (NLP) aimed at reducing logistics cost to 8-10% of GDP.

The rise of e-commerce, digital supply chains, and increasing emphasis on integrated logistics solutions have accelerated the sectors growth trajectory. Innovations in warehousing, last-mile delivery, real-time tracking, and Al-driven route optimization are reshaping the logistics landscape in India.

However, the sector faces challenges like high operational costs due to fuel price volatility, infrastructure bottlenecks, and regulatory complexities. Companies that can leverage technology, scale operations, and offer end-to-end logistics solutions are expected to thrive in this evolving environment.

Brace Port Logistics Ltd., with its focused approach on port logistics, is well-positioned to capitalize on these growth opportunities, ensuring efficient cargo handling, seamless connectivity, and superior customer service.

a. Crowing Demand for Integrated Logistics Solutions: With the Indian economy moving towards more organized logistics infrastructure, there is a rising demand for end-to-end

integrated logistics services. Companies are preferring single-window logistics partners who can handle port operations, freight forwarding, warehousing, and last-mile delivery seamlessly. Brace Port is well-positioned to capitalize on this trend by offering comprehensive logistics solutions.

b. Government Initiatives & Infrastructure Push: Programs like PM Gati Shakti Master Plan, Sagarmala Project, National Logistics Policy (NLP), and Dedicated Freight Corridors (DFCs) are transforming Indias logistics landscape. These initiatives will enhance port connectivity, reduce turnaround time, and lower logistics costs, presenting significant growth opportunities for portcentric logistics players like Brace Port.

c. Expansion into Air Freight & Multimodal Logistics: With the acquisition of the IATA License, Brace Port has unlocked new business avenues in the air cargo segment. The multimodal logistics approach (Sea, Air, Road) will enable the Company to cater to a wider range of customers with time-sensitive cargo requirements, enhancing service capability and revenue diversification.

d. Public Sector Undertaking (PSU) Collaborations: Collaborations with PSUs for their logistics needs present a huge opportunity for long-term, stable business. Brace Ports focus on compliance, transparency, and operational efficiency aligns with PSU expectations, positioning it as a preferred partner.

e. Digital Transformation & Technology Adoption: The logistics sector is undergoing digital transformation with technologies like Al, loT-enabled tracking, automated warehouses, and digital documentation. Brace Ports proactive investment in digital solutions will enhance customer experience, operational control, and supply chain visibility.

f. E-commerce & EXIM Trade Growth: The surge in e-commerce, coupled with increasing export-import activities, particularly through port infrastructure, is expected to drive demand for reliable logistics service providers. Brace Port is strategically positioned to serve this growing demand efficiently.

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a. Intense Competition from Unorganized Sector: The logistics sector remains highly fragmented with numerous small and unorganized players offering services at lower costs. Competing with such players on pricing while maintaining service quality is a continuous challenge.

b. Volatility in Fuel Prices & Rising Operational Costs: Fluctuating fuel prices directly impact transportation and freight forwarding costs. Additionally, rising labor and infrastructure costs can affect profit margins, necessitating continuous efficiency improvements.

c. Infrastructure Bottlenecks & Port Congestion: Despite government initiatives, certain ports and logistics hubs continue to face infrastructure limitations, congestion issues, and bureaucratic delays which can disrupt service schedules and increase turnaround time.

d. Global Economic Slowdown & Trade Disruptions: Geopolitical tensions, supply chain disruptions, and global economic uncertainties can adversely affect trade volumes and logistics demand. Brace Port remains exposed to such external macroeconomic risks.

e. Regulatory Changes & Compliance Burden: The logistics sector is governed by multiple regulatory frameworks. Changes in taxation (GST), customs regulations, environmental norms, or trade policies can impose additional compliance burdens, affecting business operations.

g. Cybersecurity Risks: With increasing reliance on digital platforms for cargo tracking, documentation, and communication, the risk of cybersecurity breaches has also intensified. Robust data security measures and cybersecurity protocols are essential to mitigate these risks.

4. Segment-wise or Product-wise Performance:

The Company is primarily engaged in providing port logistics services, including cargo handling, transportation, and warehousing solutions. For the year ended 31st March, 2025, the Company achieved a revenue of ^ 8558.20 Lacs from port logistics operations, registering a growth of 55.59% over the previous year.

a. Standalone Financial Performance:

For the financial year ended 31st March, 2025, Brace Port Logistics Ltd. has reported a Standalone Revenue from Operations of ^8,558.20 Lacs, reflecting a significant growth of 55.59% over the previous years revenue of ^5,500.43 Lacs. The robust growth in revenue is primarily attributed to increased cargo volumes handled at ports, expansion into air freight services post IATA certification, and onboarding of new clients in the EXIM (Export-Import) segment.

The Standalone Profit After Tax (PAT) for the year stood at ^ 686.11 Lacs, marking an improvement in profitability driven by higher operational efficiency, optimized resource utilization, and effective cost control measures.

The Companys focus on integrating digital solutions in cargo tracking, streamlining documentation processes, and adopting multimodal logistics strategies has led to enhanced service delivery and customer satisfaction, resulting in repeat business from key clients.

b. Consolidated Financial Performance:

On a consolidated basis, including the performance of its subsidiaries, the Company achieved a Total Revenue of ^ 8,558.20 Lakhs during FY 2024-25, which represents a growth of 55.59% over the previous years consolidated revenue of ^ 5,500.43 Lacs.

The Consolidated Profit After Tax (PAT) stood at ^ 678.58 Lacs, reflecting the positive impact of strategic collaborations, expanded service offerings, and synergies achieved through subsidiary operations.

The consolidated performance underscores the Companys successful diversification into value- added logistics services, including customs clearance, warehousing solutions, and air freight operations, enhancing its market position as an integrated logistics service provider.

The salient parameters of the financial performance of the Company during the year under review are as under:

6. Risks and Concerns

Dependency on port infrastructure, currency fluctuations and regulatory clearances. Operational risks including cargo damage, delays, and supply chain disruptions. Geopolitical risks impacting global trade. Cybersecurity threats due to increasing reliance on digital platforms.

7. Internal Control Systems and Their Adequacy

The Company has a robust internal control system commensurate with its size and nature of operations. Internal audits are conducted periodically to assess the effectiveness of internal controls, financial reporting processes, and compliance with statutory regulations.

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8. Human Resources

Human capital is a key asset for the Company. Regular training programs, skill development workshops, and employee welfare initiatives are undertaken to enhance productivity and job satisfaction. The industrial relations during the year remained cordial and harmonious the total number of Employees as on March 31, 2025 on consolidated and stand-alone basis is 34.

9. Outlook

With the Indian economy recovering post-pandemic and infrastructure reforms gaining pace, the outlook for the logistics sector remains robust. The Company aims to enhance its service offerings by investing in technology-driven solutions, expanding warehousing capacity, and strengthening strategic partnerships with port authorities and key clients.

Brace Port Logistics Ltd. is confident of sustaining growth momentum by leveraging its operational expertise, customer-centric approach, and expanding footprint in key port locations.

10. Crowth Roadmap & Future Strategy

Looking forward, Brace Port Logistics Ltd. envisions scaling its business by becoming a fully integrated multimodal logistics service provider. The Company aims to strengthen its capabilities across sea freight, air cargo, and inland transport, positioning itself as a one-stop solution provider for clients seeking reliable and cost-effective logistics services.

The management has outlined the following strategic priorities for the coming years:

1. Geographical Expansion: Establishing operational hubs in key port cities and Tier-ll locations to widen the service footprint.

2. PSU & Corporate Partnerships: Deepening engagements with PSUs and large corporates to secure long-term logistics contracts.

3. Digital Transformation: Investing in advanced logistics technologies including real-time tracking systems, Al-based route optimization, and digital documentation workflows.

4. Infrastructure Strengthening: Expanding warehousing capacity near port clusters and modernizing the fleet with technology-enabled vehicles.

5. Sustainability Initiatives: Implementing green logistics practices aimed at reducing carbon footprint and promoting energy-efficient operations.

While external challenges such as global trade uncertainties and supply chain disruptions may persist, the Company is confident that its proactive strategies, customer-centric approach, and robust operational framework will enable it to sustain growth and create long-term value for its stakeholders.

Brace Port Logistics Ltd. is poised to navigate the evolving logistics landscape with resilience and agility, aiming to emerge as a leading player in the Indian multimodal logistics sector.

11. Disclosure of accounting treatment.

The Company has followed prescribed Accounting Standard in preparation of its financial statements in order to give true and fair view of the underlying business transaction.

12. Details of significant changes in key financial ratios and in return on net-worth along with detailed explanations therefore