Brace Port Logistics Ltd Management Discussions

Management Discussion and Analysis Report

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. Brace Port Logistics L.L.C.-FZ in UAE and AllGlobal Logistics Inc. Associate Company in Canada.

1. Industry Overview- Logistics Sector

Brace Port Logistics Ltd. has continued to consolidate its position as a trusted and emerging player in the port logistics and freight forwarding sector. Amidst globaltrade 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 450 billion by 2027, driven by strong economic growth, rising e-commerce penetration, infrastructure upgrades, and government initiatives such as:

The Indian logistics industry continues to be a key driver of the countrys economic growth, supported by sustained investments in infrastructure, increasing adoption of technology, and various Government initiatives. The sector is witnessing a gradual shift towards organized and integrated logistics service providers, driven by the growing demand for efficient, technology-enabled and cost-effective supply chain solutions. Government initiatives such as the PM Gati Shakti National Master Plan, Sagarmala Programme, Dedicated Freight Corridors (DFCs) and the National Logistics Policy (NLP) continue to strengthen the logistics ecosystem by improving multimodal connectivity, enhancing operational efficiency and reducing logistics costs. These developments are expected to create long-term growth opportunities for the logistics industry in India.

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.

3. Opportunities and Threats Opportunities:

a. Growing 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 port-centric 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. PublicSector Undertaking (PSU) Collaborations:

Collaborations with PSUs for their logistics needs present a huge opportunity for longterm, 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.

Threats:

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: Geopoliticaltensions, 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, 2026, the Company achieved a revenue of Rs 6,162.67 Lacs from port logistics operations, registering a decline of 27.99% over the previous year.

5. Financial Performance with respect to Operational Performance

a. Standalone Financial Performance:

For the financial year ended 31st March, 2026, Brace Port Logistics Ltd. reported Standalone Revenue from Operations of Rs6,162.67 Lakhs as against Rs8,558.20 Lakhs in the previous financial year, reflecting a decline of 27.99%. The decline in revenue was primarily attributable to lower cargo handling volumes, subdued export-import (EXIM) activity, increased competitive pressures, and moderation in customer demand during the year. Despite the decline in revenue, the Company continued to focus on operational efficiency, cost optimization and strengthening customer relationships to support sustainable long-term growth.

The Standalone Profit After Tax (PAT) for the year stood at Rs 448.71 Lacs, marking an improvement in profitability driven by higher operational efficiency, optimized resource utilization, and effective cost control measures.

The Companysfocus 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 Rs6,162.67 Lakhs as against Rs8,558.20 Lakhs in the previous financial year, reflecting a decline of 27.99%. The decline in revenue was primarily attributable to lower cargo handling volumes, subdued export-import (EXIM) activity, increased competitive pressures, and moderation in customer demand during the year. Despite the decline in revenue, the Company continued to focus on operational efficiency, cost optimization and strengthening customer relationships to support sustainable long-term growth.

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

The brief financial results are as under:

(Amount in Lacs)

	Standalone		Consolidated
The brief financial results are as under	March 31, 2026	March 31, 2025	March 31, 2026	March 31, 2025
Net Sales/lncome from Business Operations	6162.67	8558.20	6162.67	8558.20
Add-Other Income	159.19	93.65	159.19	93.65
Total Income	6321.86	8651.85	6321.86	8651.85
Less: Expenses	5706.71	7725.93	5712.51	7733.46
Less: Exceptional Items	3.12	-	3.12	-
Profit before tax	612.03	925.92	606.23	918.39
Less: Current Income Tax	183.79	241.77	183.79	241.77
Less: Deferred Tax expense/ (income)	(20.47)	(1.96)	(20.47)	(1.96)
Profit for the Period	448.71	686.11	442.91	678.58
Total Other Comprehensive income/ loss for the year	1.14	0.71	1.01	0.78
Total Comprehensive income/ loss for the year	449.85	686.82	443.92	679.36
Earnings per share (Basic) in Rs	3.97	6.81	3.92	6.74
Earnings per Share (Diluted) in Rs.	3.97	6.81	3.92	6.74

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.

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 31,2026 on consolidated and stand-alone basis is 25.

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. Growth 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-11 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

Ratio	March 31, 2026	March 31, 2025	% change	Reasons
Current ratio	9.63	9.29	3.66%	NA
Debt-equity ratio	0.01	0.01	(37.27%)	The movement in current year is on account of disproportionate decrease in borrowings.
Debt Service Coverage ratio	4.58	10.50	(56.41%)	The movement in current year is on account of disproportionate decrease in profit.
Return on equity ratio	10.86	25.69	(57.72%)	The movement in current year is on account of disproportionate decrease in profit.
Trade receivable turnover ratio	6.59	5.92	11.28%	NA
Trade payable turnover ratio	16.83	9.14	84.18%	The movement in current year is on account of disproportionate decrease in purchases.
Net capital turnover ratio	1.86	2.42	(23.07%)	NA
Net Profit ratio	7.28	8.02	(9.18%)	NA
Return on capital employed	14.54	23.85	(39.03%)	The movement in current year is on account of disproportionate decrease in earnings before interest and taxes.
Return on Investment	6.40	4.23	51.21%	The movement in current year is on account of disproportionate increase in investment in fixed deposits.

 

By order of the Board of Directors
BRACE PORT LOGISTICS LIMITED
SACHIN ARORA	RISHI TREHAN
Managing Director	Whole Time Director
DIN:08952681	DIN: 08952682
	Place: New Delhi
	Date: 29.08.2026