Caliber Mining and Logistics Ltd Management Discussions

All financial figures in this section for Fiscal 2026 are on a consolidated basis and for Fiscal 2025 are on standalone basis. The two bases are directly comparable at the revenue, earnings and net worth level and financial figures are stated in f lakhs unless otherwise indicated. "Fiscal 2026" refers to the financial year ended March 31, 2026, and other fiscal years are referred to on the same basis. This section should be read together with the Financial Statements and the notes thereto forming part of this Annual Report.

1. Industry Structure and Developments

Coal in Indias energy mix. Coal continues to anchor Indias energy system. It supplied about 56% of the countrys primary energy in calendar 2024, a share that has held between 54% and 57% for a decade, and coal based thermal plants generated roughly 73% of Indias electricity in Fiscal 2025. India is the worlds second largest producer and consumer of coal and holds the fifth largest reserves. Coal mining and coal based power generation together account for about a tenth of industrial production and support 3.6 million jobs, directly and indirectly.

Production is set to grow, not shrink. Raw coal production in India grew at about 6.5% a year over the past decade and is projected to grow at a compound rate of 7.2% between Fiscal 2025 and Fiscal 2030, from 1,048 million tonnes to 1,484 million tonnes. Of the additional 436 million tonnes expected by Fiscal 2030, roughly 294 million tonnes is expected to come from Coal India and its subsidiaries, whose own plan is to reach 1,000 million tonnes, while the Ministry of Coals Vision 2030 targets 1,500 million tonnes nationally. Even as renewables are added faster than any other source and coals share of installed capacity is projected to fall from 45% to 35% by Fiscal 2030, total generation is expected to compound at about 6.8%, so coal based generation is projected to rise in absolute terms from 1,332 billion units to 1,508 billion units and coal demand from 1,219 million tonnes to 1,463 million tonnes. A declining share of a rapidly growing system remains a growing volume.

Overburden is the faster growing line. As mines age and seams deepen, more rock has to be removed to reach each tonne of coal. Indias total overburden removal is projected to increase from 3,003 million cubic metres in Fiscal 2025 to 5,257 million cubic metres in Fiscal 2030, a substantially faster rate than coal production itself. For a contractor paid by the cubic metre this is the most favourable structural feature of the market, and it is the reason the Companys own volume mix has shifted towards overburden.

The contract mining market. The Companys addressable market is not coal but the contract to move coal and the rock above it. The Indian contract mining market grew from Rs27,64,400 lakhs in Fiscal 2024 to Rs29,72,900 lakhs in Fiscal 2025 and Rs32,66,800 lakhs in Fiscal 2026, and is projected to reach Rs66,39,300 lakhs by Fiscal 2030, a compound growth rate of 17.4% from Fiscal 2025 and 19.4% from Fiscal 2026. By Fiscal 2030, overburden removal is expected to account for Rs51,53,000 lakhs, or 78% of that market, and coal extraction for Rs14,86,300 lakhs, or 22%, with Coal Indias mines representing about 85% of the coal portion and 83% of the overburden portion.

Outsourcing intent is rising. Coal India outsourced 63% of its coal production and 89% of its overburden removal in Fiscal 2025, up from 56% and 74% in Fiscal 2020, and these shares are projected to reach 70% and 94% respectively by Fiscal 2030. Outsourced raw coal extraction across India is projected to rise from about 523 million tonnes in Fiscal 2025 to about 888 million tonnes by Fiscal 2030, and contractual overburden removal from 2,154 million cubic metres to 4,312 million cubic metres, effectively doubling. Among the subsidiaries, NCL does not outsource coal mining but outsources about 80% of its overburden removal, while Mahanadi Coalfields, the largest producer, outsources 84% of coal and 94% of overburden. Coal India also plans to expand or open 56 mines across its subsidiaries by Fiscal 2033.

Where the coal is. Odisha produced 26% of Indias coal in Fiscal 2025, followed by Chhattisgarh and Jharkhand. The Company operates today in Maharashtra and Madhya Pradesh and is bidding in Odisha and Jharkhand, where much of the incremental tonnage is expected to be mined.

The Companys place in the market. The Company held less than 1% of the contract mining market in Fiscal 2020. Its share by value rose from about 3.4% in Fiscal 2024 to about 4.8% in Fiscal 2025 and about 5.1% in Fiscal 2026, and its share of Coal Indias total contractual overburden removal rose from 1.9% in Fiscal 2022 to 6.6%, against an internal target of 10%. The barriers to entry in this business are practical rather than legal: a bidder must own or command a fleet and the maintenance capability to keep it running, must fund that fleet before the first contract is awarded, must demonstrate technical experience in coal and overburden, and must satisfy tender selection criteria that vary between subsidiaries and areas. Aggressive bidding to win large contracts, particularly mine developer and operator contracts, is a recognised source of margin erosion in the industry, and the Company has consistently declined to bid below rates at which it can execute.

The demand linkage described above cuts both ways. The Companys growth, results of operations and financial condition are closely tied to end customer demand for contract mining and logistics services, which in turn depends on the macroeconomic factors that drive coal consumption in India and globally. Performance may soften during recessionary periods, or when macroeconomic factors adversely affect consumer and business confidence, consumption levels or the performance of the Companys end customers.

2. Company Overview

Caliber Mining is an integrated mining services operator that manages overburden removal, coal extraction and coal logistics as a single, end to end offering. The Company provides coal extraction, overburden removal, coal loading and unloading, road transportation and coordination of rail transportation, positioning itself as a one stop coal mining and logistics services provider. The Companys mining and overburden removal operations are located in Maharashtra and Madhya Pradesh. The Company does not own any of the mines at which it operates; its largest customers are the mine owning subsidiaries of Coal India Limited ("Coal India" or "CIL"), namely Western Coalfields Limited ("WCL") and Northern Coalfields Limited ("NCL").

Revenue from operations grew by 17.29%, from Rs1,43,040.38 lakhs in Fiscal 2025 to Rs1,67,766.09 lakhs in Fiscal 2026. As of March 31, 2026, the Company operated a fleet of 1,881 vehicles, plant and machinery (comprising 1,781 owned and 100 leased units), including 863 tippers, 64 loaders, 159 excavators and 362 tip trailers. The workforce stood at 5,297 employees as of March 31, 2026, including four employees on retainer. The Companys order book increased from Rs5,66,829.69 lakhs as at March 31, 2026 to Rs9,55,089.08 lakhs as of May 15, 2026.

2.1 Business lines

As on the date of this report, the Companys business comprises the following:

• Coal mining services, which primarily comprise coal extraction and overburden removal on a contractual basis for WCL and NCL, as well as for other private companies.

• Logistics, which primarily comprises loading, unloading and road transportation of coal and iron ore.

• Rake loading, which is the loading of coal onto rail rakes using the Companys machinery.

• Rail coordination services, which primarily involve assisting customers in coordinating the movement of coal by rail on Indian Railways so that supplies remain uninterrupted and in line with their quantity and quality requirements.

• Coal trading, which primarily comprises the buying and selling of coal.

The split of Revenue from operations by type of service for the last two fiscal years is set out below.

Revenue from operations by service type	Fiscal 2026 (Rs lakhs)	% of revenue from operations	Fiscal 2025 (Rs lakhs)	% of revenue from operations
Coal mining services	144,417.52	86.08%	1,15,219.73	80.55%
Logistics	20,867.09	12.44%	23,444.06	16.39%
Rake loading	911.46	0.54%	1,966.57	1.37%
Rail coordination services	32.81	0.02%	818.68	0.57%
Coal trading	1,537.22	0.92%	1,591.34	1.11%
Grand Total	167,766.09	100.00%	143,040.38	100.00%

2.2 Coal mining services

Under its coal mining services business, the Company extracts coal and removes overburden at open cast mines pursuant to mining services contracts with customers who own both the mines and the coal reserves. As on the date of this report, the Company is providing coal extraction and overburden removal services at the following contract sites:

Name of contract site	Location	Description
Hindustan Lalpeth OCM ("Lalpeth- New")	Chandrapur area, Maharashtra	Coal extraction and overburden removal for WCL
Jayant Open Cast Project ("Jayant")	Singrauli, Madhya Pradesh	Overburden removal for NCL
Sasti Expansion OCM ("Sasti") (1)	Ballarpur area, Maharashtra	Coal extraction and overburden removal for CMPL SCR joint venture on behalf of WCL
New Majri UG to OC Mine ("Majri- New")	Majri area, Maharashtra	Overburden removal for WCL
Dudhichua OCP ("Dudhichua")	Madhya Pradesh	Overburden removal for NCL
Gouri Pouni Expansion OCM ("Gouri Pouni-New")	Ballarpur area, Maharashtra	Coal extraction and overburden removal for WCL
Dhoptala (Sasti UG to OC) OCM -2 ("Dhoptala-2 New")	Ballarpur area, Maharashtra	Coal extraction and overburden removal for WCL
Dudhichua OCP -2 ("Dudhichua-2 New")	Madhya Pradesh	Overburden removal for NCL
Jayant Open Cast Project OCP 2 ("Jayant-2")	Singrauli, Madhya Pradesh	Overburden removal for NCL

(1) The customer under the Sash mine contract is the CMPL SCR joint venture, for which the Company provides coal extraction and overburden removal for WCL.

During Fiscal 2026, the Company extracted 4.48 million metric tonnes ("MT") of coal from open cast mines and removed 128.07 million cubic metres of overburden across seven (7) open cast mines.

Annual and average monthly coal extraction by contract site is set out below.

(in million MT)

Contract site	Customer	Fiscal 2026 Annual extraction*	Fiscal 2026 Average extraction per month*	Fiscal 2025 Annual extraction*	Fiscal 2025 Average extraction per month*
Pouni (1)	WCL	-	-	0.65	0.16
Dhoptala (2)	WCL	1.63	0.14	1.73	0.15
Sasti #	WCL	1.73	0.14	2.10	0.18
Lalpeth-New #	WCL	1.00	0.08	1.00	0.08
Gouri Pouni-New #	WCL	0.13	0.13	-	-
Total		4.48	0.49	5.48	0.57

* Extraction as certified by Sandeep H. Mashru, Independent Chartered Engineer.

# Continuing mining contract.

(1) Pouni II OCM WCL ("Pouni") contract is in the final stages of completion, awaiting the final survey and revised estimates, after which a completion certificate is expected to be issued.

(2) Dhoptala OCM ("Dhoptala") contract completed on May 19, 2026.

Overburden removal by contract site is set out below.

Contract site	Customer	Fiscal 2026 (million cubic metres)*	Fiscal 2026 (% of total overburden removal)*	Fiscal 2025 (million cubic metres)*	Fiscal 2025 (% of total overburden removal)*
Pouni (1)	WCL	-	-	0.45	0.42
Sasti #	WCL	24.16	18.87	22.95	21.53
Dhoptala (2)	WCL	6.91	5.39	9.47	8.88
Baranj (3)	KKC Group	-	-	1.79	1.68
Gouri-Pouni (4)	WCL	-	-	4.09	3.84
Lalpeth-New #	WCL	8.19	6.40	7.67	7.20
Majri-New #	WCL	23.89	18.66	15.4	14.45
Jayant #	NCL	48.95	38.22	44.78	42.00
Dudhichua	NCL	13.93	10.88	-	-
Gouri Pouni- New #	WCL	2.03	1.59	-	-
Grand Total		128.07	100.00	106.60	100.00%

* Overburden removal as certified by Sandeep H. Mashru, Independent Chartered Engineer (Government approved valuer).

# Continuing overburden removal contract.

(1) Pouni II OCM WCL ("Pouni") contract is in the final stages of completion, awaiting the final survey and revised estimates, after which a completion certificate is expected to be issued.

(2) Dhoptala OCM ("Dhoptala") contract completed on May 19, 2026.

(3) The customer under the BaranJ mine contract, KKC Group, is a related party of the Company. The contract was completed on February 7, 2025.

(4) Gouri-Pouni contract completed on June 20, 2026.

Overburden removal volumes have grown by 20.14% between Fiscal 2025 and Fiscal 2026, supported in good measure by the Companys sustained investment in vehicles, plant and machinery. As of March 31, 2026, the Company owned 1,781 and leased 100 vehicles, plant and machinery for its mining and logistics operations, including 863 mining tippers, 362 tip trailers, 159 excavators, 64 loaders, 62 bulldozers and 32 graders. Maintenance and preventive maintenance of the fleet is carried out in house, which delivers cost savings and operating efficiencies. For this purpose, the Company operates its own workshops at its headquarters in Chandrapur and at seven (7) of its mining sites.

2.3 Logistics

The Company has been in the logistics business since Fiscal 2016 and has built a one stop logistics solution focused on coal loading, unloading and road transportation. Logistics solutions for iron ore customers were added in Fiscal 2023. Where coal is to be delivered by rail, the Company assists customers by loading coal onto rail rakes and offers coordination services to help meet customer delivery schedules.

Coal and iron ore cargo transported or handled by the Company is set out below.

Cargo particulars	Fiscal 2026	Fiscal 2025
Coal transported by road (MTs)	8.50	12.47
Iron ore transported by road (MTs)	0.07	-
Coal loaded on rakes (MTs)	11.37	22.51

2.4 Customers and order book

The Company served 49 customers in Fiscal 2026 and 53 customers in Fiscal 2025. In each of these years, WCL and NCL were the Companys marquee and largest mining customers. Key logistics customers include KSR Freight Carriers (a related party), GMR Warora Energy Limited and Dhariwal Infrastructure Limited.

The Companys order book (including advance work orders) stood at Rs9,55,089.08 lakhs as of May 15, 2026, of which 95.90% comprised coal mining services and overburden removal services and 4.10% comprised logistics services contracts and work orders. As at March 31, 2026, the order book (including advance work orders) was Rs5,66,829.69 lakhs, of which 93.27% comprised contract coal mining services and overburden removal services and 6.73% comprised logistics services contracts and work orders. The order book represents anticipated revenues from the unexecuted portions of existing contracts and work orders as at a particular date. As at May 15, 2026, the anticipated execution period of current orders and contracts was 32 months to 68 months for mining and overburden removal services contracts and 12 months to 60 months for logistics orders and contracts.

2.5 Leadership

The Company is led by its Promoters, Mohit Satishkumar Chadda, AnujKrishanlal Chadda, Manish Krishanlal Chadda, Rahul Roshanlal Chadda and Priya Anuj Chadda, who bring deep experience and a long standing legacy in the mining and logistics business. Their strategic vision and understanding of the sector have enabled the Company to sustain steady growth in its operating business. They are supported by an experienced team of 297 managers and administration employees (including employees on retainer) as of March 31, 2026.

3. Opportunities and Threats

3.1 Opportunities

Integrated, end to end contract mining and logistics offering. The Company is an integrated contract mining services provider offering overburden removal and coal extraction services alongside logistics solutions, including loading and unloading of coal and iron ore, road transportation, rail rake loading and rail coordination. The Company has actively pursued a number of strategies to improve profitability by serving the entire value chain for its customers and by capturing the economies of its growing scale, including the expansion of its logistics offerings. The addition of logistics solutions for iron ore customers is one such example. By integrating contract mining and logistics services, the Company is able to optimise utilisation of its available plant and machinery capacity and human resources. The resulting cost benefits enable the Company to bid at more competitive rates for new projects, thereby widening its revenue generating opportunities.

A strong position with Coal India and its subsidiaries.

Since most of the coal in India is currently supplied by Coal India, the Company expects to remain reliant on its major customers for the foreseeable future. Given Coal Indias market position, the Company aims to continue expanding its mining business with Coal India and to bid for new contracts and opportunities with WCL, NCL and other Coal India subsidiaries. The Company believes it is well positioned to capture additional projects from Coal India (including its affiliates) because several factors allow its bids to be competitive relative to peers: (i) a geographic advantage over many competitors, with a majority of operations located in areas with significant coal reserves; (ii) substantial experience in the transportation and logistics business, including the handling and management of equipment and labour; and (iii) significant capital investment in plant and machinery, including earth moving equipment, over the last few fiscal years.

A growing and well covered order book. As set out in

Section 2.4 above, the order book grew from Rs5,66,829.69 lakhs as at March 31, 2026 to Rs9,55,089.08 lakhs as of May 15, 2026, with execution periods extending up to 68 months for mining and overburden removal contracts. This provides visibility on revenues over the medium term.

3.2 Threats

Competitive intensity. The Company operates in competitive mining and logistics industries, competing with regional and national companies for major mining contracts, primarily from Coal India and its subsidiaries, and with local, regional and global logistics service providers. Increased competition from organised and unorganised logistics providers may lead to lower revenues, reduced profit margins or loss of market share. Mining contracts are awarded through a lengthy and competitive bidding process, requiring significant time and resources, with no certainty that bids will be accepted or when a new contract will be awarded. The Company competes primarily on service quality, reliability, pricing and its ability to understand evolving industry trends and address customer requirements. Some competitors may have greater financial and technological resources, enabling them to adapt to industry changes, innovate and price competitively through economies of scale. The Company must therefore continuously strengthen its brand, develop new techniques, reduce costs of production and transportation and improve operating efficiencies.

Volatility in diesel prices. Power and fuel expenses, the Companys single largest expense category, are substantially made up of diesel procurement. The Company is therefore exposed to fluctuations in global oil prices. However, in our mining and logistics work orders there are price variation clauses. This is discussed further under Risk Management.

Capital intensity and cost of funding. The business requires substantial and continuing capital investment in fleet, plant and machinery, funded primarily through bank term loans and internal accruals. Interest costs form a material and growing part of expenses. This is discussed further under Risk Management.

4. Segment wise and Product wise Performance

4.1 Reporting segment

The Company is exclusively engaged in the business of providing contract coal extraction and overburden removal services and coal and iron ore logistics solutions. Accordingly, in terms of Ind AS, the Companys business constitutes a single reportable segment. The Company operates primarily in India, derives no revenue from customers located outside India and holds no assets outside India.

Although a single reporting segment for management purposes, the business can be grouped into two broad categories, namely (i) sale of services and (ii) sale of products. Sale of services can be further divided into four service types: coal mining services, coal logistics, rake loading and rail coordination services. Sale of products comprises coal trading only. The Company therefore tracks performance across five business lines: coal mining services, coal logistics, rake loading, rail coordination services and coal trading.

4.2 Revenue by category

Particulars	Fiscal 2026 Amount (Rs lakhs)	% of revenue from operations	Fiscal 2025 Amount (Rs lakhs)	% of revenue from operations
Sale of services	166,228.87	99.08%	141,449.04	98.89%
Sale of products	1,537.22	0.92%	1,591.34	1.11%
Revenue from operations	167,766.09	100.00%	143,040.38	100.00%

4.3 Revenue by service type

Particulars	Fiscal 2026 Amount (Rs lakhs)	% of revenue from operations	Fiscal 2025 Amount (Rs lakhs)	% of revenue from operations
Coal mining services	144,417.52	86.08%	115,219.73	80.55%
Coal logistics	20,867.09	12.44%	23,444.06	16.39%
Rake loading	911.46	0.54%	1,966.57	1.37%
Rail coordination services	32.81	0.02%	818.68	0.57%
Coal trading	1,537.22	0.92%	1,591.34	1.11%
Total revenue from operations	167,766.09	100.00%	143,040.38	100.00%

Sale of services. Revenue from sale of services increased by 17.52% to Rs166,228.87 lakhs in Fiscal 2026 from Rs141,449.04 lakhs in Fiscal 2025, primarily on the back of an increase in mining contracts. Coal mining services revenue rose by 25.34% to Rs144,417.52 lakhs in Fiscal 2026 from Rs115,219.73 lakhs in Fiscal 2025. This growth was partially offset by (i) a 10.99% decrease in logistics services revenue to Rs20,867.09 lakhs from Rs23,444.06 lakhs, (ii) a 53.65% decrease in rake loading services revenue to Rs911.46 lakhs from Rs1,966.57 lakhs, and (iii) a 95.99% decrease in rail coordination services revenue to Rs32.81 lakhs from Rs818.68 lakhs.

Sale of products. Revenue from sale of products comprises solely the coal trading business. It decreased by 3.40% to Rs1,537.22 lakhs in Fiscal 2026 from Rs1,591.34 lakhs in Fiscal 2025, primarily due to a general decrease in market demand for coal.

4.4 Logistics services performance

Revenue from logistics services decreased by 10.99%, from Rs23,444.06 lakhs in Fiscal 2025 to Rs20,867.09 lakhs in Fiscal 2026.

Cargo particulars	Fiscal 2026	Fiscal 2025
Coal transported by road (MTs)	8.50	12.47
Iron ore transported by road (MTs)	0.07	-
Coal loaded on rakes (MTs)	11.37	22.51

4.5 Customer wise revenue

Revenue from operations derived from the top ten customers is set out below.

Customer	Fiscal 2026 Amount (Rs lakhs)	% of revenue from operations	Fiscal 2025 Amount (Rs lakhs)	% of revenue from operations
Northern Coalfields Limited	74,088.07	44.16%	51,968.30	36.33%
Western Coalfields Limited (1)	68,699.01	40.95%	61,443.40	42.96%
KSR Freight Carriers	8,382.82	5.00%	8,313.80	5.81%
GMR Warora Energy Limited	5,535.93	3.30%	7,643.14	5.34%
Dhariwal Infrastructure Limited	3,877.87	2.31%	6,500.75	4.54%
S.M. Hakim	1,630.44	0.97%	-	-
Adani Power Limited	1,348.21	0.80%	1,625.75	1.14%
Auro Enterprises (India) Private Limited	569.89	0.34%	1,313.72	0.92%
Shrihari Coal And Power Private Limited	493.50	0.29%	-	-
Maa Vanijya Udyog Private Limited	453.44	0.27%	23.08	0.02%
Total	165,079.17	98.40%	1,38,831.94	97.06%

(1) Includes revenue from CMPL SCR joint venture, MEC and CMPL Joint Venture and SKC CMPL Joint Venture, for which the Company provides coal extraction and overburden removal for WCL, its largest customer.

In Fiscal 2026 and Fiscal 2025, the top 10 customers contributed 98.40% and 98.72%, respectively, of revenue from operations, and the top 20 customers contributed 99.69% and 99.50%, respectively.

5. Outlook

The Company enters Fiscal 2027 with an order book of Rs9,55,089.08 lakhs (including advance work orders) as of May 15, 2026, of which 95.90% relates to coal mining and overburden removal services, with anticipated execution periods of 32 to 68 months for mining and overburden removal contracts and 12 to 60 months for logistics contracts. This provides a strong foundation for revenue visibility over the medium term.

Given Coal Indias market position, the Company intends to continue expanding its mining business with Coal India and to bid for new contracts and opportunities with WCL, NCL and other Coal India subsidiaries, leveraging its geographic footprint in coal bearing regions, its logistics experience and the significant capital already invested in plant and machinery.

As and when new mining contracts are awarded, the Company will be required to expand its fleet of trucks, equipment and machinery to meet the requirements of each new project. The Company expects to meet its capital investment requirements through a combination of cash flows from operations, short and long term borrowings from banks, and overdraft facilities that are repayable on demand.

Employee costs are semi fixed in nature, and profitability is therefore partly dependent on the Companys ability to spread these costs over a larger number of projects. Employee costs as a percentage of revenue from operations increased from 10.25% in Fiscal 2025 to 11.14% in Fiscal 2026, primarily on account of increased hiring as operations ramped up for newly awarded projects. With the expected expansion in revenue going forward, the Company believes that employee and other operating costs as a percentage of overall revenue will stabilise.

Other than as disclosed in this MD&A and in the Directors Report, there are no new products or business segments that have had, or are expected to have, a material impact on the Companys business prospects, results of operations or financial condition. To the knowledge of the management, and except as disclosed in this Annual Report, there are no known trends or uncertainties that have had, or are expected to have, a material impact on the business or results of operations, and no known factors that may adversely affect the future relationship between costs and revenue.

6. Risk Management

We operate in a dynamic business environment where effective risk management is integral to sustainable growth and long-term value creation. Our risk management framework enables us to identify, assess and monitor key risks across our operations and take appropriate measures to manage their potential impact on our business.

The following section highlights the key risks identified by the Company, their potential implications for our business, the measures undertaken in response to such risks and the capabilities being strengthened to manage them. We continuously review our risk landscape to remain responsive to changes in the operating environment and emerging risks.

6.1 Cost and availability of fuel, power and other inputs

Risk	Power and fuel expenses, the Companys single largest expense category, are substantially made up of diesel procurement. The Company is therefore exposed to fluctuations in global oil prices.
Business Implications	A significant increase in diesel prices would increase power and fuel expenses and, in turn, expenditure and borrowing requirements. Should the Company be unable to absorb or pass on increased power and fuel costs to customers, this could have a material adverse impact on results of operations, financial condition and cash flows.
Our Response	Mining and logistics work orders carry price variation clauses. The Company has not historically hedged, and does not currently hedge, its diesel price risk.
Capability Strengthening	Instead of hedging, the Company typically purchases its diesel requirements in advance directly from refineries, in order to secure competitive rates.

6.2 Capital expenditure and cost of funding

Risk	Substantial capital is required to purchase, maintain and upgrade the trucks, equipment and machinery needed to serve customers. The Company owns a significant number of vehicles, plant and machinery and continues to invest in expanding and upgrading its operating asset base. The Companys capital expenditure increased significantly during Fiscal 2026 compared with the previous year. Finance costs remained a moderate proportion of revenue from operations, while non-current borrowings primarily comprised secured term loans as at March 31, 2026.
Business Implications	An inability to raise sufficient funding on a timely basis, or at all, could compromise the Companys ability to service existing or new projects and adversely affect its business, reputation, results of operations and financial condition. Additional debt financing could increase interest costs and require compliance with additional restrictive covenants.
Our Response	Capital expenditure is funded through a combination of cash flows generated from operations, and long-term borrowings from banks.
Capability Strengthening	A majority of borrowings comprise term loans from banks bearing interest at fixed rates of between 6.77% and 11.05% per annum, limiting exposure to interest rate variability on existing debt and supporting continued access to funding from the Companys banking relationships.

6.3 Operating costs and efficiencies

Risk	As the size and scope of the business expands, optimising operating costs and enhancing operating efficiencies is critical to maintaining competitiveness and profitability. Employee benefit expense, which is semi-fixed in nature, increased during Fiscal 2026 compared with the previous year, primarily due to increased hiring to support the ramp-up of operations for new projects.
Business Implications	Because employee costs are semi-fixed, profitability is partially dependent on the Companys ability to spread such costs over more projects; a slower pace of revenue growth relative to headcount could pressure margins.
Our Response	The Company expects employee and other operating costs, as a percentage of revenue, to stabilise with the expected expansion in revenue going forward. The Company also continues to monitor operating costs and resource utilisation with a view to improving productivity and maintaining cost discipline as its scale of operations increases.
Capability Strengthening	The Company has upgraded its information technology (IT) systems to improve monitoring and management of stores and spares inventory and related consumption. The Company is also focused on strengthening its processes for procurement, inventory management and operational monitoring as its scale of operations increases.

6.4 Competition

Risk	The Company operates in competitive mining and logistics industries. In mining, it competes with regional and national companies for contracts primarily from Coal India and its subsidiaries; in logistics, it competes with local, regional and global providers of varying size and financial strength, some of which have greater financial and technological resources.
Business Implications	Increased competition from organised and unorganised third-party providers may lead to reduced revenues, lower profit margins or loss of market share. Any inability to remain competitive would adversely affect the Companys financial condition and results of operations.
Our Response	The Company competes primarily on service quality, reliability, pricing and its ability to understand evolving industry trends and customer requirements, together with the availability and configuration of trucks, equipment and machinery able to address varying mining and iron ore customer requirements.
Capability Strengthening	The Company continues to strengthen its brand, develop new techniques, reduce costs of production and transportation, and improve operating efficiencies, while participating in competitive bidding processes on the strength of its reputation, experience and technical qualifications.

6.5 Seasonality

Risk	The Companys business is affected by seasonal variations and adverse weather conditions. Operations are sensitive to seasonal changes, and an abnormal rainy monsoon season materially affects the Companys operations.
Business Implications	A materially adverse monsoon or other seasonal disruption could affect business, results of operations and financial condition for the affected period.
Our Response	The Company plans its mining and logistics activities considering seasonal variations and seeks to optimise operations during favourable weather conditions. Lower activity during the monsoon- affected first and second quarters is partially offset by higher activity and revenues during the third and fourth quarters.
Capability Strengthening	The Company continues to strengthen its operational planning and resource deployment capabilities to manage seasonal fluctuations. This includes planning of equipment, manpower, inventory and logistics activities to support efficient operations across varying weather conditions.

6.6 Financial risk management

Risk	The Companys financial assets include investments, loans given, trade receivables, cash and cash equivalents, other bank balances and other financial assets arising directly from its operations, while its financial liabilities comprise borrowings and trade and other payables. The Company is exposed to market risk (including interest rate risk), credit risk and liquidity risk.
Business Implications	Adverse movements in interest rates could affect the future cash flows or fair value of financial instruments; counterparty default on receivables, deposits or other financial instruments could result in a financial loss; and an inability to settle obligations on time, or at a reasonable price, would constitute liquidity risk.
Our Response	The Company has an integrated financial risk management system that proactively identifies and monitors these risks and takes precautionary and mitigating measures, with senior management overseeing and exercising independent control over the entire financial risk process. The finance function undertakes management of cash resources and the borrowing mechanism and ensures compliance with market risk limits.
Capability Strengthening	Credit risk is managed through periodic assessment of counterparties financial reliability and analysis of historical bad debts and receivables ageing; liquidity risk is managed through rolling cash flow forecasts overseen by senior management; and investments in bank deposits carry fixed rates of interest, limiting interest rate sensitivity on those balances.

7. Internal Control Systems and their Adequacy

The Company has in place internal financial controls that are commensurate with the size, scale and nature of its operations. These controls are designed to ensure the orderly and efficient conduct of business, the safeguarding of assets, the prevention and detection of fraud and error, the accuracy and completeness of accounting records, and the timely preparation of reliable financial information. The Board has confirmed, in its Responsibility Statement, that the internal financial controls laid down by the Company were adequate and operating effectively during Fiscal 2026, and the Statutory Auditors have separately reported on the adequacy and operating effectiveness of internal financial controls over financial reporting as part of their audit.

M/s. Abhijit Kelkar & Co., Chartered Accountants, served as Internal Auditors for Fiscal 2026. Significant audit observations and recommendations are summarised for the Audit Committee, deviations are reviewed periodically and compliance is followed through. The Companys vigil mechanism gives personnel direct access to the Chairman of the Audit Committee in appropriate cases, and no personnel have been denied such access. The Secretarial Audit Report for the year contains no qualification or adverse remark, and there were no reservations, qualifications or adverse remarks by the Statutory Auditors in respect of Fiscal 2026 or Fiscal 2025, nor any instance of fraud reported by them under Section 143(12) of the Companies Act, 2013.

Operational control in a geographically dispersed business rests on systems. The Company has implemented enterprise resource planning across procurement, dispatch and accounting, with every branch and site office connected to a central information technology network that provides real time management reporting. The system integrates with maintenance schedules so that service intervals are raised automatically as tasks, and during the year it was extended to improve the monitoring and management of stores and spares inventory and their consumption. GPS trackers on vehicles provide live location data for delivery scheduling, utilisation and route adherence, with daily fleet status reported through the management information system. Billing integrity is protected by measurement at every transfer point: overburden is measured by total station survey jointly with the customer each month, coal extraction is weighed at the Companys five weighbridges, and every logistics consignment is weighed at dispatch and on arrival. Firewalls at the Nagpur and Chandrapur offices and network attached storage at both locations provide backup and disaster recovery, and information technology and cyber security risk is monitored by the Board within the risk management framework.

8. Discussion on Financial Performance with respect to Operational Performance

Revenue from operations comprises revenue from the sale of services (coal mining and logistics services) and the sale of products (coal trading); expenses comprise purchase of stock in trade, changes in inventories of stock in trade, OB removal, excavation and transportation expenses, power and fuel expenses, employee benefits expense, finance costs, depreciation and amortisation, and other expenses. Total income grew 17.21% to Rs1,68,453.28 lakhs in Fiscal 2026 from Rs1,43,722.97 lakhs in Fiscal 2025, driven by new mining contracts and higher volumes, reflecting the increase in revenue from operations by 17.29% to Rs1,67,766.09 lakhs. Supported by the Rs63,539.66 lakhs invested in vehicles, plant and equipment during the year, this operational growth translated into an 18.91% rise in profit before tax to Rs21,217.52 lakhs and a 17.77% rise in profit for the year to Rs15,714.46 lakhs, as summarised below.

(Rs in lakhs, except percentages)

Particulars	Fiscal 2026	Fiscal 2025	Change (%)
Total income	1,68,453.28	1,43,722.97	17.21%
Total expenses	1,46,525.59	1,25,861.97	16.42%
Profit before tax	21,217.52	17,843.75	18.91%
Profit for the year	15,714.46	13,343.02	17.77%
Total comprehensive income for the year	15,749.00	13,324.41	18.20%

Operating costs grew more slowly than revenue on several lines, reflecting improving operating leverage as the Companys own fleet was utilised more intensively: OB removal, excavation and transportation expenses rose only 0.19%, while power and fuel expenses, though up 16.50% in absolute terms, eased as a share of revenue to 46.73% from 47.04%. Employee benefit expense rose 27.48% as headcount grew from 3,686 to 5,297 to support newly awarded projects. Finance costs and depreciation rose 9.83% and 32.04%, respectively, both consequences of the years capital expenditure and the additional borrowings raised to fund it, and the year also carried a one-off exceptional charge of Rs568.42 lakhs relating to gratuity benefits newly extended to fixed-term and contractual employees.

Financial position and capital resources moved in step with this operational expansion. Non-current assets rose 53.76% to Rs1,46,648.63 lakhs as at March 31, 2026, almost entirely the increase in property, plant and equipment as vehicles, tippers, excavators and other machinery were added to service new mining contracts. Total borrowings rose to Rs1,05,761.27 lakhs from Rs65,177.45 lakhs, mainly secured term loans taken to fund the fleet expansion, while net worth strengthened to Rs64,754.31 lakhs from Rs49,005.29 lakhs on the growth in profits. Net cash generated from operating activities rose to Rs41,104.08 lakhs from Rs27,651.63 lakhs, funding a substantial part of the years Rs69,192.19 lakhs of investing outflow, with the balance met through fresh borrowings.

Capital expenditure of Rs63,539.66 lakhs in Fiscal 2026 (Fiscal 2025: Rs17,983.07 lakhs) was incurred primarily on vehicles, plant and equipment to expand the Companys fleet in line with new mining and logistics contracts, and was funded through a combination of cash flows from operations and borrowings from banks. Commitments, contingent liabilities and lease arrangements are set out in the notes to the Financial Statements; the Company does not have any off-balance sheet arrangements, derivative instruments or swap transactions. Except as otherwise disclosed in this Annual Report, there were no unusual or infrequent events or transactions during the year.

9. Material Developments in Human Resources and Industrial Relations

The Companys workforce stood at 5,297 employees as at March 31, 2026 (including four employees on retainer), compared with 3,686 employees as at March 31, 2025. The substantial addition to headcount during Fiscal 2026 was made in anticipation of higher manpower requirements following the award of three new mining contracts. The Promoters are supported by an experienced team of 297 managers and administration employees (including employees on retainer) as of March 31, 2026.

Employee benefit expense for the year was Rs18,683.55 lakhs (11.14% of revenue from operations), against Rs14,655.94 lakhs (10.25%) in Fiscal 2025, reflecting annual salary increments and the increase in headcount. Staff welfare expenses declined by 67.62% to Rs221.39 lakhs from Rs683.82 lakhs, as a result of a decrease in accidental claims. Following the amendment to the Payment of Gratuity Act, 1972, statutory gratuity benefits have been extended to fixed term and contractual employees on a basis equivalent to permanent employees, and the Company has recognised the related obligation in full in Fiscal 2026.

Retention improved markedly. Attrition fell to 5.00% in Fiscal 2026 from 10.00% in each of the two preceding years, and stood at 10% among contractual employees. In a business that competes for operators and mechanics site by site, this is a direct operating advantage, since an experienced excavator operator moves more material per shift and causes less damage to equipment. The maintenance organisation grew alongside the fleet, with mechanics and maintenance staff numbering 397 at the year end against 292 a year earlier, and a further 901 employees working in maintenance and helper roles.

Safety is governed by a dedicated health, safety and environment team within the risk management framework, with the stated objective of becoming a zero accident organisation. Operations at customer owned mines are governed by the Coal Mines Regulations, 2017. All operators hold the required licences. The Company faced no material safety incident or shutdown in Fiscal 2025 or Fiscal 2026.

Industrial relations remained cordial throughout the year. The Company has no registered trade unions and experienced no disruption from labour disputes, strikes or lockouts in Fiscal 2026 or Fiscal 2025. An Internal Complaints Committee is constituted under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, and a policy against sexual harassment applies to all employees; no complaints were received during the year and none were pending at the year end.

10. Key Financial Ratios

(Rs in lakhs, except percentages, days and ratios)

Particulars	Fiscal 2026	Fiscal 2025	Comments
Operating EBITDA	43,067.25	34,953.27	Growth driven by increased scale of operations.
Operating EBITDA Margin	25.67%	24.44%	Improved primarily due to operating leverage as revenue grew faster
PAT Margin	9.37%	9.33%	Broadly stable year-on-year.
Return on Average Equity	27.63%	34.00%	Reflects the larger average equity base following retained earnings growth
Return on Capital Employed	16.58%	20.80%	Reflects higher capital employed for fleet expansion, ahead of full utilisation of newly added assets.
Return on Average Assets	9.03%	10.02%	Reflects the increase in fixed assets from capital expenditure, ahead of full-year revenue contribution.
Asset Turnover Ratio	0.96	1.07	Reflects the increase in the asset base from Fiscal 2026 capital expenditure.
Current Ratio	1.02x	1.05x	Broadly stable; current liabilities grew largely in line with current assets.
Debt/Equity Ratio	1.63x	1.33x	Increase due to additional term borrowings taken to fund fleet expansion.
Net Debt/Operating EBITDA Ratio	2.44x	1.86x	Increase due to higher borrowings in Fiscal 2026 to fund capital expenditure.
Net Worth	64,754.31	49,005.29	Increase on account of retained earnings.
Return on Net Worth	24.27%	27.23%	Reflects the larger Net Worth base following retained earnings growth.
Receivable Days	42 Days	47 Days	Improvement reflects enhanced collection management.
Payable Days	47 Days	29 Days	Increase reflects a new policy of releasing vendor payments adopted in Fiscal 2026.
Inventory Days	42 Days	33 Days	Increase reflects higher stores and spares inventory in line with the growing fleet.
Working Capital Cycle	37 Days	51 Days	Improvement driven by better receivable collection and longer payable terms, partly offset by higher inventory days.

10.1 Significant changes in key financial ratios

In terms of Schedule V of the SEBI Listing Regulations, the key financial ratios that changed by 25% or more as compared with the previous year are Payable Days (47 days against 29 days), Inventory Days (42 days against 33 days), Working Capital Cycle (37 days against 51 days) and Net Debt/Operating EBITDA Ratio (2.44x against 1.86x). The reasons for these movements are given above: the change in vendor payment policy, higher stores and spares inventory in line with the larger plant and machinery base, improved collections, and the increase in term borrowings availed for the purchase of plant and machinery to service new mining contracts.

11. Return on Net Worth

Return on Net Worth was 24.27% in Fiscal 2026 as compared with 27.23% in Fiscal 2025. Profit for the year increased by 17.77% to Rs15,714.46 lakhs, while Net Worth increased to Rs64,754.31 lakhs from Rs49,005.29 lakhs, mainly on account of retained earnings. As the capital base expanded at a faster pace than profit for the year, Return on Net Worth moderated during the year.

12. Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied, on account of factors including, but not limited to, demand for coal and contract mining services in India, the outcome of competitive bidding processes, the cost and availability of diesel and other inputs, changes in interest rates and the availability of funding, the performance of the Companys principal customers, seasonal and weather conditions, and changes in government regulations, tax laws and other statutes. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statement on the basis of subsequent developments, information or events.