Credent Connect N Care Ltd Management Discussions

You should read the following discussion in conjunction with our restated financial statements attached in the chapter titled "Financial Information of the Company" beginning on page 173. You should also read the section titled "Risk Factors" on page 21 and the section titled "Forward Looking Statements" on page 20 of this Red Herring Prospectus, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated financial Statements. Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor dated July 31, 2025 which is included in this Red Herring Prospectus under "Financial Statements ". The Restated Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelvemonth period ended March 31 of that year.

BUSINESS OVERVIEW

Our company is a healthcare services provider engaged in delivering integrated logistics, workforce solutions, and technology- enabled support to healthcare institutions across India. We provide comprehensive operational and logistics services to diagnostic laboratories, In Vitro Diagnostics (IVD) companies, pharmaceutical companies, clinics, and other healthcare enterprises through end-to-end solutions.

Our offerings majorly include home sample collection through trained phlebotomists; Operations & Supply Chain Services through stationed phlebotomy teams at laboratories and hospitals; deployment of skilled laboratory technicians and paramedical staff for internal operations; and specialized inter-state and intra-state logistics services. Our logistics solutions ensure temperature-controlled and Turnaround time (TAT) sensitive movement of blood samples and other healthcare products.

We commenced our operations in 2015 with small team of field executives and have since expanded into multiple healthcare service verticals, employing 2589 riders as of June 30, 2026. We hold ISO 9001:2015 certification for services covering financial management, strategic management, human resources, marketing, operations and supply chain management. In addition, we are certified under ISO 15189:2022 for medical laboratory and diagnostic imaging services. As on June 30, 2026, we own and operate a fleet of 97 commercial vehicles used for sample transportation and related logistic operations. Our operations are headquartered in Ashok Vihar, Delhi, and we operate through 2 warehouses and 4 branch offices across India, including in Mumbai, Pune, Chennai, and Varanasi.

We provide Business to Business (B2B) Healthcare logistics services that involve the transportation of diagnostic samples from collection points to laboratories and between healthcare facilities & we also provide services to IVD companies for reagent movement from their C&F to labs. Our services cover scheduled pickups and on-demand pickups, with the movement of samples monitored through tracking systems that record transportation timelines and temperature handling conditions. We also provide phlebotomy services through trained personnel, which include home sample collection where phlebotomists visit patients at their residences to collect diagnostic samples.

In addition to its core healthcare support services, the Company provides end-to-end phlebotomy services to diagnostic laboratories, doctors clinics, hospitals, and other healthcare institutions by deploying trained and qualified personnel at client locations. These services enable continuous, accurate, and compliant sample collection operations and are designed to support both routine and high-volume diagnostic requirements, ensuring operational efficiency and adherence to applicable healthcare standards.

We established a dedicated Corporate & Wellness vertical under the brand name C3 Wellness. Through this vertical, the Company undertakes and manages large-scale health camps and corporate wellness programs for corporates and institutions. The scope of services under C3 Wellness includes corporate vaccination programs and basic radiology and diagnostic services, such as ECG, PFT, digital X-ray, eye check-ups, dental check-ups, ENT assessments, doctor-on-arrival (DOA) services, and doctor consultations. In addition, we provide deployment of requisite healthcare manpower, operational coordination, logistics management, and on-ground execution of diagnostic and sample collection activities at designated locations. These programs are customized to meet the specific requirements of healthcare providers and corporate clients, enabling seamless end-to-end execution of preventive healthcare initiatives, employee wellness programs, and diagnostic screening services.

We operate a smart courier aggregation platform, C3 Post, which provides pan-India pin-code coverage for bulk shipping. The platform enables courier aggregation, cash-on-delivery (COD) reconciliation, and cold-chain logistics. We support the transportation of diagnostic samples, medical supplies, and related consignments, including temperature-controlled and time- sensitive shipments for healthcare and diagnostic service providers.

In a strategic move to expand capabilities, the company acquired shares of Credent Healthcare Private Limited from its shareholders pursuant to a share purchase agreement, making it a material subsidiary effective from April 02, 2025, and subsequently, acquired the remaining shares, resulting in it becoming a wholly owned subsidiary on October 08, 2025. This acquisition will create significant synergies for the company, enabling us to expand our operational capacity and better meet the evolving needs of our clients. It also enhances our market presence and aligns with our long-term growth objectives. For year ended March 31, 2026, our consolidated revenue from the sale of services stood at Rs. 21,416.18 lakhs of which Logistic Services, Operations & Supply Chain Management, HealthCare Services and others contributed 25.26%, 27.67%, 43.04% and 4.03%, respectively. Further, we have acquired two additional companies i.e. Credent Team Private Limited and Alltrak Technologies Private Limited, on December 26, 2025 and February 26, 2026 respectively.

Our visionary promoters, Chairman and Managing Director, Tarun Sharma and our Whole Time Director & Chief Financial Officer, Karan Sharma have over 12 years and 9 years of experience each in the logistics industry. Their experience helps to give us an advantage of industry knowledge, maintaining good relationship with clients and making better decisions. The vision and growth strategies of our company have been shaped by their expertise, which has guided our approach to navigating market challenges and seizing new opportunities.

As part of its healthcare logistics and support services business, we have developed and maintained relationships with a wide network of diagnostic laboratories across India. The number of laboratories associated with us has increased over the years, reflecting the expansion of its service network, client base and geographical reach. As of March 31, 2024, March 31, 2025 and March 31, 2026, we have associated with 1675, 2256 and 2,530 laboratories, respectively.

Key Performance Indicators of our Company

The following table sets forth certain key performance indicators of the company as per the audited financial information for the fiscal year 2026, 2025 and 2024

Key Financial Performance	FY 2025-26	FY 2024-25	FY 2023-24
Revenue from Operations (1)	21,416.18	7,794.26	7,573.32
EBITDA (2)	2,846.36	499.48	429.63
EBDITA Margin (%) (3)	13.29%	6.41%	5.67%
PAT (4)	1,844.78	224.67	266.44
PAT Margin (%) (5)	8.61%	2.88%	3.52%
ROCE (%) (6)	40.00%	16.96%	20.00%
ROE (%) (7)	61.81%	15.20 %	21.62 %
Net worth (8)	4,379.07	1,590.27	1,365.60

Notes:

(1 Revenue from operation means revenue from operating activities.

(2 EBITDA means Earnings before interest, taxes, depreciation and amortization expense, arrived at by obtaining the profit before tax/ (loss) for the year and adding back interest expenses, depreciation and amortization and impairment expense and reducing other income, and after eliminating non-operating expenses and the effect of extra ordinary and exceptional items.

(3) ‘EBITDA Margin is calculated as EBITDA as a percentage of revenue from operations.

(4) pat represents total net profit after tax for the year attributable to owners of the company.

(5) ‘pat Margin is calculated as PAT attributable to owners of the company divided by Revenue from Operations.

(6) ROCE is calculated as EBIT divided by capital employed where (i) EBIT means PAT + Tax Expenses + Interest Cost (ii) Capital employed means Net worth + total current & non-current borrowings + DTL-DTA as appearing in financial statements.

(7 ROE is calculated as PAT attributable to owners of the company as divided by Average Shareholders Equity.

(8 Net Worth = Equity Share Capital + Reserve and Surplus (including surplus in the Statement of Profit & Loss) - Preliminary Expenses to the extent not written-off.

Explanation for KPI metrics

KPI	Explanations
Revenue from Operations	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps assess the overall financial performance of our Company and size of our business.
EBITDA	EBITDA provides information regarding the operational efficiency of the business.
EBITDA Margin (%)	EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business.
PAT	Profit after tax provides information regarding the overall profitability of the business.
PAT Margin (%)	PAT Margin (%) is an indicator of the overall profitability and financial performance of our business.
ROE (%)	ROE provides how efficiently our Company generates profits from shareholders funds.
ROCE (%)	ROCE provides how efficiently our Company generates earnings from the capital employed in the business.
Networth	Net worth is used by the management to ascertain the total value created by the entity and provides a snapshot of current financial position of the entity.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of "Statement of Significant Accounting Policies", please refer to Annexure IV & Annexure V of Restated Financial Statements beginning on page 173 of this Red Herring Prospectus.

Factors Affecting our Results of Operations

1. General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;

2. Changes in customer demand;

3. Increased competition in Healthcare logistics industry;

4. Factors affecting Healthcare Logistics Industry;

5. Failure to successfully upgrade our product portfolio, from time to time;

6. Any change in government policies resulting in increases in taxes payable by us;

7. Our ability to retain our key managements persons and other employees;

8. Changes in laws and regulations that apply to the industries in which we operate.

9. Our failure to keep pace with rapid changes in technology;

10. Our ability to grow our business;

11. Our ability to make interest and principal payments on our existing debt obligations and satisfy the other covenants contained in our existing debt agreements;

12. General economic, political and other risks that are out of our control;

13. Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

14. Companys ability to successfully implement its growth strategy and expansion plans;

15. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate;

16. Inability to successfully obtain registrations in a timely manner or at all;

17. Occurrence of Environmental Problems & Uninsured Losses;

18. Conflicts of interest with affiliated companies, the promoter group and other related parties;

19. Any adverse outcome in the legal proceedings in which we are involved;

20. Concentration of ownership among our Promoter;

21. The performance of the financial markets in India and globally;

22. Global distress due to pandemic, war or by any other reason.

Discussion on Result of Operations

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the financial years ended on March 31, 2026, March 31, 2025 and March 31, 2024.

Particulars	March 31, 2026	% of Total Income	March 31, 2025	% of Total Income	March 31, 2024	% of Total Income
	Consolidated		Standalone		Standalone
Revenue from Operations	21,416.18	99.88%	7,794.26	99.63%	7,573.32	99.63%
Other Incomes	26.55	0.12%	29.22	0.37%	28.37	0.37%
Total Income	21,442.73	100.00%	7,823.49	100.00%	7,601.69	100.00%
Expenses:
(a) Cost of Material & Services Consumed	7,318.47	34.13%	2,770.79	35.42%	2,122.89	27.93%
(b) Changes in inventories of Stock in trade	-	-	-	0.00%	-	0.00%
(c) Employee Benefit Expenses	8,460.82	39.46%	2,717.19	34.73%	3,578.45	47.07%
(d) Finance Cost	138.15	0.64%	94.77	1.21%	52.75	0.69%
(e) Depreciation and Amortisation Expenses	310.55	1.45%	137.78	1.76%	51.29	0.67%
(f) Other Expenses	2,755.46	12.85%	1802.26	23.04%	1,437.22	18.91%
Total Expenses (a to f)	18,983.44	88.53%	7,522.78	96.16%	7,242.61	95.28%
Profit/(Loss) Before Exceptional & extraordinary items & Tax	2,459.29	11.47%	300.71	3.84%	359.08	4.72%
Extra-Ordinary Item	-	-	-	0.00%	-	0.00%
Profit/(Loss) Before Tax	2,459.29	11.47%	300.71	3.84%	359.08	4.72%
Tax Expense
a) Net Current Tax	637.02	2.97%	86.13	1.10%	99.05	1.30%
b) Deferred Tax	-22.51	-0.10%	-10.08	-0.13%	-6.40	-0.08%
Restated Profit for the Period	1,844.78	8.60%	224.67	2.87%	266.44	3.51%
Profit/(Loss) attributable to Minority Interest	-	-	-	-	-	-
Profit attributable to Parent Equity Shareholders	1,844.78	8.60%	224.67	2.87%	266.44	3.51%

Revenue from operations:

Revenue from operations mainly consists of revenue from Logistics Services, Operations and Supply chain management, Healthcare services, Marketing Services, IT Services, Professional Services, Corporate & Wellness Camp and Sale of IT software.

Other Incomes

Other income comprises of Interest Income on Fixed Deposits, interest income on loan to body corporates, rent income, Interest on income tax return and Miscellaneous Income.

Total Expenses:

Total expenses consist of Cost of Material & Services Consumed, Employee Benefit Expenses, Finance cost, Depreciation and Amortisation Expenses and Other Expenses.

Cost of Material & Services Consumed

Cost of Material & Services Consumed primarily comprises of Purchase of goods, Contractual & Sub-contractual expenses, Conveyance, Camp & collection expenses, Vehicle Running Expenses, Professional Services, Insurance of Vehicle, Logistics Expenses and Testing Charges.

Employee benefits expense:

Employee benefits expense primarily comprises of Salary and Wages, Director Remuneration, Provident Fund & ESIC, Gratuity and staff welfare expenses.

Finance Costs:

Our Finance cost includes Interest expense and Other Borrowing cost.

Depreciation and Amortization Expenses:

Depreciation and Amortization Expenses include Depreciation on Property Plant & Equipment and Amortization on Intangible Assets which further comprises of depreciation on Building, Plant & machinery, Office Equipment, Furniture & Fixture, Computer and Vehicle and Amortization on Software.

Other Expenses:

Other Expenses comprises of Rent paid, Audit Fees, Business Promotion Expenses, Insurance Charges, travelling expenses, Conveyance expenses, office expenses, Repair & maintenance, Uniform expenses, ROC filing fees, IT expenses, Telephone Expenses, provision for CSR, Printing & Stationary, Electricity charges, Bad Debts, Professional & Legal fees, Bank charges, GST Reversal, Director sitting fees, festival expenses and Miscellaneous expenses.

FINANCIAL YEAR 2026 COMPARED TO FINANCIAL YEAR 2025

Total Income:

The total income for FY 26 stood at Rs. 21,442.73 lakhs as compared to Rs. 7,823.49 lakhs in FY 25 resulting in increase by 174.08 %. The main reason for increase was due to acquisition of 3 subsidiaries during the year by the company resulting in increase in revenue from operations from Rs. 7,794.26 lakhs in FY 24 to Rs. 21,442.73 lakhs in FY 25.

Revenue from Opeations

During the FY 26, revenue from operations of the company stood at Rs. 21,416.18 lakhs as compared to Rs. 7,794.26 lakhs in FY 25, resulting in increase by 174.77%. The main reason for this increase is due to increase in (i) Revenue from logistics services from Rs. 5,042.15 lakhs to Rs. 5,410.66 lakhs in FY 26 resulting in increase by 7.31%, (ii) Revenue from Operations and supply chain management from Rs. 1,014.42 lakhs in FY 25 to Rs. 5,338.30 lakhs for FY 26 resulting in increase by 426.24%, (iii) Revenue from Healthcare services from Rs. 949.20 lakhs for FY 25 to Rs. 9,218.18 lakhs for FY 26 resulting in increase by 871.15%,(iv) revenue from marketing services from Rs. 510.17 lakhs for FY 25 to Rs. 589.76 lakhs for FY 26 resulting in increase by 15.60%,(v) Revenue from IT services from Rs. 200.00 lakhs for FY 25 to Rs. 600.95 lakhs resulting in increase by 200.48% and (vi) revenue from sale of IT software product from Rs. 0.00 lakhs to Rs. 205 lakhs for FY 26 resulting in increase by 100.00%.

Other Income:

During the FY 26, other income of the company stood at Rs. 26.55 lakhs as compare to Rs. 29.22 lakhs in FY 25 resulting in decline by 9.14%. The main reason for decrease in other income was due to (i) decrease in Interest income on loan to body corporates from Rs. 26.00 lakhs for FY 25 to Rs. 23.83 lakhs for FY 26 resulting in decrease by 8.35%.

Total Expenses

The total expense for FY 26 stood at Rs. 18,983.44 lakhs as compare to Rs. 7,522.78 lakhs in FY 25 resulting in increase by 152.35%. The main reason for this increase was due to increase in the volume of business operations of the company and consolidation of subsidiaries of the company.

Cost of Material & Services Consumed

The cost of material & services consumed for FY 26 stood at Rs. 7,318.47 lakhs as compare to Rs. 2,770.79 lakhs for FY 25 resulting in increase by 164.13%. The main reason for this increase is due to (i) increase in Contractual and Sub contractual expenses from Rs. 990.45 lakhs in FY 25 to Rs. 1,233.99 lakhs for FY 26 resulting in increase by 24.59%, (ii) increase in Conveyance expense from Rs. 365.89 lakhs to Rs. 479.37 lakhs resulting in increase by 31.01%, (iii) increase in Camp & Collection expenses from Rs. 11.85 lakhs for FY 25 to Rs. 120.77 lakhs for FY 26 resulting in increase by 919.16%, (iv) increase in Vehicle running expenses from Rs. 45.30 lakhs for FY 25 to Rs. 82.66 lakhs for FY 26 resulting in increase by 82.47%, (v) increase in Professional Services from Rs. 37.03 lakhs in FY 25 to Rs. 57.36 lakhs resulting in increase by 54.90%, (vi) increase in Logistics Expenses from Rs. 748.69 lakhs for FY 25 to Rs. 4,337.64 lakhs for FY 26 resulting in increase by 479.36% and (vii) increase in Testing charges from Rs. 0.00 lakhs for FY 25 to Rs. 566.09 lakhs for FY 26 resulting in increase by 100.00%.

Employee benefits expense:

Employee Benefit expenses for FY 26 stood at Rs. 8,460.82 lakhs as compare to Rs. 2,717.19 lakhs for FY 25 resulting in increase by 211.38%. The main reason for this increase is due to (i) increase in Salary and Wages expenses from Rs. 2,434.97 lakhs in FY 25 to Rs. 7,616.23 resulting in increase by 212.79%, (ii) increase in Director Remuneration from Rs. 17.04 lakhs in FY 25 to Rs. 79.05 lakhs in FY 26 resulting in increase by 363.91%, (iii) increase in Provident fund & ESIC from Rs. 213.15 lakhs in FY 25 to Rs. 681.91 lakhs for FY 26 resulting in increase by 219.92% and (iv) increase in gratuity expense from Rs. 22.43 lakhs for FY 25 to Rs. 45.57 lakhs for FY 26 resulting in increase by 103.17%.

Finance Costs:

Finance cost for FY 26 stood at Rs. 138.15 lakhs as compare to Rs. 94.77 lakhs for FY 25 resulting in increase by 45.77%. The main reason for this increase is due to increase in interest on loan from Rs. 82.10 lakhs in FY 25 to Rs. 102.35 lakhs resulting in increase by 24.67% and increase in loan processing charges from Rs. 4.55 lakhs in FY 25 to Rs. 35.08 lakhs in FY 26 resulting in increase by 670.99%.

Depreciation and Amortization Expenses:

Depreciation and amortization expense for FY 26 stood at Rs. 310.55 lakhs as compare to Rs. 137.78 lakhs for FY 25 resulting in increase by 125.40%. The main reason for this increase was due to increase in Depreciation on Property Plant & Equipments from Rs. 136.95 lakhs for FY 25 to Rs. 300.30 lakhs resulting in increase by 119.28% and increase in Amortisation of Intangible assets from Rs. 0.83 lakhs in FY 25 to Rs. 10.25 lakhs resulting in increase by 1134.94%.

Other Expenses:

Other expense for FY 26 stood at Rs. 2,755.46 lakhs as compare to Rs. 1,802.26 lakhs for FY 25 resulting in increase by 52.89%. The main reason for this increase is due to (i) increase in Conveyance expense from Rs. 1,425.17 lakhs for FY 25 to Rs. 2,261.92 lakhs in FY 26 resulting in increase by 58.71%, (ii) increase in rent paid from Rs. 32.33 lakhs in FY 25 to Rs. 47.19 lakhs in FY 26 resulting in increase by 45.96%, (iii) increase in audit fees from Rs. 0.80 lakhs in FY 25 to Rs. 10.60 lakhs for FY 26 resulting in increase by 1225.00%, (iv) increase in travelling expense from Rs. 26.05 lakhs in FY 25 to Rs. 63.39 lakhs resulting in increase by 143.34%, (v) increase in office expense from Rs. 23.48 lakhs in FY 25 to Rs. 70.96 lakhs in FY 26 resulting in increase by 202.21%, (vi) increase in uniform expense from Rs. 18.18 lakhs in FY 25 to Rs. 27.94 lakhs for FY 26 resulting in increase by 53.69%, (vii) increase in CSR expense from Rs. 0.00 lakhs in FY 25 to Rs. 18.20 lakhs for FY 26 resulting in increase by 100.00%, (viii) increase in Director sitting fees from Rs. 0.48 lakhs for FY 25 to Rs. 16.81 lakhs for FY 26 resulting in increase by 3402.08% and (ix) increase in Miscellaneous Expense from Rs. 6.36 lakhs for FY 25 to Rs. 8.52 lakhs resulting in increase by 33.96%.

Restated Profit before tax:

Profit before tax for the financial year 26 increased to Rs. 2,459.29 Lakhs as compared to profit of Rs. 300.71 Lakhs in the financial year 25. The increase of 717.83% was majorly due to factors as mentioned above.

Restated profit after tax:

Profit after tax for the financial year 26 increased to Rs. 1,844.78 Lakhs as compared to profit of Rs. 224.67 Lakhs in the financial year 25. The increase of 721.11 % was due to factors mentioned above.

FINANCIAL YEAR 2025 COMPARED TO FINANCIAL YEAR 2024

Total Income:

The total income for FY 25 stood at Rs. 7,823.49 lakhs as compared to Rs. 7,601.69 lakhs in FY 24 resulting in increase by 2.92 %. The main reason for increase was due to increase in revenue from operations from Rs. 7,573.32 lakhs in FY 24 to Rs. 7,794.26 lakhs in FY 25.

Revenue from Operations

During the FY 25, revenue from operations of the company stood at Rs. 7,794.26 lakhs as compare to Rs. 7,573.32 lakhs in FY 24 resulting in increase by 2.92%. The main reason for increase in revenue was due to (i) increase in Revenue from Logistics Services from Rs. 2,943.82 lakhs in FY 24 to Rs. 5,042.15 lakhs in FY 25 resulting in increase in this service by 71.28%, (ii) increase in marketing services from Rs. 414.91 lakhs in FY 24 to Rs. 510.17 lakhs in FY 25 resulting in increase by 22.96%, (iii) increase in IT services from Rs. 190.00 lakhs in FY 24 to Rs. 200.00 lakhs in FY 25 resulting in increase by 5.26%, (iv) increase in professional service from Rs. 0.00 lakhs in FY 24 to Rs. 64.27 lakhs in FY 25 resulting in increase by 100% and (v) increase in Corporate & Wellness camp revenue from Rs. 2.58 lakhs in FY 24 to Rs. 14.06 lakhs in FY 25 resulting in increase by 444.96%.

Other Income:

During the FY 25, other income of the company stood at Rs. 29.22 lakhs as compare to Rs. 28.37 lakhs in FY 24 resulting in increase by 3.00%. The main reason for increase in other income was due to (i) Increase in interest on fixed deposit from Rs. 0.38 lakhs in FY 24 to Rs. 0.63 lakhs in FY 25 resulting in increase by 65.79%, (ii) increase in interest income from loan to body corporate from Rs. 25.92 lakhs in FY 24 to Rs. 26.00 lakhs in FY 25 resulting in increase by 0.31% and (iii) increase in interest income on income tax refund from Rs. 1.43 lakhs in FY 24 to Rs. 2.59 lakhs in FY 25 resulting in increase by 81.12%.

Total Expenses

The total expense for FY 24-25 stood at Rs. 7,522.78 lakhs as compare to Rs. 7,242.61 lakhs in FY 23-24 resulting in increase by 3.87%. The main reason for this increase was due to increase in the volume of business operations of the company.

Cost of Material & Services Consumed

The Cost of Material & Services Consumed for FY 24-25 stood at Rs. 2,770.79 lakhs as compared to Rs. 2,122.89 lakhs in FY 23-24 resulting in increase by 30.52%. The main reason for this increase is due to (i) increase in Purchase of goods from Rs. 158.19 lakhs in FY 23-24 to Rs. 569.89 lakhs in FY 24-25 resulting in increase by 260.26%, (ii) increase in Contractual and sub-contractual expense from Rs. 940.13 lakhs in FY 23-24 to Rs. 990.45 lakhs in FY 24-25 resulting in increase by 5.35%, (iii) increase in Vehicle Running expense from Rs. 14.99 lakhs in FY 23-24 to Rs. 45.30 lakhs in FY 24-25 resulting in increase by 202.20%, (iv) increase in Professional services from Rs. 34.64 lakhs in FY 23-24 to Rs. 37.03 lakhs in FY 24-25 resulting in increase by 6.90%, (v) increase in Logistics Expenses from Rs. 368.05 lakhs in FY 23-24 to Rs. 748.69 lakhs in FY 24-25 resulting in increase by 103.42%.

Employee benefits expense:

Employee Benefit expenses for FY 24-25 stood at Rs. 2,717.19 lakhs as compare to Rs. 3,578.45 lakhs in FY 23-24 resulting in decrease by 24.07%. The main reason for decline in this expense is due to (i) decrease in Salary and Wages from Rs. 3,275.89 lakhs in FY 23-24 to Rs. 2,434.97 lakhs in FY 24-25 resulting in decrease by 25.67% and (ii) decrease in Provident fund & esic expense from Rs. 251.45 lakhs in FY 23-24 to Rs. 213.15 lakhs in FY 24-25 resulting in decrease by 15.23%.

Finance Costs:

Finance cost for FY 24-25 stood at Rs. 94.77 lakhs as compare to Rs. 52.75 lakhs in FY 23-24 resulting in increase by 79.66%. The main reason for this increase is due to increase in Interest expense on loan from Rs. 47.50 lakhs in FY 23-24 to Rs. 82.10 lakhs in FY 24-25 resulting in increase by 72.84% and increase in interest on others from Rs. 0.13 lakhs in FY 23-24 to Rs. 8.11 lakhs in FY 24-25 resulting in increase by 6138.46%.

Depreciation and Amortization Expenses:

Depreciation and amortization expense for FY 24-25 stood at Rs. 137.78 lakhs as compare to Rs. 51.29 lakhs in FY 23-24 resulting in increase by 168.63%. The main reason for this increase is due to increase in Depreciation on PPE from Rs. 51.23 lakhs in FY 23-24 to Rs. 136.95 lakhs in FY 24-25 resulting in increase by 167.32% and increase in Amortization on Intangible asset from Rs. 0.06 lakhs in FY 23-24 to Rs. 0.83 lakhs in FY 24-25 resulting in increase by 1283.33%.

Other Expenses:

Other expense for FY 24-25 stood at Rs. 1,802.26 lakhs as compare to Rs. 1,437.22 lakhs in FY 23-24 resulting in increase by 25.40%. The main reason for this increase is due to increase in (i) rent paid from Rs. 15.78 lakhs in FY 23-24 to Rs. 32.33 lakhs resulting in increase by 104.88%, (ii) Business promotion expense from Rs. 5.18 lakhs in FY 23-24 to Rs. 61.86 lakhs in FY 24-25 resulting in increase by 1094.21%, (iii) Insurance charges from Rs. 6.87 lakhs in FY 23-24 to Rs. 13.08 lakhs in FY 24-25 resulting in 90.39%, (iv) travelling expense from Rs. 22.88 lakhs in FY 23-24 to Rs. 26.05 lakhs in FY 24-25 resulting in increase by 13.85%, (v) conveyance expense from Rs. 1,254.74 lakhs in FY 23-24 to Rs. 1,425.17 lakhs in FY 24-25 resulting in increase by 13.58%, (vi) Office expense from Rs. 19.92 lakhs in FY 23-24 to Rs. 23.48 lakhs in FY 24-25 resulting in increase by 17.87%, (vii) uniform expense from Rs. 12.51 lakhs in FY 23-24 to Rs. 18.18 lakhs in FY 24-25 resulting in increase by 45.32%, (viii) IT expense from Rs. 4.28 lakhs in FY 23-24 to Rs. 7.93 lakhs in FY 24-25 resulting in increase by 85.28%, telephone charges from Rs. 19.51 lakhs in FY 23-24 to Rs. 20.93 lakhs in FY 24-25 resulting in increase by 7.28%,

(ix) Printing & Stationary from Rs. 0.87 lakhs in FY 23-24 to Rs. 14.14 lakhs in FY 24-25 resulting in increase by 1525.29%,

(x) electricity charges from Rs. 5.82 lakhs in FY 23-24 to Rs. 9.39 lakhs in FY 24-25 resulting in increase by 61.34%, (xi) bad debts from Rs. 0.00 lakhs in FY 23-24 to Rs. 41.68 lakhs in FY 24-25 resulting in increase by 100.00%, (xii) Professional & legal fees from Rs. 28.99 lakhs in FY 23-24 to Rs. 34.71 lakhs in FY 24-25 resulting in increase by 19.73%, (xiii) GST reversal from Rs. 0.00 lakhs in FY 23-24 to Rs. 24.98 lakhs in FY 24-25 resulting in increase by 100.00%, (xiv) Festival expense from Rs. 3.28 lakhs in FY 23-24 to Rs. 22.96 lakhs in FY 24-25 resulting in increase by 600.00% and (xv) increase in Miscellaneous expenses from Rs. 0.79 lakhs in FY 23-24 to Rs. 6.36 lakhs in FY 24-25 resulting in increase by 705.06%.

Restated Profit before tax:

Profit before tax for the financial year 2024-25 decreased to Rs. 300.71 Lakhs as compared to profit of Rs. 359.08 Lakhs in the financial year 2023-24. The decrease of 16.26% was majorly due to factors as mentioned above.

Restated profit after tax:

Profit after tax for the financial year 2024-25 decreased to Rs. 224.67 Lakhs as compared to profit of Rs. 266.44 Lakhs in the financial year 2023-24. The decrease of 15.68 % was due to factors mentioned above.

Information required as per Item (II)(C)(iv) of Part A of Schedule VI to the SEBI Regulations:

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. Except as disclosed in this Red Herring Prospectus, there are no unusual or infrequent events or transactions in our Company.

2. Significant economic changes that materially affected or are likely to affect income from continuing operations.

There are no significant economic changes that may materially affect or likely to affect income from continuing operations.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 21 of the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 21, 119 and 227 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

5. Segment Reporting

Our business activity primarily falls within a single business segment and therefore we do not follow any other segment reporting

6. Status of any publicly announced New Products or Business Segment

Except as disclosed in the Chapter "Our Business", our Company has not announced any new product or service.

7. Seasonality of business

Our business is not subject to seasonality. For further information, see "Industry Overview" and "Our Business" on pages 107 and 119 respectively.

8. Dependence on single or few customers

During the Fiscal 2026, Fiscal 2025 and Fiscal 2024, our top 10 customers contributed approximately 81.76%, 83.31%, and 87.92% of our revenue from operations respectively. Moreover, our revenue from our top customer constituted 15.76%, 22.43% and 18.70% of our revenue from operations for the financial year ended at March 31, 2026, March 31, 2025 and March 31, 2024 respectively.

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on pages 107 and 119 respectively of this Red Herring Prospectus.

10. Details of material developments after the date of last balance sheet i.e., March 31, 2026

After the date of last Balance sheet i.e., March 31, 2026, the following material events have occurred:

i. Our Company has approved the Audited Financial statements for the financial year ended on March 31, 2026 in the Board meeting dated July 27, 2026.

ii. The Company has approved the Restated Financial Statements for the financial year ending March 31 2026, March 31, 2025 and March 31,2024 in the Board meeting dated July 31,2026.

iii. Our Company has approved the Red Herring Prospectus vide resolution in the Board Meeting dated August 08, 2026.