Datiware Maritime Infra Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

This section of the Annual Report has been included in adherence to the spirit enunciated in the Code of Corporate Governance approved by the Securities and Exchange Board of India. Though utmost care has been taken to ensure that the opinions expressed by the Management herein contain its perceptions on the important trends having a material impact on the Companys operations, no representation is made that the following presents an exhaustive coverage of all issues related to the same. Further, the discussion herein reflects the perceptions on major issues as on the date of this report and the opinions expressed are subject to change without notice. The Company undertakes no obligation to publicly update or revise any of the opinions or statements expressed in this report consequent to new information, future events or otherwise.

1. Industry Structure and Developments

The Company operates principally in two business segments, namely Fishery/Aquaculture and Shipyard/Ship Building.

The Indian seafood industry continues to have significant potential, supported by domestic and international demand for seafood products. India exported approximately 1.70 million metric tonnes of seafood valued at 62,408.45 crore (US$7.45 billion) during FY 2024-25. Frozen shrimp continued to be the leading seafood export item, with the USA and China being among the major markets. The sector continues to face challenges relating to disease management, climatic conditions, international market conditions, quality requirements and fluctuations in input costs.

The shipbuilding industry in India is also receiving increased policy support. The Government has introduced measures aimed at enhancing domestic shipbuilding capacity, providing financial assistance to Indian shipyards, improving access to maritime financing and encouraging development of greenfield and brownfield shipbuilding facilities. The Governments initiatives are expected to provide opportunities for Indian shipbuilding companies and ancillary industries.

The Companys business is therefore positioned in sectors having long-term growth potential, although the Companys performance remains dependent on market conditions, availability of orders, operational efficiency and the Companys ability to effectively utilise its assets and resources.

2. Opportunities and Threats Opportunities

The global seafood market continues to benefit from increasing awareness of the nutritional and health benefits of seafood. Growth in demand for protein-rich food products provides opportunities for the aquaculture and seafood industry.

The Indian shipbuilding sector is also witnessing increased government support and policy initiatives. The Government has approved significant measures for strengthening domestic shipbuilding capacity and maritime financing, including the Shipbuilding Financial Assistance Scheme and Shipbuilding Development Scheme. These initiatives may create opportunities for shipyards and related businesses.

The Companys shipyard business may benefit from increasing domestic demand for vessels and the Governments focus on promoting indigenous shipbuilding.

Threats

The aquaculture business remains exposed to climatic conditions, disease and viral infections, water quality, availability and cost of inputs and fluctuations in market prices. Natural calamities such as floods and cyclones can adversely affect aquaculture operations.

The shipyard business is exposed to competition from established private and public sector shipyards, fluctuations in raw material and labour costs, availability of skilled manpower, order cycles and project execution risks.

Changes in Government policies, economic conditions, interest rates and general market conditions may also have an impact on the Companys operations and financial performance.

3. Segment-wise / Product-wise Performance

The Company has two reportable business segments, namely Fishery and Shipyard.

Segment Revenue and Results

( in Lakhs)

Particulars	FY 2025-26	FY 2024-25
Segment Revenue
Fishery	0.00	0.05
Shipyard	40.12	39.00
Net Sales / Income from Operations	40.12	39.05
Segment Results before Tax and Interest
Fishery	(7.68)	(14.17)
Shipyard	37.40	36.20
Total Segment Result	29.72	22.03
Less: Interest	(51.29)	(53.40)
Other Unallocable Expenditure, net	(24.24)	(18.94)
Unallocable Income	0.21	4.73
Profit / (Loss) Before Tax	(45.60)	(45.58)

During FY 2025-26, revenue from operations increased marginally to 40.12 lakh from 39.05 lakh in the previous year. The increase was primarily attributable to the Shipyard segment, which recorded revenue of 40.12 lakh as against 39.00 lakh in FY 2024-25.

The Fishery segment recorded no revenue during the year as compared with 0.05 lakh in the previous year. However, the loss from the Fishery segment reduced to 7.68 lakh from 14.17 lakh, indicating an improvement in the segments operating performance.

The Shipyard segment continued to be the principal revenue-generating segment and recorded a segment profit of 37.40 lakh as compared to 36.20 lakh in the previous year.

Accordingly, the aggregate segment result before interest and other unallocable expenditure improved to 29.72 lakh from 22.03 lakh, an improvement of approximately 35%.

4. Outlook

The Company continues to focus on its Shipyard activities and on identifying suitable business opportunities and orders in the shipbuilding sector.

With the increasing policy support for domestic shipbuilding and the Governments initiatives aimed at strengthening Indias maritime and shipbuilding ecosystem, the Company believes that the Shipyard segment has opportunities for growth.

With regard to the Fishery/Aquaculture business, the Company intends to proceed cautiously, considering the risks associated with disease, climatic conditions and operational uncertainties. The Company will continue to evaluate the business environment and take appropriate steps based on operational and commercial considerations.

5. Risks and Concerns

The Companys operations are subject to various business and operational risks, including:

Disease and viral infection risks in aquaculture activities;

Climatic and environmental conditions affecting aquaculture operations; Fluctuations in seafood and marine product prices;

Competition in the shipbuilding industry;

Availability and cost of raw materials and skilled labour; Changes in Government policies and regulations; Interest rate and financing-related risks;

Project execution and order-related risks in shipbuilding activities; and General economic and market conditions.

The Company continues to monitor these risks and take appropriate measures to minimise their adverse impact.

6. Internal Control Systems and their Adequacy

The Companys Internal Financial Controls encompass policies and procedures adopted by the Board for ensuring the orderly and efficient conduct of business, including adherence to its policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

Appropriate review and control mechanisms are in place to ensure that the internal control systems are adequate and operating effectively.

The Companys systems and frameworks include appropriate delegation of authority, operating policies and procedures, IT systems aligned to business requirements, internal audit and review mechanisms, risk management processes and segregation of duties. Documented procedures are followed for key business processes and controls are reviewed from time to time.

7. Discussion on Financial Performance with respect to Operational Performance

During FY 2025-26, the Company recorded Revenue from Operations of 40.12 lakh, as against 39.00 lakh in FY 2024-25, representing an increase of approximately 2.87%.

The Companys Total Income during the year was 40.33 lakh as against 43.73 lakh in the previous year. The decrease in total income was primarily due to lower other income, which declined to 0.21 lakh from 4.73 lakh in the previous year.

The Company incurred a net loss of 45.60 lakh during FY 2025-26 as compared with a net loss of 45.58 lakh in FY 2024-25. Thus, despite improvement in segment-level operating performance, the overall loss remained broadly at the previous years level due to finance costs and other unallocable expenditure.

The Companys finance cost decreased to 51.28 lakh from 53.40 lakh, while depreciation and amortisation expense decreased to 15.27 lakh from 20.64 lakh. Employee benefit expenses increased to 2.98 lakh from 2.51 lakh, while other expenses increased to 16.40 lakh from 12.76 lakh.

The Companys total assets stood at 532.35 lakh as at March 31, 2026, compared with 673.14 lakh as at March 31, 2025. Segment assets comprised 73.27 lakh attributable to Fishery, 101.06 lakh attributable to Shipyard and 358.02 lakh of unallocated assets.

The Companys total segment liabilities stood at 813.60 lakh as at March 31, 2026, compared with 908.79 lakh in the previous year, substantially comprising unallocated liabilities.

8. Developments in Human Resources / Industrial Relations

The Companys business activities in the aquaculture and shipbuilding sectors require appropriately qualified and trained personnel.

During FY 2025-26, employee benefit expenses amounted to 2.98 lakh as compared with 2.51 lakh in FY 2024-25. The Company continues to focus on maintaining adequate human resources commensurate with its operational requirements.

The Company believes that trained and competent human resources are an important factor for sustainable growth and efficient execution of its business activities.

As at 31 March 2026, the Company had 4 employees, comprising 1 female employee, 3 male employees and no transgender employees. The Company maintains cordial industrial relations and continues to focus on developing and retaining competent human resources.

9. Details of Significant Changes in Key Financial Ratios

The following are the key financial ratios disclosed in the financial statements:

Sr. No.	Particulars	FY 2025- 26	FY 2024- 25	Change	Explanation
1	Current Ratio	0.94	1.36	(30.88%)	Decrease primarily reflects the change in the Companys current asset and current liability position.
2	Debt-Equity Ratio	(3.17)	(3.10)	(2.26)	The ratio remained broadly at the previous years level.
3	Debt Service Coverage Ratio	0.11	0.14	(21.42)	Decrease in Finance Cost is main reason for improvement of this ratio
4	Inventory Turnover Ratio	0.00	0.00	No Change	There is no inventory in the Company.
5	Debtors Turnover Ratio	4.28	1.26	239.68%	Fast recovery from receivables led to increase in inventory turnover ratio
6	Net Profit Margin	-113.66%	-116.87%	2.74%	The margin remained broadly at the previous years level.
7	Operating Margin	13.63%	7.92%	72.09%	Decrease in depreciation and financial cost helped to improve operating margin.

Further due to non-operation during the year, certain ratios are either not applicable or not meaningful.

10. Details of Change in Return on Net Worth

The Company continued to incur losses during FY 2025-26. Accordingly, there was no positive return on net worth during the year.

11. Forward Looking Statements

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable laws and regulations. There is no certainty that such forward-looking statements will be realised, although care has been taken in making these assumptions.

Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, Government policies, market conditions, competition, operational risks, availability of resources, climatic conditions, disease-related risks in aquaculture and other factors beyond the Companys control.

The Company undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.

	On behalf of the Board of Directors
	Jayashree Patil	Nachiket Patil
Place: Pune	Managing Director	Director
Date: 29.08.2026	(DIN 02419826)	(DIN 02417598)