Destiny Logistics & Infra Ltd Management Discussions

During FY 2025 26, Indias real GDP grew by a strong 7.7% in the financial year 2025 26 (FY26), outperforming initial government projections. This performance keeps India positioned as the fastest-growing major global economy, powered by solid domestic consumption, public infrastructure spending, and a healthy banking sector.

India is navigating one of its most complex external environments in recent memory. The 2026 Iran war created a simultaneous multi-channel shock energy, fiscal, trade, currency, capital flows, and inflation all triggering together. Emergency government responses (excise cuts, Economic Stabilisation Fund, forex intervention) have provided near-term cushions but cannot fully neutralise a prolonged oil shock.

Indias GDP growth for FY 2026-27 is projected to moderate to a range of 6.6% to 7.2%, cooling slightly from the stronger 7.4% 7.6% pace of the previous fiscal year.

Indias foreign exchange reserves stood at approximately $688 billion to $691 billion at the end of March 2026, providing a strong buffer against external shocks. The Reserve Bank of India (RBI) has continued its calibrated interventions in the forex market through spot and forward positions to manage exchange rate volatility and maintain macroeconomic stability.

As of 31^st March 2026, Indias logistics and construction sectors have demonstrated robust performance, acting as the primary engines of the nations 7.7% GDP acceleration. Driven by aggressive government capital allocations, a structural shift toward digitization, and booming domestic consumption, both sectors have transitioned from post-pandemic recovery into mature, infrastructure-led consolidation.

The Indian construction market reached a valuation of USD 0.79 trillion in early 2026, supported by an expansive Union Budget allocation of 11.21 lakh crore (3.1% of GDP) for infrastructure development.

The logistics ecosystem has marked a historic turning point by successfully driving down macro-operating friction and structural inefficiencies.

The cumulative impact of PM Gati Shakti, FASTag, and digital tracking has successfully brought logistics costs down to roughly 8% of GDP, down dramatically from the historical 13 14% range.

Strength:

Established operations and proven track record

Smooth flow of operations and Business Model

Experienced Management Team

Satisfied customer with quality and service

Opportunities:

Potential to provide other value-added services

Expanding new geographical area

Enhancing functional efficiency

Opportunities in Indian Market

Government thrust for growth in Indian Economy will boost the logistics & Infrastructure Industry

Threats:

Increased Competition from Big Players

Change in Government Policies

Rising labour wages

Margins may be constrained in the future

There are no entry barriers in our industry which puts us to the threat of competition from new entrants

During the year under review, the Company operated in two different segments which are Transport and Construction.

Details of Segment wise Revenue of the Company:

The Continual growth in the Indian sector is necessary to give necessary support to the industry. The company is making all efforts to accelerate the growth of its business. It expects to improve its position in the market by focusing in the technologically advanced and more profitable and market segment and working aggressively in the area of productivity, efficiency and cost reduction.

The Industry is exposed to the following risk and concerns:

The Government of India has traditionally exercised and continues to exercise influence over many aspects of the economy. Our business and the market price and liquidity of our Equity Shares may be affected by interest rates, changes in Government policy, taxation, social and civil unrest and other political, economic or other developments in or affecting India. The rate of economic liberalization could change, and specific laws and policies affecting the information technology sector, foreign investment and other matters affecting investment in our securities could change as well. Any significant change in such liberalization and deregulation policies could adversely affect business and economic conditions in India, generally, and our business, prospects, financial condition and results of operations, in particular.

Global economic and political factors that are beyond our control, influence forecasts and directly affect performance. Factors include interest rates, rates of economic growth, fiscal and monetary policies of governments, inflation, deflation, foreign exchange fluctuations, consumer credit availability, fluctuations in commodities markets, consumer debt levels, unemployment trends and other matters that influence consumer confidence, spending and tourism. Increasing volatility in financial markets may cause these factors to change with a greater degree of frequency and magnitude, which may negatively affect our stock prices.

Indias physical infrastructure is in developing phase compared to that of many developed nations. Any congestion or disruption in its port, rail and road networks, electricity grid, communication systems or any other public facility could disrupt our Companys normal business activity. Any deterioration of Indias physical infrastructure would harm the national economy, disrupt the transportation of goods and supplies, and add costs to doing business in India. These problems could interrupt our Companys business operations, which could have an adverse effect on its results of operations and financial condition.

Any adverse revisions to Indias credit ratings for domestic and international debt by international rating agencies may adversely impact our ability to raise additional financing, and the interest rates and other commercial terms at which such additional financing may be available. This could have an adverse effect on our business and future financial performance, our ability to obtain financing for capital expenditures and the trading price of our Equity Shares.

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as Statutory Auditors.

Share Capital

The Paid-up Share Capital of the Company as on 31^st March 2026 is Rs. 21,36,85,000/- (Rupees Twenty One Crore Thirty-Six Lakhs and Eighty-Five Thousand Only) divided into 2,13,68,500 (Two Crore Thirteen Lakhs Sixty-Eight Thousand and Five Hundred) Equity Shares of Rs. 10/- (Rupees Ten only). The Company has raised capital during the year to help the company undertake increased level of the tender and working capital requirement.

The reserves and surplus is Rs. 4959.91 Lakhs as on the end of the current financial year.

During the year under consideration, the total income was Rs. 8195.84 Lakhs as against Rs. 6817.35 Lakhs during the previous year.

Human Resources and an effective and efficient human resource are a key to the success of any organization and our company has been well focused in adopting the best standards in the industry which not only gives us the benefit of attracting good talent but gives us an edge towards providing best qualitative services to our customers. Our manpower is a mix of experienced and young talent pool of resources which gives us the dual advantage of stability and growth. Our work processes and skilled resources together with our strong management team have enabled us to successfully implement our growth plans.

The total strength of manpower as on 31^st March 2026 is 83 employees. The no. of employees is depended on no. of projects in hand as our work is labour intensive for supplying of Manpower for Transportation and Logistics and other related projects.

10. Key Financial Ratios:

Explanation for Change in the following Ratios:- Current Ratio: Due to decrease in current liabilities Debt Equity Ratio: Due to increase in borrowings

Net capital turnover ratio: Due to increase in accounts receivable and rise in current assets

11. Cautionary Statement

This report contains forward- looking statements based on the perceptions of the Company and the data and information available with the company. The company does not and cannot guarantee the accuracy of various assumptions underlying such statements and they reflect Companys current views of the future events and are subject to risks and uncertainties. Many factors like change in general economic conditions, amongst others, could cause actual results to be materially different.