Flomic Global Logistics Ltd Management Discussions

Forward-Looking Statement

Certain statements in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates, projections and outlook may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various risks and uncertainties including changes in economic conditions, government regulations, geopolitical developments, competitive pressures and other factors beyond the Companys control.

1. GLOBAL ECONOMIC OVERVIEW

1.1 Macroeconomic Landscape

The global economy demonstrated moderate resilience through FY2025-26, navigating a complex backdrop of evolving trade policies, geopolitical realignments, and divergent monetary policy trajectories across major economies. Despite persistent headwinds-most notably the cascading effects of elevated US tariff regimes and lingering geopolitical uncertainty in Eastern Europe and West Asia-the world economy maintained a measured expansion trajectory.

The International Monetary Fund (IMF), in its World Economic Outlook Update, revised global growth upward to 3.0% for 2025 and 3.1% for 2026, citing stronger-than-expected front-loading of trade activity in anticipation of higher tariffs, improvement in financial conditions, a weaker US dollar, and fiscal expansion in select major jurisdictions. The IMF noted that the global economy has shown resilience to trade policy shocks, partly because these shocks materialised on a smaller scale than initially feared, though the drag from shifting trade policies is becoming visible in more recent data.

1.2 Key Global Growth Indicators (2025-26)

Economy / Region	Growth (2025)	Growth (2026)
Global	3.0%	3.1%
United States	1.9%	2.3%
China	4.8%	4.4%
Euro Zone	1.3%	1.1%
Emerging Markets & Dev. Economies	4.1%	3.9%
India	6.6%	6.5%

Source: IMF World Economic Outlook, April 2026. 2025 figures are IMF estimates; 2026 figures are IMF projections. India is on a fiscal-year basis (FY2025/26 and FY2026/27).

1.3 Global Trade & Freight Market Dynamics

Global freight markets experienced significant volatility during FY2025-26. Sea freight rates, which had moderated from post-pandemic highs, remained elevated due to continued disruptions in the Red Sea corridor, necessitating rerouting via the Cape of Good Hope and adding 10-14 days to critical Asia- Europe lanes. Container shortages persisted at key transhipment hubs, creating both pricing opportunities and operational challenges for freight forwarders globally.

The global logistics market is estimated at USD 10-12 trillion, encompassing transportation, warehousing, and integrated supply chain services. Within this, the global freight forwarding market-representing a specialised segment focused on air and sea cargo movement-is estimated at USD 220-230 billion in 2025 and is projected to grow at a 4.5%-5% CAGR through 2030.

Asia Pacific remained the dominant regional engine, accounting to over 30% revenue share of the global freight forwarding market in 2024, with India emerging as the fastest-growing freight forwarding economy within the region. The China-plus-one supply chain strategy continued to drive incremental cargo volumes toward India, benefiting Indian logistics intermediaries.

Source: IMF World Economic Outlook (October 2025 & July 2025 Update); Grand View Research - Freight Forwarding Market (2025); global-freight-forwarding-market

2. INDIAN ECONOMIC OVERVIEW

2.1 Growth Performance & Trajectory

Indias economic narrative in FY2025-26 has been defined by sustained domestic momentum and emerging export competitiveness. The Reserve Bank of India has projected GDP growth of 6.5% for FY2025-26 and 6.6% for FY2026-27, reflecting resilience in domestic demand despite global uncertainties.

India also achieved a landmark milestone in 2025, becoming the worlds fourth-largest economy, with projections for USD 7.3 trillion GDP by 2030.

2.2 Indias Trade & Export Performance

Indias merchandise and services exports for the eleven-month period April-February FY2025-26 reached approximately USD 790.86 billion on cumulative basis, marking a 5.79% increase over the corresponding period of the prior year (Ministry of Commerce & Industry, March 2026). Merchandise exports during April-February FY26 stood at USD 400-403, while non-petroleum exports rose 350-355 billion, up 5%. Services exports were the standout performer, reaching USD 387.93 billion-up significantly from USD 351.93 billion-yielding a services trade surplus of USD 200 billion.

Key merchandise export sectors outperforming in FY26 include engineering goods (top exported category at USD 116 billion), electronics (rising to Indias third-largest export category; exceeded INR 1 lakh crore in the early part of FY26, reflecting strong double-digit growth), pharmaceuticals (India ranked 11th-13th by value or among the top global exporters of pharmaceuticals by volume), and textiles & apparel (USD 37-38 billion in FY25 with stable growth trends continuing in FY26). These high-growth export verticals are directly cargo-generative for freight forwarders such as Flomic.

2.3 Policy Enablers

The Government of India has significantly strengthened its policy framework for trade and logistics in recent years. The National Logistics Policy (NLP), PM GatiShakti masterplan, and the dedicated freight corridor (DFC) network are expected to drive structural improvements in logistics efficiency, including reduction in transit times and costs. PM GatiShakti is trimming corridor transit times by 12-15%, while DFCs have improved rail freight transit predictability significantly.

The Export Promotion Mission (EPM), approved with a budgetary outlay of approximately INR 25,000 crore for FY26-FY31, further reinforces the export ecosystem through two pillars-Niryat Protsahan (trade finance) and Niryat Disha (logistics, warehousing, and market access)-directly benefiting logistics companies serving exporters. GST implementation and rationalisation have improved supply chain efficiency and formalisation. Indias logistics cost has historically been estimated at approximately 1314% of GDP, which remains higher than several global benchmarks. However, ongoing investments in infrastructure, multimodal connectivity, digitisation, and policy initiatives such as the National Logistics Policy (NLP) and PM GatiShakti are expected to improve supply chain efficiency and reduce logistics costs over the medium term. These structural reforms are aimed at enhancing connectivity, reducing transit times, improving asset utilisation and strengthening the overall competitiveness of Indias logistics ecosystem. The resulting efficiency gains are expected to create significant growth opportunities for organised and technology-enabled logistics service providers.

Source: Ministry of Commerce & Industry, PIB (March 2026); RBI Monetary Policy Committee Report (Dec 2025); IMF Article IV Consultation India (Nov 2025); https://

3. INDUSTRY OVERVIEW

3.1 Indian Logistics & Freight Forwarding Market

The Indian logistics market is estimated at USD 345350 billion, indicating significant headroom for growth, formalisation, and efficiency improvements. Indias logistics sector, including freight forwarding, is expected to outpace global averages, reflecting structural growth tailwinds and supply chain realignment. The Indian freight forwarding market, while relatively smaller at USD 13-14 billion, is expected to grow at a faster pace of 5.5%-6.5% CAGR, supported by expanding trade volumes and increasing integration into global supply chains. This differential growth trajectory positions India as one of the most attractive logistics markets globally, particularly in value-added segments such as freight forwarding (Source: Mordor Intelligence, 2026). This growth is powered by the convergence of rising e-commerce penetration, manufacturing realignment under Production- Linked Incentive (PLI) schemes, an expanding export base, government infrastructure investment, and digital adoption across supply chains.

Within this broader ecosystem, the India Freight Forwarding market specifically is valued at approximately USD 13.57 billion in FY2025 and is projected to grow to USD 21.06 billion by FY2033, at a CAGR of 5.65% (Markets and Data, July 2025). IMARC Group projects a CAGR of 6.40% during 2025-2033, reaching USD 20.69 billion-reflecting the premium on value-added, multimodal, and technology-driven freight forwarding services that sophisticated operators like Flomic are best positioned to capture.

3.2 Segment-wise Outlook

Freight Mode	2025 Market Share	CAGR (2026-2031)	Key Drivers
Sea / Inland Waterways	50-55%	8%	Container trade, project cargo, break bulk
Air Freight Forwarding	15%	10.06%	Pharma, electronics, e-commerce
Road Freight	69.97% (tonnage)	9%	Last-mile, domestic logistics
Warehousing (Non-Temp)	91.30% capacity	9%	E-commerce, 3PL growth
Warehousing (Temp- Control)	8.70% capacity	10.23%	Pharma, food, cold chain

Source:Industry estimates based on latest available market studies and industry reports

3.3 Key Industry Trends

3.3.1 Digital Transformation & Technology Adoption

The Indian freight forwarding sector is undergoing a fundamental digital shift. Al-driven routing systems, real-time tracking platforms, cloud-based ERP solutions, and blockchain-enabled documentation are replacing traditional manual workflows. Digital freight booking platforms and automated customs clearance tools are improving throughput, reducing dwell time, and enhancing customer visibility across global shipment corridors.

3.3.2 E-Commerce & Cross-Border Trade

Indias e-commerce market is expected to reach USD 200 billion by 2026 and USD 350 billion by 2030, generating a massive influx of high-frequency, low-volume international shipments. Cross-border e-commerce is creating entirely new logistics demands-including express customs processing, returns management, and direct-to-consumer fulfillment-for which specialised freight forwarders are uniquely positioned.

3.3.3 Manufacturing Export Boom & PLI Catalysis

Government PLI schemes across 14+ sectors-electronics, pharmaceuticals, auto components, textiles, specialty chemicals-are reshaping Indias export cargo mix. Electronics alone saw 55% YoY growth in smartphone exports in H1 FY26. This broadening and deepening of Indias export profile is directly volume-accretive for freight forwarders with air, sea, and multimodal capabilities.

3.3.4 Infrastructure Uplift

Indias airport infrastructure handled over 4.1 million metric tonnes of air cargo in FY2024-25, reflecting strong growth in air freight movement and increasing demand for time-sensitive logistics solutions. The operationalisation of new greenfield airports, expansion of airport cargo infrastructure, continued development of the Dedicated Freight Corridor (DFC) network and progress under the Sagarmala programme are expected to improve multimodal connectivity, reduce transit times and enhance logistics efficiency across the country. These infrastructure investments are strengthening Indias supply chain ecosystem and creating long-term growth opportunities for integrated logistics providers such as Flomic through improved cargo handling capacity, network reach and operational efficiency.

3.3.5 India as a China-Plus-One Beneficiary

The global supply chain realignment driven by tariff geopolitics and geopolitical risk aversion has positioned India as a preferred manufacturing and export alternative. Incremental cargo flows from new manufacturing FDI in electronics, defence components, semiconductors, and engineering goods are generating secular logistics demand growth that is expected to persist over the medium-to-long term.

Source: Mordor Intelligence - India Freight and Logistics Market (Jan 2026); Markets and Data - India Freight Forwarding (Jul 2025); IMARC Group - India Freight Forwarding Market (2025); Nexdigm Freight Forwarding Industry Report (Apr 2026); . marketsandata.com

4. COMPANY OVERVIEW

4.1 Corporate Overview & Operations

Flomic Global Logistics Limited is a publicly listed, integrated logistics solutions provider headquartered in Mumbai, with over four decades of experience in international freight forwarding and supply chain management. The Company offers end-to-end logistics solutions across air, sea, and multimodal transportation, supported by a Pan-India network of 18 branches across key gateway ports and commercial hubs.

Flomics operational footprint is further strengthened by a network of 30+ warehousing facilities ( 13.8 lakh sq. ft.) across major logistics corridors, enabling efficient cargo handling and last-mile connectivity. The Company serves a diversified base of 5000+ active customers across industries including engineering goods, pharmaceuticals, textiles, and consumer products.

4.2 Business Model & Service Portfolio

Flomics core business is centred on international freight forwarding (air, sea, and multimodal), complemented by integrated logistics and supply chain solutions. The Companys service portfolio includes customs clearance, warehousing and 3PL/4PL services, transportation, and specialised offerings such as break bulk and project cargo handling and exhibition logistics. Freight forwarding continues to remain the Companys primary revenue driver, supported by increasing contribution from value-added services such as warehousing and project logistics. Revenue is well diversified across export, import, and warehousing segments, reducing concentration risks and enhancing business stability. The Company operates an asset-light and scalable business model, supported by a strong repeat customer base and a global network of overseas partners. This integrated service capability positions Flomic as a reliable one- stop logistics partner for Indian and global clients in an increasingly complex supply chain environment.

4.3 Operational Highlights FY2025-26

During FY2025-26, Flomic continued to strengthen its operational scale and customer reach across key logistics segments. The Company handled over 42,628 shipments during the year and added 720 new customers, taking its active customer base to more than 5,000 customers across diverse industries. The Companys network expanded across 18 branches and 30+ warehouses, supported by a warehousing footprint of approximately 13.8 lakh sq. ft. across key logistics corridors in India. These operational achievements reflect the strength of Flomics integrated logistics platform, diversified customer base, and execution capabilities across freight forwarding, warehousing, transportation, and specialised logistics services.

4.4 Technology and Digital Transformation

Flomics proprietary cloud-based ERP platform integrates freight forwarding, warehousing, transportation, customs, CRM, billing and financial accounting functions into a unified operating platform. The system enhances visibility, improves process efficiency, supports real-time decision-making and enables scalable growth without proportional increases in operating costs.

5. BUSINESS SEGMENTS & PERFORMANCE ANALYSIS

5.1 Revenue Segmentation - FY2025-26 Context

Flomics business operates across five primary revenue streams, each aligned with a distinct leg of the international logistics value chain. The Companys segment composition reflects a freight-forwarding-led model supported by complementary logistics services of high-margin, high-volume air freight operations; dominant sea freight forwarding (import and export); and a rapidly expanding warehousing vertical that is generating strong contribution margins.

5.2 Segment Analysis

5.2.1 Air Freight (Export & Import)

Air freight forwarding-comprising Air Export, Air Import CCL, and the air component of the multimodal Import FWD segment-constitutes a critical revenue driver for Flomic. The global air freight market is experiencing strong secular growth, particularly in time-sensitive cargo categories (electronics, pharmaceuticals, perishables). Indias air cargo throughput grew 14% in FY25 to 4.1 million metric tonnes, with freighters contributing 38% of throughput (Mordor Intelligence, 2026). Air freight forwarding is projected to grow at a 9-11% CAGR over 2026-2031-the fastest among all freight modes.

Flomics air export segment generated INR 6,238 lakhs in FY25-26, with a 9.05% gross margin. The combined Air & Sea Import CCL and FWD Import segments contributed INR 15,496 lakhs in revenue with blended gross margins exceeding 30.17%. Supported by demand from high-value and time- sensitive cargo segments across key trade corridors such as India-US, India-Europe, and India- Gulf, Flomics air freight volumes are expected to grow in FY26-27.

5.2.2 Sea Freight Forwarding (Export & Import)

Sea freight remains the largest volume segment for Flomic, with the Sea Export segment alone generating INR 13,918 lakhs in FY25-26. Indias container export growth, driven by manufacturing PLI beneficiaries and China-plus-one trade diversification, underpins continued volume growth. The Companys multi-port presence-covering Mumbai (JNPT), Chennai, Mundra, Kolkata, Nhava Sheva, and other key ports-enables it to originate export cargo from the widest possible geographic catchment. Sea freight forwarding (sea and inland waterways) held a 50-55% share of Indias freight forwarding market in 2025, reflecting the modes dominance in bulk, break-bulk, and containerised trade.

The FY26-27 environment presents both opportunity and challenge in sea freight. Capacity constraints and disruptions in certain global trade lanes have created pricing opportunities, as forwarders with established carrier relationships can secure allocations and command premiums. Flomics longstanding relationships with global shipping lines and its membership in WCA and Prolog networks provide meaningful allocation leverage.

5.2.3 Warehousing & 3PL/4PL Services

Warehouse has generated INR 7521 Lakhs revenue in FY 25-26. This reflects the inherent value-capture potential of asset-based, recurring-revenue logistics services. The Companys 30+ warehousing facilities ( 13.8 lakh sq. ft.) spanning major logistics corridors provide the geographic depth to serve leading FMCG, automotive, pharmaceutical, and industrial manufacturing clients seeking contract logistics solutions.

Indias warehousing sector is undergoing a structural upgrade, driven by formalisation (GST-driven consolidation), e-commerce growth, and demand for Grade-A, technology-enabled facilities. Nontemperature-controlled warehousing dominates at 85-90% capacity, but temperature-controlled is the fastest-growing at 10-11% CAGR through 2031. Flomics selective addition of temperature- controlled capabilities-particularly for pharma clients-represents a significant FY26 and beyond growth opportunity.

5.2.4 Break Bulk & Project Cargo

Break bulk and project cargo represent an emerging strategic priority for Flomic. Management has explicitly guided for increased volumes in these segments in FY26, backed by targeted senior staffing additions in sales and operations. Project cargo-encompassing heavy machinery, industrial equipment, and infrastructure components-is growing in India with accelerating public infrastructure investment under the National Infrastructure Pipeline. This segment is aligned with increasing infrastructure spending and industrial capex in India, offering a strong medium-term growth opportunity. This segment commands premium freight rates and higher service margins, making it a structurally attractive adjacency.

5.2.5 Exhibition & Event Logistics

Flomics dedicated Events Logistics Office at CBD Belapur, Navi Mumbai, underscores the Companys specialisation in the high-complexity, time-critical exhibition and events logistics segment. Indias MICE (Meetings, Incentives, Conferences, and Exhibitions) industry is recovering strongly postpandemic, with trade shows, infrastructure expos, and B2B exhibitions creating recurring demand for specialised logistics services that few generalist forwarders can confidently execute.

Source: Mordor Intelligence - India Freight and Logistics Market (Jan 2026); . mordorintelligence.com

6. FINANCIAL PERFORMANCE & RATIO ANALYSIS

6.1 Income Statement Summary (INR in Lakhs)

Particulars	FY2025-26	FY2024-25	YoY
Revenue from Operations	43,172.65	50,014.56	-13.68%
Total Income	43,307.18	50,329.94	-13.95%
Financial Costs	1,065.24	1,406.95	-24.29%
Depreciation & Amortisation	2,701.59	2,799.34	-3.49%
Profit Before Tax (PBT)	69.23	474.64	-85.41%
Tax	38.22	105.09	-63.63%
Profit After Tax (PAT)	31.01	369.55	-91.61%
Earnings Per Share - Basic (INR)	0.17	2.03	-91.63%

Revenue from operations stood at Rs43,172.65 lakhs in FY26 as compared to Rs50,014.56 lakhs in FY25, reflecting softer global freight demand and pricing pressures across select logistics segments. Despite the decline in revenue, the Company remained focused on operational discipline, cost optimization, customer retention, and strengthening margin-accretive business verticals.

Profit after tax (PAT) attributable to shareholders for FY26 and FY25 stood at Rs31.01 lakhs and Rs369.55 lakhs, respectively. The decline in profitability was primarily due to lower freight volumes, pricing pressures across select segments, and a challenging operating environment during the year

6.2 Segment-wise or Product Wise Performance

Business Segment	Turnover (in Rs. Lakhs)
Air Export	6,237.79
Air & Sea Import (CCL)	3,009.82
Air & Sea Import (FWD)	12,486.43
Sea Export	13,917.59
Warehousing Income	7,521.02
Total	43,172.65

6.3 Financial Ratios Analysis

Ratio	FY2025-26	FY2024-25	YoY Change
Current Ratio	1.08x	1.08x	-
Debt-Equity Ratio	1.82x	2.43x	-25.1%
Debt Service Coverage Ratio	X	0.16x	X
Return on Equity (ROE)	0.66%	8.19%	-753 Bps
Net Profit Ratio	0.07%	0.74%	-67 Bps
Trade Receivables Turnover	6.37x	6.73x	-0.36x
Trade Payable Turnover	13.9x	13.85x	-0.05x
Net Capital Turnover	X	13.01x	X
Return on Capital Employed (ROCE)	8.53%	12.01%	-348 Bps

Return on Equity (ROE), Net Profit Ratio and Return on Capital Employed (ROCE) declined during FY2025-26 primarily due to a significant reduction in profitability arising from lower freight volumes, pricing pressures and a challenging operating environment. The improvement in Debt-Equity Ratio was attributable to reduction in borrowings and improved capital structure management during the year.

6.4 Working Capital Efficiency

During FY26, the Company continued to strengthen its working capital profile through focused collection initiatives and tighter receivables management. Total receivables reduced from Rs6728 lakhs to Rs5296 lakhs, while receivables outstanding beyond 60 days declined by 43.2%. These initiatives improved cash flow quality, reduced capital tied up in working capital and enhanced overall capital efficiency. This remains an important focus area going forward.

7. OPPORTUNITIES & GROWTH DRIVERS

7.1 Structural Macro-Tailwinds

Flomic is well positioned to benefit from several structural growth drivers shaping Indias logistics and supply chain ecosystem. The convergence of Indias manufacturing growth supported by Production Linked Incentive (PLI) schemes, ongoing supply chain diversification initiatives, an expanding export base across sectors such as electronics, pharmaceuticals and engineering goods, and continued investments in logistics infrastructure is creating a favourable demand environment for organised and integrated logistics service providers over the medium term.

7.2 Key Growth Opportunities

The Indian logistics sector continues to benefit from multiple structural growth drivers, including rising manufacturing activity, increasing export volumes, expanding e-commerce penetration, and ongoing investments in logistics infrastructure. Government initiatives such as the Production Linked Incentive (PLI) schemes, National Logistics Policy, PM GatiShakti and Dedicated Freight Corridors are expected to enhance supply chain efficiency and support higher freight movement across the country.

Flomic is well positioned to benefit from these opportunities through its integrated logistics platform, diversified service offerings, pan-India network and strong global partnerships. The Company continues to focus on strengthening its presence in value-added segments such as warehousing, project logistics, break bulk cargo and specialised logistics solutions, which offer opportunities for improved margins and deeper customer engagement.

The growing trend of supply chain diversification and increasing participation of Indian manufacturers in global trade is expected to create sustained demand for freight forwarding and integrated logistics services. In addition, increasing adoption of technology, formalisation of the logistics sector and rising outsourcing of supply chain functions are expected to support long-term growth opportunities for organised logistics players.

7.3 E-Commerce & Digital Logistics

Indias e-commerce market is expected to continue witnessing strong growth, supported by increasing internet penetration, digital adoption and rising consumer demand. The proliferation of D2C brands, crossborder marketplace sellers and platform-driven exports is creating new logistics requirements characterised by high shipment frequency, shorter delivery timelines and greater supply chain complexity. Flomics air freight forwarding capabilities, customs brokerage expertise and pan-India network position the Company well to participate in this growing segment.

7.4 Infrastructure Dividend

The ongoing operationalisation of Dedicated Freight Corridors (DFCs), expansion of airport infrastructure, growth in multimodal logistics facilities and continued investments under programmes such as PM GatiShakti and Sagarmala are expected to improve logistics efficiency across the country. These initiatives are likely to reduce transit times, enhance connectivity and create new trade corridors, thereby expanding opportunities for integrated logistics service providers.

7.5 Strategic Partnerships & Network Expansion

Flomics membership in international logistics networks such as WCA, JCTrans and Prolog provides access to a broad global partner ecosystem across multiple countries. These relationships strengthen the Companys ability to offer seamless logistics solutions across international trade corridors while enhancing service capabilities, operational flexibility and customer reach.

7.6 Warehousing & Integrated Logistics

The increasing formalisation of supply chains and growing demand for integrated logistics solutions continue to create significant opportunities in the warehousing and contract logistics segment. With a warehousing footprint of approximately 13.8 lakh sq. ft. across India, the Company is well positioned to support customers seeking end-to-end logistics solutions while increasing the contribution of value-added services within its overall business mix.

Source: Nexdigm - India Freight Forwarding Industry (April 2026); Markets and Data - India Freight Forwarding Market (Jul 2025); Ministry of Commerce, Export Promotion Mission Framework (FY2025-26);

8. RISKS & CONCERNS

8.1 Risk Management Philosophy

Flomic operates in a dynamic, globally interconnected logistics environment where risk is both omnipresent and multi-dimensional. The Board of Directors views robust risk management not merely as a compliance imperative but as a strategic necessity for sustainable value creation. The Companys risk management framework is designed to identify, assess, monitor, and mitigate risks across financial, operational, regulatory, technological, and environmental dimensions. All key functions-operations, supply chain, finance, treasury, legal, and HR-are independently responsible for monitoring risks within their respective domains, with escalation to the Audit Committee and Board as warranted.

8.2 Risks

Risk Category	Description	Mitigation Approach
Freight Rate Volatility	Sudden correction in air or sea freight rates can compress revenue and margin on spot cargo	Long-term customer relationships, carrier partnerships, value-added services and pricing discipline
Global Trade & Geopolitical Risk	Trade restrictions, tariff measures, Red Sea disruptions and geopolitical events may affect cargo flows and freight demand	Diversified trade lanes, multimodal capabilities and network flexibility
Economic Slowdown	Lower global or domestic trade activity may reduce shipment volumes	Diversified customer base and sectoral diversification
Regulatory & Compliance Risk	Changes in customs, GST, IATA and other regulatory requirements may increase compliance obligations	Dedicated compliance processes and continuous regulatory monitoring
Technology & Cybersecurity	System outages, cyber threats or data breaches may disrupt operations	Cloud-based ERP, cybersecurity protocols and backup systems
Currency Fluctuation Risk	Exchange-rate volatility may impact margins and costs	Natural hedging and back-to-back pricing mechanisms
Competition Risk	Increased competition from multinational and technology-enabled logistics players	Service differentiation, customer relationships and integrated solutions
Talent Retention Risk	Attrition of experienced logistics professionals may affect execution capability	Employee development, succession planning and competitive compensation
Counterparty & Credit Risk	Delayed collections or defaults may impact cash flows	Credit assessment procedures and receivables monitoring
Fuel & Operating Cost Risk	Increases in fuel and operating costs may affect profitability	Pass-through pricing arrangements and cost-control initiatives

9. INTERNAL CONTROLS & RISK MANAGEMENT

9.1 Internal Control Framework

Flomic maintains a structured and responsive internal control system designed to safeguard its assets, ensure accuracy and reliability of financial records, promote operational efficiency, and secure compliance with applicable laws and regulations. The Companys internal control framework is aligned with the requirements of Section 177 of the Companies Act, 2013 and the corporate governance specifications of the SEBI Listing Regulations.

9.2 Audit Committee Oversight

An Audit Committee of the Board of Directors has been constituted in accordance with Section 177 of the Companies Act, 2013, comprising a majority of Independent Directors. The Committee exercises oversight on the integrity of financial statements, the adequacy of internal controls, the performance of the internal and statutory audit functions, and compliance with regulatory and ethical requirements. The Audit Committee meets at regular intervals-not less than four times annually-and reports to the full Board on control findings and recommended remediation actions.

9.3 Internal Audit Function

The Internal Audit function is managed by the finance and accounts department, with periodic review by the Audit Committee and management. Internal audit reports encompass an assessment of control effectiveness across operations, finance, billing, receivables, vendor management, warehousing, and statutory compliance. Findings are reviewed by the Audit Committee, and management responses and action timelines are tracked to closure. The Management believes that the internal control system is operating effectively and that the financial statements provide a true and fair view of the Companys operations.

9.4 Financial Reporting Controls

Financial statements are prepared in accordance with Indian Accounting Standards (IND AS) prescribed under the Companies Act, 2013. M/s. Doogar & Associates, Chartered Accountants, serve as Statutory Auditors. The Management confirms that it has been objective and prudent in making estimates and judgments relating to the Financial Statements, and that these statements provide a true and fair representation of the Companys operations.

9.5 Technology Controls

The Companys migration to a cloud-based ERP system has significantly strengthened automated financial and operational controls, including access controls, audit trails, automated reconciliations, and real-time reporting. These controls reduce the risk of manual errors, improve data integrity, and provide management with timely operational visibility. Continuous improvement of the ERP framework remains a focus area for FY26.

9.6 Compliance & Regulatory Framework

Flomic maintains a comprehensive compliance register covering customs regulations, IATA compliance requirements, SEBI listing obligations, Companies Act provisions, GST compliance, labour law adherence, and environmental norms. The Company Secretary & Compliance Officer-Mr. Abhay Shah-oversees regulatory compliance across all applicable statutes, including timely filings with BSE, ROC, SEBI, and other regulatory bodies. HD & Associates, Practicing Company Secretaries, serve as Secretarial Auditors, providing independent assurance on corporate governance and secretarial compliance.

10. HUMAN RESOURCES & INDUSTRIAL RELATIONS

At Flomic Global Logistics Limited, our employees are a key driver of the Companys success and long-term growth. Their commitment, expertise and dedication have enabled the Company to effectively navigate a dynamic business environment marked by economic volatility and evolving market conditions.

The logistics industry continues to require skilled professionals capable of managing increasingly complex supply chains and customer requirements. In this context, attracting, developing and retaining talent remains a strategic priority for the Company. Flomic continues to invest in employee training, skill enhancement, leadership development and performance-driven initiatives to strengthen organisational capabilities and support future growth.

The Company remains committed to fostering a positive and inclusive work environment that encourages collaboration, innovation and professional development. Through employee engagement, recognition and career growth opportunities, the Company seeks to maximise individual potential while aligning employee aspirations with organisational objectives.

11. INDUSTRIAL RELATIONS

Industrial relations at Flomic remained harmonious, cordial, and satisfactory throughout FY2025-26. There were no material labour disputes, strikes, or work stoppages during the year. The Company maintains an environment of mutual respect, transparent communication, and participative management that has consistently yielded stable employer-employee relations-an important operational risk mitigant in a service-centric business.

12. DIVERSITY & INCLUSION

Flomic is committed to building a diverse and inclusive workforce that reflects the geographic and cultural breadth of the markets it serves. The Companys multi-city, multi-region branch network inherently creates a diverse workforce. The Company is focused on creating equal opportunities for all employees, promoting gender diversity in professional and leadership roles, and fostering an environment in which every individual can realise their full potential.

13. SCOT ANALYSIS

13.1 Strengths

- Direct Sales Model: Flomic engages directly with exporters and importers, adding approximately 60 new customers every month. This direct-to-client approach yields better revenue quality, stronger relationships, and higher net margins compared to sub-agent models, and insulates the Company from intermediary margin leakage.

- Established Global Agent Network: Long-standing membership in WCA, JCTrans, and Prolog Network provides access to a trusted global logistics partner ecosystem spanning 150+ countries, enabling competitive pricing, co-loading opportunities, and service continuity on international trade lanes.

- Deep Domain Expertise: Four-plus decades of operations have endowed Flomic with unmatched knowledge of Indian customs processes, international trade regulations, and multimodal logistics management-a barrier that is difficult to replicate for newer entrants.

- Technology-Enabled Operations: Cloud-based ERP and cargo tracking systems enhance operational efficiency, customer service quality, and management oversight. The Companys digital infrastructure is a meaningful competitive differentiator relative to less-digitised regional operators.

- Comprehensive Service Portfolio & Pan-India Network: Air, sea, road, warehousing, 3PL, 4PL, break bulk, project cargo, and exhibition logistics-all under one roof-across 30 office locations covering every major Indian gateway port, providing a genuine One-Stop Gateway proposition.

- Customer Loyalty & Retention: Strong customer relationships built on reliability, responsiveness, and trust create high switching costs and recurring revenue foundations.

13.2 Challenges

- Margin Expansion Imperative: Net profit margins at 0.07% reflect the capital-intensive, cost- competitive nature of freight forwarding. Expanding margins requires a disciplined shift toward higher-value services (warehousing, break bulk, project cargo) and operating leverage on the existing branch infrastructure.

- Scalability Constraints: Rapid demand spikes can stress operational bandwidth, staffing, and IT infrastructure. Investing ahead of demand in systems and people is essential to sustaining growth quality.

- Regulatory Adaptability: Navigating rapidly evolving customs regulations, GST amendments, IATA compliance changes, and international trade treaty modifications requires constant regulatory vigilance and agile operational adjustments.

13.3 Opportunities

- E-Commerce & Cross-Border Trade Growth: Indias e-commerce market, targeting USD 200 billion by 2026, is generating an exponential increase in high-frequency, international freight forwarding demand.

- Emerging Market Expansion: Growing trade flows with Africa, Southeast Asia, and ASEAN markets offer new corridors and new customer segments for Flomics international freight capabilities.

- Break Bulk & Project Cargo Scaling: Indias National Infrastructure Pipeline, defence modernisation, and industrial capex investments are driving significant project cargo demand that rewards specialised, experienced forwarders.

- Strategic Partnerships: Alliance opportunities with complementary logistics providers-customs brokers, last-mile specialists, digital freight platforms-can extend service reach and enhance competitive positioning.

13.4 Threats

- Competitive Intensity: The Indian freight forwarding market is increasingly contested by tech- enabled startups (digital freight platforms), large MNC forwarders (DHL, Kuehne+Nagel, CEVA- which expanded to 70 facilities in 21 Indian cities in May 2025), and domestic full-service operators. Differentiation, service quality, and customer intimacy are critical defensive moats.

- Geopolitical & Trade Policy Uncertainty: Changes in trade policies, including tariff measures imposed by major economies such as the United States, together with Red Sea disruptions and broader geopolitical volatility, may impact global trade flows, supply chains and freight demand. Such developments can lead to route disruptions, increased logistics costs, shipment delays and uncertainty in customer demand, particularly in export-oriented sectors such as textiles, footwear, engineering goods and marine products.

- Economic Cycle Risk: While Indias FY26 growth outlook is strong, a synchronised global slowdown could reduce trade volumes and put downward pressure on freight rates, impacting revenues.

- Supply Chain Disruption Risk: Natural disasters, pandemics, port congestion events, or carrier capacity withdrawals can cause sudden, material disruptions to logistics networks, requiring operational agility and contingency capabilities.

Source: Nexdigm Industry Analysis (Apr 2026); Markets and Data (Jul 2025)

14. BUSINESS OUTLOOK AND GROWTH OUTLOOK

14.1 Strategic Priorities

Flomics growth strategy is centred on strengthening its position as an integrated, asset-light logistics solutions provider, with a continued focus on margin expansion and service diversification. The Company aims to progressively shift its revenue mix toward higher-margin segments such as warehousing, break bulk and project cargo, while sustaining growth in its core freight forwarding operations.

The Company is also focused on enhancing its digital capabilities to improve operational efficiency, customer experience and real-time shipment visibility. Increasing adoption of technology is expected to support scalability and strengthen client retention.

Additionally, Flomic will continue to expand its presence in high-growth logistics segments and deepen its engagement with export-oriented industries, supported by its direct customer acquisition model and expanding service capabilities.

14.2 Medium-Term Outlook

Over the medium term, Flomic aims to strengthen its position as a scalable and technology-enabled logistics platform with a diversified service portfolio across freight forwarding, warehousing and specialised logistics.

The Company is well positioned to benefit from structural tailwinds in the Indian logistics sector, including increasing export activity, supply chain diversification and ongoing efforts to improve logistics efficiency. These trends are expected to drive sustained demand for integrated logistics solutions and support longterm growth.

With its asset-light business model, diversified customer base, expanding warehousing footprint, strong global partner network and technology-enabled operations, Flomic believes it is well positioned to benefit from Indias growing role in global supply chains and the long-term expansion of the logistics sector.

14.3 Sustainability & Responsible Business Practices

The Company remains committed to responsible business practices, operational efficiency, strong corporate governance and sustainable value creation. Continued investments in technology, process optimisation, resource efficiency and employee development are expected to support the Companys longterm sustainability objectives while creating enduring value for stakeholders.

Source: RBI Economic Report; Mordor Intelligence India Logistics Market Forecast (Jan 2026)

Analytical Ratios

Ratio	Numerator	Denominator	March 31, 2026	March 31, 2025	% Variance	Reasons for Variance
Current Ratio	Current Assets	Current Liabilities	1.08	1.08	0.07%	-
Debt-Equity Ratio	Total Debt	Shareholders Equity	0.51	0.79	-36.42%	Decrease of debt liabilites from last year resulted in lower ratio.
Debt Service Coverage Ratio	Earnings for Debt Service	Debt Service	0.42	0.16	162.49%	Increase in earning and increase in repayment resulted into lower ratio.
Return on Equity Ratio	Net Profits after Taxes	Avg Shareholders Equity	0.66%	8.19%	-91.95%	Decrease in profit and increase in average shareholders equity resulted in lower in Return on Equity.
Inventory Turnover Ratio	Revenue from Operations	Avg Inventory	NA	NA	NA
Trade Receivables Turnover Ratio	Revenue from Operations	Avg. Trade Receivables	6.14	6.73	-8.72%
Trade Payable Turnover Ratio	Total Purchases	Avg. Trade Payables	12.92	13.85	-6.78%
Net Capital Turnover Ratio	Revenue from Operations	Working Capital	13.39	13.01	2.90%
Net Profit Ratio	Net Profit After Tax	Revenue from Operations	0.07%	0.74%	-90.28%	Decrease in profit and decrease in revenue resulted in lower ratio.
Return on Capital Employed	EBIT	Capital Employed	8.80%	12.01%	-26.73%	Decrease in profit and decrease in revenue resulted in lower ratio.

() Working capital shall be calculated as current asset minus current liabilities (excluding current maturities of long term debt, lease liabilities and interest accrued on borrowings)

For And on Behalf of The Board of Directors Flomic Global Logistics Limited
Sd/-	Sd/-
Lancy Barboza	Satyaprakash Pathak
Managing Director	Director
DIN: 01444911 Place: Mumbai Date: 12 th August, 2026	DIN:00884844