GB Logistics Commerce Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

(i) Logistics Industry

The Indian logistics industry continues to play a critical role in supporting economic activity, manufacturing, trade and e-commerce. The sector is undergoing significant transformation driven by policy initiatives, technological advancement, increasing formalisation and growing demand for efficient supply-chain solutions.

Government initiatives such as the National Logistics Policy (NLP) and PM Gati Shakti are focused on improving multimodal connectivity, reducing logistics inefficiencies and strengthening the overall logistics ecosystem. Increasing adoption of digital technologies is also contributing towards better fleet management, shipment tracking, warehouse management and operational visibility.

Key developments in the sector include:

• Increasing emphasis on integrated and multimodal logistics networks;
• Greater adoption of digital platforms for shipment and fleet management;
• Growing demand for technology-enabled logistics and warehousing solutions;
• Expansion of organised logistics services across Tier-2 and Tier-3 cities; and
• Increasing focus on operational efficiency, cost optimisation and timely delivery.

(ii) Agricultural Commodities Trading

Agricultural commodities trading continues to be an important part of Indias economic ecosystem, supported by the countrys large agricultural base and demand for cereals, pulses and other commodities.

The sector, however, remains influenced by seasonal demand, climatic conditions, commodity price movements, procurement conditions, government policies and domestic and international market developments. Efficient procurement, transportation, storage and distribution remain important factors in managing margins and maintaining supply-chain efficiency.

The Companys presence in logistics provides an opportunity to support and complement its agricultural commodity trading activities through transportation and distribution capabilities.

2. BUSINESS OVERVIEW

GB Logistics Commerce Limited is engaged in two principal business verticals:

• Logistics Services; and
• Trading of Agricultural Commodities.

The Company primarily provides Full Truckload (FTL) logistics and transportation services to large and medium-sized enterprises. The Company utilises a combination of its own and third-party transportation resources to facilitate efficient and timely movement of cargo.

The Companys logistics offerings include regular full-truckload transportation, special handling, go-down-to-go-down transportation, delivery above ground floor and handling of shipments falling outside designated delivery areas.

The Company has access to different categories of vehicles, including light commercial vehicles, heavy-duty vehicles, closed-body trucks and trailers, enabling it to cater to varied transportation requirements.

The agricultural commodities trading business supplements the Companys logistics operations and provides an additional avenue for revenue generation. The Company seeks to leverage its transportation and supply-chain capabilities in servicing opportunities arising in the agricultural commodities sector.

The Company also operates through its wholly owned subsidiary, Norbexi Industries Limited (formerly known as Norbexi Industries Private Limited), which is engaged in a similar line of business.

3. FINANCIAL AND OPERATIONAL PERFORMANCE

(i) Standalone Performance

in Lakhs

Particulars	FY 2025–26	FY 2024–25
Income from Operations	7,219.37	6,485.31
Total Expenses	7,011.58	6,022.21
Profit Before Tax (PBT)	326.48	483.26
Tax Expense	82.41	122.71
Profit After Tax (PAT)	244.07	360.55
Earnings Per Share (?)	2.98	5.87

Operational Analysis

The Company recorded an increase in income from operations during FY 2025-26 as compared to the previous financial year, reflecting continued business activity and customer engagement.

The increase in expenses was primarily attributable to operating and transportation-related costs, including fuel and maintenance expenses. Consequently, profitability at the standalone level moderated during the year.

The Company continues to focus on improving operational efficiency, strengthening customer relationships and optimising its cost structure.

(ii) Consolidated Performance

in Lakhs

Particulars	FY 2025–26	FY 2024–25
Income from Operations	13,076.63	20,581.60
Total Expenses	12,365.61	19,415.78
Profit Before Tax (PBT)	1,208.05	1,185.98
Profit After Tax (PAT)	903.45	880.90
Earnings Per Share (?)	11.03	14.33

Operational Analysis

During FY 2025-26, the Companys consolidated income from operations declined compared with the previous financial year. Despite the decline in revenue, the Company recorded an improvement in Profit Before Tax and Profit After Tax, indicating improved profitability and operational performance at the consolidated level.

The improvement in profitability reflects the Companys continued focus on operational efficiency, cost management and optimisation of its business operations.

4. SEGMENT-WISE/PRODUCT-WISE PERFORMANCE

Logistics Services

Logistics continues to constitute a significant part of the Companys business operations. The Company provides full-truckload transportation solutions and caters to customers across various sectors.

The Company continues to focus on efficient fleet utilisation, timely delivery, customer service and optimisation of transportation costs. Its combination of owned and third-party transportation resources provides operational flexibility in servicing customer requirements.

Trading of Agricultural Commodities

The Company also undertakes trading of agricultural commodities. The performance of this segment is influenced by seasonal demand, procurement conditions, commodity prices and market dynamics.

During the year, the Company continued to explore opportunities in the agricultural commodities segment and leverage its logistics capabilities for procurement and distribution.

5. OPPORTUNITIES AND THREATS

Opportunities

The Company believes that the Indian logistics sector offers significant opportunities on account of:

• Government initiatives supporting logistics infrastructure and multimodal connectivity;
• Increasing demand for organised logistics services;
• Growth in warehousing and distribution infrastructure in Tier-2 and Tier-3 cities;
• Continued expansion of e-commerce and organised supply chains;
• Increasing adoption of technology in logistics and supply-chain management;
• Growing demand for integrated logistics solutions; and
• Opportunities arising from the increasing formalisation of the logistics industry.

Threats

The Companys business may be affected by various external and industry-specific factors, including:

• Intense competition from organised logistics companies and technology-enabled aggregators;
• Volatility in fuel and transportation costs;
• Fluctuations in demand and freight rates;
• Climatic and seasonal conditions affecting agricultural commodity trading;
• Changes in government policies and regulations;
• Regulatory and compliance requirements applicable to the transportation and agricultural sectors; and
• General economic and macroeconomic conditions.

6. RISK MANAGEMENT

The Company has adopted a structured approach towards identification, assessment and management of risks associated with its business operations.

The key areas of risk include:

• Operational Risk: Vehicle availability, driver availability, transportation delays and operational disruptions;
• Market Risk: Competition, pricing pressure, fluctuations in demand and seasonal variations;
• Regulatory Risk: Changes in applicable laws and regulations, including GST, e-way bill requirements and motor vehicle regulations;
• Financial Risk: Customer credit cycles, liquidity requirements and working capital management; and
• Business Risk: Changes in market conditions, freight rates and supply-chain requirements.

The Company periodically reviews the risks associated with its operations and takes appropriate measures to mitigate and manage such risks.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal control systems commensurate with the size, nature and complexity of its business operations.

The Companys internal control framework is designed to provide reasonable assurance regarding the efficiency of operations, safeguarding of assets, reliability of financial reporting and compliance with applicable laws and regulations.

The Company undertakes periodic review and reconciliation of its operational and financial activities. Technology-enabled systems are utilised for monitoring and managing various aspects of logistics operations.

The management periodically reviews the adequacy and effectiveness of internal controls and takes corrective measures wherever required.

Note: The statement that "no material weakness was reported" should be retained only if it is supported by the Companys actual internal audit/statutory audit records.

8. HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company considers its employees and operational personnel to be an important part of its business operations. The Companys workforce includes operational personnel, drivers, administrative employees and business development teams.

The Company focuses on maintaining a work environment that promotes accountability, operational discipline and safety.

During the year, the Company continued to focus on:

• Operational and safety awareness;
• Driver and workforce training;
• Workplace safety and compliance;
• Employee engagement; and
• Effective grievance redressal mechanisms.

The industrial and employee relations remained cordial during the year.

9. KEY FINANCIAL RATIOS

The ratio table should be reconciled with the audited financial statements before finalisation. Your present table contains some inconsistencies- for example, the EPS figures are ?2.98 / ?5.87 in the standalone table but ?2.98 / ?80.02 in the ratio table.

A safer Annual Report format is:

Ratio	FY 2025–26	FY 2024–25	% Change / Remarks
Operating Profit Margin (%)	4.76%	7.15%	Decrease of 33.43% – primarily due to increase in operating expenses relative to revenue.
Net Profit Margin (%)	3.38%	5.56%	Decrease of 39.21% – due to reduction in profit after tax during the year.
Debt-Equity Ratio	0.69	0.25	Increase of 177.68% – mainly due to increase in long-term and short-term borrowings during FY 2025–26.
Interest Coverage Ratio	N.A.	N.A.	No finance cost/interest expense is reported in the financial statements; hence the ratio is not applicable.
Current Ratio	1.52	3.74	Decrease of 59.34% – mainly due to a significant increase in current liabilities during the year.
Return on Equity	5.43%	8.24%	Decrease of 34.14% – mainly due to decrease in Profit After Tax during the year.
Ratio	FY 2025-26	FY 2024-25	% Change / Remarks
Return on Capital Employed (%)	4.19%	8.86%	Decrease of 52.66% primarily due to lower profit before tax and higher capital employed during the year.
Earnings Per Share (?)	2.98	5.87	Decrease of 49.23% mainly due to decrease in Profit After Tax.

10. OUTLOOK

The Company remains focused on strengthening its position in the logistics and allied sectors. Going forward, the Company intends to focus on the following key areas:

• Expansion and optimisation of its transportation and fleet capabilities;
• Increasing operational efficiency and reducing dependence on third-party vehicles where commercially viable;
• Adoption of technology for fleet, warehouse and dispatch management;
• Strengthening its presence in emerging markets and new geographical regions;
• Further development of its agricultural commodities trading activities;
• Exploring opportunities in multimodal logistics and integrated supply-chain solutions; and
• Strengthening customer relationships and diversifying its customer base.

The Company will continue to focus on prudent financial management, operational efficiency and sustainable business growth while responding to changing market conditions.

For & on behalf of the Board of Directors GB Logistics Commerce Limited

REGISTERED OFFICE B-3, Saptak Plaza Shivaji Nagar, Shankar Nagar, Nagpur, Maharashtra, India 440010

PRASHANT NATWARLAL LAKHANI Managing Director DIN: 00559519

Place: Nagpur Date: 07/09/2026