Global Vectra Helicorp Ltd Management Discussions

Overview

Global Vectra Helicorp Limited ("GVHL" or "the Company") continues to remain one of Indias leading private sector helicopter operators with a strong track record in safe and reliable rotary-wing aviation services. The Company has built significant operational capability across offshore and onshore missions and remains a trusted service provider to clients in strategic, government and industrial sectors.

GVHLs operating spectrum includes offshore oil and gas logistics, state government helicopter services, VIP/ VVIP transportation, election flying, pilgrimage operations, geophysical surveys, utility support missions, charter services and specialised aerial operations.

During FY 2025-26, the Company operated in a dynamic environment shaped by growing domestic energy demand, inflationary cost pressures, geopolitical uncertainty, supply chain constraints and continued demand for dependable aviation support services.

Operations and Safety

Safety continues to remain the highest priority for the Company. GVHL maintains robust operating systems aligned with DGCA regulations and internationally accepted aviation safety practices.

The Companys safety framework includes:

• Flight risk assessment and mitigation

• Safety Management Systems (SMS)

• Quality assurance and compliance monitoring

• Crew training and recurrent proficiency checks

• Engineering reliability controls

• Emergency response preparedness

• Incident reporting and continuous improvement systems GVHLs long-standing heritage, disciplined operating culture and experienced manpower continue to differentiate the Company in a highly specialised industry where safety and reliability are non-negotiable.

Maintenance & Personnel

The Company maintains engineering capability through its principal maintenance base in Mumbai and line maintenance support at operating stations across India.

GVHL continues to focus on:

• Fleet airworthiness and dispatch reliability

• Scheduled and unscheduled maintenance planning

• Inventory and spare parts optimisation

• Regulatory compliance

• Engineering manpower capability enhancement

• Predictive maintenance practices

The Companys technical workforce, pilots and support staff remain central to consistent service delivery.

Audits and Compliance

GVHL continues to undergo regular internal and external audits covering operational, maintenance, financial and safety functions.

The Company remains subject to regulatory oversight by the Directorate General of Civil Aviation and client-specific audits by leading offshore and institutional customers. Such audits help strengthen systems, improve processes and reinforce customer confidence.

Services Portfolio

The Company provides diversified helicopter services across sectors including:

• Offshore crew change and logistics support

• Oil and gas production support

• Geophysical and survey missions

• Government support services

• VIP/VVIP flying

• Election flying

• Pilgrimage services

• Utility and infrastructure support

• Emergency response support

• Charter operations

• Underslung and remote logistics missions

This diversified service portfolio supports better fleet deployment and reduces concentration risk.

Clients

GVHL generally provides services to its clients under longterm contracts. These contracts range from one to seven years including the extension options with an aim to be a major player in the helicopter market in India.

Bases

GVHL has its main operations and maintenance base at Juhu Airport, Mumbai. The Company operates several bases Pan- India.

Internal Control Systems and Adequacy

The Company maintains internal control systems commensurate with the size and complexity of operations.

These controls are designed to ensure:

• Protection of assets

• Accuracy of financial reporting

• Regulatory compliance

• Operational discipline

• Delegation controls

• Risk monitoring

• Fraud prevention mechanisms

The Audit Committee and management periodically review internal controls and governance processes.

Management Systems

GVHL remains committed to high standards in operations, maintenance and safety.

The Company continues to leverage integrated management systems for planning, maintenance control, inventory, logistics, finance and reporting functions. Process digitisation and data visibility remain important focus areas to enhance efficiency and decision-making.

Human Resources

The Company recognises that aviation is a people-driven business where safety and performance depend heavily on skilled manpower.

GVHL continues to focus on:

• Retention of experienced pilots and engineers

• Leadership development

• Training and recurrent skill enhancement

• Performance culture

• Employee engagement

• Succession planning

The Company values the commitment and professionalism of its workforce.

As on March 31, 2026 the Company has a total workforce of over 428 employees.

Mission Statement

GVHL shall provide safe, efficient and reliable helicopter services and we shall remain recognised as the operator of choice in the country. We shall also grow our brand internationally, by further enhancing our safety, quality and compliance functions, in line with internationally recognised standards and best practice principles for the industry.

• We are the first choice for helicopter services in India.

• Our commitment to maintaining our safety focus underpins all that we do.

• We deliver safe operations.

• We are cost effective and reliable, commensurate with high quality of service provided.

• We shall exceed our customer expectations.

• We shall achieve our objectives - because we know where we are today and where we are going tomorrow.

• Our Mission is driven by our Management Team - but delivery comes from every member of our Company.

HELICOPTER INDUSTRY IN INDIA OIL AND GAS INDUSTRY: - Introduction

The Oil and Gas Sector is among the eight core industries in India and plays a vital role in influencing the growth and performance of several other sectors of the economy. India continues to be one of the worlds fastest-growing major energy markets and has retained its position as the third-largest oil consumer globally and among the largest energy consumers in the world.

Indias consumption of petroleum products during FY 2025-26 is estimated to have crossed 252-255 million metric tonnes (MMT), registering healthy growth over FY 2024-25 consumption of 243.2 MMT, supported by rising mobility demand, industrial expansion, aviation growth and robust economic activity.

India possesses significant hydrocarbon potential across multiple onshore, shallow offshore and deepwater sedimentary basins, offering substantial opportunities for future exploration and production activities.

The Government of India continues to aggressively increase exploration acreage under successive OALP rounds, with the objective of unlocking domestic hydrocarbon potential and reducing import dependence.

Indias cumulative crude oil production during FY 2025-26 is estimated in the range of 29.5-30.5 MMT, broadly stable despite natural decline in mature fields, aided by redevelopment programs and enhanced recovery initiatives.

India imported approximately 240+ MMT of crude oil during FY 2025-26, with crude import dependence estimated at around 88%, reflecting continued reliance on overseas supplies despite domestic production efforts.

India is expected to remain one of the most important drivers of future global oil demand growth, supported by sustained economic expansion, urbanisation and rising energy consumption making it one of the largest contributors to future global oil demand growth.

Diesel demand in India is expected to rise significantly, while gasoline, ATF, LPG and petrochemical feedstock demand are also projected to remain strong.

Indias demand for energy continues to grow faster than most major economies globally and this trend is expected to continue, driven by favourable demographics, rising incomes, urbanisation, manufacturing growth and infrastructure development.

Indian Oil and Gas Sector

Upstream Segment (Exploration & Production)

The upstream sector continues to be led by Oil and Natural Gas Corporation, which remains Indias largest exploration and production company. ONGC, together with Oil India Limited and private sector participants such as Reliance Industries Limited and Cairn Oil & Gas, plays a major role in domestic hydrocarbon production.

ONGC continues to account for a dominant share of Indias crude oil and natural gas production, with ongoing investments in Mumbai Offshore, KG Basin and frontier deepwater assets.

Midstream Segment (Storage & Transportation)

India has built an extensive network of crude oil, petroleum product and natural gas pipelines. The country now has more than:

• Extensive crude oil pipeline infrastructure across the country

• A rapidly expanding natural gas transmission network supporting increasing gas demand

• Product pipelines operated by PSU and private companies

This infrastructure is critical for national energy security and efficient fuel movement.

Downstream Segment (Refining, Processing & Marketing)

India remains Asias second-largest refiner and among the largest globally. Major refining companies include:

• Indian Oil Corporation Limited

• Bharat Petroleum Corporation Limited

• Hindustan Petroleum Corporation Limited

• Reliance Industries Limited

• Nayara Energy

India continues to be a significant exporter of diesel, ATF and refined petroleum products.

Market Size

India has 26 sedimentary basins spread across approximately 3.36 million sq. km.

• Onshore + shallow offshore up to 400m isobath: ~2.04 million sq. km.

• Deepwater beyond 400m isobath: ~1.32 million sq. km. Primary energy demand is expected to nearly double by 2040 as Indias GDP rises substantially over the coming decade.

India remains one of the largest contributors to non-OECD petroleum demand growth globally.

Refinery throughput, fuel demand and petrochemical consumption continue to show long-term structural growth. Diesel and gasoline are expected to continue accounting for a major share of petroleum demand, while aviation turbine fuel demand is also expected to rise sharply with aviation growth. Indias share in global primary energy consumption is projected to significantly increase by 2035.

Government Initiatives and Investments

The Government of India has permitted 100% Foreign Direct Investment (FDI) under automatic route in several oil and gas segments including upstream and private refining.

Major recent developments include:

• Expansion of Strategic Petroleum Reserve capacity at Chandikhol and Padur

• Continued Open Acreage Licensing Policy (OALP) bid rounds

• Gas infrastructure expansion under CGD programs

• Pipeline projects under GAIL and other entities

• Boost to domestic E&P through HELP reforms

• Biofuel blending targets

• Green Hydrogen Mission

• LNG import diversification initiatives

• Refining capacity expansion targets

India has also intensified offshore exploration efforts, including promising acreage in the Andaman Sea and deepwater western offshore regions.

Exploration Expansion (OALP)

Under multiple Open Acreage Licensing Policy rounds, India has offered large exploration acreage across:

• Onland basins

• Shallow water blocks

• Deepwater blocks

• Ultra-deepwater blocks

These rounds are expected to attract domestic and international investment and significantly improve exploration intensity.

The Government has indicated that more than 1 million sq. km. offshore acreage has been made available in recent years for exploration.

Currently, only a fraction of Indias sedimentary basin potential is under active exploration, leaving substantial future opportunity.

Road Ahead

India is undertaking re-assessment of hydrocarbon resources across all 26 sedimentary basins using updated seismic, geological and geophysical data.

Basins under focus include:

• Mumbai Offshore

• Krishna-Godavari

• Mahanadi

• Cambay

• Rajasthan

• Kerala-Konkan

• Vindhyan

• Frontier Andaman areas

The Government continues to encourage:

• Multi-client seismic programs

• Enhanced recovery in mature fields

• Deepwater development

• Natural gas share increase in energy mix

• Coal bed methane and unconventional resources

These developments indicate that Indias hydrocarbon sector is entering a structurally stronger phase with rising investment, improved policy support and increasing energy security focus.

Growing Demand

India is expected to remain a key exporter of transportation fuels to Asia, Africa and Atlantic Basin markets.

Continued investments in refining complexity and capacity are expected to support production of diesel, ATF and middle distillates.

Oil demand in India is expected to witness sustained longterm growth driven by industrialisation, mobility and economic development.

Natural gas demand is also expected to rise sharply with:

• CGD expansion

• Industrial switching

• Fertiliser demand

• Power sector use

• LNG infrastructure growth

Indias energy demand is expected to grow faster than most major economies.

Expansion

Indian oil companies are investing heavily in refining and petrochemicals.

India continues to invest significantly in refining capacity expansion through multiple ongoing and proposed projects aimed at meeting rising domestic demand and strengthening export capabilities, such as:

• Barmer (HPCL)

• Paradip expansion (IOCL)

• Ratnagiri (subject to progress)

• Nagapattinam (CPCL)

India is also expanding petroleum reserves, pipeline networks and northeast hydrocarbon infrastructure.

The upstream E&P segment is expected to attract multi-billion- dollar investments over the coming years.

Supportive FDI Guidelines

India continues to strengthen investor-friendly policies through:

• Revenue sharing model reforms

• Simplified approvals

• 100% FDI in eligible sectors

• Improved contract framework

• Digital National Data Repository (NDR)

• Transparent bidding systems

These measures are expected to attract global oil majors, independent E&P firms and technology providers into the Indian market.

Conclusion

Indias Oil and Gas sector remains one of the strongest longterm growth stories globally. Rising domestic demand, refining strength, infrastructure expansion, policy reforms and offshore exploration potential are expected to sustain significant investment opportunities.

For helicopter operators supporting offshore exploration, production logistics and emergency services, the long-term outlook remains particularly favourable as India expands domestic hydrocarbon development and deepwater activity.

Future of Oil & Gas in India

Indias oil demand is expected to grow steadily over the long term, positioning the country as one of the major contributors to future global energy demand growth.

Despite growth in renewables, hydrocarbons will remain critical for:

• Road freight and logistics

• Aviation turbine fuel demand

• Petrochemical feedstocks

• LPG and cooking fuel

• Shipping fuels

• Fertiliser sector gas demand

• Industrial fuel requirements Accordingly, India continues to invest in:

• Refining capacity expansion

• Strategic petroleum reserves

• Natural gas pipeline networks

• LNG terminals

• Deepwater exploration

• Enhanced recovery from mature fields

Offshore Oil & Gas Growth in India

Indias offshore basins continue to be strategically important, particularly:

• Mumbai Offshore / Mumbai High

• Krishna-Godavari Basin

• Eastern offshore deepwater blocks

• Western offshore fields

• Frontier Andaman offshore acreage

Oil and Natural Gas Corporation continues to invest in redevelopment of mature offshore assets and expansion of domestic output. New deepwater and ultra-deepwater blocks under OALP rounds are expected to further strengthen offshore activity.

This is particularly significant for the helicopter industry.

Dependence of Offshore Oil & Gas Industry on Helicopters

Helicopters are indispensable for offshore energy operations. Unlike many sectors where aviation is optional, offshore oil & gas cannot function efficiently without reliable helicopter support.

Key Uses of Helicopters :-

1. Crew Change Operations

Movement of engineers, technicians, medics and operational personnel from shore base to offshore platforms and rigs.

2. Emergency Medical Evacuation

Rapid medevac of injured or ill personnel from offshore assets.

3. Critical Logistics Support

Movement of urgent spares, documents, tools and specialist manpower.

4. Time Efficiency

Helicopters significantly reduce travel time compared with marine vessels.

5. Safety Readiness

Modern offshore standards require rapid-response transport capability.

Therefore, any expansion in offshore oil production generally creates parallel demand for helicopter flying hours.

6. Diversified Service Segments

The onshore helicopter industry in India supports multiple segments including heli-pilgrimage services, airborne geophysical surveys, LIDAR mapping, underslung cargo operations, VIP/VVIP transportation, election flying, corporate travel, defence support missions, RBI operations and anti-Naxal operations.

7. Growth in Heli-Pilgrimage Operations

Heli-pilgrimage operations have witnessed significant growth due to increasing demand for safe, convenient and time-efficient access to remote and high-altitude religious destinations such as Vaishno Devi, Amarnath and the Char Dham circuit. Operators such as Global Vectra Helicorp Limited have developed substantial operational experience in this segment.

8. Airborne Geophysical Surveys and LIDAR Operations

Airborne geophysical surveys and helicopter-based LIDAR operations are increasingly supporting mineral exploration, geological mapping, environmental monitoring, disaster management and infrastructure planning through high- precision aerial data acquisition in inaccessible terrain.

9. MHA Subsidized Connectivity Operations

The Ministry of Home Affairs subsidized helicopter connectivity schemes continue to enhance accessibility and emergency response capability in North Eastern and Northern states including Arunachal Pradesh, Manipur, Meghalaya, Jammu & Kashmir, Himachal Pradesh and Ladakh.

10. Underslung Cargo and Utility Support

Underslung cargo helicopter operations provide critical logistical support for infrastructure projects, power sector development, disaster relief operations and defence applications in regions where conventional transportation remains challenging.

11. Defence Support Services

The defence sector continues to be an important contributor to onshore helicopter operations through requirements for passenger movement, cargo transportation, air maintenance and logistical support in remote and high- altitude regions.

12. VIP/VVIP, Election and Corporate Flying

State governments, political organizations and corporate entities increasingly utilize helicopter services for VIP/VVIP transportation, election flying and executive travel owing to the operational flexibility and time efficiency offered by rotary-wing aviation.

13. Strategic and Security Operations

Helicopters also play a crucial role in strategic and security- related operations including RBI currency transportation, emergency response missions and anti-Naxal operations across difficult and inaccessible terrain.

14. Industry Challenges

Despite challenges arising from inflationary pressures, foreign exchange volatility, supply chain disruptions, rising maintenance costs and shortage of skilled manpower, the long-term outlook for the Indian onshore helicopter industry remains positive.

Future of Helicopters in India

The medium to long-term outlook for offshore helicopters in India remains positive.

Key Growth Drivers:

A. Domestic Energy Security Push

India seeks to reduce import dependence, which requires higher domestic production.

B. Deepwater Exploration

New offshore acreage and deeper assets require longer- range twin-engine helicopters.

C. Redevelopment of Mature Fields

Older offshore platforms need more maintenance manpower, increasing rotations.

D. Safety Standards

Oil majors increasingly require:

• Twin-engine IFR capable fleets

• High dispatch reliability

• Backup aircraft support

• Trained offshore crews

• International safety systems

E. East Coast Opportunities

Future offshore growth may support helicopter demand from bases such as:

• Rajahmundry

• Kakinada

• Visakhapatnam

• Yanam

Why This Benefits GVHL

Global Vectra Helicorp Limited is strategically positioned due to:

• Established offshore operating history

• Existing customer relationships

• Mumbai base infrastructure

• Proven engineering capability

• Experienced manpower

• Fleet familiarity with Indian offshore environment

• Strong safety reputation

These capabilities create significant barriers for new entrants.

Geopolitical Situation and Impact on Helicopter Operations

1. Russia-Ukraine Conflict

Impact:

• Oil price volatility

• Higher ATF costs

• Stronger USD increasing lease costs

• Supply chain delays for components

• Insurance premium increases

2. Middle East Tensions Impact:

• Freight route disruptions

• Delayed European shipments

• Higher logistics cost

• War-risk surcharges

3. Global Inflation Impact:

• Higher manpower costs

• Higher maintenance cost

• Higher OEM pricing

• Pressure on tender margins

4. Currency Volatility

Most helicopter industry costs are foreign currency linked:

• Lease rentals

• Engines

• Components

• Insurance

• OEM contracts

This directly affects Indian operators.

Risks to Indian Helicopter Industry

• Aggressive tender pricing by customers

• Shortage of offshore pilots

• AME shortage

• Aging fleets in market

• Spare parts delays

• Regulatory changes

• Fuel volatility

• Weather downtime

Positive Structural Outlook

Despite near-term challenges, Indias offshore helicopter sector remains structurally strong as India increases domestic offshore production, helicopter demand is expected to remain resilient.

Conclusion

Indias helicopter industry continues to remain strategically important for supporting offshore energy operations, regional connectivity, pilgrimage travel, defence logistics, infrastructure development, aerial surveys, emergency response and government support services. Rising energy demand, expanding offshore exploration, increasing infrastructure activity and the growing need for rapid connectivity solutions are expected to sustain long-term demand for specialized helicopter operations across both offshore and onshore sectors.

The industry, however, continues to operate in a challenging environment marked by inflationary pressures, foreign exchange volatility, supply chain disruptions, rising maintenance costs, shortage of skilled manpower and aggressive pricing pressures in tenders. Despite these challenges, the long-term outlook for the Indian helicopter sector remains positive, supported by continued economic growth, policy support, infrastructure expansion and increasing dependence on aviation-led connectivity and logistical support services.

Global Vectra Helicorp Limited remains well positioned to benefit from these opportunities through its diversified service portfolio, operational experience, engineering capability, established customer relationships and strong safety culture. The Companys presence across offshore oil and gas support, Heli- pilgrimage operations, government connectivity services, aerial surveys, defence support missions and specialized helicopter operations provides a strong foundation for sustainable longterm growth.

Going forward, continued focus on operational excellence, safety, fleet reliability, cost optimization and customer service will remain critical in maintaining competitiveness and creating long-term value for stakeholders.

Cautionary Statement

Statements in this Report on Management Discussion and Analysis, describing the Companys objectives, projections, estimates, figures and expectations, may constitute "forwardlooking statements" under applicable laws and regulations. Actual results may differ materially from those expressed or implied.

The company assumes no responsibility for forward-looking statements herein, which may undergo changes in future based on subsequent developments, events, or available information.