Glottis Ltd Management Discussions

A. COMPANY OVERVIEW AND FISCAL

2026 AT A GLANCE

Glottis Limited ( Glottis or the Company ) is a multi-modal integrated logistics solutions provider, delivering end-to-end freight management across ocean, air and road, together with ancillary services including warehousing, cargo handling, third-party logistics (3PL) and customs clearance. The Company operates through nine branch offices across India Gandhidham, Ahmedabad, New Delhi, Kolkata, Mumbai, Bengaluru, Coimbatore, Tuticorin and Cochin with registered and corporate offices in Chennai, and regional entities in Singapore, the United Arab Emirates and Vietnam, supplemented during the year by newly incorporated wholly owned foreign subsidiary in the United States (Texas). Glottis is among the leading freight forwarding partners to India s renewable energy industry and serves a diversifying base of customers across engineering products, automobiles, agro products, consumer durables and home appliances, minerals and granite, and other manufacturing and trading sectors.

Fiscal 2026 was a landmark year in the Company s journey: Glottis completed its initial public offering of its fully paid equity shares which were listed on the National Stock Exchange of India Limited and BSE Limited on October 7, 2025. This Management Discussion & Analysis is accordingly the Company s first as a listed entity, and management has sought to set a standard of transparency and rigour in it that shareholders can expect in every year that follows.

B. MACRO ENVIRONMENT OVERVIEW

Global and Indian Economy

Global Economy

The global economy remained resilient in 2025, growing by 3.4% (3.3% in 2024), as supportive fiscal and monetary policies, accommodative financial conditions and surging technology investment offset headwinds from geopolitical tensions, trade uncertainty and elevated debt. Global inflation eased to 4.1% from 5.8% on softer energy prices and normalising supply chains, though disinflation remained uneven, with services inflation sticky in major advanced economies.

World trade expanded by 5.1%, outpacing global GDP growth. Merchandise trade accelerated to 4.6%, aided by import frontloading ahead of anticipated tariffs and buoyant trade in tariff-exempt technology products, while services trade moderated to 5.3% as the post-pandemic travel surge waned.

The outlook for 2026-27 has weakened, with geopolitical risk re-emerging as the dominant drag. Following the outbreak of the West Asia conflict in end-February 2026, the IMF lowered its 2026 global growth projection to 3.1% and trade volume growth to 2.8%, with intensification or widening of the conflict the key downside risk. Inflation faces upside pressure from surging energy prices and shipping disruptions, with the IMF revising its 2026 projection to 4.4%. Heightened financial market volatility including possible corrections in richly valued technology stocks alongside rising protectionism and debt sustainability concerns underscores the need for coordinated fiscal, monetary and multilateral policy action.

GDP Growth estimates for 2026 and 2027

Indian Economy

India continued to stand out as the fastest-growing major economy, supported by resilient domestic demand and sustained economic momentum. Growth for 2025 was revised upward to 7.6%, reflecting stronger-than-expected performance during the second and third quarters of the fiscal year and continued momentum in the fourth quarter.

Looking ahead, economic growth is projected at 6.5% in 2026, benefiting from the carryover of strong growth in 2025 and the reduction in additional US tariffs on Indian goods from 50% to 10%. These positive factors are expected to partly offset the adverse impact of the ongoing Middle East conflict. Growth is projected to remain steady at 6.5% in 2027, underscoring the resilience of the Indian economy amid an uncertain global environment.

Even under the report s downside scenarios, India is expected to demonstrate considerable resilience, with growth estimated at 7.5% in 2025 and 7.1% in 2026, before moderating to 6.5% in 2027. Overall, India s strong domestic fundamentals and sustained economic momentum continue to support a favourable medium-term growth outlook.

Inflation in India is expected to return to near target levels after subdued food prices drove a marked decline in 2025. This sits against a broader global backdrop where global inflation is projected to pause its decline, with headline inflation increasing from 4.1 percent in 2025 to 4.4 percent in 2026 before falling back to 3.7 percent in 2027, reflecting expected higher energy and food prices tied to the Middle East conflict.

Source: RBI and IMF

FDI Inflows (US$ Billion)

C. INDUSTRY OVERVIEW

GLOBAL LOGISTICS, TRADE ENVIRONMENT, INDIAN LOGISTICS AND FREIGHT

FORWARDING INDUSTRY STRUCTURE AND DEVELOPMENTS

Global Logistics Market

The Global Logistics market was worth ~US$9.41 Trillion as of 2023 and forecasted to grow at 8.1% CAGR to reach US$14.39 Trillion by 2029. Robust e-commerce activity, infrastructure modernization, rising demand for cross-border courier, express, and parcel (CEP) services, and accelerating public-private partnerships keep the freight and logistics market on a steady growth path. Freight transport remains the backbone of global trade, yet segment diversification toward forwarding, warehousing, and last-mile fulfilment is increasing as shippers seek integrated solutions. Strong regional momentum in Asia-Pacific, regulatory pushes for Scope-3 emissions reporting, and technology investments in automation, visibility, and predictive optimization continue to reshape competitive strategies and cost structures.

Logistics Market Size by Country and % of GDP as of 2025

Growth in Merchandise Trade Value and Volume

Global merchandise trade gained momentum in 2025, with trade volumes growing by 4.6%, compared with 2.7% in 2024, supported by strong demand for AI-related goods. Meanwhile, average global merchandise trade prices increased by approximately 2%, contributing to an overall 7% rise in world trade in value terms.

Total Merchandise growth: Region Wise

Asia led global trade growth in 2025, with export volumes rising by 9.5% and imports increasing by 6.0%. The Middle East and Africa also recorded robust export growth of 12.9% and 10.3%, respectively, while their import volumes grew by 10.4% and 8.7%. In comparison, North America, South and Central America, and the Commonwealth of Independent States (CIS) witnessed more moderate export growth of around 3%. Europe was the only region to record a contraction, with export volumes declining by 0.5%.

Total Merchandise Growth in Volume Terms

Merchandise Export and Import Volume Indices by Region, 2023Q1-2025Q4

Regional Contributions to World Trade Growth Asian economies were the dominant driver of global trade in 2025, marking the second consecutive year in this position. Asia alone contributed 3.2 percentage points of the total 4.6% growth in world trade volume, accounting for 71% of the entire increase. This underscores how concentrated the 2025 trade surprise was geographically, rather than being a broad-based global phenomenon.

Asia largest contributor for the second year running (3.2pp of 4.6pp total), driven by both import demand and standout export performance.

Europe turned positive in 2025 after two consecutive years of contraction in both exports and imports, marking a notable inflection point.

North America contributed to growth mainly through a frontloading-driven import surge concentrated in Q1 2025, ahead of expected US reciprocal tariffs.

South America, CIS, Africa, and the Middle East grouped together as other regions, all making a positive (if smaller) contribution to the total.

Export Volume Dynamics

Within Asia, export resilience was not driven by China alone. While China s exports rose 9.2%, the region s strength was broadened by double-digit export volume increases in Singapore, Chinese Taipei, and Thailand, suggesting the AI-related goods boom and supply-chain diversification benefited multiple economies simultaneously 0rather than being a single-country story.

Import Volume Dynamics

The clearest quarterly pattern was in North America, where import growth was heavily front-loaded into Q1 2025 (largely gold and pharmaceuticals) ahead of anticipated tariff hikes. Once higher tariffs took effect mid-year, import growth slowed but did not collapse, a resilience attributed to continued inflows of AI-enabling goods, which appear to have been comparatively insulated from the broader tariff-driven slowdown.

Merchandise Export and Import Volume Indices by Region, 2023Q1-2025Q4

Seasonally adjusted index, 2023Q1=100

Global Container Throughput Index, January 2019-January 2026

Container throughput at major international ports serves a dual signalling function. It is a real-time proxy for the volume of world merchandise trade, while also being closely tied to the transport component of services trade. This makes it one of the more useful early-read indicators, since it captures physical trade flows ahead of official trade statistics.

The index, which tracks total throughput across 90 international ports representing roughly 65% of global container traffic reached a seasonally adjusted level of 144.7 in January 2026, up 6.1% year-on-year.

This growth rate came in notably stronger than the 1.9% merchandise trade growth anticipated for 2026 under the baseline forecast, suggesting actual trade momentum entering the year was running well ahead of the cautious annual projection.

Regional Composition China vs. Rest of World

The headline increase was overwhelmingly driven by Chinese ports, where throughput rose 11.4% year-on-year in January, nearly double the global average.

By contrast, throughput at ports in the rest of the world rose just 2.7% over the same period, a much more modest pace, indicating the January strength was concentrated rather than broad-based.

This divergence points to continued strength in Chinese exports at the start of 2026, even as global trade growth elsewhere remained comparatively subdued.

Northern European ports told a different story: year-on-year container traffic growth slowed sharply to just 0.3% in January, down from 13.4% in December, a significant deceleration that warrants monitoring as a possible early signal of weakening European trade activity.

Global Container Throughput Index, January 2019-January 2026

Seasonally adjusted index, 2019=100

Container shipping: Global container movement remained lower than prior-year levels through Fiscal 2026, reflecting slower ordering cycles, supply-chain realignment and inventory correction across major importing markets. Freight rates, which had been elevated through much of Fiscal 2025 following the rerouting of vessels away from the Red Sea, softened progressively and corrected steeply in the third quarter of Fiscal 2026. Benchmark indices reflected the correction. The Drewry World Container Index declined from approximately US$ 3,527 per FEU in June 2025 to approximately US$ 2,279 per FEU by March 2026 as per Drewry World Container Index. Record newbuild vessel deliveries and the progressive adaptation of carrier networks to longer routings added effective capacity through the year, reinforcing the downward pressure on rates. Geopolitical flashpoints, including the escalation in the Middle East in mid-2025 produced intermittent disruption without altering the downward trajectory.

What this meant for freight forwarding. It is important for shareholders to understand how these conditions transmit to a freight forwarder s reported financials. A forwarder s revenue is a function of the volume of cargo handled (TEUs) and the prevailing freight rate at which that cargo moves, which is substantially a pass-through cost embedded in billing. In Fiscal 2026 both variables moved against the industry: the Company s volumes declined 20.6% to 89,098 TEUs, broadly in line with industry patterns, while average realisation per TEU, which had been approximately 79,000 in the second quarter fell to approximately 67,000 in the third quarter as the rate correction took hold. In such an environment, spreads also compress: carriers and forwarders defend volumes, and the Company consciously chose to protect long-standing customer relationships and service continuity even where margins were thinner, judging franchise preservation to be the correct long-term trade-off. Management therefore views customer retention and addition, service-line diversification and cost discipline rather than headline revenue as the more meaningful indicators of the underlying health of the franchise in a year such as this. These are discussed in Sections 5 and 7.

Indian Logistics Industry

Industry structure. The Indian logistics industry is large, fragmented and formalising but it continues to experience strong growth, supported by structural drivers across both the demand and supply sides. Rising investments in transportation infrastructure, warehousing and supply chain management are strengthening the sector s growth prospects. It is expected to grow steadily at a CAGR of 9.6%, reaching INR ~37T by FY30 The logistics sector has been recognized as a core enabler for the development of India to reach the government s vision of achieving a US$ 5T economy by CY25. As per the Economic Survey FY18, the logistics industry in India was pegged at INR 12.8T in FY19. The industry has grown at 10.6% CAGR to INR 23.4T (US$ 276.7B) over FY19-25. The logistics industry is forecasted to reach ~INR ~37T (US$ 437.6B) by FY30, growing at a CAGR of 9.6%.

Source: Economic Survey, 1Latice Analysis

Growth Drivers of Logistics

Robust FDI inflows: India attracted cumulative FDI inflows of US$748.8 billion during FY2014 FY2025, representing a 143% increase over the preceding eleven-year period of FY2003 FY2014.

Strong Government Infrastructure Push: The Union Budget 2025 26 allocated approximately US$134 billion towards infrastructure development, equivalent to 3.1% of GDP, reflecting the Government s continued emphasis on strengthening transportation and logistics infrastructure.

Growth in Merchandise Exports: India s merchandise exports increased from approximately US$422 billion in FY2022 to US$437.4 billion in FY2025. Supported by the Make in India initiative, this growth is strengthening domestic manufacturing ecosystems and advancing India s ambition to secure a 5% share of global merchandise exports, thereby creating additional demand for logistics services.

Expansion of Domestic Manufacturing: The continued expansion of domestic manufacturing under the Make in India initiative is expected to strengthen local industrial ecosystems and generate positive spillovers for sectors such as logistics and real estate.

Supportive Regulatory Reforms: Reforms including e-way bills, the Goods and Services Tax (GST), faster clearances and the granting of infrastructure status to the logistics sector are helping reduce inefficiencies and improve ease of operations.

Focus on Workforce Skilling: Greater emphasis on workforce skilling and the development of dedicated training infrastructure is supporting the availability of skilled talent across the logistics ecosystem.

Rapid Growth of E-commerce and Digital Commerce: The expansion of e-commerce, alongside increasing participation by MSMEs in digital commerce, continues to generate incremental demand for logistics, fulfilment and last-mile delivery services.

Emergence of New Demand Centres: Demand centres are increasingly expanding beyond Tier-I and Tier-II cities, supported by rising internet penetration, which reached approximately 66% in FY2025, and growing smartphone adoption.

Indian Freight Forwarding Industry

The Indian freight forwarding market stood at US$ 10.1 billion in FY24, and is projected to reach approximately US$ 17.0 billion by FY29, a CAGR of approximately 10.9% over FY24 29. The Indian freight forwarding industry is witnessing strong growth, supported by sustained infrastructure development, the rapid expansion of e-commerce, technological advancements, increasing export opportunities for MSMEs and favourable government policies. Major initiatives such as the Dedicated Freight Corridors, Sagarmala, Bharatmala, PM Gati Shakti and the National Logistics Policy (NLP) are strengthening multimodal connectivity and improving the efficiency of freight movement across the country. The development of the Vizhinjam International Seaport, India s first deep-water International Container Transshipment (ICT) terminal, further marks an important step towards enhancing the country s maritime and transshipment capabilities. Within this, the Indian ocean freight market is projected to grow at a CAGR of approximately 11.9% over the same period. source: 1Lattice Freight Forwarding Industry report dated September 15, 2025

Growth Drivers for Freight Forwarding

Infrastructure development: The Ministry of Railways has completed the 1,337-km Eastern Dedicated Freight Corridor (EDFC), connecting Ludhiana to Sonnagar. Of the 1,506-km Western Dedicated Freight Corridor (WDFC), which extends from Jawaharlal Nehru Port Terminal (JNPT) to Dadri, 1,220 km has been completed and made operational. Complementary programmes such as Sagarmala and Bharatmala are further strengthening India s transport infrastructure and improving connectivity across key economic centres.

Expansion of e-commerce: India s e-commerce market, valued at approximately US$95.8 billion in FY2025, is projected to grow at a CAGR of 19.6% to reach approximately US$234.4 billion by FY2030. To support this expansion and facilitate cross-border trade, the Government plans to establish 50 e-commerce export hubs aimed at efficiently managing parcel volumes and streamlining international shipments.

Export promotion for MSMEs: The Ministry of MSME has established 60 Export Facilitation Centres (EFCs) across the country to provide mentoring and support to micro and small enterprises (MSEs), thereby strengthening their export capabilities and participation in international markets.

Government initiatives: Under the PM Gati Shakti initiative, 208 major infrastructure projects worth approximately US$185 billion have been assessed across various ministries. Meanwhile, the National Logistics Policy seeks to establish an integrated and technology-enabled logistics ecosystem through the Unified Logistics Interface Platform (ULIP). The platform aims to lower logistics costs, enhance operational efficiency and enable end-to-end cargo visibility, including through the integration of GST-related data.

Policy and Infrastructure Tailwinds

Make in India

Launched in 2014 to position India as a global manufacturing hub by attracting domestic and foreign investment into local production.

Has driven increased investment in infrastructure, technology, and skills, improving manufacturing efficiency and integration into global supply chains.

PM Gati Shakti

Creates a digitally integrated, multi-modal transport network via a GIS platform, working alongside the National Logistics Policy to cut logistics costs and expand freight capacity.

293 infrastructure projects worth ~US$162B have been assessed under its principles.

Sagarmala Project

Launched in 2015 to modernize port infrastructure, improve connectivity, and drive port-led development.

839 projects worth ~US$69B are planned by 2035; 272 projects worth ~US$17B are already completed.

National Logistics Policy

Establishes a unified logistics ecosystem via the Unified Logistics Integrated Platform (ULIP), integrating GST data for end-to-end cargo tracking.

Over 1,300 companies registered, 100 crore+ API transactions processed, and 350+ agreements signed.

Pradhan Mantri Gram Sadak Yojana (PMGSY)

Focused on upgrading rural road infrastructure to strengthen last-mile connectivity and market access.

PMGSY-IV (FY25 FY29) has an outlay of ~US$8B to build 62,500 km of all-weather roads.

Bharatmala Pariyojana

Launched in 2017 to expand and upgrade national highways and improve connectivity to remote regions.

Phase-I planned 34,800 km, with 26,425 km (76%) awarded and 19,826 km completed as of February 2025.

Comprehensive Logistics Action Plan (CLAP)

A National Logistics Policy framework focused on an integrated digital logistics system and standardized, interoperable assets.

Also emphasizes EXIM logistics enhancement, logistics HR development, and state-level engagement.

Goods and Services Tax (GST)

Introduced in 2017, replacing multiple state and central taxes with a single unified tax structure.

Reduced logistics costs and time, enabling warehouse consolidation and optimized, state-agnostic supply chains

Source: 1Latice

Competitive landscape. Freight forwarding in India remains highly competitive and fragmented, spanning global integrators, large listed multimodal players and a long tail of regional forwarders. Competitive advantage accrues to players with scale relationships with shipping lines, sector specialisation that raises switching costs, balanced asset ownership, and balance-sheet strength to invest through downturns. The

Company s strategy, described in Section 6, is constructed around these levers.

D. SWOT OVERVIEW

Strengths

Proven Capabilities in Delivering Complex and Diverse Projects of Scale: Integrated Logistics Solutions across Ocean, Air and Inland established over two decades and developed market intelligence related to trade flows and volumes to capitalize on commercial opportunities.

Deep-rooted Asia trade network: longstanding relationships across China, Vietnam, Indonesia, Malaysia and Thailand anchor around 85% of Fiscal 2026 revenue.

Renewable energy leadership: largest single industry vertical at 40.9% of Fiscal 2026 revenue, with early-entrant positioning in the emerging BESS segment.

Outsourcing Strategy for Economies of Scale: Outsourcing of ocean freight functions allows mobilization of larger cargo volumes and enhance margins. Operating scale reduces delivery cost and time, along with additional revenue sources.

Optimal Infrastructure Platform and Vehicle Fleet: Headquartered in Chennai, one of India s major port hubs, enabling strong connectivity for logistics operations and operates PAN-India through a network of 8 branch offices covering major transportation hubs

High customer stickiness: repeat customers grew from 871 to 959 during the year, with the top five customers holding a stable ~33% revenue share.

Diversification traction: air freight, automobile and agro verticals all scaled meaningfully during the year, reducing reliance on any single service line.

Long-term-oriented management: chose to protect key customer relationships through a soft freight cycle rather than chase short-term margin.

Weaknesses

Customer concentration: the top five customers contributed 30 38% of revenue through the year, a risk if any large account slows.

Renewable energy dependence: 40.9% of revenue still tied to one vertical, exposed to ALMM and Make in India-led module manufacturing shifts.

Asia-heavy geographic mix: around 85% of revenue from Asia, with North America (~7%) and Europe (~3%) still small by comparison.

Rising working capital intensity: trade receivables increased sharply as credit terms were extended to retain customers in a soft market.

Opportunities

Structural growth in Indian trade and logistics: A freight forwarding market compounding at approximately 11% with formalisation shifting share to organised players.

Renewable energy transition, redefined: Raw-material imports for domestic module manufacturing, BESS/energy-storage container movements (where the Company is an early entrant with signed contracts), and capital-equipment flows into India together enlarging the renewable logistics task even as finished-module imports decline.

Vertical diversification with demonstrated traction: Automobile revenue more than doubled during Fiscal 2026 i.e. 4.2% of revenue, from 1.5%, agro products grew to 5.7% of revenue from 2.8%, with identified pipelines in chemicals, textiles, pharmaceuticals and medical products.

Service-line diversification: Air import revenue grew 23.6% and air export more than doubled during the year; ocean export share rose to approximately 14% of revenue early evidence of the total logistics provider strategy.

Asset ownership as a margin lever: Management estimates that owned trailers can yield EBITDA margins of 15 20% on associated transport revenue, and that owned containers can reduce related vendor costs by approximately 20 22% from existing levels.

Geographic expansion: Subsidiaries in the United States and Malaysia alongside entities in Singapore, the UAE and Vietnam, positioned on corridors benefiting from supply-chain diversification

Threats

Freight rate volatility and spread compression: Both realisation and forwarding spreads are exposed to the container rate cycle, as Fiscal 2026 demonstrated.

Trade-policy and geopolitical disruption: Tariff measures, import-policy changes affecting Southeast Asia corridors, and conflict-driven rerouting can alter flows with little notice.

Customer and vertical concentration: The top five customers contributed approximately 33% of Fiscal 2026 revenue, and renewable energy remained approximately 41% of revenue.

Execution risk on the asset-ownership transition: Capital deployment, driver availability and training, fleet utilisation and operating capability must scale together.

Working capital intensity: Extended customer credit in a soft market lifted trade receivables approximately 70% year-on-year; the business model also requires early payment to shipping lines ahead of customer invoicing.

Competitive intensity in commoditised FCL forwarding.

E. BUSINESS AND OPERATIONAL

OVERVIEW

Service-line Performance

Ocean freight remained the core of the business. Sea import contributed approximately 78% of Fiscal 2026 revenue, and sea export approximately 14% with the export share strengthening through the year (13% of revenue in Q2, 15% in Q3 and approximately 18% in Q4), reflecting deepening engagement with export-oriented customers under the Make in India programme and deliberate corridor diversification into Cambodia, Africa and Europe. The air segment scaled meaningfully from a small base: air import revenue grew 23.6% year-on-year to approximately 2.4% of revenue (Fiscal 2025: 1.5%), and air export revenue more than doubled to approximately 1.2% of revenue (Fiscal 2025: 0.4%). Road transportation improved its contribution to approximately 5% of revenue, supported by the expanding owned fleet.

Volumes

The Company handled 89,098 TEUs of ocean freight during Fiscal 2026 (Fiscal 2025: 112,146 TEUs), a decline of 20.6%, broadly in line with industry patterns of subdued global container movement. The quarterly progression 25,060 TEUs in Q1, 21,972 in Q2, 20,710 in Q3 and 21,356 in Q4 shows volumes stabilising in the fourth quarter after the third-quarter trough. Key origin markets during the year included China, Vietnam, Indonesia, Malaysia, Thailand and the United States.

Industry Verticals

Renewable energy remained the largest vertical at 40.9% of Fiscal 2026 revenue (Fiscal 2025: 47.5%), with the moderation reflecting policy-driven softness in finished-module imports and cautious raw-material procurement by manufacturers pending trade-policy clarity, partially offset by growing raw-material and energy-storage movements. Diversification delivered visible results: automobile revenue more than doubled to 4.2% of revenue (Fiscal 2025: 1.5%) on contracts signed with leading manufacturers and executed at scale from the fourth quarter; agro products grew 58.7% year-on-year to ~6% of revenue; engineering products, consumer durables and home appliances, and minerals and granite remained meaningful contributors; and initial traction was established in chemicals, textiles and medical products.

Geographic Footprint

0Asia remained the principal region, accounting for approximately 85% of TEUs handled during Fiscal 2026, followed by North America at approximately 7% and Europe at approximately 3%, with the balance from Africa, South America and Australia. During the year, the Company incorporated a wholly owned subsidiary in Texas, United States (March 2026), complementing existing group entities in Singapore, the UAE and Vietnam.

Network and Asset Base

The Company opened a new branch in Ahmedabad during the third quarter its second in Gujarat alongside the long-established Gandhidham office to serve the export and import opportunity in the Ahmedabad Surat industrial belt, taking the branch network to nine offices across India. The owned fleet expanded from 17 to 42 commercial vehicles, with further trailer and container additions under way (Section 6). The Company continues to operate a balanced model: owned assets for control and reliability on core lanes, complemented by a partner network of shipping lines, overseas agents and transporters for reach and flexibility.

Customers

The Company s repeat-customer base grew to 959 during Fiscal 2026 from 871 in the previous year, and 163 new customers were added. Revenue contribution from the top five customers was stable at approximately 33% for the year, reflecting long-standing relationships and higher wallet share with key accounts alongside continuing diversification of the overall mix. During the most challenging quarter of the year, the Company consciously prioritised the retention of key customer accounts and service levels even where margins were thinner, judging the protection of long-term relationships to be the correct tradeoff a decision management believes will prove its worth as conditions normalise.

F. STRATEGIC INITIATIVES AND

DEPLOYMENT OF IPO PROCEEDS

Strategic framework. The Company s strategy rests on below mentioned pillars, each of which advanced during Fiscal 2026 notwithstanding the cyclical environment:

1. Selective asset ownership ( backward integration ). Transitioning core lanes from hired to owned assets to improve cost control, service reliability, customer confidence and margin capture. The owned fleet grew from 17 to 42 commercial vehicles during the year, within a programme of approximately 150 trailers and approximately 1,000 containers involving an aggregate investment of approximately 1,300 million.

2. Vertical diversification. Building on renewable-energy leadership including the emerging BESS/energy-storage opportunity while scaling automobiles, agro products, engineering, pharmaceuticals and other identified verticals.

3 Service-line completion. Deepening ocean export, air freight, road transport, warehousing and 3PL to move from freight forwarder to total logistics provider, increasing wallet share per customer with Fiscal 2026 delivering measurable progress in air and export share.

4 Geographic expansion. Newly incorporated wholly owned foreign subsidiary in the United States, alongside Singapore, the UAE and Vietnam, and export-corridor development into Cambodia, Africa, China and Europe.

5. Sales and organisational build-out. New sales teams commissioned in western and northern India (Gujarat, Maharashtra and the National Capital Region) during the second half of the year, reducing the historical concentration of origination in southern India, supported by the new Ahmedabad branch.

Phasing of the Asset Programme

The Company deliberately phased its asset acquisition rather than deploying capital in one or two tranches. Trailer purchases are being executed in multiple tranches to align with operational absorption and, critically, with the availability and training of qualified drivers each batch of drivers undergoes one to two weeks of quality training before vehicles are commissioned, and the Company has chosen not to let purchased assets stand idle. Orders for approximately 1,000 containers were initiated in the fourth quarter, with the containers expected to enter service from the first quarter of Fiscal 2027. Management estimates that owned trailers can generate better EBITDA margins on associated transport revenue, and that owned containers can reduce related vendor costs, the economics underpinning the backward-integration thesis, which management expects to justify the investment over the next two to three years.

Utilisation of IPO Proceeds

The Company raised 1,600 million by way of fresh issue in its initial public offering (alongside an offer for sale of 1,470 million by promoter selling shareholders). From the net proceeds, 354.36 million had been utilised as on December 31, 2025, and 712.57 million as on March 31, 2026, towards the objects of the issue. On February 13, 2026, the Board approved an extension of the timeline for deployment of the unutilised proceeds as on December 31, 2025 of approximately 1,245.6 million from April 1, 2026 to March 31, 2027, with no change in the objects of the issue. This rescheduling reflects the phased-deployment logic described above, aligning asset induction with driver readiness, operational absorption and market conditions, rather than any change of intent; the programme s economics are strongest when assets enter service at full utilisation. Pending deployment, the balance proceeds remain invested in interest-bearing instruments in the manner permitted under applicable regulations; utilisation is monitored by Crisil Rating Limited and reported quarterly to the stock exchanges.

G. FINANCIAL OVERVIEW AND ANALYSIS

Overview

Fiscal 2026 the Company s first full financial year as a listed entity was a year of two contrasting narratives: a cyclical contraction in reported revenue and profitability driven by softer global trade volumes and a second-half freight-rate correction, and a material strengthening of the Company s balance sheet, asset base and organisational platform. Management believes both narratives are essential to a fair assessment of the year.

Fiscal 2026 at a Glance

Metric	FY2026	FY2025	Change
Revenue from operations ( mn)	7,226	9,412	(23.2) %
EBITDA ( mn)	495	783	(36.8) %
EBITDA margin (%)	6.9	8.3	(140) bps
Profit after tax ( mn)	377	562	(32.9) %
PAT margin (%)	5.2	6.0	(80) bps
Ocean freight volume (TEUs)	89,098	112,146	(20.6) %
Repeat customers (nos.)	959	871	+88
Owned commercial vehicles (nos.)	42	17	+25; ~150%
Net worth ( mn)	2,810	978	+187%
Debt-to-equity (x)	0.18	0.23	Improved

Reported revenue, volumes and profitability contracted, driven by softer global trade flows, cautious customer shipment planning and a steep correction in container freight rates in the second half of the year. At the same time, the Company materially strengthened its platform: it more than doubled its owned fleet, opened a new branch in Ahmedabad, expanded its sales organisation into western and northern India, incorporated a wholly owned foreign subsidiary in the US market, grew its repeat-customer base from 871 to 959 while adding 163 new customers, and made visible progress on diversification across service lines and industry verticals. Management believes both narratives are essential to a fair assessment of Fiscal 2026, and this report presents them together.

Revenue from Operations

Revenue from operations for Fiscal 2026 stood at 7,226 million, as against 9,412 million in Fiscal 2025, a decline of 23.2%. The decline reflects the combination of:

Volume effect: ocean freight volumes declined 20.6% to 89,098 TEUs (Fiscal 2025: 112,146 TEUs), in line with subdued global container movement, inventory correction across major importing markets and cautious procurement particularly in the renewable energy vertical, where trade-policy uncertainty deferred raw-material purchases.

Realisation effect: freight rates softened progressively and corrected steeply in the third quarter, with average realisation per TEU declining from approximately 79,000 in the second quarter to approximately 67,000 in the third quarter; on a full-year blended basis the realisation decline was more moderate, as elevated first-half rates partially offset the second-half correction.

Mix effect (partially offsetting): growth in air freight (import up 23.6%, export more than doubled), road transport (approximately 5% of revenue) and ocean export share (approximately 14%, with a rising quarterly trajectory) partially cushioned the ocean-import decline and evidences the diversification strategy at work.

The franchise indicators moved in the opposite direction to the topline: Repeat customers grew to 959 from 871. 163 new customers were added, and top five customer contribution remained stable at approximately 33% the revenue decline was a market phenomenon, not a customer-loss phenomenon.

Operating Profitability

EBITDA for Fiscal 2026 was 495 million (Fiscal 2025: 783 million), with EBITDA margin at 6.9% (Fiscal 2025: 8.3%). Two dynamics drove the compression. First, spread compression: in the third quarter, as rates corrected sharply, the Company consciously defended key customer accounts and service levels at thinner margins cost of services rose to approximately 91% of revenue in that quarter against a historical range of 86 87% judging franchise protection to be the correct long-term decision. Second, growth investment: the Ahmedabad branch, the western and northern India sales build-out and the fleet expansion carried near-term cost ahead of revenue. The quarterly margin progression tells the story of the year 10.1% in Q1, 8.4% in Q2, 2.8% at the Q3 trough, recovering to 5.4% in Q4 (marginally ahead of the 5.2% recorded in Q4 of Fiscal 2025) as shipment activity and export-linked movements improved.

Profit After Tax

Profit after tax for Fiscal 2026 stood at 377 million (Fiscal 2025: 562 million), a decline of 32.9%, with PAT margin at 5.2% (Fiscal 2025: 6.0%). Other income of 68 million (Fiscal 2025: 14 million) partially cushioned the decline, primarily reflecting treasury income on unutilised IPO proceeds pending deployment the effect is most visible in the fourth quarter, where profit after tax of 107 million stood marginally above EBITDA of 105 million. Finance costs stood at 10 million.

Balance Sheet and Cash Flows

The Company ended the year with a materially stronger balance sheet. Net worth stood at 2,810 million as on March 31, 2026 (March 31, 2025: 978 million), supported primarily by the IPO proceeds and retained earnings. The debt-to-equity ratio improved to 0.18x from 0.23x. Trade receivables increased approximately 60% year-on-year, reflecting a deliberate decision to extend credit days selectively to support long-standing customers through a volatile trade environment and to secure new customer additions; management regards this as a conscious working-capital investment in the franchise, made from a position of balance-sheet strength. Other current assets increased in line with the business model s structural feature of early payments to shipping lines and agents ahead of customer invoicing (typically 15 20 days). Net cash used in operating activities was ( 687.9) million; capital expenditure for the year was 100.9 million, principally towards the addition of 25 owned commercial vehicles.

Key financial ratios. Pursuant to Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details of significant changes (25% or more compared to the immediately preceding financial year) in key financial ratios, along with explanations, are set out below:

Ratio	FY2026	FY2025	Change (%)	Explanation (where change >= 25%)
Debtors turnover (x)	5.20	11.79	(55.9)Decline driven by lower revenue and the
				deliberate extension of customer credit
				days described above
Current Ratio (x)	3.81	2.64	30.7	Improved materially owing to IPO
				proceeds pending deployment
Debt equity (x)	0.18	0.23	(21.8)Below 25% threshold; improvement
				from net worth expansion and reduced
				leverage
Operating profit margin	6.9	8.3	(16.9)Below 25% threshold; discussed above
(x)
Net profit margin (%)	5.2	6.0	(13.4)Below 25% threshold; discussed above

Return on Net Worth

Return on net worth for Fiscal 2026 stood at approximately 19.94%, as against approximately 80.5% in Fiscal 2025. The decline reflects the combined effect of (a) the expansion of the net worth base from 978 million to 2,809 million upon the fresh issue in October 2025 capital raised for asset acquisition and partially undeployed at year-end by design and (b) the cyclical decline in profit after tax discussed above. Fiscal 2025 s return on net worth was earned on a pre-IPO capital base and is not the appropriate benchmark for the listed entity. The Company s capital-allocation objective is to deploy the raised capital into owned trailers and containers at attractive incremental returns management estimates comparatively better EBITDA margins on owned-trailer transport revenue and vendor-cost reductions from owned containers and RONW should be expected to normalise as deployment completes and the freight cycle recovers.

H. OUTLOOK

Management enters Fiscal 2027 with measured confidence. Shipment activity and export-linked movements improved in the fourth quarter of Fiscal 2026, and while management does not attempt to forecast freight rates, the Company s plans do not depend on a rate recovery: they depend on volume growth, mix improvement and cost capture, each of which is within the Company s influence. The specific priorities for Fiscal 2027 are: (a) completing the trailer programme and commissioning approximately 1,000 owned containers from the first quarter, with the backward-integration economics higher-margin owned-trailer transport revenue and materially lower container vendor costs beginning to flow through the year; (b) converting the western and northern India sales organisation and the Ahmedabad branch into meaningful origination; (c) scaling the emerging cargo categories where the Company has early positions battery energy storage systems, raw materials and capital equipment for India s expanding solar manufacturing capacity, and automobile logistics under recently signed contracts; (d) continuing to grow ocean export, air freight and road transport share; and (e) operationalising the United States subsidiary. Management s medium-term financial ambition is a progressive improvement in EBITDA margin towards double digits, driven by owned-asset economics, operating leverage from the expanded network and normalisation of the rate environment. The Company will pursue this ambition with the same capital discipline and balance-sheet conservatism that characterised Fiscal 2026 it enters the new year net cash positive, with the franchise intact and enlarged.

I. RISKS AND CONCERNS

Risk	Nature	Mitigation
Freight rate cyclicality	Revenue and forwarding spreads are	Diversification of corridors, service lines and verticals;
and spread compression	geared to the container rate cycle, as	pre-booking of capacity; backward integration to
	Fiscal 2026 demonstrated	internalise cost; disciplined per-lane economics
Trade-policy and	Tariff measures, import-policy	Multi-corridor network; local entities in Singapore, UAE,
geopolitical disruption	changes on Southeast Asia corridors	Vietnam, US and Malaysia; route-cluster monitoring;
	and conflict-drivenrerouting can bunker (fuel) cost movements passed through via BAF
	alter flows with little notice	mechanisms
Customer concentrationTop five customers ~33% of revenueRepeat base grown to 959; 163 new customers
		added; vertical diversification reducing single-sector
		dependence
Vertical concentration	Import mix shifting with domestic	Positioning across the full renewable chain (raw
(renewable energy,	manufacturing localisation; policy-	materials, BESS, capital equipment); automobile, agro,
40.9%)	sensitive demand	pharma and other verticals scaling
Execution risk asset-	Deployment, driver availability/	Phased tranches; batch driver training before
ownership transition	training, utilisation and operations	commissioning; deployment timeline extended to FY27
	must scale together	to match absorption; utilisation review at lane level
Working capital and	Receivables up ~60% on extended	Customer-level credit limits and ageing review by
receivables	credit days; structural early payment	management and the Audit Committee; net cash
	to liners ahead of invoicing	balance sheet provides capacity; credit extension
		deliberate and selective
Regulatory and	Multi-jurisdiction customs, tax and	Strengthened post-listing compliance function; the
compliance	listing obligations	GST matter relating to an earlier period was resolved
		during the year with payment made per departmental
		workings
Attrition and key-person	Relationship-driven model	Sales organisation broadened across regions; process
dependence	with historical southern-India	institutionalisation
	concentration

J. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains that its internal control systems commensurate with the size, scale and complexity of its operations, designed to provide reasonable assurance on the reliability of financial reporting, the safeguarding of assets, the prevention and detection of fraud and error, and compliance with applicable laws and regulations. Following its listing, the Company strengthened its governance architecture, including internal audit appointment/scope, Audit Committee oversight cadence, internal financial controls testing under Section 143(3)(i), whistle-blower mechanism, code of conduct and insider-trading framework. The internal audit function reports to the Audit Committee, which reviews audit plans, significant findings and the adequacy corrective actions. During the year, no material weakness in the design or operation of internal controls was observed

K. HUMAN RESOURCES AND

INDUSTRIAL RELATIONS

People are central to a relationship-driven logistics franchise. As of March 31, 2026, the Company employed 191 people (March 31, 2025: 153). Glottis Ltd is committed to building a people-centric, performance-driven organisation by fostering a culture of safety, inclusion, continuous learning, and employee well-being. The Company s people strategy focuses on strengthening talent, developing leadership capability, and creating meaningful career opportunities while aligning individual aspirations with long-term business objectives. Through progressive HR practices and capability-building initiatives, Glottis continues to build a future-ready workforce that supports sustainable growth.

During the year, the Company strengthened its talent pipeline through structured hiring and development initiatives, including focused onboarding, on-the-job learning, technical and functional training, and leadership development programmes. These initiatives are designed to accelerate employee readiness, enhance operational excellence, and prepare future leaders across business functions.

Glottis also continued to promote an inclusive and respectful workplace by reinforcing a culture of dignity, diversity, and equal opportunity. Workplace safety remained a key priority, supported by regular safety awareness of programmes, employee engagement initiatives, and continuous reinforcement of safe work practices across operational locations. By investing in employee capability, strengthening organisational culture, and fostering continuous learning, Glottis Ltd continues to enhance workforce agility, improve employee engagement, and build a resilient organisation equipped to support its long-term growth ambitions.

L. CAUTIONARY STATEMENT

Statements in this Management Discussion & Analysis describing the Company s objectives, projections, estimates, expectations or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied, owing to factors including, without limitation, global and domestic economic conditions, movements in freight rates, geopolitical developments and trade-policy actions, fluctuations in fuel prices and foreign exchange rates, changes in government regulations and tax regimes, competitive intensity, the Company s ability to execute its capital expenditure and expansion plans, and other incidental factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statement on the basis of subsequent developments, information or events, except as required by law. Readers are advised to refer to the financial statements and the notes thereto for a complete understanding of the Company s financial position.