Jet Freight Logistics Ltd Management Discussions

1. Global Economic Overview

The global economy demonstrated resilience during FY 2025–26 despite persistent geopolitical tensions, evolving trade dynamics and a complex macroeconomic environment. While inflationary pressures moderated across several advanced economies due to easing commodity prices and calibrated monetary policies, global growth remained uneven amid elevated interest rates, regional conflictsand policy uncertainties. Businesses continued to adapt to changing global trade patterns by diversifying sourcing strategies, strengthening supply chain resilience and accelerating investments in technology-led operational efficiencies.

International trade witnessed gradual recovery during the year, supported by resilient manufacturing activity and improving consumer demand. However, disruptions in key shipping corridors, particularly in the Red Sea region, resulted in longer transit times, higher freight costs and periodic supply chain bottlenecks. Air freight demand remained relatively stable, driven by growth in cross-border e-commerce, pharmaceuticals, electronics and other time-sensitive cargo, while ocean freight markets experienced gradual normalization following the volatility witnessed in previous years.

The logistics industry continued to undergo structural transformation, with increasing adoption of digital technologies such as Artificial Intelligence (AI), predictive analytics, Internet of Things (IoT), automation and real-time shipment visibility solutions. At the same time, sustainability remained a key strategic priority, with logistics providers focusing on route optimisation, fuel efficiency, digital documentation and environmentally responsible business practices.

Although geopolitical developments and macroeconomic uncertainties continue to influence global trade, the long-term outlook for the logistics industry remains positive, supported by expanding cross-border commerce, diversified supply chains and increasing demand for integrated logistics solutions.

2. Indian Economy & Logistics Industry Overview

India continued to strengthen its position as one of the worlds fastest-growing major economies during FY 2025–26, supported by resilient domestic demand, stable macroeconomic fundamentals, rising manufacturing activity and sustained public investment in infrastructure. Continued policy reforms, increasing formalisation of the economy and the Governments focus on improving ease of doing business further reinforced Indias attractiveness as a global manufacturing and investment destination.

Government initiatives such as the National Logistics Policy (NLP), PM Gati Shakti National Master Plan,

Production Linked Incentive (PLI) Schemes, Dedicated Freight Corridors (DFCs), Sagarmala Programme and

Bharatmala Pariyojana continued to strengthen the countrys logistics ecosystem by enhancing multimodal connectivity, improving infrastructure efficiency and reducing logistics costs. These initiatives are expected to significantly improve supply chain efficiency and support Indias long-term economic competitiveness.

The Indian logistics industry continued to benefit from increasing export-import activity, expansion of the manufacturing sector, growth in e-commerce and organised retail, and rising demand for integrated supply chain solutions. Customers increasingly preferred logistics partners capable of providing end-to-end solutions encompassing international freight forwarding, customs brokerage, transportation, warehousing and value-added logistics services under a single platform.

Technology adoption remained a definingtrend across the sector, with greater use of digital documentation, transport and warehouse management systems, data analytics and real-time shipment tracking to improve operational efficiency and customer experience. Simultaneously, the increasing emphasis on sustainability and resilient supply chains is encouraging investments in greener transportation practices and technology-enabled logistics solutions.

Supported by favourable demographics, expanding industrial capacity, infrastructure development and continued policy support, Indias logistics sector is expected to remain on a strong growth trajectory. As businesses increasingly seek reliable and integrated logistics partners, organised service providers are well positioned to benefit from the sectors long-term structural growth.

3. Industry Structure & Developments

The logistics industry in India continues to evolve from a fragmented and transaction-driven market to an organised, technology-enabled and integrated services ecosystem. Customers are increasingly shifting towards logistics partners capable of offering comprehensive supply chain solutions, including freight forwarding, customs clearance, transportation, warehousing and distribution services, thereby improving operational efficiency reducing supply chain complexity.

The sector is witnessing increased investments in digitalisation, automation and multimodal logistics infrastructure, enabling greater operational visibility, faster decision-making and improved customer service. The growing adoption of technology, coupled with continued infrastructure development, is expected to enhance productivity and strengthen the competitiveness of organised logistics service providers.

The freight forwarding business continued to operate in a dynamic environment during the year, with freight rates stabilising after the extraordinary volatility experienced in previous years. While geopolitical developments and regional supply chain disruptions continued to influence transportation costs and transit schedules, customer demand remained resilient across several key sectors, including pharmaceuticals, engineering goods, electronics, chemicals and consumer products.

As global supply chains continue to diversify and India strengthens its role in international trade, the demand for integrated logistics services is expected to grow steadily. With its diversified service portfolio, established customer relationships and focus on operational excellence, Jet Freight Logistics Limited remains well positioned to capitalise on emerging opportunities while continuing to deliver reliable, efficient and customer solutions.

4. Opportunities & Threats

Opportunities

Indias logistics sector continues to present significant long-term growth opportunities, driven by favourable macroeconomic fundamentals, policy reforms, infrastructure development and increasing integration with global supply chains. The Governments continued emphasis on improving logistics efficiency through initiatives such as the National Logistics Policy, PM Gati Shakti, Dedicated Freight Corridors and multimodal logistics infrastructure is expected to enhance connectivity and strengthen Indias competitiveness in international trade.

The continued expansion of the manufacturing sector under the "Make in India" initiative, increasing adoption of the "China+1" sourcing strategy, and growing export competitiveness are expected to generate sustained demand for international freight forwarding and integrated logistics services. In addition, rapid growth in e-commerce, organised retail, pharmaceuticals, engineering goods, electronics, chemicals and automotive sectors continues to create opportunities for specialised and value-added logistics solutions.

Customers are increasingly seeking integrated logistics partners capable of providing end-to-end supply chain solutions supported by digital technologies, operational excellence and superior customer service. With its diversified service portfolio, established customer relationships and experienced management team, the Company remains well positioned to capitalise on these structural growth opportunities.

Threats

The logistics industry continues to operate in a dynamic environment and remains exposed to several external and operational risks, including geopolitical tensions, disruptions in global shipping routes, volatility in freight rates, fluctuations in foreign exchange rates and fuel prices, evolving trade regulations and increasing competitive intensity.

The Company actively monitors these developments and adopts appropriate mitigation measures through diversified customer and carrier relationships, prudent pricing strategies, disciplined risk management practices and continuous focus on operational efficiency. Investments in technology, compliance and process improvements further strengthen the Companys ability to respond effectively to changing market conditions.

5. Segment-wise / Product-wise Performance

Jet Freight Logistics Limited is engaged in providing integrated logistics and freight forwarding services comprising international air freight, oceanand freight, customs brokerage, transportation, warehousing and allied logistics solutions. These services collectively support customers across diverse industries, including pharmaceuticals, engineering, automotive, chemicals, textiles, consumer goods and other manufacturing sectors.

The Companys integrated business model enables it to provide customised end-to-end logistics solutions, thereby enhancing customer value and strengthening long-term business relationships. During FY 2025-26, the Company continuedtofocusonimprovingoperationalefficiency, expanding value-added services and delivering reliable logistics solutions across its service portfolio.

The Company operates substantially in a single reportable business segment in accordance with the applicable Indian Accounting Standards (Ind AS), and accordingly, segment information is presented in the Notes to the

Financial Statements.

6. Discussion on Financial Performance with respect to Operational Performance

FY 2025-26 was a year of improved profitabilityfor the Company despite a dynamic global logistics environment characterised by evolving trade patterns, freight rate normalisation and geopolitical uncertainties. The Company continued to focus on disciplined execution, operational excellence, customer retention, cost optimisation and prudent working capital management, resulting in a significant improvement in earnings.

Consolidated Performance

During the financialyear under review, the Company reported Gross Income of 44,429.87 Lakhs on a consolidated basis.

Profit BeforeTax(beforeexceptionalitems) increased by 83.30% to 1,159.53 Lakhs, while Profit increased by 81.54% to 680.86 Lakhs. Total Comprehensive Income stood at 688.29 Lakhs, and Closing Retained Earnings increased by 47.10% to 2,163.84 Lakhs.

Standalone Performance

On a standalone basis, the Company reported Gross Income of 44,802.80 Lakhs, registering a growth of 2.35% over the previous financial year.

ProfitBefore Tax (before exceptional items) increased by 83.80% to 1,158.34 Lakhs, while Profit increased by 82.57% to 680.25 Lakhs. Total Comprehensive Income stood at 687.70 Lakhs, and Closing Retained Earnings increased by 41.90% to 2,343.83 Lakhs.

The Companys financial performance reflects the effectiveness of its strategic focus on profitable than volume-led expansion. While revenue remained broadly stable during the year, profitability improved significantlyowing to enhanced operational efficiencies, better freight procurement, service mix, optimisation of operating costs and effective utilisation of resources. The Company also continued to strengthen customer relationships and maintain a prudent approach towards working capital management, contributing to improved overall financial performance.

Going forward, the Company will continue to focus on sustainable profitability, centric service delivery and efficient capital allocation while strengthening its integrated logistics capabilities.

7. Outlook

The long-term outlook for the Indian logistics sector remains positive, supported by sustained economic growth, increasing manufacturing activity, expanding international trade, infrastructure development and favourable

Government initiatives aimed at improving logistics efficiency.

The Company believes that increasing demand for integrated logistics solutions, greater adoption of digital technologies, supply chain diversification and customers preference for organised logistics service providers will continue to create significant growth opportunities.

Going forward, the Company will continue to focus on strengthening customer relationships, expanding integrated logistics offerings, enhancing operational efficiency through financial discipline and delivering sustainable value to all stakeholders. Backed team, established global network and diversified service portfolio, the Company remains well positioned to capitalise on emerging opportunities while effectively managing business risks.

8. Risks & Concerns

The logistics industry is inherently exposed to various macroeconomic, operational and regulatory risks that could impact business performance. The Company has established a robust risk management framework to identify, assess and mitigate key risks through continuous monitoring and appropriate control mechanisms.

The principal risks faced by the Company include geopolitical developments affecting global trade, volatility in ocean and air freight rates,foreignexchangefluctuations,fuel price volatility, changes in regulatory and customs requirements, supply chain disruptions, increasing competitive intensity and cybersecurity risks associated with growing digitalisation.

The Company mitigates these risks through diversified customer and carrier relationships, prudent financial management, continuous monitoring of market developments, robust internal controls and a strong compliance framework. Investments in technology, process automation and cybersecurity further enhance operational resilience and business continuity.

The Board of Directors and senior management periodically review the Companys risk profile to ensure that appropriate mitigation strategies remain effective and aligned with the evolving business environment.

9. Internal Control Systems and Their Adequacy

The Company has established an adequate system of internal financial controls commensurate with the size, nature and complexity of its operations. The internal control framework is designed to ensure the orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, reliability of financial reporting, and compliance with applicable laws, regulations and internal policies.

The Company has a robust internal audit mechanism that adopts a risk-based approach to evaluate the effectiveness of internal controls across key business processes. The Internal Auditors periodically review operational, financial and compliance controls, and their observations, together with management responses, are placed before the Audit Committee of the Board for review and guidance.

The Audit Committee regularly monitors the adequacy and effectiveness of the internal control environment, reviews the implementation of corrective actions and provides strategic oversight to strengthen governance practices. Based on the reviews carried out during the year, the management believes that the Companys internal control systems were adequate and operating effectively.

10. Human Resources & Industrial Relations

The Company believes that its employees are its most valuable asset and a key driver of sustainable growth.

It remains committed to fostering a performance-oriented, collaborative and inclusive work environment that encourages continuous learning, innovation and professional development.

During the year, the Company continued to focus on enhancing employee capabilities through various learning and development initiatives, technical and functional training programmes, leadership development and compliance awareness programmes. Employee engagement, performance management and talent retention remained key priorities in supporting the Companys long-term business objectives.

The Company is committed to providing a safe, healthy and respectful workplace and continues to promote diversity, equal opportunity and ethical business conduct across the organisation.

Industrial relations remained cordial and harmonious throughout the year, and there were no material industrial disruptions affecting business operations.

As on March 31, 2026, the Company had 205 employees. 11. Key Financial Ratios and Return on Net Worth profitability, maintaining management Pursuant to Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the key financial ratios for FY 2025 26 are as follows:

Particulars	FY 2025-26	FY 2024-25	% Change	Explanation (where change is 25% or more)
Debtors Turnover	5.07	5.93	-14.50%	-
Inventory Turnover*	NA	NA	NA	Inventory is not material considering the nature of the Companys business.
Interest Coverage Ratio	3.12	2.37	32%	The Interest Coverage Ratio increased during the year primarily due to higher operating profit (EBIT)
Current Ratio	1.29	1.19	9%	-
Debt-Equity Ratio	1.02	0.97	4%
Operating Profit Margin (%)	4.43%	3.37%	32%	Due to higher operating profit, improved cost efficiency, better pricing, and effective control over operating expenses, resulting in enhanced operational profitability.
Net Profit Margin (%)	1.53%	0.85%	79%	The increase in net profit ratio is attributable to higher net profit earned during the current year.
Return on Net Worth (%)	9.80%	5.80%	69%	The increase in return on equity ratio is due to higher profitability during the current year as compared to the previous year.

*Inventory Turnover Ratio is not applicable as the Company is engaged in the logistics and freight forwarding business and does not maintain material inventories.

The significant improvement in profitability during FY 2025 26 resulted in a corresponding improvement in the Companys profitability ratios and Return on Net Worth. The increase was primarily operational efficiencies, improved service mix, disciplined cost sustained focus on profitable growth. Detailed explanations for changes of 25% or more in the above ratios, wherever applicable, have been provided in accordance with the requirements of Schedule V of the SEBI (Listing

Obligations and Disclosure Requirements) Regulations, 2015.

By order of the Board of Directors,
For JET FREIGHT LOGISTICS LIMITED
Richard Francis Theknath	Dax Francis Theknath
Chairman & Managing Director	Whole-time Director
DIN: 01337478	DIN: 01338030
Place: Mumbai
Date: August 13, 2026