Marinetrans India Ltd Management Discussions

Global Economic Outlook:

Once again, the Global Economy is threatened with being thrown off course this time by the outbreak of war in the Middle East at the end of February 2026. Over the past year, headwinds from higher trade barriers and elevated uncertainty have been offset by tailwinds from technology-related investment; accommodative financial conditions, including a weaker US dollar; and fiscal and monetary policy support. The Middle East conflict presents a significant counterforce to these tailwinds through its impact on commodity markets, inflation expectations, and financial conditions. Given the difficulty of underpinning in real time a consistent set of assumptions for projections, the World Economic Outlook (WEO) report presents a "reference forecast" in lieu of the traditional baseline predicated on the assumption that the war will have limited duration, intensity, and scope, such that the disruptions will fade by mid-2026, consistent with commodity futures prices as of March 10. However, given the fluidity of the situation, the report complements the global reference forecast with scenarios in which the conflict lasts longer or expands. The likelihood of these scenarios materializing rises progressively as hostilities and associated disruptions continue.

Under the reference forecast, global growth is projected to be 3.1% in 2026 and 3.2% in 2027, slower than its recent pace of about 3.4% in 202425, and to settle at about that rate in the medium term, slower than its historical (2000-19) average of 3.7%. The forecast for 2026 is revised downward by

0.2 percentage point and that for 2027 is unchanged, compared with those in the January 2026 WEO Update. Global headline inflation is expected to increase to 4.4% in 2026 and decline to 3.7% in 2027, marking upward revisions for both years.

Absent the war, global growth would have been revised upward. Indeed, forecasts based on preconflict assumptions would have shown a slight upward revision of 2026 growth relative to that forecasted in the January WEO Update, by 0.1 percentage point to 3.4%. Hence, the downward revision for 2026 largely reflects the disruptions from the conflict in the Middle East, partly offset by carryover from recent strong data and reduced tariff rates.

Crucially, there is a high degree of cross-country dispersion in the reference forecast. While the growth and inflation revisions seem relatively modest at the global level, the toll on the conflict region and more vulnerable economies elsewhere in particular, commodity-importing emerging market and developing economies with pre-existing fragilities is much more pronounced. The downward revision to growth in emerging market and developing economies is 0.3 percentage point for 2026, relative to that in the January WEO Update, while the forecast is broadly unchanged for advanced economies. Under an adverse scenario with larger and more persistent increases in energy prices, global growth would slow further to 2.5% in 2026, and inflation would reach 5.4%. Under a more severe scenario in which there is more damage to energy infrastructure in the conflict region, the impact would be even larger: Global growth would be cut to only about 2% in 2026, while headline inflation would be just above 6% by 2027. The impact on emerging market and developing economies would be almost twice that on advanced economies.

Downside risks dominate, even after the realization of a risk event namely, an escalation of geopolitical tensions frequently underscored in previous WEO reports. Geopolitical tensions could worsen even more than they already have turning the situation into the largest energy crisis in modern times or domestic political strains could erupt. Political stress factors can get entangled with shifts in trade and other international policies. Independently of geopolitical developments, trade-related disputes could flare up. As the Commodity Special Feature highlights, the critical role of rare earth elements in global supply chains constitutes a particular point of friction. A re-evaluation of profit expectations regarding artificial intelligence (AI) or lowered expectations of viable mark-ups stemming from more intense competition even if productivity gains are realized could lead to a decline in investment and trigger an abrupt correction in financial markets. Larger fiscal deficits and increasing public debt, starting from a position where fiscal buffers are already eroded, could put pressure on long-term interest rates and, in turn, on broader financial conditions. An erosion of institutions, including central bank independence and monetary policy credibility, could raise inflation expectations especially at a time when headline inflation is increasing because of a shock in salient prices. On the upside, activity could be further lifted by AI-related investment and eventually transform into sustainable growth if faster AI adoption translates into strong productivity gains and increased business dynamism. Activity could also be supported by renewed momentum for structural reforms and by a sustained easing in trade tensions.

Before the war, the global economy was performing better than expected, laying the groundwork for upward revisions to forecasts. In aggregate, global growth in the fourth quarter of 2025 increased to 3.9% on an annualized basis. In China, sequential growth accelerated (per IMF staff seasonal adjustment) to 6.1% as strong exports offset weak domestic demand. An increase in fiscal spending fuelled stronger activity in Germany, helping growth in the euro area, excluding Ireland, accelerate to 1.5%. Growth in the United States slowed to 0.5%, lower than expected in the January 2026 WEO Update, as the government shutdown temporarily led to a sharp contraction in public expenditure. Expansion in US technology-related spending remained strong in the fourth quarter, but its effect on GDP was offset by its high import share. Growth in Japan rebounded to 1.3% owing to stronger consumption and investment. Global trade remained robust. Brisk expansion in technology- related exports offset slowing momentum in exports in other product categories (Figure 1.4). This benefited Asian economies in particular, as the main exporters of semiconductors and other equipment sought after by firms raced to invest in digital and AI-related technologies. The rewiring of global supply chains and trading relations continued (Figure 1.5). US imports from China dropped sharply; those from Canada also declined. These dips were offset by increases in imports from Taiwan Province of China, Vietnam, and, to a lesser extent, Mexico. On the other side of the equation, Chinese exports were reoriented from the United States to other Asian economies and, temporarily, to Europe. Chinas merchandise goods trade surplus hit a record $1.2 trillion (6% of GDP) in 2025.

Indian Economic Outlook:

The year 2025 marked an inflection point: Policy overhauls across Western economies particularly in trade, investment, and industrial policy triggered spill-over effects across all major global markets. India was not immune to these shifts. Intricately connected to global value chains, India, the worlds fourth-largest economy and a major global trading partner, faced external shocks and acute effects from these global policy changes, including tariff escalations and volatile capital flows.

Yet, despite headwinds, demand resilience, a reset in trade and investment outlook, and policy reforms stood out. India focused squarely on its biggest strength, domestic demand, to keep growth buoyant as inflation levels stayed low at 1.8% on average through the Fiscal Year.1 With slowing global demand, rising trade frictions, and a delicate domestic consumption environment, India deployed a carefully sequenced set of fiscal, monetary, and trade reforms that not only cushioned the economy but also laid the foundation for future growth. Much of 2025 efforts comprised managing external shocks and strengthening domestic fundamentals. Consequently, a major milestone came in August 2025, when S&P upgraded Indias sovereign rating from BBB to BBB its first such upgrade in 18 years. As India enters 2026, several themes will shape the next phase of growth and demand the same level of pragmatism. We expect full fiscal year growth to be revised substantially upward, as third- quarter numbers are likely to remain strong due to festive spending. Growth is expected to stand between 7.5% and 7.8% in fiscal 2025 to 2026, and then between 6.6% and 6.9% in fiscal 2026 to 2027, buoyed by the rollout of new goods and services tax (GST) rules and slowing inflation.

Indias economic value expanded by 8.2% year over year in the second quarter of fiscal 2025 to 2026,4 reinforcing expectations of an upward revision in full-year growth. Despite global headwinds such as higher US tariffs and volatile capital outflows, India posted an impressive 8% growth in the first half of the fiscal, powered by robust private consumption and investment, aided by easing inflation and favourable rural conditions.

Key drivers:

• Consumption: Private final consumption expenditure grew by 7.9% in the second quarter, supported by the lowest inflation level of 1.7% seen in a decade, rising disposable incomes from tax and GST relief, and better rainfall. Consumption grew by 7.5% in the first half of the fiscal.

• Investment: Government capital expenditure utilization rose to 51.8% in the first half of the fiscal year (versus 37.3% last year), boosting gross fixed capital formation growth to 7.6% (versus 6.7% last year).

• Sectoral Strength: Gross value added (GVA) grew by 8.1% in the second quarter of the fiscal year, with manufacturing up 9.1% and services surging 9.2%, led by financial and professional services. GVA growth for the first half of the year came in at around 7.8%. Services now contribute 60% of GVA and 48% of exports, underscoring their strategic role.

• Exports: After a strong first quarter, exports moderated in the second due to higher US tariffs on Indian exports (including a 50% tariff on select goods). But a trade rebound is expected, supported by upcoming trade agreements with the United States and the European Union, as well as diversification into services, electronics, and pharmaceuticals.

• Growth momentum in Q3 is expected to continue to be strong, supported by resilient domestic demand. High-frequency indicators, including strong consumer confidence, vehicle registrations and sales, and easing inflationary pressures, point to continued support for economic activity. However, some external indicators such as currency depreciation and FPI outflows show emerging signs of stress, posing downside risks to the outlook.

Monetary Policy:

The government and the Reserve Bank of India (RBI) remained aligned in their resolve to strengthen domestic demand. While fiscal policy focused on boosting consumer spending through tax relief and public investment, monetary policy provided liquidity and cost-of-capital support needed to sustain the recovery. Through 2024 and early 2025, India experienced an unexpected slowdown in credit growth, particularly in personal loans and small- business lending. The RBI recognized that, without stronger credit transmission, consumer spending recovery would lose momentum. In response, the RBI delivered one of the sharpest easing cycles in recent history, cutting policy rates by a full percentage point within four months starting in February. With food inflation cooling sharply and global energy prices stable, the central bank used this window to shift decisively from prolonged tightening to an accommodative stance. Still, credit expansion remained subdued, with bank credit growth stuck near 10%, this incomplete transmission likely contributed to the

RBIs additional 25-basis-point rate cut in the final policy review of 2025, even as macroeconomic fundamentals strengthened. The final cut signalled a commitment to sustaining domestic demand through 2026 amid global uncertainty.

The RBIs policy easing is, however, not without concern. The India-US policy rate differential has narrowed to about 1.625 percentage points after the two countries decided on policy rate cuts in December. The 10-year bond yield differential remains within a 2.5% range. The differentials are close to their narrowest levels in a decade, raising the potential for capital outflows from India as investors seek higher yields when investing out of the United States (Figure 1). Reinvestment of earnings has declined, while repatriations have increased in the past year. In 2025, foreign portfolio selling aggravated, with markets seeing close to US$18.4 billion in net foreign portfolio investment outflows during 2025 (as of Dec. 12, 2025) the highest seen in 15- years. Recently, such investment withdrawals contributed significantly to currency depreciation with the 90 rupees per US dollar mark being crossed. While the Indian rupee is expected to stabilize as the RBI intervenes in the market to contain volatility, persistent outflows and rising outbound foreign investment could pressure foreign exchange reserves and keep the rupee weaker in the near term. The good news is that amid volatility in foreign capital flows, strong retail participation in the capital market has helped stabilize market valuations despite foreign investment outflows.

In 2025, India also expanded its trade outreach across emerging markets (Figure 2). These regions now account for nearly 85% of the worlds population and close to 40% of global GDP. Going forward, trade corridors linking South Asia, Southeast Asia, Africa, and the Middle East are projected to grow nearly 4% faster than the global average. There is growing recognition that global commerce is shifting toward greater trade, investment, and innovation within the "Global South," with long-term implications for supply chains, digital services, and new agreements.

India is expanding its reach across Africa, Latin America, and West Asia, and recent BRICS and G20 engagements have focused on collaboration in energy, critical minerals, and digital infrastructure.

Indias Economic Outlook for Fiscal 2025 to 2026:

Much of 2025 was about managing external shocks and strengthening domestic fundamentals. As India enters 2026, it will have to carefully manage both Global and Domestic Risks. Three of the biggest global risks for India in 2026 will come from:

• US tariff policies and the conclusion of the India- US trade deal which remains unpredictable.

• Chinas slow recovery and its dominance in critical minerals, which India must monitor as it recalibrates its relationship with Beijing.

• Geopolitical tensions in Central Asia that could disrupt commodity prices and key logistics routes, including the Red Sea corridor.

Domestically, the three biggest risks that need to be monitored are:

• Poor transmission of policy rate cuts to credit growth.

• A resurgence of inflation as demand picks up fast (and core has been above 4%).

• Possible implications of lower tax revenues for fiscal consolidation this year.

Global Waterway Transportation Outlook:

Global Supply Chain disruptions have become more frequent and complex, with shocks converging and compounding, to create unprecedented volatility. Maritime transport, which carries over 80 percent of world merchandise trade by volume and underpins global supply chains, has been particularly affected. Since 2020, shipping, ports and hinterland connections have weathered overlapping disruptions linked to the coronavirus disease (COVID-19) pandemic and its legacies, geopolitical tensions and climate-related constraints. Recent chokepoint disruptions in the Red Sea and the Suez Canal, security risks in the Black Sea and drought-induced draught limits in the Panama Canal have reshaped routes and schedules. Beginning in 2025, shifts in trade policy have added regulatory uncertainty and operational complexity. These pressures are transmitted across supply chains, with landlocked developing countries, the least developed countries and small-island developing States often the most affected due to capacity constraints, connectivity gaps, infrastructure deficits and higher transport costs.

Informed by considerations and priorities in transport, trade logistics and trade facilitation, as reflected in the Geneva Consensus, and drawing on Review of Maritime Transport 2025, discussions at the twelfth session will explore key developments affecting global maritime transport and trade and provide expert insights into challenges and opportunities for the maritime transport industry and stakeholders, as well as policymakers. The session will provide an opportunity to share experiences, good practices and recommendations, with a particular focus on developing countries, landlocked developing countries, the least developed countries and small-island developing States.

The discussions are expected to inform the related UNCTAD programme of work, including the second UNCTAD Global Supply Chain Forum, to be held in late 2026, in collaboration with the Saudi Ports Authority, and help identify thematic priorities and activities for enhanced collaborative action, to advance sustainable, resilient and inclusive transport and trade facilitation as part of the United Nations Decade of Sustainable Transport 2026-2035, with a focus on key issues of relevance to developing countries. To facilitate the deliberations, the UNCTAD secretariat has prepared the present note, with, in chapter II, highlights of key developments and trends shaping maritime transport and logistics, together with proposed areas for priority action; in chapter III, an outline of key aspects of the relevant global policy framework, including a strategic direction for impactful collective collaborative engagement; and, in chapter IV, questions on ways forward. Maritime transport is navigating increasing complexity, driven by geopolitical instability and an evolving, uncertain global trade framework. Amid geopolitical developments and an evolving trade policy environment, maritime transport faces volatile and unpredictable conditions. Heightened geopolitical tensions continue to affect maritime navigation in the Black Sea and the Red Sea; and the Strait of Hormuz, a critical route for the global oil trade, has faced risks of disturbances in recent months. A rapidly changing trade policy landscape, marked by new tariffs affecting economies worldwide, is disrupting global supply chains, shipping routes, port call networks and strategic planning. Increased volatility is reflected in freight markets, trade flows and patterns and shipping costs, with developing countries the most affected, particularly the least developed countries and small island developing States. At the same time, regulatory developments and technological changes pose new challenges and opportunities, with implications for all stakeholders and sectors of the maritime transport industry. One example is the net- zero framework of the International Maritime Organization, a set of draft regulations on reducing greenhouse gas emissions from shipping.

Agreed in April 2025, the framework was to be considered for formal adoption in October 2025.

However, at its extraordinary session in October 2025, the Marine Environment Protection Committee agreed to adjourn discussions on the adoption of the net-zero framework for one year. Another example involves alternative and low- carbon fuels, which will be critical in achieving sectoral targets to reduce greenhouse gas emissions but could also pose risks of pollution damage and personal injury that need to be addressed. Further, effective protection of seafarer rights is increasing in importance, particularly in times of disruption, as is the need to up-skill and train seafarers amid rapid technological change and a shift to alternative fuels. Finally, digitalization and advances in technology and artificial intelligence offer opportunities, including to enhance port performance and improve transport and trade facilitation. At the same time, appropriate cyber security strategies will be required in order to reduce vulnerability to potentially escalating cyber risks and threats.

Seaborne trade recorded growth in 2024 (2.2% in volumes and 5.9% in ton-miles), largely due to rerouting around the Cape of Good Hope as disruptions in the Red Sea persisted (Figure 1). Growth was forecast to slow in 2025. According to UNCTAD projections, maritime trade volume will expand by 0.5% and containerized trade by 1.4%. Over the medium term, in 2026-2030, UNCTAD projects that total seaborne trade volumes will grow at an average annual rate of 2% and containerized trade volumes, by 2.3%. A marginal increase of 0.3% is projected for ton-miles. These shifts largely reflect structural drivers, such as geopolitical realignment, industrial policy changes and the global energy transition.

Containerized trade rebounded in 2024, driven by restocking, rerouted flows due to the disruptions affecting the Red Sea and resilience in both South- South and North-South trade. The energy trade is evolving, with commodities moving in different directions. Coal shipments increased in 2024, due to demand from Asia, yet this contrasted with a longer term decline amid the global energy transition. Oil volumes remained broadly stable, but supply rerouting around the Cape of Good Hope and towards Asia lengthened trade distances. Gas, particularly liquefied natural gas, was the most dynamic segment, supported by the diversification of suppliers and destinations. These developments show that changing demand patterns, geopolitical factors and diversification strategies are reshaping energy flows, distances travelled by ships and cargo and trade in ton-miles (Figure 2). The outlook in 2025 was more subdued, compared to past performance and initial expectations, as weak consumer demand and trade policy uncertainty both weighed on global trade dynamics.

Disruptions to shipping navigation in the Red Sea continue, with ships avoiding the Suez Canal. Ship tonnage transit levels by early May 2025 remained at 70% below the average in 2023. In June 2025, tensions between the Islamic Republic of Iran and Israel increased concerns about interruptions at maritime chokepoints, particularly the Strait of Hormuz, which accounts for 11% of maritime trade and over one third of seaborne oil exports. By end- June 2025, ship transit patterns through this maritime passage had not shown any significant changes (Figure 3). Depending on ongoing developments, however, the potential for disruption, resulting in increased shipping costs, delays and insurance premiums, cannot be excluded.

In 2025, new trade tariffs in the United States of America and elsewhere added to uncertainty and volatility. The Office of the United States Trade Representative announced measures such as port fees targeting certain ships calling at ports in the United States, expected to apply to vessels owned or operated by China, as well as to vessels built by China and other foreign-built vehicle carriers; however, as of 10 November 2025, this measure was suspended for one year. The implications of tariffs and port fees for maritime trade flows and patterns, demand for shipping services and fleet capacity, the design of shipping networks, port of call configurations and fleet deployment plans are not yet fully understood. Different outcomes, potentially leading in diverse directions, could result from the combined effect of these measures on various economies, regions and stakeholders. Shipping operations, service offerings and capacity deployment patterns may need adjustment in line with changing dynamics.

Global Shipping Freight Indices & European Geopolitical Tensions: Impact on MarineTrans

Global shipping markets remained volatile through FY 2025-26, shaped by continuing geopolitical disruption to European and adjacent trade lanes. The chart below tracks the Baltic Dry Index (BDI) over the year, supplemented by container freight benchmarks for a fuller picture of the freight environment.

FY 2025-26 in Review: The BDI climbed sharply through April-May 2026 on tightening Capesize vessel supply and disruption to Brazilian iron ore exports, touching a two-year high near 2,990 points, before correcting through May-June to lows near 2,650-2,820 as Chinese steel demand softened.

Supplementary indices: Container freight benchmarks moved along a similar path over the same period. The Shanghai Containerized Freight Index (SCFI) rose from ~1,180 in November 2025 to a June 2026 average of ~3,018 (weekly range 2,726-3,240), while the Freightos Baltic Index (FBX), which tracks global container spot rates daily, showed a broadly comparable trajectory. Both were driven primarily by continued Red Sea/Suez rerouting around the Cape of Good Hope, adding 1014 days of transit time and a 25-40% cost premium on Asia-Europe rates, alongside continuing Russia- Ukraine-related constraints on Black Sea/Baltic Sea trade and elevated war-risk insurance costs. A gradual return of carriers to Suez could compress rates a further 9-16% once port congestion clears.

Relevance to MarineTrans:

• As an asset-light NVOCC, freight-rate volatility across these benchmarks is largely passed through to customers, with revenue tied to freight volumes and service fees rather than vessel ownership.

• Rate unpredictability on Europe-bound lanes can affect shipper booking confidence, even given MarineTranss largely India-centric freight base.

• Elevated freight values raise working-capital needs on freight billed and collected on behalf of shipping lines.

• Route disruption typically increases demand for experienced forwarding intermediaries a role suited to MarineTranss service-led model.

SWOT Analysis:

Freight forwarding is an industry that connects the world, moving goods from producers to consumers across the globe. Being aware of the SWOT in freight forwarding allows companies to leverage their strengths, address weaknesses, seize opportunities, and mitigate threats. This comprehensive analysis provides insights on the state of the industry and the challenges and opportunities that it faces in 2024.

Strengths

• Expertise and Industry Knowledge:

Freight forwarders bring a wealth of expertise to the table. Their deep understanding of logistics and transportation operations ensures an efficient movement of goods. These skills are an invaluable asset and a major strength in the freight forwarding landscape.

• Network and Global Reach:

Freight forwarders have established global networks that span across countries and continents. This extensive reach allows them to tap into new markets and provide seamless international shipping solutions.

• Technological Advancements:

The use of technologies like AI, Blockchain, and Automation Tools is transforming the freight forwarding industry. These tools enhance operational efficiency, provide realtime shipment tracking, and improve customer service.

• Customized Solutions:

Freight forwarders offer tailored solutions to meet the unique needs of their clients. From packaging to customs clearance, they provide comprehensive services that ensure smooth and timely delivery of goods.

Weaknesses

• Dependency on External Factors:

Freight forwarders often face challenges due to factors beyond their control. Fluctuating fuel prices, changing customs regulations, and political instability can disrupt their operations and impact service delivery.

• Complexity of Documentation:

Freight forwarding involves dealing with complex documentation. Ensuring compliance with various regulations can be timeconsuming and may lead to potential errors and delays.

• Competitive Pressure:

The freight forwarding industry is highly competitive. Intense competition can put pressure on prices and affect profit margins. Freight forwarders need to differentiate their services to remain competitive.

Opportunities

• Digitalization:

The shift towards digitalization presents significant opportunities for freight forwarders. Embracing digital tools and platforms can enhance operational efficiency and improve customer service.

• Sustainability:

There is growing demand for sustainable practices in the freight forwarding industry. Adopting eco-friendly practices can help freight forwarders differentiate themselves in the market.

• Emerging Markets:

Developing economies and emerging markets provide opportunities for expansion. These markets often require reliable logistics partner, creating opportunities for freight forwarders.

Threats

• Geopolitical Tensions:

Political instability can disrupt supply chains and affect the reliability of transportation routes. Freight forwarders need to be prepared to navigate these challenges.

• Climate Change:

Climate change poses a significant threat to the freight forwarding industry. Natural disasters can disrupt key trade routes and affect the flow of goods.

• Economic Uncertainty:

Fluctuations in demand and capacity can lead to increased competition and pressure on rates. Economic uncertainty is a major threat that freight forwarders need to be prepared for.

Indian Waterway Transportation Outlook:

Indias maritime sector is the invisible backbone of the economy, carrying nearly 95% of Indias trade volume and around 70% of trade value through sea routes. As the worlds third-largest oil importer, Indias energy security remains deeply tied to stable maritime logistics and insurance networks. With a 7,500-km coastline, 12 major ports and 200+ nonmajor ports, the sector anchors trade, jobs and coastal development. Recent Hormuz-linked insurance disruptions show that in the 21st century, maritime strength depends not only on ships and ports, but also on control over shipping finance, insurance and strategic sea lanes.

The shipping industry in India plays a key role in international trade, handling approximately 95% of the countrys trade by volume and 70% by value through maritime transport. India has a 7,516 km long coastline, making it the sixteenth-largest maritime nation in the world. Its maritime network includes:

• 12 major ports

• More than 200 notified minor and intermediate ports

• 6 new mega ports planned under the Sagarmala National Perspective Plan

• The Government of India supports port infrastructure through:

• 100% Foreign Direct Investment (FDI) under the automatic route for port and harbour construction and maintenance

• A 10-year tax holiday for enterprises involved in the development, operation, and maintenance of ports and inland waterways.

India possesses an extensive network of inland waterways in the form of rivers, canals, backwaters, and creeks. These routes offer a cost-effective and environmentally sustainable way to move freight, as they use fuel efficiently and produce fewer emissions. They require minimal land, safely carry bulk/over-dimensional cargo, and maintain high safety standards across operations. In India, Inland waterways also help reduce pressure on busy roads and railways, and support services such as vehicle transport through Roll-on/Roll-off (Ro-Ro) Ferries and Tourism activities. The sector supports substantial employment, involves lower maintenance costs, and is essential for many major industries and consumers who depend on a reliable and well-functioning waterway network.

Recognising this potential, the Union Budget 202627 announces the operationalization of 20 new National Waterways over the next five years and introduces a Coastal Cargo Promotion Scheme that seeks to shift cargo from road and rail to water transport. This policy push is intended to increase the combined share of inland waterways and coastal shipping from 6% to 12% by 2047. As part of this momentum, the government

will operationalize National Waterway-5 in Odisha to connect the mineral-rich regions of Talcher and Angul with industrial centres such as Kalinga Nagar and with the ports of Paradip and Dhamra. Training institutes will be established as Regional Centres of Excellence along the NW-5 stretch to develop skilled manpower and benefit local youth. In addition, a dedicated ship repair ecosystem for inland waterways will be set up in Varanasi and Patna.

Development of Inland Water Transport (IWT) Infrastructure:

The Government of India is consistently working to develop the Inland Water Transport (IWT) sector. Three basic IWT-related infrastructures are essential for developing waterways:

• A fairway or navigational channel with the required width and depth

• Terminals for vessel berthing, cargo loading and unloading, and links to road and rail

• Navigational aids that support the safe movement of vessels

Inland waterways, compared to other modes of transport, offer additional infrastructure, supplementary vessel capacity, and lower social costs. A legal framework has been established in the country to enhance transport on inland waterways and certain coastal routes. This framework provides a coordinated plan for developing transport services on these routes. It also guides the creation of the infrastructure needed for smooth operation. All development under this framework follows internationally agreed performance standards and parameters. In addition to these developments, India has set a target to raise the Inland Water Transport modal share from 2% to 5% and expand cargo volumes to more than 200 MMT by 2030 and 500 MMT by 2047, as envisioned in the Maritime Amrit Kaal Vision. Priority is being given to highway projects that connect ports, Inland Water Transport terminals, and Industrial corridors in order to reduce overall logistics costs.

Cargo Movement and Revenue Outcomes on National Waterways:

Waterways can carry up to four times more cargo using the same amount of fuel, making them a cost- effective option for trade. They also use less energy, create less noise, and produce lower carbon emissions, making water transport a cleaner and more dependable way to move goods. According to the Economic Survey 2025-26, as of November 2025, cargo operations are functional on 29 National Waterways, cruise operations on 15 National Waterways, and passenger services on 23 National Waterways. A total of 11 National Waterways support all three modes of transport, namely cargo, cruise, and passenger movement, signifying strong multimodal integration. Passenger traffic has also grown significantly, increasing from 1.61 crore in 2023-24 to 7.6 crore in 2024-25. Cargo transportation on NWs reached 145.84 million metric tonnes in the financial year 2024-25, and 198 MMT (till February 2026) in the financial year 2025-26. The combined cargo handling capacity of major ports rose from 555 million metric tonnes per annum (MTPA) in FY 2013-14 to 1,681 MTPA in FY 2024-25. Moreover, the turnaround time for container vessels declined substantially from 41.76 hours in 2013-14 to 28.5 hours in 202425. The steady growth shows that inland waterways are becoming an increasingly important, efficient, and environmentally friendly way to move goods across India.

In FY 2025-26, Indias major ports handled a record 915.17 million tonnes of cargo, surpassing the annual target of 904 million tonnes and registering 7.06% year-on-year growth. Indias cargo handling capacity has also expanded to approximately 2,771 MTPA, with targets of 3,500 MTPA by 2030 and 10,000 MTPA by 2047. This growth is being supported by long-term policy frameworks including Maritime India Vision 2030, Maritime Amrit Kaal Vision 2047, the Sagarmala Programme, and the Government of Indias Rs.69,725 crore maritime and shipbuilding package.

For global maritime companies, the opportunity is no longer limited to port and shipping services. India is opening business opportunities across Greenfield ports, shipbuilding, ship repair, marine equipment manufacturing, smart-port technologies, green hydrogen and alternative fuels, coastal shipping, inland waterways, logistics parks, and maritime finance.

Multimodal Integration: Beyond the Port Gate:

Budget 2026 signals a shift beyond the conventional "Port Gate" approach toward an integrated logistics architecture. Ports are now anchored in a multimodal network linking inland waterways, mineral corridors, coastal shipping, and manufacturing policy. The operationalization of 20 new National Waterways, particularly NW-5 in Odisha, illustrates this approach. NW-5 is designed to connect the mineral-rich belts of Talcher and Angul to Paradip and Dhamra ports. If executed effectively, this could ease rail congestion, lower freight costs, and reduce the carbon intensity of bulk cargo movement. Strategically, it constructs a hinterland-to-harbour pipeline that integrates mineral production zones with export gateways, enhancing systemic trade competitiveness. Strengthening maintenance infrastructure is another key announcement.

The development of ship repair facilities in Varanasi and Patna along NW-1 addresses a longstanding inland capacity gap. While India has established coastal ship repair hubs in Mumbai, Kochi, Chennai, and Visakhapatnam, these primarily serve port-based vessels, leaving inland waterways without adequate support. Localising repair infrastructure could reduce lifecycle costs, enhance fleet reliability, and improve the commercial viability of inland water transport for private operators. Budget 2026 also targets a doubling of inland waterways and coastal shippings freight share from 6% to 12% by 2047, supported by the Coastal Cargo Promotion Scheme. Given Indias heavy dependence on road freight, a costly and carbon-intensive mode, this modal shift is strategically necessary. Yet, fiscal incentives alone may not suffice; reliability, scheduling, cargo aggregation, and digital tracking are critical to achieving the target.

The Next Phase: Building Maritime Capability:

Budget 2026 attempts to recalibrate Indias development trajectory toward coastal and maritime-led growth. By linking waterways, shipbuilding, container manufacturing, and green industrialisation within a single strategic frame, the policy reflects systemic thinking rather than incremental reform. Implementing these proposals demands a holistic approach to coastal ecosystem development, where infrastructure and operational feasibility, financial viability, and structural capacity are carefully assessed. Success will also require robust coordination between central and state authorities, active engagement of state maritime boards, and sustained participation from private sector stakeholders.

Addressing gaps in inland repair facilities, ensuring multimodal connectivity, and building reliable freight corridors are equally critical to realising the sectors potential. If executed effectively, the maritime sector could become a structural growth driver, lowering logistics costs, improving export competitiveness, creating employment, and enhancing Indias resilience in global supply chains. Budget 2026 thus lays the foundation for a sustainable, efficient and globally integrated maritime ecosystem capable of supporting long term economic growth and the broader vision of Viksit Bharat.

FINANCIAL PERFORMANCE Balance sheet performance

Particulars	As at 31st March 2026	As at 31st March 2025
ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment	14.17	16.21
(b) Right of use Asset	8.13	21.66
(c) Financial Assets
(i) Investments	3.50	3.50
(ii) Other financial Assets	514.28	275.50
(d) Deferred Tax Asset	23.11	21.29
(e) Other Non-Current Assets	-	0.31
2. Current Assets
(a) Financial Assets
(i) Trade receivables	2,169.47	1,982.38
(ii) Cash and Cash equivalents	82.48	78.83
(iii) Cash and Cash equivalents other than (ii) above	-	-
(iii) Other financial Assets	1,225.21	1,336.73
(b) Other Current Assets	171.26	169.97
(c) Current Tax Asset (Net)	97.23	219.71
Total Assets	4,308.85	4,126.11
II. EQUITY AND LIABILITIES
Equity
(a) Equity Share Capital	1,272.60	1,272.60
(b) Other Equity	1,381.14	1,322.44
Liabilities
1. Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings	-	4.33
(ii) Lease Liability	-	7.86
(b) Provision	15.39	18.45
2. Current Liabilities
(a) Financial Liabilities
(i) Borrowings	964.60	755.16
(ii) Lease Liability	9.24	15.62
(iii) Trade Payables
- Total outstanding dues of micro enterprises and small enterprises	9.45	3.63
- Total outstanding dues of creditors other than micro enterprises and small enterprises	638.16	655.06
(iv) Other Financial Liabilities	0.53	0.45
(b) Other Current Liabilities	14.40	67.35
(c) Provision Total Liabilities	3.35 4,308.85	3.15 4,126.11

Analysis of Balance sheet

• Long-term debt fully eliminated: Non-current borrowings declined from Rs.4.33 Lakhs to Nil, following the full repayment of the HDFC vehicle loan during the year (Refer Note 15). The non-current portion of lease liabilities also fell to Rs.Nil from Rs.7.86 Lakhs, as the underlying office lease approaches the end of its term.

• Overall non-current liabilities reduced by half: As a combined result of the above, total non-current liabilities declined 49.79%, from Rs.30.64 Lakhs to Rs.15.39 Lakhs, leaving the Company with virtually no longterm obligations on its books.

• Other current liabilities cleared down significantly: Other current liabilities stood at Rs.14.40 Lakhs, compared with Rs.67.35 Lakhs in the previous year, mainly on account of the settlement of statutory dues and other pending obligations.

• Surplus liquidity productively deployed: Non-current Other Financial Assets rose from Rs.275.50 Lakhs to Rs.514.28 Lakhs, comprising Rs.264.28 Lakhs in bank term deposits and Rs.250 Lakhs in security deposits (Note 5), funded by a fresh Rs.164.27 Lakhs FD placement during the year. This lifted Other Income from Rs.13.78 Lakhs to Rs.44.27 Lakhs and, in part, secures the Companys working capital facility.

• Faster settlement of trade payables: The increase in the Trade Payables Turnover Ratio from 16.22x to 18.59x indicates improved efficiency in managing supplier payments while maintaining a healthy working capital position.

• Tax refund realised in cash: Current tax assets fell from Rs.219.71 Lakhs to Rs.97.23 Lakhs, not on account of any write-off but because an Rs.81.86 Lakh income tax refund was actually received during the year, converting a prior year receivable into cash.

• Organic, non-dilutive growth in shareholders funds: Total equity increased by 2.26% to Rs.2,653.74 Lakhs, driven by retained earnings, while equity share capital remained unchanged at Rs.1,272.60 Lakhs.

Profit and loss statement

Particulars	For the Year ended 31st March 2026	For the Year ended 31st March 2025
I. Revenue from operations	12,728.51	15,768.28
II. Other Income	44.27	13.78
III. Total Income (I + II)	12,772.77	15,782.07
IV. Expenses:
(a) Direct Expenses	11,994.48	15,041.02
(b) Employee benefit expense	408.11	358.81
(c) Financial costs	87.84	92.81
(d) Depreciation and amortization expense	17.62	17.25
(e) Other expenses	166.06	184.28
V. Total Expenses	12,674.11	15,694.17
VI. Profit before tax (III - V)	98.66	87.90
Tax expense:
Current tax	28.03	36.45
Deferred Tax	(1.53)	4.96
Prior Period Tax	12.59	(3.24)
VII. Total Tax Expense	39.09	38.16
VIII. Profit for the period (VI-VII)	59.56	49.74
IX. Other Comprehensive Income/(Loss)
(i) Items that will not be reclassified to Profit and Loss
(a) Re-measurement gains/(losses) on defined benefit plans	(1.15)	(1.31)
(b) Income tax effect on above	0.29	0.33
X. Total Comprehensive Income for the year (VIII + IX)	58.70	48.75
(Comprising profit and other comprehensive income for the year)
XI. Earning per equity share (in Rs.)
Equity shares of par value Rs. 10/- each
(a) Basic	0.46	0.39
(b) Diluted	0.46	0.39

Analysis of Profit and Loss

• Revenue from operations declined: 19.3%, from Rs.15,768.28 Lakhs to Rs.12,728.51 Lakhs, against an exceptionally strong prior year base, when freight rates were elevated by Red Sea disruptions, Cape of Good Hope rerouting, and wider Middle East and Russia-Ukraine tensions. As these pressures eased through FY 2025-26, freight rates corrected industry wide, with tariff-related trade policy uncertainty adding further volatility. Since the Companys revenue tracks global freight cycles closely, the decline reflects sector wide conditions rather than an operational shortfall, a view supported by margins improving over the same period.

• Profitability expanded despite lower revenue: Profit Before Tax rose 12.2%, from Rs.87.90 Lakhs to Rs.98.66 Lakhs, and Net Profit rose 19.8%, from Rs.49.74 Lakhs to Rs.59.56 Lakhs, even as revenue declined. This combination of margin expansion alongside a lower top line reflects a genuine improvement in operating efficiency rather than volume-driven growth.

• Earnings per share grew in line with profit, without dilution: Basic Earnings Per Share rose from approximately Rs.0.39 to Rs.0.46 on an unchanged equity base of 127.26 lakh shares, meaning the entire improvement in profitability accrued to existing shareholders with no dilution.

• Cost base flexed responsively with revenue: Total expenses fell 19.2%, almost exactly tracking the 19.3% decline in revenue from operations, which preserved margins rather than allowing them to compress. Direct expenses as a share of total expenses improved from 95.84% to 94.64%, evidencing disciplined variable cost management.

• Operating cash flow turned strongly positive: Net cash generated from operating activities was Rs.48.86 Lakhs in FY 2025-26, a marked improvement from a net cash outflow of Rs.94.81 Lakhs in FY 2024-25. Despite higher revenue in the prior year, that years earnings did not convert into operating cash; this years lower but higher quality profit was, by contrast, backed by genuine cash generation.

Ratio Analysis

Particulars	31st March 2026	31st March 2025	% change from March 31, 2025 to March 31st, 2026
Current Ratio	2.29x	2.53x	-9.51%
Debt Equity Ratio	0.36x	0.29x	24.20%
Debt Service Coverage Ratio	1.89x	1.81x	4.87%
Return on Equity Ratio	2.27%	1.93%	17.31%
Trade Receivable Turnover Ratio	6.13x	7.06x	-13.12%
Trade Payable Turnover Ratio	18.59x	16.22x	14.60%
Net Capital Turnover Ratio	6.04x	6.89x	-12.33%
Net Profit Ratio	0.47%	0.32%	48.36%
Return on Capital Employed	3.93%	4.98%	-21.00%

Analysis of Ratios:

• Liquidity remained comfortably strong despite the dip: The Current Ratio moderated from 2.53 to 2.29, driven almost entirely by a 27.7% rise in short-term borrowings ( Rs.755.16 Lakhs to Rs.964.60 Lakhs) taken to fund working capital, while current assets stayed nearly flat. Since the ratio remains well above the standard 2x benchmark, this reflects a deliberate financing choice to support operations rather than any strain on the Companys asset base

• Leverage increased to fund growth, not distress: The Debt-Equity Ratio rose from 0.29 to 0.36 as total debt grew 27.0% ( Rs.759.49 Lakhs to Rs.964.60 Lakhs) to support business operations, while equity grew organically through retained earnings alone, with no fresh equity issuance. At 0.36x, the Companys leverage remains low, reflecting a conservative capital structure even after the increase.

• Debt-servicing strength improved alongside profitability: The Debt Service Coverage Ratio improved from 1.81x to 1.89x, as Profit Before Tax grew 12.2% ( Rs.87.90 Lakhs to Rs.98.66 Lakhs), outpacing the growth in debt obligations. This indicates the Companys earnings power is growing faster than its debt burden, reinforcing debt-servicing comfort.

• Shareholder returns improved on genuine profit growth: Return on Equity rose 17.3%, driven by Net Profit growing 19.8% ( Rs.49.74 Lakhs to Rs.59.56 Lakhs) against a nearly stable equity base. Since the improvement came from stronger earnings rather than any reduction in equity, this reflects a genuine improvement in shareholder value creation.

• Customer relationships preserved through a soft market: Trade Receivable Turnover moderated from 7.06x to 6.13x as revenue declined 19.3% while receivables grew 9.4% ( Rs.1,982.38 Lakhs to Rs.2,169.47 Lakhs). Since cash and bank balances held steady over the same period, this reflects continuity in customer credit terms through a challenging revenue cycle rather than any deterioration in collection quality.

• Suppliers settled faster, reflecting comfortable liquidity: Trade Payable Turnover improved from 16.22x to 18.59x as purchases fell 20.3% ( Rs.15,041.02 Lakhs to Rs.11,994.48 Lakhs) alongside an even sharper reduction in outstanding payables. This points to the Company settling its suppliers more quickly, a sign of ample liquidity rather than any change in purchasing terms.

• Working capital held firm even as revenue moderated: Net Capital Turnover moderated from 6.89x to 6.04x, but working capital itself declined only 7.9% ( Rs.2,287.20 Lakhs to Rs.2,105.94 Lakhs) against a much steeper 19.3% fall in revenue. Since working capital was largely preserved, the change reflects the broader revenue cycle rather than any dilution in capital efficiency.

Risk Management

Effective risk management remains fundamental to the Companys long-term sustainability and value creation. The Company has established a comprehensive enterprise-wide risk management framework that enables the timely identification, assessment, monitoring and mitigation of risks that could impact its strategic objectives, operations and financial performance.

The Risk Management Policy, applicable across all business functions, provides a structured approach to managing enterprise risks while reinforcing the Companys commitment to sound corporate governance and regulatory compliance. The framework is designed in accordance with the provisions of the Companies Act, 2013 and supports informed decision-making through continuous risk evaluation and monitoring.

The Board of Directors, through the Risk Management Committee, oversees the implementation and effectiveness of the Companys risk management framework and periodically reviews emerging risks to ensure that appropriate mitigation strategies remain in place.

Operational Risk

The Companys operations are exposed to risks inherent in the shipping and logistics industry, including vessel-related incidents, operational disruptions, cargo damage, service delays and other unforeseen events. The Company continuously strengthens its operational processes, monitoring systems and contingency planning to minimise such risks and ensure uninterrupted business operations.

Financial Risk

The Company is exposed to financial risks arising from credit exposure, interest rate movements, liquidity requirements and funding needs. These risks are managed through prudent financial planning, disciplined working capital management, periodic monitoring of credit exposures and a balanced approach towards capital allocation.

Environmental Risk

Environmental stewardship remains an integral part of the Companys business philosophy. With increasing emphasis on environmental compliance and sustainable business practices, the Company continues to strengthen its environmental management framework and remains committed to complying with applicable environmental regulations while reducing the environmental impact of its operations.

Geopolitical Risk

The global maritime and logistics industry continues to operate in an evolving geopolitical environment. Changes in international trade policies, regional conflicts, geopolitical tensions and supply chain disruptions may influence shipping routes, freight movements and operating costs. The Company continuously monitors these developments and adopts appropriate measures to enhance operational resilience and business continuity.

Human Capital Management

The Companys employees remain its most valuable asset and a key driver of sustainable growth. The Company is committed to fostering a high- performance work culture that encourages innovation, collaboration, continuous learning and professional excellence.

Guided by the Groups Higher Purpose of "Delivering Prosperity to Humanity, " the Company continues to invest in attracting, developing and retaining talent while building an inclusive workplace that empowers employees to realise their full potential and contribute meaningfully to the Companys long-term success.

Diversity & Inclusion

The Company is committed to creating a diverse, equitable and inclusive workplace founded on the principles of fairness, mutual respect and equal opportunity. Employment decisions are based solely on merit, capability and business requirements, ensuring equal opportunities for all employees while complying with applicable statutory and regulatory requirements.

As at 31st March 2026, the Company had 636 employees, of which women represented 29.40 % of the total workforce. The Company continues to strengthen its Diversity, Equity and Inclusion (DE&I) initiatives and remains committed to building a workplace that embraces diverse perspectives and promotes an inclusive organisational culture.

Employee Engagement & Recognition

The Company believes that an engaged workforce is essential for sustained business excellence. It continues to foster a culture of collaboration, recognition and open communication through various employee engagement initiatives that strengthen teamwork, reinforce organisational values and promote a sense of belonging.

Employee recognition programmes, including Employee of the Month and Long Service Awards, together with cultural celebrations and teambuilding activities, continue to acknowledge individual and collective contributions while encouraging a healthy work-life balance.

Learning & Development

Continuous learning and capability development remain integral to the Companys people strategy. The Company provides employees with opportunities to enhance their technical, functional and behavioural competencies through structured learning programmes, professional certifications, external training interventions and knowledgesharing initiatives.

By promoting a culture of continuous learning, the Company aims to build future-ready talent capable of responding effectively to evolving business requirements and industry developments.

Performance Management

The Companys performance management framework is designed to drive individual excellence while aligning employee goals with organisational objectives. The framework emphasises continuous feedback, performance coaching and developmental discussions, enabling employees to enhance their capabilities and contribute effectively towards the Companys strategic priorities.

Employee Well-being

Employee well-being remains central to the Companys human capital philosophy. The Company continues to promote the physical, mental and emotional well-being of its employees through a range of wellness initiatives, preventive healthcare programmes and employee assistance measures.

Comprehensive employee welfare benefits, including group life insurance, financial assistance during unforeseen circumstances and paid bereavement leave, complement the Companys ongoing efforts to foster a supportive and caring workplace. The Company also continues to encourage policies that promote work-life balance and overall employee wellness.

Health, Safety & Environment

The Company remains steadfast in its commitment to maintaining the highest standards of health, safety and environmental stewardship across all its operations. It continues to uphold a zero-harm philosophy by providing a safe and healthy working environment for employees, contractors, customers and other stakeholders while ensuring compliance with all applicable health, safety and environmental regulations.

Comprehensive safety procedures, emergency preparedness plans, periodic safety audits and continuous training programmes reinforce the Companys proactive approach towards risk prevention. Regular awareness programmes and specialised training sessions conducted by internal and external experts further strengthen the Companys safety culture and support continual improvement in health, safety and environmental performance.

Internal Control Systems and their Adequacy

The Company has established a robust internal control framework that is commensurate with the nature, scale and complexity of its operations. The framework provides reasonable assurance regarding the effectiveness and efficiency of business operations, reliability of financial reporting, safeguarding of assets and compliance with applicable laws, regulations and internal policies.

Internal controls are embedded across key business processes and are supported by well-defined Standard Operating Procedures (SOPs), delegated authority frameworks and periodic management reviews. The Company regularly evaluates the effectiveness of these controls through comprehensive internal audits, process reviews and technology-enabled monitoring mechanisms to identify opportunities for continuous improvement.

The Audit Committee periodically reviews the scope and findings of the internal audit programme to ensure adequate coverage of significant business risks. Appropriate corrective and preventive actions are implemented based on audit observations, and the progress of such actions is regularly monitored.

The Company continues to leverage technology- driven systems to enhance operational efficiency, strengthen compliance monitoring and improve governance through data-based decision-making.

The Management, together with the Statutory Auditors and Internal Auditors, has carried out an evaluation of the Companys internal financial controls over financial reporting as at 31st March 2026. Based on these assessments and the recommendations of the Audit Committee, the Board is of the opinion that the Companys internal financial controls were adequate and operating effectively during the year under review.

Internal Audit

The Company maintains an independent Internal Audit function that reports directly to the Audit Committee, comprising primarily Independent Directors with extensive professional expertise. The internal audit function adopts a risk-based audit approach to evaluate the effectiveness of governance processes, internal controls and risk management practices across the organisation.

The Internal Audit team has unrestricted access to organisational information through the Companys Enterprise Resource Planning (ERP) platform, enabling comprehensive and timely audit reviews. Significant audit observations, together with management responses and corrective actions, are periodically reviewed by the Audit Committee, which also holds independent discussions with the Statutory Auditors and the Management to evaluate the adequacy and effectiveness of the Companys internal control environment.

Cautionary Statement

This Management Discussion and Analysis contains forward-looking statements regarding the Companys future business prospects and financial performance. These statements are based on managements current expectations, assumptions and estimates and are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied.

Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances, except as required under applicable laws. This statement should be read in conjunction with the assumptions, qualifications and risk factors discussed elsewhere in the Management Discussion and Analysis forming part of the Companys Annual Report 2025-26.