Navkar Corporation Ltd Management Discussions

The Management Discussion and Analysis report forms an integral part of the Annual Report of Navkar Corporation Limited (Navkar or the Company) for the financial year 2025-26. This section provides a comprehensive overview of the macroeconomic and industry environment in which the Company operates, its business performance, the opportunities and risks it faces, and the managements perspective on its strategic direction. It should be read in conjunction with the Financial Statements, the Directors Report, and the auditors reports contained in this Annual Report.

1. INDUSTRY OVERVIEW & TREND

1.1 The Global Economy

The financial year 2025-26 presented a complex and evolving global economic backdrop. While the world economy demonstrated unexpected resilience in 2024 and into 2025, the outlook for 2026 has grown more uncertain following the outbreak of geopolitical conflict in the Middle East during the reporting period, compounding the already-elevated trade tensions stemming from US tariff policies enacted in 2025.

The trade policy environment remained turbulent throughout FY 2025-26. US tariff impositions - the ripple effects of which were already visible in 2024 - continued to restructure global supply chains. Countries that collectively account for the bulk of world trade and GDP are still growing more slowly than they did in the decade before COVID-19. High central bank policy rates, ongoing fiscal consolidation, elevated debt levels, and the lingering effects of geopolitical fragmentation across multiple theatres - from Eastern Europe to the Red Sea - have combined to constrain global trade momentum.

Global headline inflation continued on a moderating path during the year, with the IMF projecting global inflation to decline toward 2.7 percent by 2026 in preconflict forecasts, though this trajectory is now subject to upward revision given rising energy prices in the aftermath of Middle East developments. Central banks in major economies, including the US Federal Reserve and European Central Bank, have remained cautious in their approach to monetary easing, keeping financing conditions tight for much of the year.

Despite this difficult global environment, one structural consequence has been favourable for India: the disruption and realignment of global supply chains has accelerated the diversification of manufacturing

and sourcing away from China, presenting a strategic opportunity for India to increase its share of global trade. This China+1 phenomenon, alongside Indias expanding manufacturing base under Production Linked Incentive (PLI) schemes, has directly supported growth in EXIM trade flows through Indian ports and logistics infrastructure.

1.2 The Indian Economy

India remained a bright spot in an otherwise subdued global economic landscape. The countrys economy has continued its robust growth trajectory, maintaining its position as the fastest-growing major economy in the world for the second consecutive fiscal year.

Indias economy demonstrated strong momentum during the first half of the fiscal year, supported by resilient domestic demand and broad-based economic activity, before experiencing some moderation in the latter part of the year. Despite uncertainties arising from global trade dynamics and the potential impact of prolonged tariff measures, the economic outlook remains positive.

The Reserve Bank of India revised its growth outlook upward during the year, reflecting confidence in the economys underlying strength. This improved assessment was driven by factors such as robust domestic consumption, tax-related reforms, easing crude oil prices, accelerated government capital expenditure, and supportive monetary conditions.

Indias growth story during the year was underpinned by several structural drivers. Domestic consumption remained resilient, supported by improving rural incomes, a recovery in agricultural output, and the continued expansion of the countrys middle class. Government-led infrastructure development continued to serve as a key catalyst for economic activity, with sustained investments in infrastructure strengthening connectivity, enhancing productivity, and supporting long-term economic growth.

Headline inflation moderated meaningfully during the year. WPI-based inflation fell to (-) 1.21 percent in October 2025, reflecting declines in food articles, crude petroleum, and manufacturing inputs. CPI inflation declined to below the RBIs lower tolerance threshold of 4 percent, enabling a more accommodative monetary stance that supported credit growth and private investment. The financial and corporate

sectors remained resilient, with multi-year low nonperforming assets in the banking sector providing a stable foundation for continued economic expansion.

Indias ambition to be the worlds third-largest economy - with a projected GDP of USD 7 trillion or more by 2030 - received broad endorsement across institutions. The countrys strategic positioning at the intersection of global supply chain realignment, domestic consumption growth, and an ambitious infrastructure investment programme makes it one of the most significant logistics markets in the world for the decade ahead.

1.3 Overview of the Indian Logistics Industry

The Indian logistics industry stands at a pivotal juncture, supported by strong growth prospects and increasing demand for efficient supply chain solutions. The sector is expected to witness sustained expansion over the coming years, driven by economic growth, rising consumption, infrastructure development, and the continued formalisation of trade and commerce. The Governments focus on improving logistics efficiency and reducing overall logistics costs is creating a favourable environment for well-positioned, technology-enabled logistics providers such as Navkar to enhance competitiveness and capture emerging opportunities.Several powerful trends are reshaping the Indian logistics landscape:

- Government policy is increasingly focused on strengthening rail freight as a more efficient, sustainable, and cost-effective mode of transportation. Initiatives such as the Dedicated Freight Corridor programme, the Gati Shakti MultiModal Cargo Terminal scheme, and various rail freight incentive measures are driving greater integration of rail into the national logistics network. This strategic emphasis on multimodal transportation is expected to enhance supply chain efficiency, reduce logistics costs, and create significant opportunities for rail-linked logistics providers.

- Multimodal integration: Demand for integrated, end-to-end logistics solutions - encompassing CFS, ICD, rail rakes, PFT, and warehousing - has grown substantially as Indian manufacturers and trading companies seek to optimise their supply chains.

- Technology adoption: AI, IoT, EDI connectivity, realtime GPS tracking, and OCR-based systems are transforming container logistics and supply chain visibility, enabling providers to offer differentiated, technology-driven value propositions.

- E-commerce and manufacturing growth:

Rapid e-commerce expansion and the growing manufacturing sector - particularly under PLI schemes across 14 sectors - are driving sustained volume growth in both domestic and EXIM freight.

- Warehousing demand: Modern, large-format warehousing has seen accelerated demand, driven by e-commerce, pharmaceutical, FMCG, and manufacturing supply chains.

1.4 Key Government Initiatives

The Government of Indias policy framework has been strongly supportive of logistics sector modernisation, infrastructure creation, and cost reduction. The key programmes that have shaped the environment in which Navkar operates during FY 2025-26 are as follows:

National Logistics Policy (NLP)

Launched in September 2022, the NLP seeks to reduce Indias logistics costs to international benchmark levels by 2030, targeting a reduction from approximately 13-14 percent of GDP to single-digit levels. The policy envisions a comprehensive Digital Integration System (Unified Logistics Interface Platform - ULIP), an Ease of Logistics Services framework, and a Comprehensive Logistics Action Plan (CLAP). It is supported by state-level logistics policies across 13 states. The NLP directly benefits multimodal, technology-enabled operators like Navkar by creating a policy environment that rewards investment in infrastructure and digitisation.

PM Gati Shakti National Master Plan

The PM Gati Shakti scheme, launched in October 2021, is a transformative initiative aimed at creating world-class, seamless multimodal transport connectivity across India. It leverages an integrated spatial planning framework - incorporating ISRO satellite imagery and geoinformatics - to coordinate infrastructure development across ministries and state governments. For Navkar, the Gati Shakti Multi-Modal Cargo Terminal (GCT) policy is of particular significance. As of FY 2025, 97 GCTs have been commissioned nationally, with in-principle approvals issued for 277 further proposals. Navkar

received the Letter of Acceptance (LOA) for a GCT at Somathane, Maharashtra - a landmark milestone for the Company in FY 2025-26.

Dedicated Freight Corridors (DFC)

The Eastern and Western Dedicated Freight Corridors represent one of the most transformative infrastructure investments in Indias logistics sector. With both corridors now fully operational, the country has significantly enhanced its dedicated freight rail network, creating a more efficient and reliable transportation backbone. The development is expected to improve freight movement, reduce transit times, increase network capacity, and strengthen multimodal logistics connectivity across key industrial and consumption centers.

The impact has been transformative. Daily average trains on the DFC network grew from 247 in FY24 to 352 in FY25, with 371 trains per day recorded in February 2025. In FY 2024-25, the DFCs handled approximately 90 billion net-tonne-kilometres of freight. Average freight speeds on DFCs of 50-60 km/h (versus 20-25 km/h on conventional mixed- traffic lines) have dramatically improved transit times. Container trains from Delhi now reach Mumbai in 24-36 hours, compared to several days previously.

Sagarmala Programme

The Sagarmala Programme is a landmark initiative aimed at leveraging Indias extensive coastline and inland waterways to promote port-led development and enhance logistics efficiency. The programme is driving significant investments in port infrastructure, connectivity, and multimodal logistics networks, with the objective of reducing logistics costs and improving trade competitiveness. Continued expansion of port capacity and related infrastructure is expected to support sustained growth in cargo volumes, benefiting container freight stations and inland container depots located within key port hinterlands - a business segment that remains central to Navkars operations.

Bharatmala Pariyojana

The Bharatmala Programme is a flagship infrastructure initiative aimed at strengthening Indias road transportation network through the development of economic corridors, inter-corridors, and feeder routes. The programme seeks to improve freight movement efficiency, enhance connectivity between key economic centres, and complement the countrys expanding rail infrastructure. As implementation progresses, it is expected to play a significant role in reducing transit times, lowering logistics costs, and supporting the growth of integrated multimodal logistics networks across the country.

1.5 EXIM Trade and Container Port Performance

Indias EXIM trade performance during FY 2025-26 was supported by robust domestic demand, growing manufacturing exports, and the diversification of global supply chains in Indias favour. Major port cargo traffic at Indias 12 major ports grew 4.2 percent to 854 million metric tonnes (mmt) in FY25, with EXIM cargo increasing 4.77 percent to 657.74 mmt.

The Jawaharlal Nehru Port Authority (JNPA) - Navkars primary port relationship - achieved a record milestone of 7.3 million TEUs in FY25, representing 13.55 percent growth in container throughput over the previous year. JNPA accounts for approximately 50 percent of all containerised cargo volume among Indias major ports and connects India to over 200 ports globally. The ports fourth container terminal Phase 2 has been under development, adding 1,000 metres of quay length and 2.4 million TEUs of annual capacity, further expanding throughput potential for surrounding CFS operators like Navkar.

2. COMPANY OVERVIEW

Navkar Corporation Limited is one of Indias leading integrated logistics services providers, offering comprehensive, customised, and technology-enabled logistics solutions across the Container Freight Station (CFS), Inland Container Depot (ICD), Private Freight Terminal (PFT), Container Train Operator (CTO), Warehousing, and Equipment Pool business lines. The Company serves Indian and multinational enterprises across a broad spectrum of industries including Manufacturing, Automotive, Chemicals and Fertilisers, Consumer Goods, Retail, Commodities, Tiles and Ceramics, Iron and Steel, Non-Ferrous Metals, Petrochemicals, and Agri-commodities.

In October 2024, JSW Infrastructure Limited - Indias second-largest private port operator with 177 mtpa of operational capacity - acquired Navkar Corporation Limited, making JSW Infrastructure the Companys ultimate holding company. This acquisition marks a new chapter in Navkars journey, providing access to group cargo flows, enhanced balance sheet strength, and strategic alignment with a pan-India port and logistics ecosystem.

Navkars strength lies in its strategically located, large- format facilities and its multimodal capabilities - integrating CFS, ICD, PFT rail terminals, container train operations, and warehousing into cohesive, end-to- end logistics solutions. The Company operates in four primary business streams:

2.1 Business Streams

Container Freight Stations (CFS)

Navkar operates three Container Freight Stations (CFSs) serving the gateway port of Nhava Sheva (JNPT) in Maharashtra - two at Ajivali village and one at Somathane village, all within Panvel. These facilities offer comprehensive import and export container handling, customs clearance services, bonded warehousing, cargo and container stacking yards, and end-to-end container services including parking and repair.

Inland Container Depot (ICD), Morbi, Gujarat

Navkars ICD at Morbi, Gujarat, commenced commercial operations in 2023 and is rapidly establishing itself as a critical logistics node in Western India. Covering 140 acres near the industrial hub of Morbi - Indias ceramic capital - the facility is strategically located on the Ahmedabad- Gandhidham trunk railway route, less than one kilometre from Vadharva station.

The Morbi ICD includes a Private Freight Terminal (PFT) notified by Indian Railways under the Gati Shakti scheme, with five fully concreted railway sidings capable of handling python trains - making it the largest cargo rail terminal in Western India outside of Mundra and Nhava Sheva ports. The facility provides comprehensive warehousing, Maintenance, Repair & Repositioning (MNR) facility for shipping lines, and advanced technology infrastructure including EDI connectivity, OCR-based internal tracking, and GPS- based external asset tracking.

Private Freight Terminals (PFT)

Navkar operates two Private Freight Terminals: one at Somathane (Panvel), with two railway sidings, serving the Mumbai Metropolitan Region; and one at Vadharva (Morbi), with five railway sidings, serving the Saurashtra and Kutch regions of Gujarat. The PFTs are capable of handling all types of cargo trains - including steel cargo, bulk cargo, bagged cargo, containerised cargo, and automobile carriers.

Container Train Operator (CTO)

Navkar holds a Category 1 CTO License issued by Indian Railways, enabling unrestricted, pan-India operation of container trains on the Indian Railway network for both EXIM and domestic trade. The Company owns and operates container rakes on both EXIM and domestic circuits, providing regular services across ports and industrial centers.

3. OPERATIONAL PERFORMANCE - FY 2025-26

FY 2025-26 has been a year of material operational progress for Navkar Corporation, characterized by accelerating volume growth across both the CFS and ICD business lines, landmark milestones in the GCT business, and significant capacity additions through the rail rakes business acquisition.

3.1 Volume Performance

EXIM Business ICD + CFS Volume handled

This growth reflects the ongoing ramp-up of utilisation at the Morbi ICDs EXIM rail corridor (connecting Mundra Port with the Gujarat hinterland), the continued performance of the Somathane CFS as a high-throughput facility near JNPT, and the growing customer base across the ceramic, manufacturing, and commodity sectors.

Domestic Business

The standout operational achievement of FY 202526 has been the explosive growth in domestic cargo

volumes at the Morbi ICD, reflecting the accelerating penetration of Navkars rail logistics offering into the Saurashtra ceramics and industrial cluster:

*TEUs -Twenty-foot Equivalent Units

These growth rates reflect Navkars success in converting ceramic manufacturers, tile producers, and related

industries in the Morbi cluster from road-based logistics to rail-based, multimodal solutions - a fundamentally lower-cost and lower-carbon alternative. Morbis status as Indias ceramic capital - accounting for approximately 70 percent of Indias tile and sanitaryware production - provides a large and growing addressable customer base for the ICD.

3.2 Key Milestones in FY 2025-26

GCT Letter of Acceptance at Somathane

Navkar received a Letter of Acceptance (LOA) for the development of a Gati Shakti Multi-Modal Cargo Terminal (GCT) at Somathane, Maharashtra. This is a landmark milestone: the GCT is an asset-light business model in which land is provided by Indian Railways, and the terminal operator generates revenue through cargo handling fees. The Somathane GCT adds a new revenue stream and capability to the Companys flagship Maharashtra facility, further entrenching Navkars position at Panvel as a comprehensive logistics hub for the Mumbai Metropolitan Region.

4. FINANCIAL PERFORMANCE

The Companys financial performance during the year ended March 31, 2026 compared to the previous financial year is summarized below:

Sr. Particulars No .	Year Ended
	31 March, 2026 (Audited)			31 March, 2025 (Audited)
1. Income
(a)Revenue from Operations	68,745.89			48,730.54
(b)Other Income	312.26			245.49
Total Income (a+b)	69,058.15			48,976.03
2. Expenses
(a) Operating Expenses	49,249.67			38,997.55
(b) Employee Benefits Expenses	4,815.80			4,520.57
(c) Finance Costs	1,587.04			2,069.96
(d) Depreciation and Amortisation Expenses	5,673.42			5,090.86
(e) Other Expenses	2,864.03			4,380.30
Total Expenses (a to e)	64,189.96			55,059.24
3. Profit/(Loss) before exceptional items and tax (1-2)	4,868.19			(6,083.21)
4. Exceptional Items (Refer Note 3)	-			(611.09)
5. Profit/(Loss) before tax (3 + 4)	4,868.19			(6,694.30)
6. Tax Expense
Current Tax	839.31			-
Earlier year tax	-			(36.15)
Deferred Tax	1,014.32			(2,127.95)
Total Tax Expense		1,853.63	(2,164.10)
7. Profit/(Loss) for the Period/Year (5 - 6)		3,014.56	(4,530.20)
8. Other Comprehensive Income
Items that will not be reclassified to profit or loss
Re-measurement of net defined benefit obligations		(90.41)	(110.25)
Tax Effect on above		22.75	38.52
9. Total Comprehensive Income/(Loss) for the Period/Year (7 + 8)		2,946.90	(4,601.93)
10. Paid-up equity share capital (Face value Rs. 10 each share)		15,051.92	15,051.92
11. Other Equity (Excluding Revaluation Reserve)		180,743.58	177,796.68
12. Earnings Per Share (face value of Rs. 10 each) (Not Annualised for the quarter) (Derived based on Sr. No. 7 above)
(a) Basic EPS in Rs.		2.00	(3.01)
(b) Diluted EPS in Rs.		2.00	(3.01)

5. OUTLOOK

The outlook for Navkar Corporation for FY 2026-27 and beyond is anchored in three converging structural tailwinds: Indias sustained economic growth and expanding EXIM trade, the full operationalization of the Western Dedicated Freight Corridor (which enhances rail competitiveness for the Companys CTO and PFT businesses), and the accelerating maturation of the Morbi ICD as a dominant logistics node for the Saurashtra ceramics and industrial cluster.

Indias resilient economic growth, coupled with sustained government investment in infrastructure, continues to provide a supportive macroeconomic environment for the logistics sector. The Governments focus on improving logistics efficiency and reducing overall logistics costs is creating a strong structural foundation for the industrys transformation. These initiatives are accelerating the shift from fragmented, road-centric logistics networks toward organised, multimodal, and technology-enabled solutions, creating significant opportunities for integrated logistics providers such as Navkar.

The completion of the Western DFC - connecting JNPT to Dadri via Ahmedabad and providing critical rail access to the Gujarat hinterland - is a game-changing development for the Morbi ICD. Containerised cargo moving on the WDFC toward and from Mundra Port will increasingly transit through Navkars PFT at Vadharva, reducing dependence on congested road corridors. Average freight train speeds of 50-60 km/h on DFC tracks (versus 20-25 km/h on conventional lines) translate to predictable, fast transit - a critical requirement for the ceramic and industrial customers Navkar serves.

6. SEGMENT-WISE PERFORMANCE

The Company is engaged in the business of providing services of CFS, ICD, Rail Operations and other related services. There is no other reportable segment.

7. OPPORTUNITIES

- Gati Shakti GCT expansion: Following the Somathane GCT LOA, Navkar is well-positioned to participate in future GCT bids at other strategic locations, building an asset-light national rail terminal network.

- Morbi ICD ramp-up: With domestic cargo volumes growing at 35-45 percent year-on-year and warehousing capacity scalable to 8 lakh square feet, the Morbi ICD has significant operating leverage potential as volumes continue to grow.

- Modal shift beneficiary: As Indias rail share of freight moves from approximately 27 percent toward the governments target of 40-44 percent, Navkars Category 1 CTO licence, PFT infrastructure, and ICD network position it as a primary beneficiary of this structural shift.

- Build-to-suit warehousing at Morbi: The Morbi ICDs scalable warehousing capability - with capacity to grow from current operational levels to 8 lakh square feet - enables bespoke, long-term warehousing contracts with anchor customers in the ceramics and industrial sectors.

- Indias manufacturing growth: PLI-driven manufacturing expansion across sectors including ceramics, tiles, chemicals, textiles, and automotive will generate incremental EXIM and domestic logistics demand in Navkars catchment areas.

- Supply chain China+1 diversification: Global

companies restructuring supply chains away from China are increasingly looking to India as an alternative manufacturing and sourcing base, creating new EXIM logistics demand.

- Technology-enabled value-added services: Predictive analytics, EDI-based customs integration, and real-time tracking capabilities enable Navkar to offer premium, differentiated services to large enterprise customers seeking supply chain optimisation.

8. THREATS AND RISKS

8.1 Key Threats

- DPD (Direct Port Delivery) competition: The growing share of DPD containers - which bypass CFSs and move directly from port to factory - represents a structural challenge for CFS volumes. While many DPD containers still require CFS facilities for interim storage and customs processing, the trend is one that Navkar monitors closely and partially addresses through its diversified ICD and rail operations.

- Competitor capacity expansion: Increased

capacity by competing CFS, ICD, and rail operators - and the development of new terminals - creates pricing pressure and potential market share competition.

- Mundra Port congestion: Increasing congestion at Mundra Port has, at times, affected rail evacuation efficiency from the Saurashtra hinterland. As Morbis ICD volumes grow, ensuring seamless rail connectivity to Mundra remains critical.

- Global trade disruptions: The ongoing Middle East conflict, US tariff policies, and the Russia-Ukraine situation continue to introduce volatility in global shipping routes, freight rates, and EXIM trade volumes. While Indias trade reliance on the USA is not dominant, any sustained contraction in global trade volumes would have a cascading effect on Indian port and CFS throughput.

- Competitive commoditisation: The CFS and ICD businesses can be price-competitive, with relatively low barriers to entry for smaller players. Navkars mitigation lies in the superior scale of its facilities, the depth of its technology integration, and the multimodal breadth of its service offering.

8.2 Risk Management Framework

Navkar Corporation is committed to identifying, assessing, and managing the risks it faces - both internal and external - in a proactive and systematic manner. The Companys risk management approach

is integrated into its business strategy and operational

decision-making. Key risks and their mitigations are

as follows:

1. Competitive and market risk: The Indian logistics market is highly fragmented, with a large number of unorganised players in many segments. Navkars response is to create clear differentiation through integrated, technology-enabled, multimodal solutions that unorganised players cannot replicate at scale. The Companys Category 1 CTO licence, its large-format CFS and ICD footprint, and its PFT infrastructure create meaningful moats.

2. EXIM trade volatility risk: The ICD and CFS business is inherently linked to Indian EXIM trade performance, which is in turn influenced by global economic conditions. Navkar mitigates this risk by actively growing its domestic cargo business - as evidenced by the 35-45 percent domestic volume growth at Morbi ICD in FY 2025-26 - thereby reducing dependence on ocean freight cycles.

3. Geopolitical and trade policy risk: Ongoing trade tensions and geopolitical developments can disrupt global supply chains. The Companys business strategy team continuously monitors developments in trade policy, shipping routes, and tariff structures, and implements countermeasures to protect revenue and customer service delivery.

4. Rail operations risk: Navkars growing dependence on Indian Railways infrastructure - through its CTO and PFT businesses - means that disruptions to rail services, rake availability, or policy changes could impact operations. The Company manages this through its owned rake fleet, supplemented by leased rakes, and strong relationships with railway authorities.

5. Customer concentration risk: The Company serves a diverse base of shipping lines, custom handling agents, freight forwarders, and end customers across multiple sectors, reducing dependence on any single customer or sector.

6. Technology and cybersecurity risk: As a

technology-enabled logistics provider operating EDI, OCR, GPS, and digital tracking systems, Navkar is exposed to technology failure and cybersecurity risks. Robust IT infrastructure, access controls, and system monitoring mitigate these risks.

9. INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has robust Internal Control Systems and processes in place for smooth and efficient conduct of business and it complies with relevant laws and regulations. It has well documented system of internal financial controls in place, in the form of delegation of powers, policies and procedures that cover critical as well as important activities of financial and other operating functions. The procedure are in the form of manuals, guidelines, delegation of powers and IT system and controls which are effected through people operating in various departments within the Company at different levels at each stage of the processes. These are designed to ensure compliance to the internal financial controls as detailed in the Companies Act, 2013.

The organization continuously assess the effectiveness of its internal controls through extensive internal audits, which are being conducted on regular basis by experienced independent firms of Chartered Accountants in close coordination with Companys own internal audit Department.

A well-defined internal control framework has been developed identifying key controls and independent external auditors verifies the adequacy and effectiveness

of the internal financial control system through regular periodic audit and system review, provides assurance on the compliance of internal polices & procedures of the Company and certify the appropriateness of internal controls. Internal audit firms directly report to the management at higher level. The functioning of the internal audit as well as internal financial control systems are periodically reviewed by the Audit committee to ensure comprehensive coverage of the areas and necessary directions are issued whenever required to further strengthen the internal financial control system & procedures keeping in view the dynamic business environment in which the Company operates.

Reports of the auditors are reviewed, compliances are ensured and the reports along with the compliances are apprised to Audit committee periodically. Proactive steps have been taken to ensure compliance with various upcoming regulations through deployment of cross functional teams. The Company at all times encourages the employees to adopt fair, compliant and ethical practices. In addition, implementation and effectiveness of internal financial controls during 2025-26 was also reported by the internal and statutory Auditors of the Company.

10. RATIO ANALYSIS

Details of significant financial ratios along with explanation thereof are as under:

Particulars	Unit of measurement	March 31, 2026	March 31, 2025	Variance in % term	Change in Excess of 25%
Current Ratio	In multiple	1.60	1.62	-1.1%
Debt - Equity Ratio	In multiple	0.09	0.08	6.6%
Debt Service Coverage Ratio (DSCR)	In multiple	1.70	0.40	323.8%	The significant change belongs to increase in EBITDA in current year.
Debtors Turnover Ratio	In multiple	4.73	4.81	-1.8%
Net Profit Margin (%)	In %	4.39%	-9.30%	147.2%	The significant change belongs to increase in Net profit.
Return on Equity (ROE)(%)	In %	1.55%	-2.32%	166.8%	The significant change belongs to increase in Net profit.
Payables Turnover Ratio	In multiple	13.96	19.49	-28.4%	The significant change belongs to increase in trade payables which is in proportion to increase in revenue/volume.
Return on Capital Employed (%)	In %	3.06%	-2.24%	236.6%	The significant change belongs to Increase in EBIT.
Return on Investments (%)	In %	NA	NA	NA	Company has not parked any short term funds.
Net Capital Turnover Ratio	In multiple	7.93	8.36	-5.06%
Inventory Turnover Ratio	In multiple	NA	NA	NA	Company is in service industry and does not hold inventory for operational purpose except spare parts.
Interest Coverage Ratio	-	4.07	(2.23)	-282.1%	The significant change belongs to Increase in EBIT.

11. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Navkar Corporations people are the foundation of its service delivery. The Company believes that its employees are its most important asset - the quality of service delivered to customers is, ultimately, a direct reflection of the competence, commitment, and culture of its workforce.

The Company has adopted people practices designed to attract and retain talent in an increasingly competitive market, and to foster a work culture committed to providing the best opportunities for employees to realise their full potential. These practices span targeted recruitment, structured onboarding and training, performance management, and competitive compensation benchmarked to industry standards.

As Navkars operational footprint has expanded - with the Morbi ICD now operational and the GCT at Somathane adding new activities - the Company has also expanded its workforce at the Gujarat location, building local

operational expertise and community relationships in the Morbi area. As of March 31, 2026, Navkar Corporation had a workforce of 449 people on rolls.

12. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis section describing the Companys objectives, projections, estimates, and expectations may be forward-looking statements within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied, due to a variety of factors including but not limited to changes in global or Indian economic conditions, government policies and regulations, exchange rates, competition, and other risks described in this report. The Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.