OBCL Ltd Management Discussions

Management Discussion and Analysis Report

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

LOGISTICS-GLOBAL VIEW

"The global logistics market is valued in the multi-trillion-dollar range. According to various industry reports, it was estimated at between USD 4.3 trillion and USD 12.7 trillion in 2026, with projected CAGR estimates ranging from approximately 3.7% to 10.1%, depending on the scope and methodology of the report."

Global Logistics Industry includes all activities of the supply chain such as transportation, customer service, inventory management, flow of information and order processing. Other activities of the supply chain are warehousing, material handling, purchasing, packaging, information dissemination and maintenance among others.

The global economy in 2025-26 demonstrated resilience amid a challenging macroeconomic environment characterized by moderating inflation, uneven growth across regions, and heightened geopolitical uncertainties. While inflationary pressures eased in several advanced economies, central banks adopted a cautious approach to monetary policy, balancing the need to support growth with the objective of maintaining price stability. Global trade and investment continued to be influenced by evolving tariff policies, geopolitical conflicts, and the ongoing diversification of supply chains. At the same time, rapid advancements in artificial intelligence, digital technologies, and the global energy transition accelerated productivity improvements and business transformation, while also necessitating significant investments in infrastructure, cybersecurity, and workforce reskilling. Despite persistent uncertainties, the global economy remained supported by resilient consumer demand, technological innovation, and continued investments in sustainable and digital infrastructure.

Looking ahead, the global economy is expected to maintain moderate growth, supported by easing inflation and gradual monetary policy normalization in several major economies. However, growth prospects remain subject to risks arising from geopolitical conflicts, evolving trade policies, fiscal uncertainties, and financial market volatility. While supply chain diversification and technological advancements, particularly in artificial intelligence and digital transformation, continue to drive productivity and investment, persistent geopolitical tensions and global policy uncertainties are expected to influence trade, commodity prices, and overall economic stability.

During the financial year 2025-26, the global freight transport and logistics sector continued to navigate a dynamic operating environment shaped by geopolitical tensions, evolving trade policies, fluctuating freight demand, and ongoing supply chain realignments. At the same time, rapid adoption of digital technologies, artificial intelligence, automation, and sustainability initiatives accelerated operational efficiency and resilience. These developments reinforced the industrys focus on building agile, technology-driven, and sustainable logistics networks amidst continuing global uncertainties.

Geopolitical tensions and evolving global trade policies continued to reshape international logistics during FY 2025-26. Disruptions in key maritime routes, including the Red Sea, led to longer transit times and higher shipping costs, while changing tariff regimes and trade policy uncertainties influenced global trade flows and supply chain strategies. The industry also faced operational challenges arising from port congestion, labour negotiations, and capacity constraints in certain regions, reinforcing the need for resilient, diversified, and technology-enabled logistics networks.

Alongside evolving regulatory expectations, technological innovation continued to accelerate the transition towards smarter and more sustainable logistics. The adoption of artificial intelligence (AI), Internet of Things (loT), advanced analytics, automation, and blockchain enhanced operational efficiency, improved real-time supply chain visibility, and strengthened decision-making, enabling logistics providers to build more resilient and environmentally sustainable operations.

The financial year 2025-26 was characterized by continued geopolitical uncertainties, evolving trade policies, supply chain realignments, and economic volatility, which reshaped the global freight transport and logistics sector. Despite these challenges, accelerated adoption of digital technologies, artificial intelligence, automation, and sustainability initiatives strengthened operational resilience and positioned the industry for long-term, technology-driven growth.

LOGISTICS OVERVIEW- INDIA

"Building a Future-Ready Logistics Ecosystem"

India continued to be among the worlds fastest-growing major economies during FY 2025-26, supported by robust domestic demand, infrastructure investments, and policy reforms. The countrys logistics sector continued its transformation under initiatives such as the National Logistics Policy and PM Gati Shakti, supported by rapid digitalisation, multimodal connectivity, and expanding e-commerce. According to industry estimates, the Indian logistics market was valued at approximately USD 243.8 billion in 2025 and is expected to witness sustained growth in the coming years, reinforcing its strategic role in Indias economic development.

An efficient and integrated logistics ecosystem remains a critical driver of Indias economic growth and global competitiveness. Continued policy initiatives such as the National Logistics Policy and PM Gati Shakti, coupled with investments in multimodal infrastructure and digitalisation, are enhancing supply chain efficiency, reducing logistics costs, and strengthening Indias journey towards becoming a developed economy.

Indias logistics costs are estimated to remain at approximately 13-14% of GDP, higher than the 8-10% observed in many developed economies. Ongoing government initiatives focused on multimodal connectivity, infrastructure development, and digitalisation are expected to improve supply chain efficiency and progressively reduce logistics costs, thereby enhancing Indias global competitiveness.

While comparable with other developing countries, the elevated cost base constrains Indias global competitiveness.

Despite ongoing improvements, structural challenges continue to impact the efficiency of Indias logistics sector. Key structural inefficiencies persist, including:

Sub-optimal modal mix with excessive reliance on road transport & Fragmented regulatory and institutional frameworks Gaps in warehousing and multimodal connectivity Shortage of skilled manpower and sub-optimal fleet capacity Inadequate intermodal and last-mile connectivity infrastructure

Key Infrastructure Development Projects

Initiative	Description	Status
Sagarmala	Port modernization, coastal shipping, port connectivity and logistics parks	Over 280 projects completed projects worth over ?1.5 lakh crore completed; continued focus on port-led industrialisation and multimodal connectivity.
Bharatmala Pariyojana	Economic corridors, highways and border road infrastructure	Over 26,000 km of national highways completed under Phase-I, with construction progressing across sanctioned corridors.
Dedicated Freight Corridors (DFCs)	Rail freight corridors across major routes	Eastern DFC fully operational and Western DFC substantially operational significantly improving freight movement, reducing transit time and decongesting passenger rail routes.
PM Gati Shakti - National Master Plan	GIS-based integrated infrastructure planning	2,000+ data layers integrated and adopted by 44+ Central Ministries/Departments and all States/UTs to enable coordinated infrastructure planning and faster project execution.

Regulatory and digital initiatives such as ULIP (Unified Logistics Interface Platform), E-Sanchit, Faceless Assessment and Turant Customs, FASTag, National Logistics Portal (Marine) and GST-enabled digital integration continued to enhance supply chain visibility, streamline cargo movement, reduce logistics costs and improve the overall ease of doing business. The continued rollout of the National Logistics Policy (NLP) further strengthened multimodal connectivity, digital integration and logistics efficiency across the country.

As India advances towards becoming a developed economy, an efficient, integrated, and technology-driven logistics ecosystem will remain a key enabler of trade, manufacturing, and investment. Continued focus on infrastructure development, multimodal connectivity, digitalisation, and policy reforms is expected to strengthen supply chain resilience and enhance Indias position as a global logistics and manufacturing hub.

INITIATIVES UNDERTAKEN BY CHHATTISGARH GOVERNMENT

"Chhattisgarh Strengthens Its Logistics Competitiveness"

Chhattisgarh continued to strengthen its logistics ecosystem through policy-driven reforms, including streamlined regulatory approvals under the single-window system and an effective grievance redressal mechanism for the logistics sector. While opportunities remain to enhance freight cost efficiency and terminal infrastructure, ongoing investments in multimodal connectivity, logistics infrastructure, and ease of doing business are expected to improve the States logistics competitiveness and support sustainable industrial and economic growth.

State policy for logistics:

The Government of Chhattisgarhs Industrial Development Policy 2024-30, effective from 1 November 2024 to 31 March 2030, provides a strong impetus to logistics and industrial infrastructure development. The policy offers a range of incentives, including stamp duty exemptions, interest and capital subsidies, SGST reimbursement, and support for transport and logistics infrastructure, aimed at enhancing ease of doing business, attracting investments, and strengthening the States position as a key logistics and manufacturing hub, explicitly promoting logistics infrastructure which offers incentives such as:

Stamp-duty waivers

Interest and capital subsidies

Vehicle purchase subsidies

SGST reimbursement up to 75% of FCI for MSMEs

Additionally, logistics park incentives include duty exemptions, EPF grants, training reimbursements and infrastructure subsidies under the older policy.

Institutional mechanism for logistics implementation:

&j Institute of Driver Training & Research (IDTR) provides professional upskilling through simulators and workshops to improve driver standards.

(yj The State has initiated the institutional setup for logistics by appointing a nodal officer for logistics.

Infrastructure & Connectivity Projects:

Raipur - Visakhapatnam Economic Corridor: Development of the six-lane economic corridor continued to enhance Chhattisgarhs connectivity with the Visakhapatnam Port, facilitating faster cargo movement and strengthening export-import logistics.

Raipur - Ranchi Corridor: Progress continued on the Bharatmala-supported corridor, aimed at improving connectivity between Chhattisgarh, Jharkhand and eastern India, thereby supporting industrial growth, mining logistics and regional trade.

Infrastructure Investment: The State Government continued to prioritise infrastructure development through significant budgetary allocations for roads, bridges and connectivity projects, with a focus on improving industrial access, rural connectivity and logistics efficiency.

Road Network Expansion: Expansion and upgradation of national highways, state highways and district roads continued under Central and State Government initiatives, strengthening multimodal connectivity and improving last- mile access to industrial clusters, logistics hubs and mining regions.

Digital Platforms & Governance:

Single Window System 2.0 rolled out, digitizing approvals from 16 departments and streamlining permits and clearances.

ULIP Implementation continued, integrating real-time logistics visibility, ministry data exchanges, and unified documentation platforms.

VAHAN and SAARTHI systems fully operational statewide, reducing bottlenecks in vehicle registration and driver licensing.

Green Logistics & Innovation:

Indias first hydrogen fuel-cell truck was launched at the Gare Pelma III coal block, in partnership with Adani, to reduce diesel usage and emissions.

Special 5% incentives were introduced for adoption of digital logistics systems, renewable technologies and waste management solutions.

COMPANY OVERVIEW

OUR BUSINESS AND OUTLOOK

OBCL Limited (Formerly known as Orissa Bengal Carrier Limited) was originally incorporated on October 18, 1994 as Orissa Bengal Carrier Private Limited under the provisions of Companies Act, 1956 with Registrar of Companies (ROC), Gwalior, Madhya Pradesh. OBCL was converted into a Public Limited Company on November 05, 2009 and the name of our Company was changed to "Orissa Bengal Carrier Limited" vide Certificate of Incorporation dated December 09, 2009, issued by the ROC, Madhya Pradesh, Gwalior.

The Company listed its Equity Shares on SME Platform of BSE Limited in the year 2018. The Company received its Listing Approval on April 04, 2018. Further the Company migrated the Listing/Trading of Equity Shares of the Company from SME Platform of BSE Limited to Main Board of BSE Limited and National Stock Exchange of India Limited (NSE) with effect from April 07, 2022. The name of our Company was changed to "OBCL Limited" vide Certificate of Incorporation dated March 02, 2026, issued by the ROC, Chhattisgarh, Bilaspur. Our Company is engaged in Transportation & Logistics Business and has completed more than 30 years since incorporation.

We are one of the largest logistics companies headquartered at Raipur, Chhattisgarh, serving a broad range of industries, including the steel, coal, aluminium, cement, petrochemicals, paper, marble, tiles, infra, textile and FMCG. The main business activity of our company is Full Truck Load Transport service wherein we do transport the consignment by road all over India. We are one of the IBA approved transporter having ISO 9001:2015 certification for provision of Quality Management System Service.

We also provide services by vehicles hired by us to provide timely and quality services to our clients. The variety of goods transportation vehicles in our fleet enables us to serve a diverse mix of consignments.

Our Promoter, Late Shri Ratan Kumar Agrawal had played a crucial role in the Administration & Fleet Management of our Company and operated from our Head office. He had experience of around 25 years in transport and logistics industry and had been Director of our Company since incorporation. Our other Promoter is Smt. Shakuntala Devi Agrawal, wife of Late Shri Ratan Kumar Agrawal. She joined our company since incorporation. Mr. Ravi Agrawal, the current Promoter & Managing Director of the Company, joined the Company as a Wholetime Director w.e.f. July 01, 2018 and is currently handling all the Management and Administration of the Company. He is a Master in International Business and a commerce graduate having more than 15 years experience in the field of Transportation, Logistics & marketing. Recently, Mrs. Priti Agrawal joined the Company as a Wholetime Director and is handling Personnel Management and Administration of the Company. She is a Master of Business Administration (MBA) degree from Disha Institute of Management and Technology, Raipur.

We believe that our management teams experience and their understanding of our business and industry will enable us to continue to take advantage of both current and future market opportunities. Our experience together with our consistent and successful track record of timely delivery and customer satisfaction provides us a competitive edge.

Segment-wise or product-wise performance

The 2 reportable segments of the Company during the year ended March 31,2026 are:

(a) Road Transportation Service: comprises truckload delivery services through its owned and hired vehicles provided to clients across various industries.

(b) Trading Business: Comprises the trading of various items like coal, sand, iron & steel etc. and its sales to various domestic parties.

During the year under review, the net segment revenue from Road Transportation Service was Rs. 30,987.71 Lakhs and Rs. 3733.48 Lakhs from Trading Business.

DETAILS OF OUR BUSINESS

Branch Distribution Network

Our Distribution Network having 32 branches spread in various parts of India and providing services across all cities of India. It enables us to cater to a diverse mix of customers including corporate, small and other enterprises, distributors and traders. Our Registered Office is located in Raipur, Chhattisgarh. Our large geographic coverage and operational network enable us to further integrate our operations, increase cost efficiencies and increase freight volumes.

Our Business Model

Our Company is maintaining its own fleet containing 110 commercial vehicles which includes trucks and trailers. In addition to this we hire around 18,000 vehicles from local market in the area from where service is to be provided which ensures timely arrangement of vehicle at our customer place. Therefore, the mix of our own fleet and vehicle hired by us for providing transportation services enables us to provide effective and exceptional services to our customer. The fleet operates across the country ensuring nation-wide services to our corporate and government customers. The specification of vehicle depends on the type of service required by our customer.

Our truck load delivery services operate through a hub-and-spoke model which enables us to transport goods and provide our customers access to multiple destinations for booking and delivery of goods. Our routes of operation for the transportation of goods connect various regions in India i.e., western & eastern regions and also southern & northern parts of India.

We believe that our differentiated service offerings, large integrated hub-and-spoke transportation network, commitment towards prompt and safe delivery of the goods and time bound services will enable us to develop our brand across India.

We work with clients to develop logistics solutions that meet their requirements.

For transportation services, we typically enter into time bound service contracts with our clients, which are renewed on regular basis as and when required. We offer flexibility in our contracts as our transportation contracts are usually customized according to certain terms, which may vary depending on whether we quote our prices on the basis of per truck (dedicated vehicles), per trip, per ton, per ton-per kilometer, overall project-based (optimization based, or cost savings based), cost-plus management fees or per unit transported, among others.

Competition

The goods transportation industry is unorganized, competitive and highly fragmented in India. We believe that the principal competitive factors include service quality, reliability, price and the availability and configuration of vehicles that are able to comprehensively address varying requirements of different customer segments and specific customer needs. Being IBA Approved, we get an edge over other unorganized and Non IBA Approved transporters. We believe that our ability to compete effectively is primarily dependent on ensuring consistent service quality and timely services at competitive prices, thereby strengthening our brand over the years.

BUSINESS OPPORTUNITIES & STRENGTH:

Pan-India surface logistics services provider

We are a pan-India surface logistics service provider and we believe that we are one of the reliable transporters in and across India. We are an established entity in the transportation industry in India with over 30 years of operations. We believe that our dedication towards quality, reliability and timeliness of services offered compete effectively with our competitors in the organized as well as unorganized sector, thereby strengthening our name over the years.

Experienced and motivated management team

Our Promoters are engaged in the business of Transport and Logistics for more than 30 years which gives us the advantage of developing our presence, relationship with our customers, and cordial relationship with our drivers and other employees. We also have a dedicated and experienced management team who are in charge of operation, quality management and delivery to each of our customers and functions well as a team along with the expertise and vision to expand our business.

We believe that our management teams experience and their understanding of our business and industry will enable us to continue to take advantage of both current and future market opportunities. Our experience together with our consistent and successful track record of timely delivery and customer satisfaction provides us a competitive edge.

Established Marketing Setup

Marketing is an important function of our organization. We provide our service throughout India, based on strength of relationship with our customers who have been associated with our Company for a long period. Our promoters along with the marketing team play an important role for timely and quality delivery of services. To retain our customers, our marketing team regularly interacts with them and focuses on gaining an insight into the services and other additional needs of such customers.

Diversified Customer Base

We serve customers across several industry sectors viz. Metal, Steel, coal, aluminum, cement, petrochemicals, paper, marble, tiles, infra, textile, FMCG etc.

Quality of Services

We adhere to quality standards as per industry standards, hence, we get repetitive work order from our customers, as we believe we are capable of meeting their quality standards at competitive costs, which enables us to maintain our brand image in the market.

Strategic location

We are headquartered in Chhattisgarh which contributes approximately 30.00% to Indias steel/sponge iron production, 20.00% cement in Indias production, so there are large number of steel and cement industry in our belt providing us a benefit to easily cater them the services they need to transport goods to other required location.

Augment our fund-based capacities in order to scale up business operation

Our business operations are working capital intensive. In order to effectively expand our business arenas services and also diversify the operating routes in various geographical locations, along with the existing facilities we need to have access to a larger amount of liquid funds and sufficient working capital. We expect to increase our volumes, revenues and scale of operations and we will require substantial working capital for the same. It is hence our strategy to raise funds from this issue and augment our fund based working capital capabilities.

Increase our goods transportation network

We are expanding our goods transportation network across Northern, Central, and Eastern India while enhancing depth in existing regions.

THREATS & RISKS:

Need for Integrated Logistics Infrastructure

Indias logistics sector remains highly unorganised, with many small, independent operators across the supply chain. This lack of integration leads to inefficient resource use, limited standardisation and poor coordination among stakeholders. Adopting digital platforms and developing logistics parks and hubs can drive consolidation, streamline processes, enhance efficiency and reduce costs through scale benefits.

Impact of Volatile Fuel Prices on Logistics

Fuel makes up a major part of transportation costs for logistics providers. Since India relies heavily on imported crude oil, global price changes directly affect domestic diesel costs. These fuel price fluctuations significantly impact industry margins, affecting all stakeholders in the supply chain. Sharp increases in prices can disrupt operations, forcing logistics companies to either raise charges or absorb losses. On the other hand, sudden drops in fuel costs may temporarily boost profits and lead to intense market competition. To manage this risk, many logistics firms link customer contracts to fuel price variations.

Addressing Truck Driver Shortage

The trucking profession often appears unattractive to potential drivers due to safety concerns, tough working conditions, irregular hours and extended time away from home. However, improvements in road infrastructure and the adoption of safety-enhancing technologies are gradually making the profession safer and more sustainable, leading to better working conditions for drivers.

Enhancing Last-Mile Delivery Efficiency

The last-mile segment of the logistics chain presents persistent challenges, including limited manpower, inadequate road infrastructure, traffic congestion, inaccurate address mapping and weather-related disruptions. These factors contribute to delivery delays, increased operational costs, and reduced customer satisfaction particularly for sectors like e-commerce and FMCG, which heavily rely on timely and efficient deliveries.

To address these issues, logistics providers are increasingly adopting digital mapping technologies, exploring alternative delivery modes.

Geopolitical and Socio-Political Risks

Events such as war at international borders, terrorist attacks, civil unrest or communal disturbances, whether in India or globally may significantly impact financial markets. Any major hostilities involving India or key global economies, or other acts of violence beyond our control, could materially affect investor sentiment and economic stability. Such events often lead to heightened market volatility, which in turn could adversely impact the price of our equity shares.

Regulatory and Legal Uncertainties

Changes in laws, regulations or tax policies and their adverse interpretation, may increase compliance burdens, operational costs or liabilities. Such legal uncertainties could negatively impact our business performance, reduce demand for our services, and affect our financial condition, results of operations and overall growth prospects.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has established adequate internal control systems commensurate with its size and business nature, covering inventory, fixed assets and sale of goods and services. These systems ensure that all assets are safeguarded against unauthorized use or disposition and that all transactions are properly authorized, recorded and reported.

A robust internal audit mechanism supports effective implementation of corporate policies related to financial reporting, accounting and information security. The Audit Committee oversees internal controls, reviews their adequacy and provides regular recommendations.

To further strengthen operational integrity, the Company has appointed M/s. Agrawal Jain & Co. as Internal Auditors for comprehensive departmental reviews.

Additionally, under the "One Company One Software" policy, the Company has implemented Lozics software to enhance security and streamline financial processes.

Key features include:

Restricted access-only authorized personnel can modify entries.

Simplified verification and audit processes.

Regular employee training for smooth adoption.

Proven reliability-already used by 100+ logistics companies.

These measures collectively enhance operational transparency, accuracy and data security across the organization.

FINANCIAL PERFORMANCE AND FUTURE OUTLOOK:

Financial performance with respect to operational performance

During the year under review, the Company recorded a Revenue from Operations of ?30,987.71 Lakhs and a Net Loss After Tax of ?854.53 Lakhs, compared to ?30,489.24 Lakhs and ?107.94 Lakhs respectively in the previous year. The Profit Before Tax as a percentage of Revenue from Operations stood at -2.60% for FY 2025-26, as against 0.66% in the previous year.

To enhance revenue in the coming years, OBCL is exploring opportunities in untapped sectors of the transport industry. Additionally, a new software platform is under development to onboard over 10,000 commercial transport vehicles, which is expected to significantly boost operations and competitiveness.

The Board is optimistic about long-term growth in the transport sector and is confident in the Companys potential to capitalize on emerging opportunities. The Management remains committed to improving profitability and ensuring sustainable growth in the forthcoming financial years.

Events occurring after the balance sheet date

There are no transactions of material nature that have occurred after March 31, 2026, which could have any impact on the financial performance of the Company for the year 2025-26.

Human Resources

We consider our employees vital to our success and strategy. As of March 31, 2026, we had 275 employees across India. Our administrative team supports key functions like planning, IT, HR and finance, while our decentralized management enables timely decisions. Driver recruitment, training, and retention are crucial to our growth. We offer comfortable equipment, performance-based incentives, safety rewards, and direct communication with senior management, fostering a motivated workforce committed to operational excellence and customer satisfaction.

FINANCIAL RATIOS:

The details of significant changes (i.e. change of 25% or more as compared to immediately previous financial year), in the key financial ratios, along with detailed explanations therefore, are given below:

Ratio	As at 31.03.2026	As at 31.03.2025	% Variance	Reason for Variance
Debtors Turnover Ratio	403	4 15	-2 89	Not Applicable because change is less than 25%
Inventory Turnover Ratio	NA	NA	NA	NA
Interest Coverage Ratio/Debt Service Coverage Ratio	0.23	1 64	-85 98	Increase in borrowings and its repayment as compared to previous year
Current Ratio	1.61	1 89	-14.81	Not Applicable because change is less than 25%
Debt Equity Ratio	0 31	058	39 65	Increase in borrowings for financing the Purchase of fixed assets (Trucks and Trailers)
Operating Profit Margin (%)	076	6 32	-87.97	Increased Finance Costs, higher depreciation & Amortization expenses resulting in decrease in Operating Profit Ratio
Net Profit Margin (%)	-2 76	035	-888 57	Increased cost of operations, higher finance charges resulting in decrease in Net Profit Ratio
Return on Net worth	-9 91	1.19	-932 77	Increased cost of operations, higher finance charges resulting in decrease in Net Worth

2. DISCLOSURE OF ACCOUNTING TREATMENT:

In the preparation of financial statements during the FY 2025-26, there has been no treatment followed which was different from that prescribed in an Accounting Standard.

3. CAUTIONARY STATEMENTS:

All statements made in Management and Discussion Analysis has been made in good faith. Many unforeseen factors may come into play and affect the actual results, which may be different from what the management envisages in terms of performance and outlook. Factors such as economic conditions affecting demand/supply and priced conditions in domestic markets in which the company operates and changes in government regulations, tax laws, other statues and other incidental factors, may affect the final results and performance of the Company.