OneClick Logistics India Ltd Management Discussions

During FY 2025-26, the Indian economy continued to demonstrate resilience amid global economic uncertainty, geopolitical developments, evolving trade conditions, and changing commodity and freight dynamics. The Companys operating environment remained closely linked to domestic consumption, manufacturing activity, international trade, e-commerce, infrastructure investment and continued formalisation and digitalisation of supply chains.

For the Company, the broader logistics environment continued to be supported by increasing demand for integrated freight forwarding, air and ocean freight, warehousing and technology-enabled supply-chain visibility. At the same time, volatility in international trade routes, foreign exchange movements, fuel and freight rates, geopolitical tensions and customer pricing pressures remained important operating considerations.

The Indian logistics industry is undergoing structural transformation driven by digitalisation, infrastructure development, e-commerce, manufacturing growth, formalisation of supply chains and government initiatives. The Companys FY 2024-25 annual report identified technology adoption, automation, multimodal connectivity, GST/e-way bill implementation, dedicated freight corridors, logistics parks, and increasing demand for value-added services as important sector drivers.

For FY 2025-26, these themes remained relevant, with greater emphasis on supply-chain resilience, real-time visibility, automation, data analytics, cybersecurity, sustainability and integrated logistics solutions. The industry continues to face intense competition and pricing pressure, particularly where customers demand shorter turnaround times and greater service visibility.

The Company provides integrated logistics solutions across air freight, ocean freight and warehousing, with its website also describing end-to-end movement of cargo across air, sea and land and related supply-chain services. The Companys stated focus is on speed, transparency, reliability and customer service.

Growth in e-commerce, digital payments and penetration into Tier-2 and Tier-3 markets continues to support demand for faster, reliable and cost-efficient logistics. Customers increasingly expect real-time shipment visibility, predictable delivery timelines and flexible return/fulfilment arrangements.

Value-added services such as tracking, MIS reporting, analytics, packaging, warehousing, distribution and technology-enabled customer updates are increasingly becoming integral to logistics offerings rather than optional services.

Manufacturing, organised retail, D2C/D2R models and supply-chain diversification continue to create demand for integrated logistics partners capable of providing reliable freight forwarding, warehousing and distribution solutions.

The sector is moving from predominantly manual processes towards digital workflows, real-time tracking, data analytics, Transportation Management Systems and Warehouse Management Systems. Cyber security and data protection are also becoming increasingly important as logistics operations become more digitally interconnected.

Automation, process standardisation and technology-enabled route, capacity and warehouse management can improve throughput, reduce manual errors and support better cost management. The ability to invest in appropriate technology while maintaining commercial discipline is expected to remain an important differentiator.

Indias expanding trade and consumption base, infrastructure investment, manufacturing initiatives, e-commerce penetration and increasing preference for organised supply-chain partners provide opportunities for integrated logistics companies. The Companys opportunity lies in strengthening its freight-forwarding capabilities, expanding customer relationships, improving service quality, developing warehousing and allied solutions, and using technology to improve visibility and operational efficiency.

The Company can also benefit from increasing demand for integrated logistics solutions that combine air freight, ocean freight, warehousing, distribution and related services. Strategic expansion and selective inorganic opportunities may provide additional scale, subject to commercial, financial, regulatory and integration considerations.

Oneclick Logistics India Limited is a freight forwarding and logistics company providing integrated logistics solutions. The Company was incorporated on December 14, 2022 and its equity shares were listed on the NSE Emerge platform with effect from October 11, 2023.

The Companys service offering includes air freight, ocean freight and warehousing, supported by supply-chain and cargo-handling capabilities. The Company seeks to provide reliable, flexible and technology-enabled logistics solutions to its customers.

The Company entered FY 2025-26 with a focus on strengthening its operating platform and scaling its business. During the year, the Company also undertook a rights issue, which materially strengthened its capital-raising and growth strategy.

The financial performance for FY 2025-26 reflects substantial growth in the Companys scale of operations. Based on publicly available FY 2025-26 financial data, consolidated total revenue increased to approximately ?115.58 crore from ?44.97 crore in FY 2024-25, representing growth of approximately 157%. Profit before tax increased to approximately ?3.31 crore from ?2.83 crore, while reported profit after tax increased to approximately ?2.60 crore, with total net profit including share of profit/loss from an associate reported at approximately ?2.62 crore, compared with ?2.12 crore in FY 2024-25.

Operating profit increased to approximately ?5.91 crore from ?3.23 crore. However, operating margin moderated to approximately 5.13% from 7.19%, primarily reflecting the significantly larger scale of operations and higher operating and financing costs. Interest expense increased materially during FY 2025-26, an important factor while evaluating the movement in profitability.

EPS was reported at approximately ?5.54 for FY 2025-26 compared with ?5.89 for FY 2024-25. The movement in EPS should be read together with changes in the Companys paid-up share capital arising from capital-raising activities during the year.

The Companys principal business activities comprise integrated logistics and freight-forwarding services, including air freight, ocean freight and warehousing. The Company also carries on a food business involving the trading of agricultural and spice products through its subsidiary.

During FY 2025-26, the Company continued to focus on expanding its logistics operations and strengthening its service capabilities.

During the financial year under review, the Company initially acquired 50.00% of the equity share capital of Indisplice Dehydration Private Limited ("IDPL"). Subsequently, the Company acquired an additional 5.01% stake in IDPL on March 17, 2026, pursuant to which its aggregate shareholding increased to 55.01%. Accordingly, IDPL became a subsidiary of the Company.

The addition of IDPL has further strengthened the Companys presence in the food and agro-processing segment and supports its objective of diversifying its business portfolio beyond its core logistics operations.

Nikos Freight Line Private Limited continued as a subsidiary of the Company during the financial year under review. The Company reviewed the performance of its subsidiary as part of its overall review of the Groups business operations.

During the financial year under review, the Company acquired an equity stake in Shree Siddhi Vinayak Express Movers Private Limited, pursuant to which it became an associate company of the Company. The investment is in line with the Companys strategy of strengthening and diversifying its business portfolio.

The Company maintains internal control processes appropriate to the size and nature of its operations, with controls intended to support orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information.

During FY 2025-26, as the scale of operations increased materially, continued strengthening of controls over revenue recognition, customer credit, receivables, vendor payments, freight documentation, foreign currency exposures, banking arrangements, related-party transactions, capital expenditure and compliance monitoring assumes increased importance.

The adequacy of internal financial controls and the observations of the Statutory Auditors should be read together with the Auditors Report and the relevant notes to the financial statements.

• Growth in Indias organised logistics and freight-forwarding market.
• Expansion of e-commerce, D2C/D2R and organised manufacturing supply chains.
• Increasing demand for integrated air, ocean, warehousing and distribution solutions.
• Technology-enabled shipment visibility, analytics and automation.
• Potential scale benefits from strategic partnerships, network expansion and selective inorganic growth.
• Increasing demand for resilient and diversified supply chains arising from global trade realignment.

Freight-rate and margin volatility: Freight rates, carrier charges, fuel-linked costs and customer pricing pressure may affect margins. Management needs disciplined pricing and vendor/customer negotiations.

Geopolitical and international trade risk: Conflicts, sanctions, route disruptions, customs restrictions and changes in trade policies can affect transit times, costs and volumes.

Foreign exchange risk: International freight transactions can create currency exposures and may affect realised margins and receivables/payables.

Working-capital and credit risk: Rapid revenue growth can increase receivables and working-capital requirements. Customer credit assessment and collection discipline remain important.

Competition: The industry is highly competitive, with pressure on pricing, turnaround times, technology and service quality.

Regulatory and compliance risk: Customs, GST, foreign trade, shipping/air-cargo, labour, environmental, data-protection and other applicable regulations require continuous monitoring.

Cybersecurity and technology risk: Increasing digitalisation exposes logistics operations to cyber incidents, data loss, system downtime and third-party technology risks.

Customer concentration and business continuity: Dependence on major customers, carriers, agents or critical vendors may create operational or revenue concentration risks.

Acquisition/integration risk: Any inorganic expansion can involve integration, valuation, funding, governance and operational execution risks.

Human capital remains an important enabler of service quality in the logistics business. The Company continues to focus on employee capability, operational discipline, customer service and continuous learning. As the business scales, strengthening talent across freight forwarding, customer relationship management, compliance, technology, finance and operations remains important.

During FY 2025-26, the Company had a total employee headcount of 39. As at March 31, 2026, the total employee headcount stood at 30.

The Company continues to focus on building and strengthening its human resources to support its operational requirements and business growth. Any material employee-related developments, if applicable, may also be appropriately disclosed in the Annual Report.

Preferential Issue: FY 2025-26: During FY 2025-26, the Company undertook a preferential issue of 19,89,363 equity shares of face value ?10 each at an issue price of ?168 per equity share, aggregating to approximately ?33.42 crore.

The preferential issue and subsequent utilisation of proceeds constitute material developments during the financial year. Details should be read in conjunction with the relevant Statement of Deviation(s) or Variation(s), wherever applicable, and the notes forming part of the financial statements.

Rights Issue: FY 2025-26: The Company undertook a rights issue of up to 11,18,633 equity shares of ?10 each at an issue price of ?313 per share, aggregating up to approximately ?35.01 crore, in the ratio of 1 rights equity share for every 5 fully paid-up equity shares held on the record date of February 26, 2026. The Rights Issue size was 11,18,633 equity shares; since this was an SME Rights issue and allotment had to be made in multiples of lot size of 80 equity shares, 73 equity shares amounting to ?0.23 Lakhs could not be allotted. Accordingly, actual allotment was lower by 73 equity shares as compared to the issue size, as per the Basis of Allotment dated March 17, 2026.

The rights issue and subsequent utilisation of proceeds are material to the Companys FY 2025-26 narrative and should be read with the relevant statement of deviation/variation, monitoring agency reports and notes to the financial statements.

The Company expects the Indian logistics sector to continue offering structural growth opportunities, supported by trade, manufacturing, e-commerce, infrastructure development and increasing formalisation of supply chains. The Companys strategic priorities are expected to remain focused on profitable growth, service diversification, operational efficiency, technology adoption, customer acquisition and retention, and prudent deployment of capital.

Managements ability to convert revenue growth into sustainable margins, maintain working-capital discipline, manage financing costs, integrate strategic investments and maintain strong compliance and governance systems will be important to the Companys medium-term performance.

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or other forward-looking statements may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic and political conditions, global trade and geopolitical developments, freight and fuel costs, foreign exchange movements, interest rates, competition, customer demand, technology and cyber security risks, changes in Government policies and regulations, taxation, availability of capital and other incidental factors.

The Company undertakes no obligation to publicly update any forward-looking statement, except as may be required under applicable law.