Paradeep Parivahan Ltd Management Discussions

Management Perspective

FY 2025 26 was a year that underscored the importance of resilience, agility and disciplined execution. Despite geopolitical uncertainties, evolving global trade dynamics and inflationary pressures, Indias economy continued to demonstrate remarkable resilience, supported by sustained public infrastructure investments, robust domestic demand and progressive policy reforms.

The logistics sector stands at the centre of Indias growth story. As manufacturing expands, infrastructure investments accelerate and supply chains become increasingly integrated, logistics is evolving from a support function into a strategic enabler of economic competitiveness. Government initiatives such as the National Logistics Policy, PM Gati Shakti, Sagarmala, Bharatmala and the Dedicated Freight Corridors are reshaping the countrys logistics ecosystem by improving multimodal connectivity, enhancing operational efficiencies and reducing logistics costs.

Against this backdrop, Paradeep Parivahan Limited continued to strengthen its position as an integrated logistics and infrastructure company. During the year, the Company remained focused on operational excellence, business diversification, customer-centricity and technology adoption while pursuing sustainable long-term growth. Our continued investments in multimodal logistics, Green Mobility and infrastructure capabilities reinforce our commitment to building a future-ready organisation capable of delivering comprehensive logistics solutions across the value chain.

The year also marked important strategic milestones, including the deployment of one of Indias largest trans-state electric vehicle fleets for heavy-duty bulk transportation and national recognition through the prestigious LEAPS Award 2025 conferred by the Department for Promotion of Industry and Internal Trade (DPIIT). These achievements reflect our continued focus on innovation, sustainability and operational excellence.

As we move forward, our strategy remains centred on expanding integrated logistics capabilities, strengthening our presence across ports and industrial corridors, leveraging technology to improve operational efficiency and creating sustainable value for all stakeholders.

Global Economic Overview

The global economy demonstrated resilience during FY 2025 26 despite heightened geopolitical tensions, supply chain disruptions and continued trade policy uncertainties. Inflationary pressures moderated across several major economies as central banks maintained a cautious monetary stance, while global supply chains gradually adapted to changing geopolitical realities.

Although global growth remained below historical averages, international trade continued to recover, supported by resilient consumer demand and improving manufacturing activity in several emerging economies. At the same time, rising geopolitical tensions, climate-related disruptions and volatility in energy markets continued to pose challenges for global commerce.

These structural shifts are also reshaping international supply chains. Companies across the world are increasingly diversifying manufacturing locations and logistics networks to improve resilience and reduce concentration risks. This realignment presents significant opportunities for emerging economies such as India to strengthen their position within global supply chains and attract long-term investments in manufacturing and infrastructure.

For the logistics industry, these developments reinforce the importance of integrated, technology-enabled and multimodal transportation solutions capable of delivering efficiency, flexibility and supply chain resilience.

Indian Economy

India continues to remain one of the worlds fastest-growing major economies, supported by strong macroeconomic fundamentals, resilient domestic consumption and sustained public investment in infrastructure. Government expenditure on highways, railways, ports, logistics parks and urban infrastructure has significantly strengthened the countrys economic foundation while creating new opportunities across multiple industries.

Policy initiatives such as PM Gati Shakti, the National Logistics Policy, the Production Linked Incentive (PLI) Scheme and continued emphasis on ease of doing business are accelerating industrialisation and improving Indias global competitiveness. Simultaneously, stable inflation, a resilient banking sector and growing private sector participation continue to support long-term economic expansion.

Indias emergence as a global manufacturing hub under the "China Plus One" strategy is expected to drive higher cargo movement, increased industrial production and stronger demand for integrated logistics services. The continued growth of sectors such as steel, cement, mining, energy, chemicals, automobiles, consumer goods and infrastructure further strengthens the long-term outlook for logistics providers.

Supported by these structural reforms and favourable demographic trends, India remains well-positioned to sustain strong economic growth over the coming years, providing a robust platform for continued expansion of the logistics and infrastructure sector.

Indian Logistics & Infrastructure Industry

Indias logistics industry is undergoing a structural transformation, driven by infrastructure development, technology adoption and policy-led reforms aimed at improving supply chain efficiency. Traditionally characterised by fragmented operations, the sector is steadily evolving towards integrated, multimodal logistics solutions that optimise cost, speed and reliability.

The National Logistics Policy has established a clear roadmap to reduce logistics costs, improve operational efficiency and enhance Indias competitiveness in global trade. Complementing this initiative, PM Gati Shakti is integrating road, rail, ports, airports and inland waterways through coordinated infrastructure planning, creating seamless multimodal connectivity across the country.

Indias ports sector is undergoing a structural transformation and is emerging as a key catalyst for the countrys infrastructure-led economic growth. During FY 2025 26, Indias major ports handled a record cargo throughput of approximately 915 million metric tonnes, while overall port capacity and operational efficiency continued to improve through sustained investments in modernisation, mechanisation and digitalisation. Over the last decade, Indias maritime ecosystem has witnessed a significant expansion, supported by the Sagarmala Programme, under which 845 projects worth over 6 lakh crore have been identified to strengthen port infrastructure, connectivity and port-led industrialisation. The Governments continued focus on developing new ports, expanding existing capacities, improving rail and road evacuation networks, and establishing multimodal logistics parks is creating an integrated logistics ecosystem capable of supporting Indias long-term manufacturing and infrastructure ambitions.

These developments are expected to drive higher movement of bulk commodities such as coal, iron ore, steel, cement, fertilisers and petroleum products segments that form the backbone of Paradeep Parivahan Limiteds operations. With an established presence across key ports on the eastern coast, deep expertise in port logistics and bulk cargo handling, and an integrated multimodal logistics platform, the Company is strategically positioned to participate in this long-term growth cycle and create sustainable value for its stakeholders.

Simultaneously, sustainability is becoming an increasingly important driver of change within the logistics sector. The adoption of electric vehicles, digital fleet management systems, predictive analytics and automation is transforming logistics operations by improving efficiency while reducing environmental impact.

Against this evolving landscape, Paradeep Parivahan Limited is strategically positioned to capitalise on emerging opportunities through its diversified business portfolio, integrated service offerings, expanding infrastructure capabilities and continued investments in technology and sustainable logistics solutions.

COMPANY OVERVIEW

Paradeep Parivahan Limited ("PPL") has evolved from a conventional transportation company into a diversified integrated logistics and infrastructure enterprise, delivering comprehensive supply chain solutions across multiple sectors of the Indian economy. With over two decades of operational excellence, the Company has established a strong presence across logistics, port operations, bulk cargo handling, railway logistics, industrial support services, Green Mobility, marine & defence infrastructure and bulk commodity trading.

Strategically headquartered in Odisha, PPL has built a strong operational network across Indias eastern logistics corridor, serving key ports including Paradeep, Gopalpur, Visakhapatnam and Haldia, while extending its reach to industrial clusters across the country. The Companys integrated business model enables seamless movement of cargo through road, rail and port infrastructure, creating significant value for customers through reliability, efficiency and operational flexibility.

PPLs customer portfolio includes leading organisations across the cement, steel, mining, fertiliser, petroleum, infrastructure and manufacturing sectors. Long-standing relationships with reputed customers such as IFFCO, Indian Oil Corporation Limited, Ultratech Cement, JSW Group, Paradeep International Cargo Terminal (PICT), Mahanadi Coalfields Limited, Western Coalfields Limited and several other industrial enterprises reflect the Companys proven execution capabilities and customer-centric approach.

Today, the Company continues to strengthen its position by investing in technology, multimodal logistics, sustainable transportation and integrated infrastructure, reinforcing its vision of becoming one of Indias most trusted logistics and infrastructure partners.

BUSINESS MODEL

PPLs business model is built on the principle of integrated logistics, enabling customers to access multiple services through a single platform. By combining transportation, port logistics, railway operations, cargo handling and industrial support services, the Company delivers end-to-end supply chain solutions that improve efficiency, optimise costs and enhance operational reliability.

This diversified approach reduces dependence on any single business segment while creating operational synergies across business verticals. Supported by a strong asset base, strategic infrastructure, experienced manpower and technology-driven operations, the Company is well-positioned to capitalise on Indias growing demand for integrated logistics solutions.

The Companys business model is anchored on four strategic pillars:

- Integrated Service Offerings through multimodal logistics capabilities.

- Operational Excellence driven by process optimisation, safety and service reliability.

- Customer-Centric Growth through long-term partnerships and customised logistics solutions.

- Sustainable Value Creation through digital transformation, Green Mobility and responsible business practices.

This integrated framework enables PPL to deliver consistent value to customers while creating long-term returns for shareholders.

BUSINESS VERTICALS

Integrated Logistics

Integrated Logistics remains the cornerstone of Paradeep Parivahan Limiteds business model. The Company provides end-to-end logistics solutions encompassing multimodal transportation, port connectivity, warehousing support and supply chain management, enabling seamless cargo movement across industrial value chains. Our integrated approach enhances operational efficiency, optimises logistics costs and strengthens supply chain reliability, making us a preferred logistics partner across core industries.

Bulk Cargo Handling & Trading

Bulk Cargo Handling & Trading is one of the Companys core strengths and a key contributor to its integrated logistics platform. Leveraging extensive operational expertise, PPL provides comprehensive solutions including port-bound cargo handling, intra-port transportation, manufacturing plant logistics, railway siding operations, rake handling and commodity trading. Our capabilities across sourcing, transportation and supply chain management enable customers to benefit from efficient movement of bulk commodities while ensuring reliability, operational excellence and cost optimisation. As infrastructure development and industrial production continue to accelerate in India, this business vertical is well-positioned for sustained long-term growth.

Green Mobility

Green Mobility represents a strategic pillar in the Companys long-term growth vision and commitment to sustainable logistics. During FY 2025 26, Paradeep Parivahan Limited commenced the deployment of one of Indias largest trans-state electric vehicle fleets for heavy-duty bulk transportation, reinforcing its leadership in clean mobility solutions. This initiative supports the transition towards low-carbon logistics through reduced emissions, improved energy efficiency and environmentally responsible transportation practices. As industries increasingly prioritise sustainable supply chains, the Company believes Green Mobility will emerge as a significant driver of future growth and competitive differentiation.

Shore-Based Assets

The Company has developed a strong portfolio of shore-based assets to support its logistics and cargo handling operations. These include earthmoving equipment, material handling machinery and specialised port and yard handling assets that enable efficient cargo movement and operational flexibility. This asset-backed approach enhances execution capabilities, improves turnaround time and strengthens the Companys ability to deliver integrated logistics solutions across ports, industrial facilities and infrastructure projects.

Marine & Defence Infrastructure

Recognising the growing opportunities arising from Indias maritime expansion and increasing investments in defence infrastructure, the Company has expanded into Marine & Defence Infrastructure as a strategic growth vertical. The business focuses on marine-linked infrastructure development, project execution and specialised engineering support for coastal and port-based projects. Leveraging its operational expertise and project management capabilities, PPL aims to participate in Indias long-term maritime infrastructure development while supporting the Governments vision of strengthening the blue economy and national infrastructure.

Strategic Advantage

The true strength of Paradeep Parivahan Limited lies not in individual business verticals but in the integration of these capabilities into a unified logistics ecosystem. By combining transportation, bulk cargo handling, port operations, Green Mobility, shore-based assets and marine infrastructure, the Company delivers end-to-end, value-added solutions that enhance operational efficiency, strengthen customer relationships and create multiple avenues for sustainable growth. This integrated business model positions PPL to capitalise on Indias rapidly evolving logistics and infrastructure landscape while delivering long-term value to all stakeholders.

COMPETITIVE STRENGTHS

PPLs sustained growth is supported by several competitive advantages that differentiate it within the logistics industry:

Integrated Business Platform

A diversified portfolio spanning logistics, ports, rail, industrial services, Green Mobility and infrastructure enables the Company to provide comprehensive end-to-end solutions.

Strategic Geographic Presence

A strong operational footprint across eastern India, supported by access to major ports, industrial corridors and rail infrastructure, positions the Company to benefit from increasing cargo movement and infrastructure development.

Long-Term Customer Relationships

The Company enjoys enduring partnerships with leading public and private sector enterprises, reflecting its consistent focus on service quality, operational reliability and customer satisfaction.

Operational Excellence

Continuous investments in technology, process optimisation and safety standards enable the Company to improve productivity, enhance asset utilisation and deliver consistent service performance.

Commitment to Sustainability

PPL is among the early movers in adopting electric mobility for heavy-duty freight transportation, reinforcing its commitment towards sustainable logistics and responsible business growth.

ESG & SUSTAINABILITY

At Paradeep Parivahan Limited, sustainability is an integral part of our long-term business strategy. We believe responsible growth requires balancing economic performance with environmental stewardship, social responsibility and sound corporate governance.

During the year, the Company accelerated its Green Mobility initiatives through the deployment of one of Indias largest trans-state electric vehicle fleets for heavy-duty bulk transportation. This initiative reflects our commitment to reducing carbon emissions, promoting cleaner transportation and supporting Indias transition towards a low-carbon economy.

Beyond environmental initiatives, the Company remains committed to maintaining safe workplaces, protecting employee well-being, promoting ethical business practices and creating long-term value for the communities in which it operates.

Governance continues to remain a cornerstone of our business philosophy. Strong internal processes, transparent decision-making and adherence to regulatory requirements enable the Company to maintain high standards of corporate governance and reinforce stakeholder confidence.

As customer expectations and regulatory standards continue to evolve, the Company will further strengthen its ESG framework by integrating sustainability considerations into strategic planning, operational execution and long-term investment decisions.

DIGITAL TRANSFORMATION & INNOVATION

Technology continues to play an increasingly important role in enhancing operational efficiency and delivering superior customer experience.

The Company continues to invest in digital platforms, GPS-enabled fleet monitoring, enterprise resource planning (ERP) systems and real-time operational visibility to improve planning, optimise resource utilisation and strengthen service reliability.

Digitalisation is also strengthening decision-making through data-driven operational insights, enabling management to improve productivity, reduce turnaround times and respond more effectively to customer requirements.

Innovation remains central to the Companys growth strategy. Going forward, Paradeep Parivahan Limited will continue to leverage technology, automation and intelligent logistics solutions to enhance operational excellence, improve customer experience and build a future-ready logistics platform.

OPPORTUNITIES

Indias logistics sector is entering a transformative phase, driven by sustained infrastructure investments, policy reforms and the increasing need for integrated supply chain solutions. These structural developments present significant long-term opportunities for Paradeep Parivahan Limited.

The continued implementation of flagship initiatives such as PM Gati Shakti, the National Logistics Policy, Sagarmala, Bharatmala and Dedicated Freight Corridors is expected to enhance multimodal connectivity, improve logistics efficiency and create substantial demand for organised logistics service providers.

Rapid industrialisation, expanding manufacturing capacity and increasing investments across sectors such as cement, steel, mining, energy, petrochemicals and infrastructure are expected to drive sustained growth in bulk cargo movement and integrated logistics services. Simultaneously, increasing adoption of outsourced logistics, technology-enabled supply chains and sustainable transportation solutions presents new avenues for value creation.

The Company is well-positioned to capitalise on these opportunities through its diversified business portfolio, strategic presence across the eastern logistics corridor, integrated service capabilities and continued investments in digital technologies, Green Mobility and infrastructure development.

RISKS & RISK MANAGEMENT

The logistics industry operates in a dynamic environment influenced by economic cycles, regulatory developments, commodity demand, infrastructure availability and geopolitical events. Paradeep Parivahan Limited follows a proactive enterprise risk management framework that focuses on identifying, assessing and mitigating potential risks while ensuring business continuity.

The Company remains exposed to operational risks arising from weather disruptions, port congestion, equipment downtime and supply chain interruptions. These risks are mitigated through efficient operational planning, preventive maintenance, technology-enabled fleet monitoring and well-defined contingency mechanisms.

Changes in regulatory policies, environmental norms and transportation regulations are continuously monitored through a structured compliance framework, enabling timely adaptation and ensuring adherence to applicable laws and standards.

Market-related risks, including fluctuations in freight demand, commodity cycles and customer-specific business volumes, are mitigated through a diversified customer portfolio spanning multiple industries, long-term business relationships and expansion across complementary logistics segments.

The Company also recognises the increasing importance of cybersecurity, digital resilience and technology adoption. Continued investments in ERP systems, advanced telematics, real-time fleet monitoring and data-driven decision-making strengthen operational resilience while supporting business efficiency.

Risk management remains an integral part of strategic planning and supports the Companys objective of delivering sustainable long-term growth while protecting stakeholder interests.

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

The Company maintains a robust internal control framework designed to safeguard assets, ensure the accuracy of financial reporting, strengthen operational efficiency and promote compliance with applicable laws and regulations.

Comprehensive policies, clearly defined authority matrices and standard operating procedures govern financial and operational activities across the organisation. These controls are supported by integrated information systems that enable timely reporting, operational transparency and informed decision-making.

The effectiveness of internal controls is regularly reviewed through independent internal audits, management reviews and statutory audits. The Audit Committee of the Board provides continuous oversight, ensuring that observations are addressed promptly and control mechanisms are strengthened wherever necessary.

Management believes that the existing internal control systems are commensurate with the size, scale and complexity of the Companys operations and provide reasonable assurance regarding operational effectiveness, financial integrity and regulatory compliance.

HUMAN CAPITAL

At Paradeep Parivahan Limited, people remain the foundation of our long-term success. The Company believes that a skilled, motivated and safety-conscious workforce is essential for delivering operational excellence and sustaining competitive advantage.

The Company continues to invest in employee development through structured training programmes, technical skill enhancement, leadership development and continuous learning initiatives. Equal emphasis is placed on creating a safe, inclusive and performance-oriented work environment that encourages collaboration, innovation and professional growth.

Safety remains a core organisational value. Continuous awareness programmes, operational training and adherence to established safety protocols contribute towards building a strong safety culture across all business locations.

The dedication, professionalism and commitment of our employees continue to drive the Companys growth and strengthen its reputation as a trusted logistics partner.

FORWARD-LOOKING STATEMENT

This Management Discussion and Analysis contains statements that describe the Companys objectives, projections, expectations, estimates and assumptions, which may constitute "forward-looking statements" within the meaning of applicable laws and regulations. These statements are based on certain assumptions and expectations of future events and are therefore subject to various risks and uncertainties.

Actual results may differ materially from those expressed or implied due to factors including changes in economic conditions, government policies, industry dynamics, regulatory developments, competitive intensity, commodity prices, geopolitical events and other factors beyond the Companys control.

The Company undertakes no obligation to publicly revise or update any forward-looking statements to reflect future events or circumstances, except as required under applicable laws and regulations.

Profit after tax saw a remarkable jump to Rs.3,079.21 lakhs from Rs.2417.10 lakhs, highlighting the overall financial health and growth of the company.

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

Particulars	2025-26	2024-25	Change in Excess of 25%
Current Ratio	2.06	2.37	NA
Debt Equity Ratio	0.42	0.59	Decreased by 29% due to decrease in debt of 10% and increase in equity by 24% due addition of net profit.
Debt Service Coverage Ratio (DSCR)	2.26	2.08	NA
Debtors Turnover Ratio	4.37	4.87	NA
Net Profit Margin (%)	7.97	7.20	NA
Return on Equity (ROE) (%)	21.66	25.48	NA
Payables Turnover Ratio	12.54	19.88	Decreased by 37% mainly due to increase in credit purchase as compared to last year.
Return on Capital Employed (%)	21.27	17.65	Increases due to higher operating profit and efficient use of capital employed.
Net Capital Turnover Ratio	3.93	4.06	NA

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company recognises its employees as an integral part of its continued growth and success and remains committed to developing a competent, motivated and performance-oriented workforce. During the Financial Year 2025-26, the Company continued to focus on employee engagement, skill development, training and maintaining a positive and conducive work environment.

During the year under review, the Company maintained cordial and harmonious relations with its employees. There were no material developments in the area of industrial relations which had any significant impact on the operations or financial performance of the Company.

The Company continues to comply with applicable labour and employment laws and provides its employees with a safe, healthy and inclusive workplace. The Company also encourages professional development and provides appropriate opportunities for employees to enhance their knowledge, skills and competencies.

As on 31st March, 2026, the total number of employees/workers employed by the Company was 1159. The Board places on record its appreciation for the dedication, commitment and valuable contribution of all employees towards the performance and growth of the Company during the year under review.