Patel Integrated Logistics Ltd Management Discussions

Economic Scenario:

The global economy during FY 2025-26 continued to operate in an environment marked by geopolitical uncertainties, evolving trade policies, inflationary pressures, and disruptions in global supply chains. Major economies witnessed moderate growth amidst tightening monetary conditions, regional conflicts, and continued volatility in commodity and freight markets. While inflationary trends showed signs of moderation in several developed economies, the global business environment remained cautious due to uncertainty in trade tariffs, energy prices, and cross-border logistics movements.

Global trade flows continued to realign with increasing focus on supply chain diversification, regional manufacturing hubs, and resilient logistics networks. Businesses across sectors accelerated adoption of digital technologies, automation, artificial intelligence, and predictive analytics to improve operational efficiency and strengthen supply chain visibility.

The aviation and air cargo sectors experienced mixed trends during the year. While demand for time-sensitive cargo, pharmaceuticals, electronics, e-commerce shipments, and high-value goods remained strong, capacity constraints, fluctuating fuel prices, and geopolitical tensions impacted operating margins across the logistics industry.

Company Overview:

Patel Integrated Logistics Ltd. (PILL), formerly known as Patel Roadways Pvt. Ltd., was established in 1962 by Mr. Asgar Shakoor Patel and has since evolved into one of India s most respected and diversified logistics companies. Starting as a pioneer in surface transport, PILL has steadily transformed into a full-spectrum logistics service provider, offering end-to-end solutions across air freight, warehousing, express cargo, and last-mile delivery. In 1988, the Company expanded its service portfolio through the launch of Patel On-Board Couriers Ltd. (POBC), a dedicated wholesale courier service aimed at enhancing operational efficiency Roadways Ltd. and POBC in 2006 marked a pivotal moment, bringing together decades of legacy and innovation under the unified brand of Patel Integrated Logistics Ltd.

Over the years, PILL has played a pioneering role in shaping Indias logistics ecosystem, particularly in segments such as express delivery, Full Truck Load (FTL), Less Than Truck Load (LTL), courier consolidation, and integrated warehousing. By 2018, the Company sharpened its focus on high-value logistics services, building significant capabilities in air freight and value-added ancillary solutions.

The Company operates an air-freight model utilising commercial passenger aircraft and provides domestic and international cargo services, including time-critical deliveries and last-mile solutions. Its operations are supported by a pan-India network connecting major airports, logistics hubs and commercial centres Today, PILL serves a broad and distinguished clientele across sectors, including leading names in the fast-growing e-commerce ecosystem. With a strong foothold in air freight especially in the movement of cargo via passenger flights Patel Integrated Logistics Ltd. continues to set new benchmarks in service excellence, innovation, and operational reliability, reinforcing its position as a leader in Indias logistics industry.

The Company currently operates under the Patel Airfreight division, specialising in air-cargo consolidation. It offers transportation of high-density cargo by air and surface, both within India and internationally. As at 31 March 2026, the Company had approximately 91 branches across India. The Company is evaluating opportunities to leverage its real-estate assets for expansion into integrated logistics and related services.

During the year, the Company expanded its presence in surface transportation through its subsidiary, Rajpat Logistics Private Limited. The Company s fitness business, operated under the UFC GYM brand at Bandra, continued its operations during the year.

Industry Overview

The Indian logistics and air-cargo industry continued to demonstrate resilience during FY 2025-26 despite geopolitical tensions, global trade uncertainties, supply-chain disruptions and inflationary pressures. India s economic growth, domestic consumption, infrastructure investment, digital transformation and manufacturing activity continued to support demand for transportation and logistics services.

According to the Economic Survey 2025 26, India s air-cargo traffic stood at approximately 3.7 million tonnes in FY 2024 25, registering growth of 10.5%. During April November 2025, air-cargo traffic increased by approximately 5.1% year-on-year, notwithstanding capacity constraints and operating-cost pressures. Demand remained supported by pharmaceuticals, electronics, engineering goods, perishables, e-commerce and other time-sensitive shipments.

The Government of India continues to strengthen the logistics ecosystem through initiatives such as the National Logistics Policy, PM Gati Shakti National Master Plan, Dedicated Freight Corridors, Bharatmala, Sagarmala, airport infrastructure expansion and the Unified Logistics Interface Platform (ULIP). These initiatives are aimed at improving multimodal connectivity, reducing logistics friction and enhancing supply-chain efficiency.

According to the latest assessment of logistics costs undertaken by DPIIT in collaboration with NCAER, Indias logistics cost was estimated at approximately 7.97% of GDP for 2023-24. Continued infrastructure development, digitalisation and policy reforms are expected to further improve logistics efficiency and competitiveness.

Indias logistics sector is expected to maintain a strong long-term growth trajectory, supported by increasing formalisation of supply chains, manufacturing activity, e-commerce, infrastructure investment and adoption of integrated multimodal logistics solutions. The warehousing sector is also witnessing increasing demand for Grade-A facilities, automation and technology-enabled inventory management.

The rapid growth of e-commerce and quick-commerce platforms continues to transform the logistics landscape. Rising demand for same-day and next-day deliveries has increased the importance of air cargo and express logistics services. Pharmaceuticals, healthcare, electronics, automotive, engineering, retail and FMCG remain important contributors to cargo volumes.

Technology adoption is becoming a key differentiator within the logistics industry. Increasing use of Artificial Intelligence (AI), Internet of Things (IoT), Warehouse Management Systems (WMS), Transportation Management Systems (TMS), predictive analytics,roboticsanddigitalfreightplatformsisimprovingoperational supply chains.

Indias position in global logistics benchmarks has also improved. India ranked 38th in the World Banks Logistics Performance Index in 2023, compared with 54th in 2014, reflecting improvements in logistics infrastructure, digitalization and supply-chain

Opportunities & Outlook

The outlook for the Indian logistics and air-cargo industry remains positive, supported by economic growth, rising domestic consumption, increasing manufacturing activity and continued investments in infrastructure. Indias expanding economy is expected to create sustained demand for efficient transportation, warehousing and integrated supply-chain solutions.

Government initiatives such as the National Logistics Policy, PM GatiShakti, Dedicated Freight Corridors, Bharatmala, Sagarmala, airport modernization programs and ULIP are expected to improve multimodal connectivity, enhance supply-chain visibility and support logistics efficiency.

The expansion of e-commerce, quick-commerce, pharmaceuticals, electronics, engineering goods and export-oriented manufacturing is expected to support demand for express and time-sensitive cargo movement. Continued investments in airport infrastructure, cargo terminals, logistics parks, warehousing facilities and technology-enabled logistics platforms are expected to strengthen the industrys long-term prospects.

The Company remains well positioned to participate in these opportunities through its established market presence, operational expertise, customer relationships and focus on service quality, operational efficiency and technology-driven solutions.

Risks & Concerns

Despite the favorable long-term outlook, the logistics and air-cargo industry continues to face operational and economic challenges. Volatility in Aviation Turbine Fuel (ATF) prices, inflationary pressures, geopolitical conflicts, trade-policy uncertainties and global supply-chain disruptions may adversely affect freight demand, operating costs and margins.

The industry also faces challenges relating to limited air-cargo capacity, infrastructure bottlenecks, congestion at certain cargo terminals, shortage of skilled manpower and intense competition resulting in pricing pressures. While cargo demand continues to grow, capacity additions in certain segments may not always keep pace, leading to periodic freight-rate volatility and operational constraints.

The sector remains exposed to regulatory changes, cybersecurity risks, foreign-exchange fluctuations and economic slowdowns in key domestic and international markets. The warehousing and logistics industry is also undergoing technological transformation, requiring continuous investment in automation, digitalization and process improvements.

The Company continuously monitors emerging risks and adopts appropriate mitigation measures through strong internal controls, customer diversification, operational-efficiency initiatives, technology investments, compliance management and prudent financial discipline. These measures are aimed at enhancing business resilience and supporting sustainable growth.

Human Resource Management: on its human resources and maintains cordial relations at all levels. The Company continues to place significant Its constant endeavor is to invest in people and people-related processes to strengthen human capital and enhance service delivery.

Attracting, developing and retaining the right talent remains a key strategic imperative. The Company recognizes that human capital is a vital constituent of a successful organization and continues to strengthen its human resources through appropriate tools, technologies, processes and training.

The Company continued to focus on employee health, safety and well-being across its workplaces. Training and development initiatives are directed towards leadership capabilities, functional skills, process orientation and role-specific competencies. The logistics sector continues to experience a shortage of personnel with adequate training and education in logistics management. The Company therefore remains focused on capability development, productivity enhancement and expansion of employee skill sets.

Guided by the Companys vision and overall strategy, the focus remains on building a strong workforce by establishing strong linkages between employees, processes and values. The Company continues to maintain peaceful and harmonious relations with its employees through proactive engagement and employee-focused measures.

As at 31 March 2026, the Company had 269 employees.

Internal Control System:

The Company has an adequate system of internal controls commensurate with the size, scale and nature of its operations. The internal control framework ensures safeguarding of assets, accuracy of accounting records, operational compliance with applicable laws and regulations.

Internal audits are conducted periodically and the observations and recommendations are reviewed by the Audit Committee.

Necessary corrective actions are taken to strengthen processes and controls wherever required.

The Company continues to strengthen its corporate governance framework, internal controls, compliance processes and internal audit function. The Company believes that strong and transparent corporate governance, supported by effective internal controls, is essential for sustainable growth and profitability.

Financial and Segment-Wise Performance:

The Company s financial performance during FY 2025 26 reflected improvementsinprofitability, supported by growth in the core air-freight business, better operating efficiency and lower finance costs.

PARTICULARS	FY 2025\u201326	FY 2024\u201325	Growth
Income from Operations	357.25 crore	342.69 crore	4.25%
Profit Before Tax	10.30 crore	7.67 crore	34.3%
ProfitAfter Tax	9.58 crore	7.60 crore	26%
Air Freight Segment Result	11.26 crore	8.63 crore	30.5%

The segment-wise performance of the Company is disclosed in Note 38 to the financial statements. The Company continued to focus on strengthening its core air-freight operations while expanding its presence in surface transportation through Rajpat Logistics Private Limited.

Cautionary Statement:

Statements in this Management Discussion and Analysis describing projections, estimates, expectations, future outlook or other forward-looking information in connection with the Companys business may constitute forward-looking statements within the meaning of applicable securities laws and regulations. However, actual results could materially differ from those expressed or implied in such statements.

Various factors beyond the control of management may cause such deviations. These factors include economic developments in the country, changes in governmental policies and fiscal laws, unexpected increases in input costs, changes in demand and supply conditions, geopolitical developments, regulatory changes and other factors that may affect the Company s operations and financial performance.