PDP Shipping & Projects Ltd Management Discussions

(For the Financial Year 2025-26)

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The global logistics and freight forwarding industry continues to play an important role in facilitating international trade and supporting global supply chains. The sector is influenced by global trade volumes, international supply- chain requirements, infrastructure development, freight rates, fuel prices, geopolitical developments and evolving customer requirements.

The Indian logistics sector continues to undergo structural development, supported by infrastructure investment, improvements in transportation networks, digitisation and Government initiatives aimed at improving logistics efficiency, including **PM Gati Shakti** and the **National Logistics Policy**. Increasing manufacturing activity, infrastructure development, international trade and the growth of organised supply-chain services continue to create opportunities for logistics and freight forwarding companies.

At the same time, the sector remains exposed to volatility in freight rates, fluctuations in global trade volumes, port congestion, geopolitical developments, changes in international trade policies and tariffs, fuel price movements and currency fluctuations. Technology adoption, including automation, data analytics, artificial intelligence and digital logistics platforms, is increasingly influencing the manner in which logistics services are planned, executed and monitored.

Against this backdrop, **PDP Shipping & Projects Limited ("PSPL" or "the Company")** continues to focus on providing integrated freight forwarding and logistics solutions, with emphasis on operational efficiency, customer service and customised logistics requirements.

2. OPPORTUNITIES AND THREATS

Opportunities

The Company sees opportunities arising from:

* Increasing demand for integrated and end-to-end logistics solutions;

* Growth in infrastructure, manufacturing and industrial projects requiring project cargo and specialised logistics services;

* Increasing international trade and Indias growing participation in global supply chains;

* Growing adoption of digital technologies and technology-enabled logistics solutions;

* Increasing demand for specialised, time-bound and customised cargo handling and transportation solutions; and

* Opportunities in project logistics, multimodal transportation and specialised freight forwarding services.

Threats

The Companys business is exposed to various external and operational factors, including:

* Volatility in global freight rates and fuel prices;

* Geopolitical developments and disruptions in international trade;

* Changes in tariffs, trade policies and regulatory requirements;

* Port congestion and supply-chain disruptions;

* Intense competition from international logistics companies and domestic freight forwarders;

* Foreign exchange fluctuations in international transactions; and

* Slowdown in global or domestic economic activity affecting trade and logistics volumes.

The Company continues to monitor these developments and takes appropriate operational and commercial measures to manage the associated risks.

3. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company operates in the freight forwarding and logistics services sector and provides a range of integrated logistics solutions to its customers.

The principal services offered by the Company include:

International Freight Forwarding: Sea, air, road, rail, coastal and multimodal transportation solutions;

Project Cargo and Heavy Lift Logistics: Logistics and transportation solutions for large, heavy, oversized and project- related cargo;

Customs Clearance and Regulatory Support:** Assistance in customs clearance and related regulatory requirements;

and

Specialised Logistics Services: Time-sensitive consignments, temperature-controlled logistics, exhibition cargo, engineering logistics and customised logistics solutions.

The Company continues to focus on strengthening its service capabilities and expanding its customer base across the various segments in which it operates.

4. OUTLOOK

The outlook for the logistics and freight forwarding sector remains linked to the growth of domestic and international trade, infrastructure development, manufacturing activity and the increasing requirement for integrated supply-chain solutions.

The Company intends to focus on strengthening its presence in project logistics, specialised cargo, multimodal transportation and freight forwarding services, while continuing to develop relationships with customers, carriers and business partners.

The Companys key focus areas include:

* Improving operational efficiency through increased use of technology and digital processes;

* Strengthening relationships with carriers, agents and international business partners;

* Expanding its customer base and exploring opportunities in emerging logistics segments;

* Developing capabilities in specialised and project cargo logistics; and

* Improving service quality while maintaining prudent cost and working capital management.

The Company will continue to evaluate business opportunities in accordance with market conditions and its available resources.

5. RISKS AND CONCERNS

The Companys operations are subject to various business, operational, financial and regulatory risks. Key risks include:

* Global economic uncertainties and fluctuations in international trade;

* Geopolitical developments and disruptions in global supply chains;

* Volatility in freight rates and fuel prices;

* Port congestion and transportation-related disruptions;

* Foreign exchange fluctuations;

* Changes in customs, taxation, trade and other regulatory requirements;

* Competition within the freight forwarding and logistics industry; and

* Operational risks associated with handling specialised, oversized or hazardous cargo.

The Company has established appropriate internal processes and controls for identification, assessment and monitoring of risks relevant to its operations. The management periodically reviews the business environment and takes appropriate measures to mitigate identified risks.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established internal control systems commensurate with the nature, size and complexity of its operations. These controls are intended to safeguard the Companys assets, ensure proper accounting and reporting, support operational efficiency and promote compliance with applicable laws and regulations.

The internal control framework is periodically reviewed by the management and the internal audit function. Internal audit observations and management responses are placed before the Audit Committee for its review and consideration.

The Company continues to strengthen its internal control processes in line with its operational requirements and applicable regulatory framework.

7. FINANCIAL AND OPERATIONAL PERFORMANCE

During the financial year ended 31^st March, 2026, the Company recorded revenue from operations of Rs. 2,785.08 lakh, as compared to Rs. 2,181.77 lakh in the previous financial year, registering a growth of approximately 27.65%.

The total income of the Company increased to Rs. 2,847.38 lakh during the year under review as compared to Rs. 2,188.49 lakh in the previous financial year.

The Company reported Profit After Tax of Rs. 125.61 lakh during FY 2025-26 as against Rs. 210.72 lakh in FY 2024-25.

The Company continued to focus on operational efficiency, prudent working capital management and strengthening its business relationships across its various logistics and freight forwarding activities.

8. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human resources continue to play an important role in the Companys operations and service delivery. The Company has personnel with experience across various functions relating to freight forwarding, logistics, customs clearance, project cargo and related activities.

The Company continues to focus on employee development, operational training and enhancement of professional capabilities commensurate with business requirements.

During the financial year under review, industrial relations remained cordial.

9. CAUTIONARY STATEMENT

Certain statements made in this Management Discussion and Analysis Report may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Such statements are based on certain assumptions, expectations and projections concerning the Companys business and the industry in which it operates.

Actual results may differ materially from those expressed or implied in such forward-looking statements due to various factors, including changes in economic and business conditions, global and domestic trade volumes, freight rates, geopolitical developments, government policies, regulatory changes, competition, foreign exchange movements and other factors beyond the Companys reasonable control.

The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect subsequent events, developments, information or circumstances, except as may be required under applicable laws and regulations.