Pooja Logistics Ltd Management Discussions

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Red Herring Prospectus. You should also read the section titled "Risk Factors" beginning on page 24, which discusses several factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our restated financial statements, which have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI Regulations. Portions of the following discussion are also based on internally prepared statistical information and on other sources. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year ("Fiscal Year") are to the twelve-month period ended March 31 of that year.

The financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditors dated July 30, 2026 which is included in this Red Herring Prospectus under the chapter titled "Restated Financial Statements" beginning on page 206. The restated financial statements have been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our restated financial statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and U.S. GAAP or IFRS as applied to our restated financial statements.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" beginning on page 24 and 23 respectively, and elsewhere in this Red Herring Prospectus Accordingly, the degree to which the financial statements in this Red Herring Prospectus will provide meaningful information depend entirely on such potential investors level of familiarity with Indian accounting practices. Please also refer to the chapter titled "Presentation of Financial, Industry and Market data" beginning on page 21.

BUSINESS OVERVIEW

Our Company was originally incorporated as "Pooja Logistics Private Limited" as a Private Limited Company under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated December 09, 2011, issued by the Registrar of Companies, NCT of Delhi and Haryana. Further, pursuant to a special resolution passed by our Shareholders in the ExtraOrdinary General Meeting held on August 05, 2024, our Company was converted from a private limited company to a public limited company and consequently, the name of our Company was changed to "Pooja Logistics Limited" and a fresh certificate of incorporation dated November 18, 2024 was issued to our Company by the Registrar of Companies, Central Processing Centre, Manesar. The Corporate Identification Number of our Company is U60300DL2011PLC228491.

We are engaged in providing temperature-controlled logistics services for the transportation of perishable goods across India through refrigerated trucks ("reefers"). Since incorporation in 2011, we have been o ffering cold chain logistics services to a range of industries. Our in-house fleet as on March 31, 2026 comprises over 424 GPS-enabled vehicles dedicated to the transportation of temperature-sensitive goods. We cater to clients operating in the confectionery, dairy and dairy products, quick- service restaurants (QSRs), pharmaceuticals, and e-commerce sectors. We transport temperature-sensitive consignments while maintaining operational systems designed to maintain compliance with applicable standards.

Our fleet consists of trucks with different sizes and capacities, enabling us to undertake a range of assignments. We generally operate on a trip-to-trip model, based on customer requirements. The detailed specifications and categorization of our vehicles are provided under the head "Our Competitive Strengths" on page 126.

We have implemented various technology-enabled operational processes, including: (i) a process for scheduling orders, where goods are picked up from the clients origin warehouse, transported under monitored temperatures, and delivered at the destination with verification; (ii) GPS-tracking software "Geo Trackers" to provide visibility of vehicle movement and shipment status; (iii) vehicle movement reports for monitoring and managing temperature levels in reefers; and (iv) driver and truck management systems. These systems support real-time temperature tracking, route optimization, and monitoring of vehicle operations. Our temperature-controlled logistics services are aimed at the transportation of perishable products under controlled conditions using reefer vehicles. Upon reaching the delivery location, goods are unloaded as per defined protocols.

SIGNIFICANT DEVELOPMENTS SUNSEQUENT TO THE LAST FINANCIAL YEAR

In the opinion of the Board of Directors of our Company, there have not arisen, since the date of the last financial statements disclosed in this Red Herring Prospectus i.e., March 31, 2026, any significant developments or any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months except as follows:-

Mr. Ashish Bisht was appointed as the Company Secretary cum Compliance Officer of the Company with effect from July 10, 2026, in place of Ms. Reena Bhaskar, who resigned from the position of Company Secretary and Compliance Officer with effect from March 31, 2026.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our companys future results of operations could be affected potentially by the following factors:

1. Strong execution capabilities with industry experience

2. Existing client relationship

3. Quality Assurance

4. Experienced management team

SUMMARY OF THE RESULT OF OPERATIONS

Our Results of Operations (Consolidated Financial Statements)

The following discussion on the consolidated financial operations and performance should be read in conjunction with the financial results of the company.

						(Rs. in lakhs)
			For the financial year ended
Particulars	March 31, 2026	(%)*	March 31, 2025	(%)*	March 31, 2024	(%)*
Total Revenue:
Revenue from Operations	16,570.10	98.77%	14,877.10	98.86%	12,375.26	98.89 %
Other Income	206.58	1.23%	171.48	1.14%	138.92	1.11%
Total Revenue	16,776.68	100.00 %	15,048.58	100.00%	12,514.18	100.00 %
Expenses:
Operating Expenses	12,242.62	72.97%	10,724.14	71.26%	8,313.94	66.44%
Cost of material consumed	-	-	-	-	-	-
Employees Benefit Expenses	665.97	3.97%	1,042.77	6.93%	1,302.26	10.41%
Finance costs	290.46	1.73%	215.30	1.43%	261.84	2.09%
Depreciation and Amortization Expenses	1,013.14	6.04%	801.72	5.33%	1,034.58	8.27%
Other expenses	931.49	5.55%	801.10	5.32%	846.11	6.76%
Total Expenses	15,143.67	90.27%	13,585.04	90.27%	11,758.73	93.96%
Profit before tax and extraordinary & exceptional items	1,633.01	9.73%	1,463.54	9.73%	755.45	6.04%
Extraordinary & Exceptional Items	-	-	-	-	-	-
Profit after extraordinary & exceptional items	1,633.01	9.73%	1,463.54	9.73%	755.45	6.04%
Tax Expenses
Current tax	400.46	2.39%	350.63	2.33%	197.33	1.58%
Deferred Tax	(1.44)	(0.01)%	10.69	0.07%	(15.02)	(0.12) %
Total Tax Expenses
Profit after tax for the Year	1,233.98	7.36%	1,102.23	7.32%	573.14	4.58%

*(%) column represents percentage of total revenue.

Overview of Revenue and Expenses

Our revenue and expenses are reported in the following manner:

• Revenue of operations:

Our Companys revenue is primarily derived from the offering of specialized Cold Chain logistics solutions, catering to a wide range of clients across various industries. These services are designed to ensure that temperature-specific requirements of goods are consistently maintained throughout the transportation process, from the point of origin to the final delivery destination.

By leveraging a robust fleet of temperature-controlled vehicles, advanced monitoring systems, and efficient route planning, the Company provides reliable end-to-end Cold Chain logistics services. This enables our clients to safeguard the integrity, quality, and compliance of temperature-sensitive goods—such as food products, and perishable commodities—across the entire supply chain.

• Other Income:

The Other Income mainly comprises of Interest Income, Net gain on long term and short-term investment.

Expenses

Our expenses primarily consist of Operating Expenses, Employee Benefits Expenses, Finance Cost, Depreciation and Amortization Expense and Other Expenses.

• Operating Expenses

It primarily includes Vehicle Running and Maintenance Expenses, Vehicle fuel expenses, & Vehicle Hire Charges etc.

• Employment Benefit Expenses

It includes Salaries & wages, Directors Remuneration, Contribution to Provident and funds, Gratuity Expenses and Staff Welfare Expenses related to Employees.

• Finance Costs

Finance cost consists of interest on vehicle loan, Interest on MSME loan & Interest on overdraft account.

• Depreciation and Amortization

It includes Depreciation on tangible assets and amortization on intangible assets.

• Other Expenses

Other expense includes GST Reverse in compliance of section 42 and 43 of CGST ACT2017, Vehicle Insurance expenses, Documentation Charges, Permit expenses, Bill Discounting expenses & Legal and professional expenses etc.

• Tax Expenses

Tax expense comprises of Current Tax and Deferred Tax.

FINANCIAL YEAR 2025-26 COMPARED WITH THE FINANCIAL YEAR 2024-25 (BASED ON RESTATED FINANCIAL STATEMENTS)

Total Revenues

Our total revenue increased by Rs. 1,728.10 lakhs i.e. 11.48 % to Rs. 16,776.68 lakhs for the financial year 2025-26 from Rs. 15,048.58 lakhs for the financial year 2024-25 due to the factors described below:

• Revenue of operations

Our revenue from operations increased by Rs.1,693.00 lakhs, representing a growth of 11.38%, to Rs.16,570.10 lakhs for the financial year 2025-26, as compared to Rs.14,877.10 lakhs for the financial year 2024-25.

The Company s revenue growth was primarily driven by increase in business from the existing customers across diverse industry segments and the expansion of service offerings to existing customers. By providing incremental and value-added solutions tailored to customers expanding operations and evolving cold chain logistics requirements, the Company enhanced service volumes, customer retention, and overall revenue realization. These strategic initiatives strengthened the Companys customer base, improved capacity utilization, and supported sustainable business growth, resulting in an 11.38% increase in revenue.

	FY 2025-26		FY 2024-25
Particulars*	Number	Revenue	Number	Revenue
Existing Customers	113	15,742.90	123	13,223.82
% of Revenue from Operations	-	95.01%	-	88.89%
New Customers	92	827.20	101	1,646.54
% of Revenue from Operations	-	4.99%	-	11.07%
Revenue from Operations	-	16,570.10	-	14,877.10

Note: The above-mentioned data has been derived from the Restated Consolidated Financial Statements.

• Other Income

The other income increased by Rs. 35.10 lakhs i.e. 20.47% to Rs. 206.58 lakhs for the financial Year 2025-26 from Rs. 171.48 lakhs for the financial year 2024-25. The increase was primarily attributable to higher interest income earned on fixed deposits maintained by the Company, coupled with an increase in long-term capital gains arising from the sale of investments in mutual funds.

EXPENDITURE

• Total Expenses

Total Expenses increased by Rs. 1,558.64 lakhs i.e. 11.47 % to Rs. 15,143.67 lakhs in the financial year ended March 31, 2026, from Rs. 13,585.04 lakhs in the financial year ended March 31, 2025. Our total expenses increased due to the factors described below:

• Operating Expenses

During the financial year ended March 31, 2026, the Companys operating expenses increased by Rs. 1,518.48 lakhs i.e. 14.16% to Rs. 12,242.62 lakhs in the financial year ended March 31, 2026 from Rs. 10,724.14 lakhs in the financial year ended March 31, 2025.

The increase in operating expenses was primarily on account of:

• Increase in Vehicle Running and Maintenance Costs-With the ageing of the Companys own fleet, repair and maintenance expenses, including spare parts, servicing, and upkeep, have increased to maintain operational efficiency and compliance with safety standards.

• Increase in Contractual Drivers-The increase in operating expenses is primarily due to restructuring, as drivers previously on payroll were transitioned to contractual roles during the previous year. In the previous year, only 4 months expenses was booked i.e. from December 2024 to March 2025, however, in the current year, full year expenses was booked.

• Increase in Hire Charges-With the increase in business of our Company, vehicle hire charges have also increased from Rs. 4,519.75 lakhs to Rs. 4,931.65 lakhs.

This increase in operating expenses is reflective of the Companys expanded scale of operations during the year and is aligned with the overall growth in business activities.

• Employment Benefit Expenses

During the financial year ended March 31, 2026, the Companys employee benefit expenses decreased by Rs. 376.80 lakhs i.e. 36.13% to Rs.665.97 lakhs in the financial year ended March 31, 2026 from Rs.1,042.77 lakhs in the financial year ended March 31, 2025.

The decrease in employee benefit expenses was primarily attributable to:

• Reduction in Salary Costs-The Company decided to engage drivers on contract basis in place of keeping them on its payroll with effect from December 1, 2024, which resulted in lower salary expenditure. Out of the total Employee Benefit Expenses, salary and wages amounted to Rs. 954.48 lakhs in FY 2025 and Rs. 475.26 lakhs in FY 2026. The reduction in salary and wages is primarily attributable to the shift from employing drivers on a fixed payroll basis to engaging them on a contractual basis, resulting in a corresponding increase in operating expenses and decrease in salary and wages.

		(Rs. in lakhs)
	For the Financial Year
Particulars	2025-26	2024-25
Salaries & Wages	475.26	954.48
Changes in Salaries & Wages	(479.22)	(256.08)
Changes (in %)	(50.21)%	(26.83)%

• Reversal of Gratuity Provisioning-Since drivers were moved to a contractual arrangement and therefore the provisioning of Gratuity liability was reversed during the year which resulted in lower expenses.

• Finance Cost

During the year, Finance cost increased by Rs. 75.16 lakhs i.e. 34.91% to Rs. 290.46 lakhs in the financial year ended March 31, 2026 from Rs. 215.30 lakhs in the financial year ended March 31, 2025.

The increase in finance cost was primarily attributable to:

• Increase in Borrowings-The Company availed additional borrowings during the financial year for the purchase of new vehicles, resulting in an increase in the overall debt levels and a corresponding rise in interest expenses incurred during the period.

• Increase in Overdraft account balance-The Company utilized its Cash Credit (CC) limit to efficiently manage working capital requirements and support ongoing operational and business needs.

• Depreciation and Amortization

Depreciation has increased by Rs. 211.41 lakhs i.e. 26.37% to Rs. 1,013.14 lakhs in the financial year ended March 31, 2026 from Rs. 801.72 lakhs in the financial year ended March 31, 2025.

The increase in depreciation was primarily due to the purchase of additional vehicles to maintain operational efficiency and address the replacement requirement arising from the expiry of certain vehicles during the year.

• Other Expenses

Other Expenses increased by Rs. 130.39 lakhs i.e. 16.28% to Rs. 931.49 lakhs in the financial year ended March 31, 2026 from Rs. 801.10 lakhs in the financial year ended March 31, 2025.

The decrease in other expenses was primarily attributable to Increase in Documentation Charges of Vehicles, Increase in Vehicle Insurance Costs and Increase in Professional expenses to defend the Legal case.

• Profit before Exceptional Items and Tax

Profit before Exceptional Items and Tax has increased by Rs. 169.46 lakhs i.e. 11.58% to Rs. 1,633.01 lakhs in the financial year ended March 31, 2026 from Rs. 1,463.54 lakhs in the financial year ended March 31, 2025.

• Profit before Tax

Profit before Exceptional Items and Tax has increased by Rs. 169.46 lakhs i.e. 11.58% to Rs. 1,633.01 lakhs in the financial year ended March 31, 2026 from Rs. 1,463.55 lakhs in the financial year ended March 31, 2025.

• Tax Expenses

Our total tax expense was increased by Rs. 37.70 lakhs i.e. 10.44% to Rs. 399.02 lakhs in the financial year ended March 31, 2026 from Rs. 361.32 lakhs in the financial year ended March 31, 2025. Total tax expense for the year ended March 31, 2026, stood at Rs. 399.02 lakhs out of which current year tax is Rs. 400.46 lakhs, and Deferred Tax Liability is Rs. (1.44) lakhs.

The increase in total tax expense was primarily due to Increase in Net Profit before Tax which is driven by higher revenue during the year, which led to a higher taxable income.

• Net Profit after Tax

Net Profit after Tax has increased by Rs. 131.75 lakhs i.e. 11.95% to Rs. 1,233.98 lakhs in the financial year ended March 31, 2026 from Rs. 1,102.23 lakhs in the financial year ended March 31, 2025.

The marginal increase in profit after tax was attributable to modest revenue growth, while expenses increased proportionately, limiting overall improvement in profitability.

This reflects the Companys enhanced operational efficiency and its ability to convert increased business activity into improved profitability.

FINANCIAL YEAR 2024-25 COMPARED WITH THE FINANCIAL YEAR 2023-24 (BASED ON RESTATED CONSOLIDATED FINANCIAL STATEMENTS)

Total Revenues

Total Revenues

Our total revenue increased by Rs. 2,534.40 lakhs i.e. 20.25% to Rs. 15,048.58 lakhs for the financial year 2024 -25 from Rs. 12,514.18 lakhs for the financial year 2023-24 due to the factors described below:

• Revenue of operations

Our revenue from operations increased by Rs.2,501.84 lakhs, representing a growth of 20.22%, to Rs.14,877.10 lakhs for the financial year 2024-25, as compared to Rs.12,375.26 lakhs for the financial year 2023-24.

This robust growth was primarily attributable to:

1. Acquisition of New Customers-Onboarding of new clients across various sectors, which significantly contributed to additional service revenue.

	FY 2024-25		FY 2023-24
Particulars*	Number	Revenue	Number	Revenue
Existing Customers	123	13,223.82	83	11,610.11
% of Revenue from Operations	-	88.89%	-	93.82%
New Customers	101	1,646.54	72	762.85
% of Revenue from Operations	-	11.07%	-	6.16%
Revenue from Operations	-	14,877.10	-	12,375.26

Note: The above mentioned data has been derived from the Restated Consolidated Financial Statements.

2. Expansion of Services to Existing Customers-Providing incremental and value-added services aligned with the expansion of our clients operations and their enhanced Cold Chain logistics requirements.

These factors collectively resulted in a higher service volume, increased customer retention, and improved revenue realization, demonstrating the Companys continued focus on business expansion and customer-centric solutions.

• Other Income

The other income increased by Rs. 32.56 lakhs i.e. 23.44% to Rs. 171.48 lakhs for the financial Year 2024-25 from Rs. 138.92 lakhs for the financial year 2023 -24. The increase was mainly due to increase in sale of scrap and profit from sale of investments.

EXPENDITURE

• Total Expenses

Total Expenses increased by Rs. 1,826.30 lakhs i.e. 15.53% to Rs. 13,585.03 lakhs in the financial year ended March 31, 2025, from Rs. 11,758.73 lakhs in the financial year ended March 31, 2024. Our total expenses increased due to the factors described below:

• Operating Expenses

During the financial year ended March 31, 2025, the Companys operating expenses increased by Rs. 2,410.20 lakhs i.e. 28.99% to Rs. 10,724.14 lakhs in the financial year ended March 31, 2025 from Rs. 8,313.94 lakhs in the financial year ended March 31, 2024.

The increase in operating expenses was primarily on account of:

• Higher Vehicle Hire Charges-The Company increased the usage of vehicles hired from vendors (Goods Transport Agencies) to cater to higher operational requirements and to ensure timely delivery of services in line with increased business volumes.

The increase in operating expenses was primarily on account of increase in vehicle hire charges by Rs. 1,995.87 lakhs or by 79.08% from Rs. 2,523.88 lakhs in FY 2024 to Rs. 4,519.75 lakhs in FY 2025.

The increase in Vehicle Hire Charges is directly linked to higher business volumes during FY 2025. While our operations expanded during the year, the number of owned vehicles remained largely unchanged (361 owned vehicles in FY 2024 and 364 in FY 2025). To meet the increased demand and ensure uninterrupted and timely service to customers, the Company engaged additional third-party vendor vehicles. This resulted in a higher proportion of hired vehicles being deployed, thereby increasing the associated hire expenses.

		(Rs. in lakhs)
	For the Financial Year
Particulars	2024-25	2023-24
Vehicle Hire Charges	4,519.75	2,523.88
Changes in Vehicle Hire Charges	1,995.87	365.33
Changes (in %)	79.08%	16.92%

• Increase in Vehicle Running and Maintenance Costs-With the ageing of the Companys own fleet, repair and maintenance expenses, including spare parts, servicing, and upkeep, have increased to maintain operational efficiency and compliance with safety standards.

This increase in operating expenses is reflective of the Companys expanded scale of operations during the year and is aligned with the overall growth in business activities.

• Employment Benefit Expenses

During the financial year ended March 31, 2025, the Companys employee benefit expenses decreased by Rs.259.48 lakhs i.e. 19.93% to Rs.1,042.77 lakhs in the financial year ended March 31, 2025 from Rs.1,302.26 lakhs in the financial year ended March 31, 2024.

The decrease in employee benefit expenses was primarily attributable to:

• Reduction in Salary Costs-The Company decided to engage drivers on contract basis in place of keeping them on its payroll with effect from December 1, 2024, which resulted in lower salary expenditure.

Salaries and Wages was decreased by Rs. (256.08) lakhs or by -21.15% from Rs. 1,210.56 lakhs in FY 2024 to Rs. 954.48 lakhs in FY 2025. The decrease was primarily on account of the Companys decision to engage drivers on a contractual basis instead of retaining them on the payroll with effect from December 1, 2024, which resulted in lower salary expenditure.

	(Rs. in lakhs)
	For the Financial Year
Particulars	2024-25	2023-24
Salaries & Wages	954.48	1,210.56
Changes in Salaries & Wages	-256.08	77.52
Changes (in %)	-21.15%	6.84%

• Reversal of Gratuity Provisioning-Since drivers were moved to a contractual arrangement and therefore the provisioning of Gratuity liability was reversed during the year which resulted in lower expenses.

This reflects a strategic reallocation of workforce-related costs to optimize operational efficiency while maintaining adequate employee benefits.

• Finance Cost

During the year, Finance cost decreased by Rs. 46.54 lakhs i.e. 17.77% to Rs. 215.30 lakhs in the financial year ended March 31, 2025 from Rs.261.84 lakhs in the financial year ended March 31, 2024.

The reduction in finance cost was primarily attributable to:

• Decrease in Borrowings-The Company repaid its vehicle loans and MSME loans during the year, resulting in lower interest expenses.

• Decrease in Loan Processing Charges-Fewer fresh loans were taken during the year, which resulted in reduction in Loan Processing Fees.

Overall, the decrease in finance cost reflects the Companys ongoing efforts to reduce its debt obligations while strategical ly utilizing available credit facilities to support business operations.

• Depreciation and Amortization

Depreciation has decreased by Rs. 232.86 lakhs i.e. 22.51% to 801.72 lakhs in the financial year ended March 31, 2025 from Rs. 1,034.58 lakhs in the financial year ended March 31, 2024.

The decrease in depreciation was primarily due to the application of the Written Down Value (WDV) method, which resulted in lower depreciation charges on account of the increasing age of the Companys vehicle fleet.

• Other Expenses

Other Expenses decreased by Rs.45.01 lakhs i.e. 5.32% to Rs. 801.10 lakhs in the financial year ended March 31, 2025 from Rs. 846.11 lakhs in the financial year ended March 31, 2024.

The decrease in other expenses was primarily attributable to:

• Reduction in Documentation Charges of Vehicles

• Lower Vehicle Insurance Costs

• Decrease in Commission Expenses

• Profit before Exceptional Items and Tax

Profit before Exceptional Items and Tax has increased by Rs. 708.09 lakhs i.e. 93.73% to Rs. 1,463.55 lakhs in the financial year ended March 31, 2025 from Rs. 755.45 lakhs in the financial year ended March 31, 2024.

The significant improvement in profitability was primarily driven by:

• Higher Growth in Total Revenue-Revenue increased substantially during the year, supported by new customer acquisitions, incremental services to existing customers, and overall business expansion.

• Controlled Increase in Total Expenses-While certain operating expenses increased in line with higher business activity, the overall growth in expenses was proportionately lower than the increase in revenue, resulting in an improved operating margin.It is a notable fact that the FY 2023-24 consolidated balance sheet reflects only four months of operations, while FY 2024-25 represents a full year, which is a major reason for the increase in figures of FY 24-25 as compared to FY 23-24.

This reflects the Companys enhanced operational efficiency and its ability to convert increased business activity into improved profitability.

• Profit before Tax

Profit before tax increased by Rs. 708.09 lakhs i.e. 93.73% to Rs. 1,463.55 lakhs in the financial year ended March 31, 2025 from Rs. 755.46 lakhs in the financial year ended March 31, 2024.

The significant improvement in profitability was primarily driven by:

• Higher Growth in Total Revenue-Revenue increased substantially during the year, supported by new customer acquisitions, incremental services to existing customers, and overall business expansion.

• Controlled Increase in Total Expenses-While certain operating expenses increased in line with higher business activity, the overall growth in expenses was proportionately lower than the increase in revenue, resulting in an improved operating margin.

• It is a notable fact that the FY 2023-24 consolidated balance sheet reflects only four months of operations, while FY 2024-25 represents a full year, which is a major reason for the increase in figures of FY 24-25 as compared to FY 23-24.

This reflects the Companys enhanced operational efficiency and its ability to convert increased business activity into improved profitability.

• Tax Expenses

Our total tax expense was increased by Rs. 179.01 lakhs i.e. 98.19% to Rs. 361.32 lakhs in the financial year ended March 31, 2025 from Rs. 182.31 lakhs in the financial year ended March 31, 2024. Total tax expense for the year ended March 31, 2025, stood at Rs. 361.32 lakhs out of which current year tax is Rs. 350.63 lakhs, and Deferred Tax Liability is Rs. 10.69 lakhs.

The increase in total tax expense was primarily due to Increase in Net Profit before Tax which is driven by higher revenue during the year, which led to a higher taxable income.

• Net Profit after Tax

Net Profit after Tax has increased by Rs. 529.08 lakhs i.e. 92.31% to Rs. 1,102.23 lakhs in the financial year ended March 31, 2025 from Rs. 573.14 lakhs in the financial year ended March 31, 2024.

The significant improvement in profitability was primarily driven by:

• Higher Growth in Total Revenue-Revenue increased substantially during the year, supported by new customer acquisitions, incremental services to existing customers, and overall business expansion.

• Controlled Increase in Total Expenses-While certain operating expenses increased in line with higher business activity, the overall growth in expenses was proportionately lower than the increase in revenue, resulting in an improved operating margin.

This reflects the Companys enhanced operational efficiency and its ability to convert increased business activity into improved profitability.