Pranik Logistics Ltd Management Discussions

A. Industry Structure and Developments

The Indian logistics sector continued to strengthen its position as a key enabler of economic growth during FY 2025-26, supported by rising domestic consumption, expanding manufacturing activity, increasing trade volumes, and sustained infrastructure investments. The sector remains critical to Indias economic development by facilitating efficient movement of goods and enhancing supply chain efficiency across industries.

Industry estimates indicate that the Indian logistics market was valued at approximately USD 246 billion in FY 2025 and is expected to reach USD 362 billion by FY 2030, registering a CAGR of around 8%. Growth continues to be driven by favourable government policies, increasing e-commerce penetration, formalization of supply chains, and rising demand for integrated logistics solutions.

Government initiatives such as the National Logistics Policy (NLP), PM Gati Shakti, Dedicated Freight Corridors (DFCs), Sagannala, Unified Logistics Interface Platform (ULIP), and Multimodal Logistics Parks (MMLPs) have accelerated infrastructure development, multimodal connectivity, and digital integration, contributing to improved efficiency and reduced logistics costs.

During the year, geopolitical tensions and the conflict in West Asia created intermittent disruptions in global supply chains, resulting in volatility in fuel prices, higher freight rates, and longer transit times on certain international trade routes. While the impact on domestic logistics operations remained limited, the situation highlighted the importance of supply chain resilience, route diversification, and operational flexibility for logistics service providers.

Road transportation continues to account for the majority of domestic freight movement, while warehousing and supply chain management have emerged as rapidly growing segments. Demand for organized logistics services, Grade-A warehousing facilities, and technology-enabled supply chain solutions remained strong during the year, driven by growth in manufacturing, retail, e-commerce, and third-party logistics (3PL) sectors.

Technology adoption remained a defining trend, with increasing use of artificial intelligence, data analytics, IoT-enabled tracking systems, warehouse automation, and digital platforms to enhance operational efficiency and customer experience. Sustainability also gained prominence, with growing adoption of fuel-efficient transportation models, electric vehicles, renewable energy-powered warehouses, and environmentally responsible logistics practices.

Supported by policy reforms, infrastructure development, digital transformation, and expanding demand across sectors, the Indian logistics industry is expected to maintain its growth trajectory and continue playing a vital role in Indias economic development.

In line with the growth and transformation of the Indian logistics sector, Pranik Logistics Limited continued to strengthen its operational capabilities and expand its geographic presence during FY 202526. Since its inception in 2015, the Company has evolved into a trusted Third-Party Logistics (3PL) service provider, offering transportation, warehousing, reverse logistics, and integrated supply chain solutions to a diverse customer base.

The Company operates across key regions of India through strategically located warehouses and logistics hubs, ensuring seamless connectivity and efficient supply chain movement. With a strong presence across Eastern, Central, and Western India, including Jharkhand, Bihar, Odisha, Assam, West Bengal, Chhattisgarh, Maharashtra, Gujarat, Rajasthan, Uttar Pradesh, Tamil Nadu, Karnataka, and the National Capital Region, the Company continues to strengthen its infrastructure and operational capabilities to support growing business requirements and nationwide distribution.

Leveraging its experienced management team, customer-centric approach, and expanding network, the Company remains focused on delivering reliable, efficient, and customized logistics solutions. The increasing emphasis on supply chain optimization, digitalization, infrastructure development, and organized logistics services presents significant opportunities for growth. With its scalable business model, operational expertise, and commitment to service excellence, Pranik Logistics Limited is well- positioned to capitalize on emerging opportunities and contribute to the continued development of Indias logistics sector.

B. Our Strengths and Weaknesses

Our Strengths:

1. Asset-Light ami Sealable Business Model

The Company operates through a combination of owned and leased transportation assets, an integrated workforce, and strategically leased warehousing infrastructure. This asset-light model enables operational flexibility, cost optimization, efficient capital utilization, and scalability to meet evolving customer requirements.

2. Integrated Logistics Solutions

The Company offers end-to-end logistics services, including transportation, warehousing, reverse logistics, handling, and supply chain management solutions. This integrated approach enables customers to benefit from streamlined operations, improved visibility, and a single point of accountability across the supply chain.

3. Strong Geographic Presence and Network Reach

With operations spanning multiple states across Eastern, Central, Western, and Northern India, supported by strategically located warehouses and logistics hubs, the Company is well-positioned to serve customers efficiently across key industrial and commercial corridors.

4. Customer-Centric Service Delivery

The Company focuses on providing customized logistics solutions tailored to customer requirements. Its experienced management team, skilled workforce, and technology-enabled operations support efficient execution, timely deliveries, and long-term customer relationships.

5. Reverse Logistics and Value-Added Capabilities

The Company has developed capabilities in reverse logistics and value-added supply chain services, enabling it to address the evolving needs of industries such as e-commerce, FMCG, retail, consumer durables, and manufacturing.

6. Diversified Customer and Industry Base

The Company serves customers across multiple sectors, including FMCG, e-commerce, retail, automotive, construction, consumer durables, textiles, and manufacturing. This diversification reduces dependence on any single industry and provides resilience against sector-specific fluctuations.

7. Experienced Leadership and Operational Expertise

The Companys growth has been supported by an experienced management team with deep industry knowledge and execution capabilities, enabling efficient operations, business development, and longterm value creation.

Our Weaknesses:

/. Limited South India Presence

While we maintain strong positions in East and West India, our limited presence in the rapidly growing South Indian markets represents a strategic gap. This restricts our ability to serve pan-India clients comprehensively and limits access to emerging high-growth opportunities in the region.

2. Exposure to Regulatory and Compliance Changes

The logistics sector is subject to various regulations relating to taxation, transportation, labor, environmental compliance, and safety standards. Changes in regulatory requirements may increase compliance obligations and operational costs.

C. Opportunities and Threats

Opportunities:

1. Growing Demand for Integrated Logistics Solutions

Businesses are increasingly seeking end-to-end logistics partners capable of providing transportation, warehousing, reverse logistics, and value-added supply chain sendees under a single platform. The Companys integrated service offerings position it well to capitalize on this growing demand.

2. Expansion of E-commerce and Consumption-Driven Markets

The continued growth of e-commerce, organized retail, and consumer demand across Tier-II and Tier- 111 cities is creating significant opportunities for logistics service providers. The Companys expanding network and regional presence enable it to effectively cater to these emerging markets.

3. Government Initiatives and Infrastructure Development

Policy initiatives such as the National Logistics Policy (NLP), PM Gati Shakti, Dedicated Freight Corridors (DFCs), Sagarmala, and the development of Multimodal Logistics Parks (MMLPs) are expected to improve connectivity, reduce logistics costs, and create new opportunities for organized logistics operators.

4. Digital Transformation and Technology Adoption

Increasing adoption of technologies such as artificial intelligence, data analytics, loT-enabled tracking systems, warehouse automation, and transportation management platforms presents opportunities to enhance operational efficiency, improve customer experience, and strengthen service delivery capabilities.

5. Growth in Reverse Logistics and Value-Added Services

The rise of e-commerce, product returns, and sustainability-focused supply chains is driving demand for efficient reverse logistics solutions. The Company is well-positioned to leverage its operational expertise to expand its presence in this growing segment.

6. Supply Chain Diversification and Manufacturing Growth

The continued focus on domestic manufacturing, infrastructure development, and supply chain diversification under various government initiatives is expected to generate additional demand for transportation, warehousing, and integrated logistics services across industries.

Threats:

1. Volatility in Fuel Prices and Operating Costs

The logistics sector is exposed to fluctuations in fuel prices and other operating costs, which may impact profitability. However, the Company mitigates this risk through customer contracts that provide for fuel cost revisions based on pre-agreed escalation slabs.

2. Geopolitical and Supply Chain Disruptions

Geopolitical tensions, including developments in West Asia and other global regions, may lead to disruptions in international trade routes, freight availability, fuel prices, and supply chains. Such uncertainties could indirectly impact logistics operations and business sentiment.

3. Interest Rate risk:

The Company is exposed to interest rate risk arising from borrowings used to fund its operations and business growth. Any increase in interest rates may lead to higher finance costs and impact profitability. The Company manages this risk through prudent debt management and regular monitoring of borrowing costs.

4. Talent Acquisition and Retention

The increasing adoption of technology and growing complexity of supply chain operations require skilled manpower across logistics functions. Attracting, training, and retaining qualified personnel continues to remain a key challenge for the industry.

D. Segment-wise or Product-wise Performance

Pranik Logistics Limited reports its business under a single consolidated segment of integrated logistics services, encompassing:

• Transportation

• Warehousing & Distribution

• Reverse Logistics

• Carrying & Forwarding Agent (CFA) Services

• Project Logistics

• Hub & Spoke Distribution Model

• Cold Chain Solutions

• Customized Supply Chain Solutions

• E2E Supply Chain Solutions

• Peak Demand Management

Performance Highlights (FY 2025-26)

During the financial year 2025-26, Pranik Logistics Limited achieved strong business growth, driven by its expanding service portfolio, enhanced operational capabilities and sustained customer confidence. Revenue from operations increased to Rs. 15,972.92 lakhs from Rs. 10,475.59 lakhs, reflecting a growth of approximately 52.48%. The growth was supported by higher business volume across

logistics operations, continued geographic expansion and deeper engagement with existing and new customers, reinforcing the Company’s position in the integrated logistics sector.

The Company’s operating performance witnessed a notable improvement during the year, with EBITDA increasing from Rs. 1,189.08 lakhs in FY 2024-25 to Rs. 1,502.18 lakhs in FY 2025-26, reflecting stronger operational efficiency and improved business performance by registering a growth of 26.30%.

Net Profit (PAT) continued to register growth during FY 2025-26, increasing to Rs.703.92 lakhs from Rs.644.42 lakhs in the previous year, reflecting a growth of approximately 9.23%. This growth was supported by higher business volumes, efficient cost management and sustained operational performance across the Company’s logistics operations.

The strong growth improved performance during the year reflects Pranik Logistics’ expanding market presence, operational resilience and ability to capitalize on emerging opportunities in the logistics sector. The Company continued to strengthen its service capabilities, broaden its geographic reach and deepen relationships with its growing clientele, resulting in sustained business momentum. With a scalable business model, diversified service offerings and a focus on operational excellence, the Company remains well-positioned to drive long-term growth and create value for its stakeholders.

E. Outlook

The Indian logistics sector is expected to witness sustained growth, driven by infrastructure development, increasing manufacturing activity, rising consumption, growing e-commerce penetration, and continued policy support through initiatives such as the National Logistics Policy (NLP), PM Gati Shakti, Dedicated Freight Corridors (DFCs), and Multimodal Logistics Parks (MMLPs). The increasing adoption of technology and the shift towards integrated logistics solutions are expected to create significant opportunities for organized logistics service providers.

Against this backdrop, Pranik Logistics Limited remains well-positioned to capitalize on emerging opportunities through its diversified service portfolio, expanding geographic presence, and customer- focused approach.

The Company’s key focus areas for FY 2026-27 include:

• Strengthening its integrated logistics offerings across transportation, warehousing, distribution, reverse logistics, CFA services, project logistics, cold chain solutions, and customized supply chain services;

• Enhancing operational efficiency through greater adoption of technology-enabled logistics solutions, process automation, and real-time supply chain visibility;

• Expanding customer relationships across key industry segments including FMCG, retail, e- commerce, manufacturing, consumer durables, and industrial sectors;

• Optimizing transportation and warehousing operations to improve asset utilization, service quality, and cost efficiency;

• Leveraging its strategically located logistics infrastructure and network presence to support business growth and customer acquisition;

The Company believes that its scalable business model, diversified service offerings, experienced management team, and focus on operational excellence will continue to support sustainable growth.

While challenges such as fuel price volatility, regulatory changes, competitive pressures, talent availability, and geopolitical uncertainties may persist, the Company remains confident in its ability to navigate these challenges through prudent business strategies and disciplined execution.

With a strong operational foundation and favourable industry outlook, Pranik Logistics Limited remains committed to delivering sustainable growth and creating long-term value for all its stakeholders.

F. Risks and Concerns

Pranik Logistics Limited operates in a dynamic business environment that is influenced by economic conditions, regulatory development, technological advancements, competitive pressure and evolving customer requirements. The Company has established a structured risk management framework to identify, assess, monitor and mitigate key business risks. The major risks and mitigation measures are outlined below:

/. Operational Risk

• Description: The Companys operations are dependent on efficient transportation networks, warehousing infrastructure, service providers, and timely execution of logistics activities. Operational disruptions arising from vehicle breakdowns, route delays, infrastructure bottlenecks, labour shortages, or supply chain disruptions may impact service quality and customer satisfaction.

• Mitigation Measures:

o Continuous monitoring of logistics operations through technology-enabled systems, o Optimization of transportation routes and warehouse operations, o Standardized operating procedures and periodic performance reviews, o Development of contingency plans to address operational disruptions.

2. Regulatory and Compliance Risk

• Description: The Company operates within a regulated environment and is subject to various laws relating to taxation, transportation, labour, environmental compliance, and corporate governance. Changes in regulatory requirements may increase compliance obligations and operating costs.

• Mitigation Measures:

o Regular monitoring of regulatory developments, o Strengthened internal controls and compliance processes, o Periodic internal reviews and compliance audits, o Ongoing employee awareness and training programs.

3. Fuel Price and Cost Inflation Risk

• Description: The logistics industry remains exposed to fluctuations in fuel prices, toll charges, maintenance costs, and other operating expenses. Significant cost increases may adversely impact margins if not offset through operational efficiencies or pricing adjustments.

• Mitigation Measures:

> Fuel cost revision clauses in customer contracts based on pre-agreed escalation slabs.

> Focus on route optimization and efficient fleet utilization.

> Continuous monitoring of operating costs and profitability.

> Cost-control initiatives and productivity enhancement measures.

> Diversified service offerings to support margin stability.

4. Customer Concentration and Market Risk

• Description: Dependence on a limited number of customers or specific industry sectors may expose the Company to revenue concentration risks arising from loss of business, contract renegotiations, or industry downturns.

• Mitigation Measures:

o Expansion of the customer base across diverse industry segments, o Focus on long-tenn customer relationships and service excellence, o Development of new service offerings and market opportunities, o Geographic expansion across multiple regions and industries.

5. Technolog} and Cybersecurity Risk

• Description: Increasing reliance on digital platforms, technology-enabled operations, and data- driven decision-making exposes the Company to cybersecurity threats, data breaches, system failures, and technology disruptions.

• Mitigation Measures:

o Implementation of appropriate IT security controls and access management systems, o Regular data backup, monitoring, and system maintenance, o Periodic cybersecurity assessments and risk reviews, o Strengthening of technology infrastructure to enhance business continuity.

6. Geopolitical and Supply Chain Risk

• Description: Geopolitical developments, including conflicts in key global regions such as West Asia, may lead to volatility in fuel prices, disruptions in trade routes, supply chain uncertainties, and broader economic impacts affecting the logistics sector.

• Mitigation Measures:

o Continuous monitoring of geopolitical developments and market conditions, o Diversification of customer and industry exposure, o Operational flexibility and contingency planning to address disruptions, o Focus on maintaining resilient and adaptable logistics operations.

The Company periodically reviews its risk management framework to ensure that risks are identified and managed effectively. Through proactive monitoring, strong internal controls, and disciplined execution, Pranik Logistics Limited seeks to minimize risk exposure, protect stakeholder interests, and support sustainable long-tenn growth.

G. Internal Control Systems and their Adequacy

Pranik Logistics Limited has established an adequate system of internal controls commensurate with the nature, size and complexity of its business operations. The Companys internal control framework is designed to provide reasonable assurance regarding the reliability of financial reporting, safeguarding of assets, operational efficiency, compliance with applicable laws and regulations, and effective risk management.

The Company has implemented policies, procedures, and control mechanisms across key business functions, including finance, operations, procurement, logistics management, information technology, and statutory compliance. These controls are aimed at ensuring orderly and efficient conduct of business, prevention and detection of errors and irregularities, accuracy and completeness of accounting records, and timely preparation of reliable financial information.

The Company continues to leverage technology-driven systems and digital platforms to strengthen operational monitoring, process controls, data management, and reporting capabilities. Standard operating procedures, approval mechanisms, periodic reviews, and management oversight support effective execution and control across various business processes.

The internal control framework is supported by periodic internal audits, independent reviews, and continuous monitoring of key operational and financial parameters. Audit observations and recommendations are regularly reviewed by the management and the Audit Committee, and appropriate corrective actions are implemented wherever necessary.

The Audit Committee of the Board provides oversight on the adequacy and effectiveness of the Companys internal control systems, risk management processes, and financial reporting framework. The Committee periodically reviews internal audit findings, compliance status, and the implementation of corrective measures to ensure continual improvement in the control environment.

Based on the reviews conducted during the year, the management believes that the Companys internal control systems are adequate and effective and are commensurate with its business requirements and growth objectives.

H. Discussion on Financial Performance with Respect to Operational Performance (KY 2025-26)

During the fiscal year FY 2025-26 (April-March), Pranik Logistics Limited continued to strengthen its operational and financial perfonnance, supported by an expanding customer base, wider geographic reach, enhanced service offerings, and a continued focus on operational excellence. The Company’s performance during the year reflects its ability to effectively capitalize on growth opportunities in the logistics sector while maintaining financial discipline.

I. Revenue Growth

Revenue from operations for FY 2025-26 stood at Rs. 15,972 lakhs as against Rs. 10,475.59 lakhs in the previous financial year, reflecting a growth of 52.48%. The growth was driven by increased business volumes across transportation, warehousing, reverse logistics, carrying and forwarding (CFA) services, and other integrated logistics solutions. Expansion of operations across key markets and deeper engagement with existing customers also contributed to the Companys revenue growth.

2. Profitability Performance

Profitability improved during the year, supported by higher operating volumes, efficient cost management, optimized resource utilization, and improved operational efficiencies. Profit after Tax (PAT) for FY 2025-26 stood at Rs. 703.92 lakhs as compared to Rs. 644.42 lakhs in FY 202425. The Companys continued focus on process improvements, route optimization, and effective cost control measures contributed to sustained profitability.

3. Operational Performance

The Company witnessed increased activity across its logistics network during the year, supported by growing demand from sectors such as FMCG, retail, e-commerce, manufacturing, consumer durables, and industrial products. The Companys strategically located warehouses, logistics hubs, and transportation network enabled efficient movement of goods and timely service delivery.

Operational efficiencies were further enhanced through the use of technology-enabled logistics solutions, improved supply chain visibility, standardized operating procedures, and continuous monitoring of key performance indicators. These initiatives contributed to improved service quality, customer satisfaction, and resource utilization.

4. Liquidity & Capital Management

The Company continued to maintain a prudent approach towards working capital and liquidity management. Effective monitoring of receivables, payables, and cash flows supported the Companys operational requirements and growth initiatives.

Summary

FY 2025-26 marked another year of steady progress for Pranik Logistics Limited, driven by business expansion, operational efficiencies, and consistent financial performance. Through its continued focus on service excellence, technology integration, process optimization, and disciplined financial management, the Company successfully strengthened its market position and operational capabilities. With a strong foundation and positive industry dynamics, the Company remains confident of sustaining its growth momentum and delivering long-term value to its stakeholders.

I. Material Developments in Human Resources / Industrial Relations

The Companys employees remain one of its most valuable assets and play a critical role in driving operational excellence and sustainable growth. During FY 2025-26, Pranik Logistics Limited continued to focus on strengthening its human resources framework through employee engagement initiatives, skill development programs, performance management systems, and a collaborative work culture.

Key initiatives undertaken during the year included:

• Regular employee communication and engagement sessions to facilitate interaction between management and employees and to share organizational updates and business objectives;

• Skill development and training programs aimed at enhancing operational, technical, and managerial competencies across various functions;

• Performance recognition and reward initiatives to encourage employee motivation and acknowledge outstanding contributions;

• Team-building activities and employee engagement programs to foster collaboration, workplace harmony, and a positive organizational culture; ^•

• Continued focus on employee welfare, professional development, and retention through structured career growth opportunities and ongoing feedback mechanisms.

The Company remains committed to fostering a diverse, inclusive, and equitable workplace across all levels of the organization. As of 31^s* March 2026, the Companys workforce comprised 2,062 employees, including 50 female employees who contribute across various functional roles. Recognising the evolving dynamics of the logistics industry, the Company continues to strengthen gender diversity by creating greater opportunities for women across functions and cultivating an inclusive work environment.

These efforts have contributed to building a stable, motivated, and future-ready workforce aligned with the Companys long-tenn growth aspirations.

J. Changes in key financial ratios

Pursuant to the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the details of key financial ratios along with the reasons for significant changes therein are given below:

SI. No. Particulars	For the year ended 31st March, 2026	For the year ended 31s March, 2025	% Change	Reasons for significant change (If any)
1. Debtors Turnover Ratio	2.93	3.45	-15,22%	NA
2. Inventory Turnover Ratio	NA	NA	“	NA
3. Debt Service Coverage Ratio	1.98	2.04	-2,93%	NA
4. Current Ratio	1.74	2.40	-27.51%	The ratio has decreased due to higher repayment of long-term debts and increase in short term borrowings. The ratio has also impacted due to margin money paid for new purchase of vehicles.
5. Debt Equity Ratio	0.96	0.50	93.46%	The ratio has increased due to long term borrowings for purchase of new vehicles and addition of working capital loan for smooth operation of business.
6. Return on Equity Ratio	0.64	0.59	9.23%	NA
7. Trade Payables Turnover Ratio	NA	NA	_	NA
8. Net Capital Turnover Ratio	4.68	3.47	35.02%	The ratio has increased due to higher sales growth and improved working capital management and efficient utilisation of current assets.
9. Net Profit Margin (%)	4.41 %	6.15%	-28.36%	The net profit ratio has decreased due to increase in interest costs and increase in depreciation. The ratio has also impacted due to competitive price to maintain market share.
10. Return on Capital Employed	0.25	0.25	-3.48%	NA
11. Return on Investment	“	“	•	NA

Notes:

1. Above ratios are based on the standalone financial statements of the Company.

2. Significant change means a change of 25% or more as compared to the immediately preceding financial year.

3. The figures of previous year have been reclassified and regrouped wherever considered necessary. Details of change in return on net worth as compared to the immediately preceding financial year:

SI. No.	Particulars	For the year ended 31s March, 2026	For the year ended 31s1 March, 2025	% Change	Reasons for change
1.	Return on Net Worth	63.93	58.53	9.22	NA

CAUTIONARY STATEMENT

This Management Discussion and Analysis contains forward-looking statements that reflect the Companys current views and expectations. Actual results may vaiy due to risks and uncertainties including regulatory changes, economic conditions, and competitive factors. The Company does not undertake any obligation to update these statements except as required by law.

		For & on behalf of the Board
	Pranav Kumar Sonthalia	Nikunj Sonthalia
	Managing Director	Whole-time Director
	DIN: 06717643	DIN:08036743
Place: Kolkata
Date: 15,h May, 2026