Premier Roadlines Ltd Management Discussions

Macro-Economic Overview Global Economic Landscape

The global economy faces heightened uncertainty as the Middle East crisis weighs on growth, fuels inflationary pressures, and increases volatility across financial markets. Global growth is projected to slow to 2.5% in 2026 and 2.8% in 2027, with risks remaining dependent on the duration and intensity of the conflict.

Disruptions in the Strait of Hormuz, a critical route for global energy supplies, have pushed up fuel, fertilizer, and food prices, adding pressure on supply chains and reversing the recent disinflation trend. Global inflation is now expected to rise to 3.9% in 2026, impacting purchasing power.

Key downside risks include a potential correction in AI- driven investments, renewed trade tensions, geopolitical uncertainties, and elevated fiscal deficits impacting financial conditions. On the upside, stronger AI adoption, productivity gains, and easing trade tensions could provide further support to global growth.

Indian Economic Environment

India enters FY26 with strong economic momentum, supported by stable macroeconomic fundamentals, sustained policy support, and broad-based sectoral growth. Despite a challenging global backdrop, the economy has remained resilient, driven by healthy growth, moderating inflation, improving labour market conditions, and stronger external and financial buffers. Coordinated fiscal, monetary, and structural measures have strengthened macroeconomic stability while supporting investment, consumption, and inclusive growth.

Indias growth outlook remains robust, supported by strong fundamentals and broad-based demand. As per the First Advance Estimates, real GDP and GVA growth are projected at 7.4% and 7.3%, respectively, for FY26.

A strong agricultural performance has supported rural incomes and consumption, while tax rationalisation measures have improved urban demand, indicating a broader consumption recovery. Indias potential growth remains around 7%, with FY27 real GDP growth expected in the range of 6.8-7.2%, highlighting sustained medium- term growth resilience despite global uncertainties.

Inflation has moderated significantly, with average headline CPI inflation during April-December 2025 declining to 1.7%, marking one of the lowest levels since the start of the CPI series, supported by easing food and fuel prices.

India has achieved a significant milestone in its economic journey, with cumulative gross FDI inflows reaching US$ 1.14 trillion since April 2000. FDI equity inflows during April- December 2025 (FY26) increased to 4,16,709 crore (US$47.9 billion), compared to 3,40,962 crore (US$40.7 billion) in the corresponding period of FY25. This represents a strong 22% year-on-year growth in rupee terms, highlighting sustained foreign investor confidence and Indias strong growth prospects.

https://www.imf.org/en/Publications/WEO/

Issues/2025/04/16/world-economic-outlook-april-2025

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56324

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2220800&reg=48&lang=2

https://www.ibef.org/economy/foreign-direct-investment

Global Logistics Industry Snapshot

The global logistics market was valued at US$5.88 trillion in 2025 and is projected to reach US$8.23 trillion by 2034, growing at a CAGR of 3.71% during 2026-2034. Growth is driven by expanding global trade, rising e-commerce penetration, and increasing digitization of supply chains. Third-party logistics (3PL) remains the largest segment with a 56.3% market share, while road transportation accounts for 59.2% of global logistics demand. Asia Pacific leads the market, contributing 48.7% of global revenue in 2025. (Source: IMARC Group).

Technological advancements such as automation, artificial intelligence, real-time tracking, and advanced warehouse management systems are transforming the logistics industry by improving efficiency, optimizing operations, and reducing delivery timelines. The rapid expansion of e-commerce has further accelerated demand for reliable logistics solutions, particularly in last-mile delivery. Innovations such as autonomous vehicles, drones, route optimization, and automated warehouses are enabling faster and more efficient fulfilment.

Growing consumer expectations for same-day and next- day deliveries are driving logistics companies to adopt advanced technologies and enhance supply chain capabilities. These improvements not only improve operational efficiency but also strengthen customer satisfaction and long-term loyalty.

However, infrastructure constraints remain a key challenge for the industry. Inadequate transportation networks can result in delays, higher logistics costs, and reduced supply chain efficiency. Addressing these infrastructure gaps is critical to enabling seamless movement of goods and supporting the sectors long-term growth.

The global logistics industry outlook remains robust due to explosive e-commerce growth, aggressive AI integration, and shifting trade patterns. Despite geopolitical disruptions and tariff uncertainties, the sector continues to evolve from a basic support function into a strategic, tech- driven engine that enables business growth worldwide.

https://www.imarcgroup.com/logistics-market

https://www.grandviewresearch.com/industry-analysis/logistics-market-report

https://www.weforum.org/stories/2026/01/logistics-viewed-today-no-longer-support-function-but-strategic-enabler-of-growth/

Indian Logistics Sector

Indias logistics sector, valued at approximately US$246 billion in FY25, is expected to reach US$362 billion by FY30, growing at a CAGR of 8%, driven by economic expansion, rising consumption, and increasing trade activity.

Transportation remains the largest segment; while warehousing and integrated supply chain solutions are witnessing faster growth, supported by GST-led formalization, infrastructure investments, and evolving customer requirements.

Indias logistics ecosystem is primarily driven by road transport, accounting for ~65% of the market, supported by its importance in last-mile connectivity and e-commerce growth. Rail currently handles ~31% of freight, with the National Rail Plan 2030 targeting an increase to 45% through initiatives such as Dedicated Freight Corridors aimed at improving efficiency and capacity. Waterways (~3%) and air freight (~1%) remain smaller but emerging segments.

Indias ambition to achieve US$1 trillion in merchandise exports by 2030 is expected to drive higher freight movement and logistics demand. By 2050, goods transport demand is projected to reach ~15.6 trillion tonne- kilometres, supported by sustained growth in domestic consumption and exports.

Key enablers include:

Government initiatives such as the National Logistics Policy, PM GatiShakti, Dedicated Freight Corridors, and Sagarmala are accelerating multimodal connectivity, digitalization, and logistics infrastructure development. Continued focus on multimodal transportation and infrastructure development is expected to further improve supply chain efficiency and reliability.

Strong public capex and increasing private/PPP investments across ports, rail, airports, and logistics parks support a positive structural outlook, despite execution and cost-related challenges.

Indias logistics cost is estimated at ~8% of GDP, significantly lower than Indonesia (24%) and comparable to South Korea (8%). It is also below Chinas logistics cost level of ~13.9% of GDP (2023). Ongoing reforms, improved rail freight efficiency, and better asset utilization are contributing to lower logistics costs and enhanced supply chain performance.

Road Logistics - Growth Drivers & Future Outlook

Road logistics remains the dominant mode of transportation in India, accounting for nearly 65% of freight movement due to its extensive network, operational flexibility, and critical role in first-mile and last-mile connectivity. The segment is supported by rising consumption, e-commerce expansion, manufacturing growth, and increasing domestic freight demand.

Technology adoption is further transforming road freight operations through GPS-based tracking, digital freight platforms, route optimization, automation, and better fleet utilization. The growth of organized logistics players, increasing adoption of 3PL solutions, and demand for faster delivery models are driving formalization within the sector.

The segment is expected to benefit from long-term tailwinds including Indias economic growth, rising trade volumes, e-commerce penetration, and infrastructure investments. National Highway expansion targets, development of logistics parks, and improved connectivity are likely to support sustained growth in road freight demand.

However, challenges such as fragmented market structure, pricing pressures, driver availability, last-mile infrastructure gaps, and higher fuel costs remain key areas to address. Overall, road logistics is expected to remain a critical growth engine for Indias logistics ecosystem, enabling efficient movement of goods and supporting the countrys broader economic expansion.

Infrastructure development remains a key growth driver, with the government targeting expansion of the National Highway network from ~1.46 lakh km in FY25 to 1.85 lakh km by FY30 and 2.37 lakh km by FY47. Improved connectivity, along with rising consumption, digitalization, and technology-led efficiency improvements, is expected to support demand for faster and more cost-effective road transportation solutions.

https://www.brickworkratings.com/Research/LogisticsSector_in_India_BWR_March-2026.pdf

India is entering a sustained capital expenditure cycle, supported by strong investments across power infrastructure, large-scale manufacturing, refineries, renewable energy (solar, wind, green hydrogen), defence production, and heavy engineering. These sectors require specialised logistics capabilities for the movement of Over Dimensional Cargo (ODC) such as transformers, turbines, reactors, large fabricated modules, and defence equipment.

The growth of infrastructure and industrial projects is driving demand for integrated project logistics solutions involving multimodal coordination, route engineering, regulatory approvals, heavy lifting, and precision cargo handling.

Government initiatives including PM Gati Shakti, the National Logistics Policy, Sagarmala, and Dedicated Freight Corridors are improving multimodal connectivity, reducing transit delays, and enhancing supply chain efficiency. Infrastructure spending continues to remain a key priority, with Union Budget FY26-27 allocating 12.2 lakh crore towards capital expenditure, while roads and highways received an allocation of 3.10 lakh crore, supporting connectivity and freight movement.

Indias manufacturing push and rising foreign investment are further strengthening demand for EPC and industrial logistics. FDI inflows during FY26 remained strong, reflecting continued global confidence in India as a manufacturing and infrastructure destination.

With rapid expansion in energy, infrastructure, and industrial capacity, ODC and project logistics are becoming critical enablers of Indias growth ecosystem, supporting the movement of high-value, complex, and time-sensitive cargo.

https://www.govtbudget.com/india-budget-2026-27?utm_source=chatgpt.com

https://economictimes.indiatimes.com/news/economy/policy/roads-highways-budget-2026-announcements-

impactanalysis/articleshow/127833476.cms?utm_source=chatgpt.com&from=mdr

ODC & Project Logistics - Key Growth Drivers

Indias infrastructure expansion, manufacturing growth, and energy transition are driving structural demand for Over-Dimensional Cargo (ODC) and Project Logistics. These specialized services are critical for transporting heavy, oversized, and high-value equipment requiring customized fleet capabilities, route engineering, regulatory coordination, and precision handling.

1. Power Infrastructure Expansion

Indias power sector is entering a major investment cycle, supported by rising electricity demand, renewable integration, and grid modernization. The FY27 Union Budget continues to prioritize power infrastructure, with focus on transmission capacity expansion, renewable integration, and energy security. This is expected to drive movement of transformers, reactors, turbines, switchgear, and other heavy electrical equipment.

Source: Union Budget FY27, Ministry of Finance; Ministry of Power.

2. Renewable Energy & Energy Transition

India continues to accelerate renewable capacity addition with a target of 500 GW non-fossil fuel capacity by 2030, creating significant demand for project logistics. Large-scale solar parks, wind farms, battery storage projects, and green hydrogen initiatives require specialized movement of wind turbine blades, nacelles, towers, solar modules, and heavy equipment. Source: Ministry of New & Renewable Energy (MNRE).

3. Defence & Strategic Manufacturing

Indias defence manufacturing ecosystem is expanding under Atmanirbhar Bharat and Make in India initiatives, increasing demand for secure and specialized logistics solutions. Growing domestic production of defence platforms, aerospace components, and heavy engineering equipment is supporting movement of high-value project cargo. Source: Ministry of Defence - Defence Production Reports.

4. Refineries, Petrochemicals & Heavy Industries

Indias refining and industrial capacity expansion continues to support demand for ODC movement of reactors, pressure vessels, columns, skids, and fabricated modules. Indias refining capacity is targeted to increase from ~256 MTPA currently towards ~310 MTPA by 2030, supporting long-term project logistics demand.

Source: Ministry of Petroleum & Natural Gas; PPAC.

5. EPC & Infrastructure-led Demand

Infrastructure development remains a major demand driver, with FY27 Union Budget allocating approximately 12.2 lakh crore towards capital expenditure, including 3.10 lakh crore for roads & highways, supporting large-scale movement of project cargo across sectors such as roads, railways, ports, airports, and industrial corridors.

Source: Union Budget FY27 - Ministry of Finance.

6. Logistics Infrastructure & Policy Support

Government initiatives including PM Gati Shakti, National Logistics Policy, Dedicated Freight Corridors, and Multimodal Logistics Parks are improving connectivity, reducing transit delays, and enabling more efficient project execution. The National Highway network is targeted to expand from ~1.46 lakh km (FY25) to ~1.85 lakh km by FY30, improving accessibility for heavy cargo movement.

Source: Ministry of Road Transport & Highways; PM Gati Shakti.

7. Semiconductor & Electronics Manufacturing

Indias push towards becoming a global electronics manufacturing hub is expected to create significant demand for specialized project cargo movement. Semiconductor fabs, display units, and electronics manufacturing facilities involve transportation of high-value, precision equipment such as lithography machines, clean-room modules, and heavy production machinery requiring specialized handling.

The Semicon India Programme with an outlay of 76,000 crore is supporting semiconductor and display manufacturing investments, driving demand for high-precision logistics solutions.

Source: Ministry of Electronics & Information

Technology (MeitY) - Semicon India Programme.

8. Data Centers & Digital Infrastructure

Rapid digitalization, cloud adoption, and Al-led data demand are accelerating data center capacity expansion in India. Large data center projects require movement of heavy chillers, generators, transformers, cooling systems, and modular infrastructure, creating opportunities for ODC logistics.

Indias data center capacity is expected to expand significantly over the coming years, supported by rising digital consumption and enterprise cloud adoption.

Source: JLL India - Data Centre Outlook Reports.

9. Railways & Metro Infrastructure

Expansion of railway networks, Dedicated Freight Corridors, metro projects, and urban mobility infrastructure is supporting demand for project logistics. Movement of locomotives, coaches, rail equipment, signaling systems, tunnel-boring machines, and large fabricated structures requires specialized transportation solutions.

Indian Railways has targeted increasing freight share through infrastructure upgrades, including Dedicated Freight Corridors and major capacity enhancement projects.

Source: Ministry of Railways; National Rail Plan.

10. Ports, Shipyards & Maritime Infrastructure

Port expansion, shipbuilding, and coastal infrastructure development are driving movement of oversized cargo including port cranes, heavy machinery, ship components, and industrial modules.

Under the Sagarmala initiative, India is focusing on port modernization, connectivity improvement, and logistics infrastructure development to enhance trade efficiency.

Source: Ministry of Ports, Shipping & Waterways - Sagarmala Programme.

11. Battery Manufacturing & EV Ecosystem

The transition towards electric mobility is creating demand for large-scale battery manufacturing plants and EV component facilities. These projects require transportation of heavy machinery, production lines, battery equipment, and specialized manufacturing modules.

The 18,100 crore Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage is supporting domestic battery manufacturing capacity creation.

Source: Ministry of Heavy Industries; Government of India PLI Scheme.

Overall ODC Outlook:

The growth of semiconductors, data centers, EV batteries, railways, ports, and renewable energy alongside traditional sectors such as power, refining, and heavy engineering is expected to make ODC & project logistics a key enabler of Indias industrial capex cycle. Operators with specialized equipment, engineering capabilities, and execution expertise are likely to benefit from this multi-sector opportunity.

Contract Integrated & General Logistics - Key Growth Drivers

While Project Logistics and ODC cater to specialized, high- value cargo movement, Contract Integrated Logistics (CIL) and General Freight Services represent the backbone of Indias supply chain ecosystem. Rising manufacturing activity, organized retail, e-commerce, and supply chain formalization are driving increased adoption of integrated logistics solutions.

1. Shift Towards Outsourced, End-to-End Logistics

Indian enterprises are increasingly outsourcing logistics operations to specialized partners to improve cost efficiency, asset utilization, supply chain visibility, and service reliability. Demand is expanding across manufacturing, automotive, FMCG, retail, pharmaceuticals, and consumer sectors, covering warehousing, transportation, distribution, and in- plant logistics.

Indias logistics market is projected to grow from approximately US$246 billion in FY25 to US$362 billion by FY30 (~8% CAGR), supported by increasing outsourcing and integrated logistics adoption.

Source: Brickwork Ratings - Logistics Sector in India Report (2026).

2. Growth of Integrated Supply Chain Solutions

Customers are increasingly preferring single- window logistics partners offering transportation, warehousing, inventory management, freight management, documentation, and value-added services. This trend is particularly visible in industries such as automotive, engineering goods, electronics, healthcare, and industrial products.

The expansion of Grade-A warehousing, multimodal logistics parks, and organized 3PL services is further strengthening integrated logistics capabilities.

Source: National Logistics Policy; Invest India - Logistics Sector Reports.

3. Manufacturing & General Cargo Growth

Indias manufacturing expansion under initiatives such as Make in India, PLI schemes, and China+1 diversification is supporting steady growth in general freight movement. Key demand sectors include automotive components, electronics, FMCG, metals, chemicals, textiles, and industrial goods.

The PLI schemes across 14 sectors with an approved outlay of 1.97 lakh crore are expected to support domestic manufacturing capacity addition and logistics demand over the medium term.

Source: Ministry of Commerce & Industry - PLI Scheme.

4. E-commerce & Consumption-led Logistics Demand

Rising consumption and e-commerce penetration are increasing demand for faster, flexible, and technology- enabled logistics solutions. Growth in direct-to- consumer models, omni-channel retail, and regional distribution networks is driving demand for last-mile delivery, hub-and-spoke networks, and fulfilment services.

Indias online retail market is expected to continue expanding strongly, supporting higher express logistics and distribution requirements.

Source: Invest India / Industry Reports.

5. Technology-driven Efficiency Improvements

Technology adoption through Transport Management Systems (TMS), GPS-enabled fleet tracking, digital freight platforms, AI-based route optimization, and electronic proof-of-delivery (e-POD) is improving fleet productivity, reducing turnaround time, and enhancing customer visibility.

The National Logistics Policy continues to promote digital integration through initiatives such as the Unified Logistics Interface Platform (ULIP) and logistics digitization.

Source: Ministry of Commerce & Industry - National Logistics Policy.

Future Outlook

Contract Integrated and General Logistics are expected to witness sustained growth, driven by manufacturing expansion, organized supply chains, e-commerce growth, and increasing preference for asset-light outsourced logistics models. Companies with nationwide networks, technology capabilities, diversified customer base, and integrated service offerings are well positioned to capture this structural opportunity.

Challenges in ODC & Project Logistics

Over-Dimensional Cargo (ODC) and Project Logistics is a specialized segment within Indias logistics ecosystem, supporting critical infrastructure and industrial projects. While growth prospects remain strong, the segment continues to face operational, regulatory, and execution challenges due to the complexity involved in handling heavy and oversized cargo.

1. Engineering-intensive Execution

ODC logistics involves significantly more than transportation and requires detailed engineering, route surveys, load assessments, bridge analysis, equipment planning, and coordination with project schedules. Any execution gap can result in delays, asset damage, or project cost overruns.

2. Complex Regulatory Approvals

Movement of ODC cargo requires multiple approvals including state-level permits, road and bridge clearances, police coordination, and utility management. With interstate movement involved, regulatory processes remain time-consuming and require strong local execution capabilities.

3. High Asset Intensity & Skilled Workforce Requirement

Transportation of equipment such as transformers, turbines, reactors, and heavy fabricated modules requires specialized assets including hydraulic axle trailers, modular transport systems, cranes, and lifting equipment. High capital requirements and the need for trained manpower create entry barriers.

4. Infrastructure & Route Constraints

Despite improvement in road infrastructure, several routes remain challenging for ODC movement due to bridge load restrictions, narrow roads, urban congestion, and limited heavy-haul connectivity.

Indias National Highway network is targeted to expand from ~1.46 lakh km (FY25) to ~1.85 lakh km by FY30, which is expected to improve connectivity; however, last-mile infrastructure and route suitability remain key execution factors for heavy cargo movement. Source: Ministry of Road Transport & Highways.

5. Project Execution & Cost Risks

ODC operations involve high-value cargo where delays, route disruptions, equipment failure, or handling errors can lead to significant financial and reputational impact. Therefore, customers prefer logistics partners with proven execution capability, strong risk management systems, and technical expertise.

6. Dependence on Infrastructure & Capex Cycle

ODC demand is closely linked to infrastructure investment cycles across power, renewable energy, defence, manufacturing and industrial projects. While Indias FY27 capital expenditure remains elevated at approximately 12.2 lakh crore, supporting project activity, execution timelines and infrastructure readiness remain critical factors.

Source: Union Budget FY27 - Ministry of Finance.

Future Outlook

ODC and Project Logistics is expected to remain a high- entry-barrier segment due to its technical complexity, specialized equipment requirements, and execution risks. The expansion of renewable energy, power transmission, manufacturing, defence, semiconductors, and infrastructure projects will continue to create long- term demand. Operators with engineering expertise, specialized fleet capability, regulatory experience, and strong project management skills are better positioned to capture this opportunity.

Industry Outlook

Indias logistics sector is undergoing a structural transformation, driven by infrastructure expansion, manufacturing growth, rising trade activity, and policy- led reforms. As India progresses towards becoming a global manufacturing and export hub, specialized logistics segments such as ODC and Project Logistics are expected to play an increasingly critical role.

Key Trends Shaping the Industry:

1. Sustained Infrastructure & Capex-led Growth

Indias infrastructure investment cycle remains a key demand driver for project logistics. The FY27 Union Budget continues to prioritize capital expenditure with an allocation of approximately ^12.2 lakh crore, supporting growth across roads, railways, power, renewable energy, defence, and industrial infrastructure.

Large-scale projects across these sectors require movement of heavy and specialized cargo, creating sustained demand for ODC and project logistics solutions.

Source: Union Budget FY27 - Ministry of Finance.

2. Manufacturing Expansion & Industrial Diversification

Indias push towards domestic manufacturing through initiatives such as Make in India, PLI schemes, and China+1 diversification is creating a strong pipeline of industrial projects. Investments in electronics, semiconductors, automobiles, defence, chemicals, and heavy engineering are expected to increase demand for specialized logistics.

The PLI programme covering 14 sectors with an approved incentive outlay of 1.97 lakh crore continues to support manufacturing capacity creation.

Source: Ministry of Commerce & Industry - PLI Scheme.

3. Renewable Energy & Power Sector Expansion

Indias energy transition remains a major growth catalyst for ODC logistics. The country targets 500 GW of non-fossil fuel capacity by 2030, driving demand for movement of wind turbines, transformers, solar equipment, battery storage systems, and grid infrastructure.

Power transmission expansion and renewable integration will continue to require specialized heavy- haul capabilities.

Source: Ministry of New & Renewable Energy (MNRE); Ministry of Power.

4. Technology-led Logistics Transformation

The logistics sector is moving towards higher efficiency through GPS tracking, digital freight platforms, AI- based route optimization, real-time visibility tools, and automated documentation systems. Technology adoption is improving asset utilization, reducing turnaround time, and enabling better execution of complex cargo movement.

Initiatives such as Unified Logistics Interface Platform (ULIP) under the National Logistics Policy are supporting digital integration across the ecosystem. Source: Ministry of Commerce & Industry - National Logistics Policy.

5. Infrastructure Connectivity & Policy Support

Government initiatives including PM Gati Shakti, National Logistics Policy, Dedicated Freight Corridors, and Multimodal Logistics Parks are improving supply chain efficiency and enabling smoother movement of oversized cargo.

Indias National Highway network is targeted to expand from approximately 1.46 lakh km (FY25) to 1.85 lakh km by FY30, improving connectivity for heavy and project cargo movement.

Source: Ministry of Road Transport & Highways.

6. Sector-specific Demand Drivers

Growth across power equipment, defence manufacturing, renewable energy, refineries, semiconductors, data centers, and heavy engineering is expected to create a sustained pipeline of project cargo.

Key long-term demand indicators include:

• Indias refining capacity targeted to increase towards ~310 MTPA by 2030

• Renewable energy capacity addition towards 500 GW non-fossil fuel target by 2030

• Expansion of semiconductor and electronics manufacturing under the ^76,000 crore Semicon India Programme

Sources: Ministry of Petroleum & Natural Gas; MNRE; MeitY.

Indias logistics industry is transitioning from a fragmented transportation model towards an integrated, technology- enabled, and specialized ecosystem. ODC and Project Logistics are expected to remain high-growth segments, supported by infrastructure spending, industrial expansion, energy transition, and increasing complexity of cargo movement.

Operators with specialized fleets, engineering capabilities, regulatory expertise, digital systems, and strong execution track records are best positioned to benefit from this long- term structural opportunity.

Company Overview & Strategic Positioning

Premier Roadlines Limited is a diversified logistics solutions provider specializing in Over-Dimensional Cargo (ODC) and Project Logistics, with a growing presence in Contract Integrated Logistics, General Freight, and international supply chain services through its wholly owned subsidiary.

During FY 2025-26, the Company continued to strengthen its positioning as a trusted logistics partner for infrastructure, power, energy, and engineering sectors by leveraging its technical capabilities, experienced workforce, and asset-light operational model.

The Companys business is structured across the following core verticals:

• ODC and Over-Weight Cargo Logistics

Premier offers highly specialized ODC logistics solutions for equipment ranging from 1 MT to 250 MT, including power transformers, turbines, tunnel boring machines (TBMs), hydro mechanical units, and heavy refinery components. The Companys ability to execute such movements is underpinned by expertise in route surveys, bridge and road strength assessments, bypass construction, MORTH permissions, and deployment of specialized trailers and axles.

• Project Logistics

This segment supports logistics needs for infrastructure and industrial projects, particularly in power transmission, oil & gas, defense, and renewable energy. With a project team led by logistics professionals with over two decades of domain experience, Premier has consistently delivered on high-value, time-sensitive assignments. The Companys fleet includes hydraulic modular trailers, semi-low bed and low-bed trailers, supported by real-time tracking systems and on- ground operational teams.

• Contract Integrated Logistics

This segment supports long-term logistics contracts with clients requiring daily dispatch operations across 1MT to 40MT load capacities. These include in-plant logistics, dedicated fleet deployment, secondary distribution, and real-time coordination through its ERP and GPS-based tracking systems. This vertical allows the Company to provide customized, scalable, and consistent logistics services to leading industrial and manufacturing clients.

• General Logistics

This segment handles just-in-time and spot-based transportation needs, including components, spares, and mid-volume industrial cargo. It supports clients who require high-reliability service outside of formal contracts, ensuring supply chain continuity across diverse operational geographies.

• Premier Worldwide Logistics Pvt. Ltd. (Formerly known as PRL Supply Chain Solutions Pvt. Ltd.) (WOS)

In FY25, the Company incorporated a wholly owned subsidiary to expand its portfolio into international freight, warehousing, and supply chain solutions, including air and ocean freight, project logistics, and 3PL services.

As of March 31, 2026, the Company had a total manpower of 233 employees, a pan-India network of 28 branch offices, and a managed fleet of over 24,733 vehicles, combining owned and third-party capacities. The Company added 11 pullers and 144 hydraulic axles in FY26, funded through a mix of IPO proceeds and internal accruals.

Premier served 578 clients during the year, focusing on high-value, long-term accounts in power, hydro, and EPC verticals. The Companys service mix in FY26 was comprised of ODC (35%), Project Logistics (20%), Contract Integrated Logistics (32%), and General Logistics (13%).

The Companys operating model is built around specialized project logistics capabilities, efficient asset utilization, strong vendor partnerships, and technology-enabled execution. Despite temporary industry-wide challenges including supply chain disruptions, port congestion, fuel availability constraints, manpower shortages, and elevated operating costs, the Company continued to maintain service quality, operational reliability, and execution excellence for its customers.

Looking ahead, Premier Roadlines is well positioned to benefit from sustained investments in infrastructure, renewable energy, power transmission, manufacturing, and industrial development. The Companys focus remains on expanding specialized logistics capabilities, strengthening integrated logistics solutions, improving operational efficiencies, and leveraging technology to deliver reliable and scalable services for long-term stakeholder value.

Strategic SWOT Summary

As Premier Roadlines Limited continues to strengthen its position across ODC, project logistics, contract integrated logistics, and general freight services, the Company operates in a rapidly evolving logistics ecosystem supported by infrastructure expansion, manufacturing growth, and policy-led reforms. The following SWOT summary highlights the Companys strategic positioning:

Strengths

• Specialized ODC & Project Logistics Expertise -

Proven capabilities in handling complex and high- value cargo movements across sectors including power transmission, renewable energy, defence, oil & gas, and heavy engineering.

• Integrated Logistics Platform - Balanced presence across ODC, project logistics, contract logistics, and general freight services provide diversification and enables the Company to serve varied customer requirements.

• Strong Execution Capabilities - Expertise in route engineering, regulatory approvals, permit management, heavy-haul planning, and precision execution provides a competitive advantage in complex logistics assignments.

• Asset & Operational Expansion - Continued strengthening of specialized fleet capabilities, including addition of 2 pullers and 38 axles, increasing total fleet strength to 11 pullers and 144 axles, improving execution capacity.

• Technology-enabled Operations - Adoption of ERP systems, GPS tracking, digital workflows, and real- time visibility tools enhances operational control, fleet efficiency, and customer experience.

• Industry Tailwinds - The Company is positioned to benefit from Indias infrastructure-led growth cycle, including FY27 capital expenditure of 12.2 lakh crore, renewable energy expansion, manufacturing investments, and logistics formalization.

Weaknesses

• Asset-intensive Business Model - ODC and project logistics require significant investment in specialized equipment, fleet maintenance, and skilled manpower, resulting in higher capital intensity.

• Dependence on Infrastructure Execution Cycles -

Cargo movement is closely linked to project timelines across infrastructure, energy, and industrial sectors, which can lead to variability in volumes.

• Operational Cost Sensitivity - Fuel prices, vehicle availability, manpower costs, and regulatory requirements can impact margins, particularly in contract and general logistics.

• Working Capital Requirements - Large project- based assignments and enterprise contracts may require efficient working capital management.

Opportunities

• Infrastructure & Energy Transition Growth -

Expansion in power transmission, renewable energy, green hydrogen, and industrial infrastructure is expected to drive long-term demand for ODC and project logistics.

• Manufacturing-led Logistics Demand - Growth in electronics, semiconductors, defence manufacturing, automotive, and heavy engineering supported by PLI schemes and Make in India initiatives creates new logistics opportunities.

• Growth in Integrated Logistics Solutions -

Increasing preference among enterprises for single- window logistics partners offering transportation, warehousing, technology, and value-added services.

• Digitalization & Formalization of Logistics - Initiatives such as National Logistics Policy, PM Gati Shakti, ULIP, and multimodal logistics parks are favoring organized logistics players.

• Expansion Through Subsidiary & Supply Chain Services - Growth opportunities in global freight, warehousing, and 3PL solutions through PRL Worldwide Logistics.

Threats

• Execution Complexity in ODC Operations - Route constraints, regulatory approvals, infrastructure limitations, and project delays can impact timelines and profitability.

• Infrastructure Bottlenecks - Bridge restrictions, road limitations, congestion, and uneven connectivity can affect movement of oversized cargo.

• Cost Volatility - Fluctuations in fuel prices, rental rates, and operating expenses may create pressure on margins if cost pass-through mechanisms are delayed.

• Competitive Pressure - Increasing competition from regional transport operators, digital freight platforms, and larger logistics players may impact pricing in commoditized segments.

• Macroeconomic & Geopolitical Risks - Global trade disruptions, supply chain constraints, and industrial slowdown can temporarily affect logistics demand.

Outlook for the Company

Premier Roadlines Limited remains well positioned to benefit from the long-term growth opportunities in Indias logistics sector, supported by sustained investments in infrastructure, renewable energy, power transmission, and industrial development. Despite near-term industry- wide challenges impacting fleet availability, operating costs, and execution timelines, the Company continued to demonstrate operational resilience by maintaining service quality, strengthening customer relationships, and delivering reliable logistics solutions.

The Company continues to enhance its specialized capabilities in project logistics and ODC transportation, supported by fleet expansion, operational initiatives, and improved execution capabilities. During FY26, the addition of 2 pullers and 38 axles strengthened its specialized fleet capacity, enabling it to cater to complex and high-value cargo movement requirements.

With improving operating conditions, better fuel availability, easing supply-side constraints, and improved cost pass-through mechanisms, the Company expects operational efficiency to gradually strengthen.

Going forward, Premier Roadlines remains focused on expanding its integrated logistics offerings, enhancing technology-driven execution, and leveraging its specialized expertise to capture opportunities arising from Indias infrastructure and industrial growth cycle. The Company believes its strong customer relationships, experienced team, and scalable capabilities position it well for sustainable long-term growth and value creation for stakeholders.

Financial Performance

Please refer Point no. 1 of Directors Report for financial performance of the Company.

Risk Management

The Company is exposed to common business risks, including changes in management or internal policies, operational lapses, regulatory developments, staff attrition, employee misconduct, interest rate fluctuations, and increased competition within the logistics sector.

Premier Roadlines Limited adopts a proactive and structured approach to risk management. It operates under a well-defined strategy and internal framework that enables it to respond effectively to a dynamic regulatory and business environment. The Company continuously monitors key risk areas and aligns its processes to mitigate operational, compliance, and financial exposures.

For a detailed overview of risk management policies, please refer to Point No. 15 of the Directors Report.

Human Resource

As on March 31, 2026, Premier Roadlines Limited employed 233 personnel across its branch network. The Company places strong emphasis on skilled manpower, particularly for its Over-Dimensional Cargo (ODC) and project logistics operations, where technical precision and safety are critical.

Employee safety and training remain top priorities, with regular sessions conducted for drivers, supervisors, and on-site teams. The Company also focuses on employee retention and capability building, supported by process automation and digital tools to improve efficiency and coordination.

Premier remains committed to nurturing a safe, competent, and agile workforce to support its long-term growth strategy.

Internal Control Systems and Their Adequacy

Premier Roadlines Limited has in place a robust internal control system that ensures reliable financial reporting, regulatory compliance, operational efficiency, and asset protection across all business functions.

The Companys internal controls are reviewed periodically and updated to align with evolving regulatory requirements and business needs. These systems are supported by defined standard operating procedures (SOPs), delegated authority matrices, and automated workflows where applicable. Independent internal audits are conducted regularly to evaluate the effectiveness of controls, identify potential risks, and recommend improvements.

The Board of Directors, through the Audit Committee, monitors the adequacy and effectiveness of internal control mechanisms and ensures corrective actions are implemented promptly.

For further details, refer to Point No. 12 of the Directors Report.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, projections, and forward-looking intentions may constitute “forward-looking statements” within the meaning of applicable laws and regulations.

Actual results may differ materially from those expressed or implied in such statements due to various factors, including but not limited to government policies, taxation changes, market conditions, economic developments, and demand-supply dynamics, all of which are beyond the Companys direct control.

KEY FINANCIAL RATIOS

The details of significant changes in key financial ratios, along with detailed explanation thereof are as follows:

Particulars	FY 2025-26	FY 2024-25	% Change	Reason, if any
Debtors Turnover Ratio	2.88	3.01	-4.16	-
Interest Coverage Ratio	8.11	11.58	-29.92	Due to increase in Interest expense and decrease in Earnings before Interest and taxes during the year
Debt Service Coverage Ratio	3.53	3.31	6.56	-
Debt Equity Ratio	0.54	0.44	24.10	During the current year, company has purchased commercial vehicles on loans. As a result, % increase in debt is more than % increase in equity
Operating Profit Margin (%)	14.27	14.70	-2.93
Net Profit Margin (%)	4.13	5.44	-24.18	Due to % increase in expenses is more than % in- crease in sales in the current year.
Return on Net Worth	14.23	24.36	-41.57	Due to decrease in net profit and increase in net worth during the year.

For and on behalf of Board of Premier Roadlines Limited

Sd/-	Sd/-
Virender Gupta	Rakhi Gupta
Chairman & Managing Director	Whole Time Director
DIN: 01686194	DIN: 01686234
Add. D-75, Sec-30, Noida, 201301	Add. D-75, Sec-30, Noida-201301
Date: 03.07.2026
Place: Delhi