Premier Roadlines Ltd Management Discussions

Macro-Economic Overview Global Economic Landscape

The global economy grew by 3.3% in 2024, demonstrating resilience despite elevated interest rates, supply chain pressures, and geopolitical instability. As per the IMFs April 2025 World Economic Outlook, global growth is projected to moderate to 2.8% in 2025, followed by a slight uptick to 3.0% in 2026.

Advanced economies are expected to expand at 1.4%, while emerging and developing economies are forecasted to grow at 3.7%. Global inflation is on a downward trajectory, projected to fall from 5.9% in 2024 to 4.3% in 2025, supported by tighter monetary policy and easing commodity prices. However, global trade volume growth is expected to slow to 1.7% in 2025, down from 3.2% in 2024, largely due to weaker demand and policy uncertainties.

Indian Economic Environment

India continues to be one of the worlds fastest-growing major economies, with GDP growth estimated at 6.4% in FY 2024–25, according to the Reserve Bank of India and independent economic forecasts. This performance is driven by robust domestic demand, easing inflation, and continued capital expenditure by both the government and private sector.

The RBI reduced the repo rate to 6.0% in April 2025 to encourage credit flow and domestic investment. Headline inflation has moderated to around 5.2%, while food and core inflation remain contained. Foreign Direct Investment (FDI) stood at approximately

USD 81.04 billion in FY25, with strong inflows in manufacturing, electronics, healthcare, and renewable sectors. The Union Budget 2025–26 allocated Rs. 11.21 lakh crore towards capital expenditure, and in FY25, a record Rs. 2.5 lakh crore was spent on the construction of 5,614 km of highways.Strategic programs such as PM Gati Shakti, Bharatmala, and the National Logistics Policy continue to enhance the countrys infrastructure backbone and logistics competitiveness. With rising productivity and policy stability, India has emerged as the worlds fourth-largest economy (by nominal GDP), surpassing Japan, and is projected to become the third-largest by FY 2028. 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.indiabudget.gov.in https://dpiit.gov.in/foreign-direct-investment https://pib.gov.in https://www.worldbank.org/en/publication/global-economic-prospects https://www.imf.org/en/Countries/IND https://www.linkedin.com/pulse/india-received-81-billion-fdi-fy-2024-2025-prodotgroup-dxw7c

Global Logistics Industry Snapshot

The global logistics industry continues to evolve amid structural shifts in infrastructure development, energy transition, and supply chain resilience. Valued at approximately USD 5.65 trillion in 2024, the global logistics market is projected to reach USD 8.07 trillion by 2033, growing at a CAGR of 4.02% (Source: IMARC Group). A large portion of this growth is being driven by:

• Increased capital investment in power infrastructure, clean energy, and heavy industrial projects across Asia, Africa, and the Middle East.

• Rising demand for project logistics and over-dimensional cargo (ODC) movement, especially for transformers, turbines, reactors, and modular construction units.

• Cross-border multimodal connectivity being prioritized by emerging economies to unlock export potential and regional trade.

Simultaneously, the sector is undergoing digital transformation, with widespread adoption of:

AI, IoT, and automation fleettracking, route optimization, and cargo visibility.

• Sustainability mandates, including decarbonization efforts, EV fleet conversion, and green warehousing.

• Resilience strategies, such as nearshoring, supplier diversification, and real-time risk monitoring.

The global outlook for the logistics industry remains robust, supported by infrastructure-led growth and large-scale energy transition projects—both of which are deeply dependent on reliable, high-precision transport of heavy and complex cargo. https://www.imarcgroup.com/logistics-market https://www.imf.org/en/Publications/WEO/ Issues/2025/04/16/world-economic-outlook-april-2025 https://www.mckinsey.com/business-functions/operations/ our-insights/the-future-of-supply-chain-and-logistics https://www.statista.com/statistics/1032006/global-logistics-market-size/ https://www.worldbank.org/en/news/feature/2023/12/07/ why-strong-logistics-are-vital-for-developing-economies https://www.pwc.com/gx/en/industries/transportation-logistics/publications/logistics-industry-trends.html https://www.dhl.com/global-en/home/insights-and-innovation/insights/logistics-trends.html

Indian Logistics Sector

Indias logistics industry, valued at USD 228.4 billion in 2024, is on track to reach USD 357.3 billion by 2030, growing at a CAGR of 7.7% (Source: IMARC Group). A significant share of this growth is being driven by the rising complexity and scale of infrastructure projects, making Project Logistics and Over-Dimensional Cargo (ODC) a critical pillar of the countrys logistics transformation.

India is undergoing a capital-intensive growth phase, with increasing investments in:

• Power transmission and generation infrastructure

Large-scale manufacturing and refinery projects

• Renewable energy assets (solar, wind, hydrogen)

• Defense production and heavy industrial machinery These sectors demand highly specialized logistics capabilities-including multimodal coordination, route engineering, regulatory clearances, and cargo handling precision — which are integral to the movement of ODC like transformers, turbines, reactors, large fabricated modules, and military equipment.

Key enablers include:

• Government-led programs such as PM Gati Shakti, National Logistics Policy, Sagarmala, and Dedicated Freight Corridors, all aimed at improving multimodal connectivity and reducing transit delays.

• Heavy allocation towards infrastructure: Rs. 11.21 lakh crore in Union Budget 2025–26, and a record Rs. 2.5 lakh crore spent on national highway development in FY25.

Improvement in logistics efficiency, with India ranked38th on the World Banks Logistics Performance Index (2023), supported by digital tracking, unified permits, and private participation in freight handling.Indias strategic position in South Asia, coupled with FDI inflows of over USD 81 billion in FY25, is reinforcing the countrys role as a regional hub for engineering, procurement, and construction (EPC) logistics.

With infrastructure and energy sectors expanding rapidly, ODC and project logistics are not only growing — they are becoming essential to Indias industrial supply chains.

ODC & Project Logistics – Key Drivers

Indias rapid infrastructure development and industrialization have significantly increased the demand for Over-Dimensional Cargo (ODC) and Project Logistics. These specialized services are critical for transporting heavy, oversized, or technically sensitive equipment that cannot be moved through conventional freight means.

Key Demand Drivers:

1. Power Infrastructure Expansion

With Indias push to modernize and expand its power transmission and generation network, there is growing movement of power transformers, switchyards, turbines, and reactors. The power transformer market alone is expected to grow at a CAGR of 8.5% from FY25 to FY32, driven by urbanization, renewable energy, and grid upgrades.

2. Renewable Energy Projects

Solar parks, wind farms, and green hydrogen projects require time-sensitive and heavy-lift logistics. Movement of wind turbine blades, nacelles, towers, and grid connection equipment falls squarely within the ODC domain.

3. Defense and Strategic Sectors

Indias growing defense production and exports, under the Make in India and Atmanirbhar Bharat initiatives, have increased movement of sensitive and high-value project cargo like radar systems, armored components, and fabrication units for military equipment.

4. Refineries, Petrochemicals & Heavy Industries

Expansion of Indias refining capacity (projected to reach 667 MTPA by 2040) and associated downstream sectors involves the transportation of ODC units like columns, reactors, pressure vessels, and skids.

5. EPC & Industrial Projects

Engineering, Procurement, and Construction (EPC) contractors require end-to-end logistics solutions for large infrastructure projects. ODC plays a crucial role in timely project execution for highways, metros, and smart cities.

6. Government Capex & Policy Support

Schemes like PM Gati Shakti, high budgetary allocations for capex (Rs. 11.21 lakh crore in FY26), and funding for mega projects are generating consistent movement of large-scale cargo across states.

ODC and Project Logistics are no longer niche—they are becoming mission-critical components of Indias infrastructure supply chain. Operators with specialized fleets, route engineering expertise, regulatory experience, and risk management capabilities are best positioned to capture this growing opportunity.

Contract Integrated & General Logistics

While project logistics and ODC are driving large-scale cargo movements across infrastructure and industrial sectors, there is a parallel and growing demand for Contract Integrated Logistics and General Freight Services across Indias evolving economy.

Key Growth Drivers:

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

Businesses across manufacturing, consumer goods, retail, and auto sectors are increasingly outsourcing logistics to specialized partners for better cost control, efficiency, and visibility. This has fueled demand for contract logistics covering warehousing, secondary distribution, last-mile delivery, and in-plant operations.

2. Rise of Integrated Solutions

Companies now prefer integrated logistics partners who can offer bundled services - including transportation, storage, documentation, and value-added services - rather than working with multiple vendors. This is especially prominent in sectors like pharma, engineering goods, and capital equipment.

3. Growth in General Cargo Movement

Steady demand in FMCG, textiles, metals, electronics, and auto parts supports regular general cargo movement across India. General freight transport continues to contribute significantly to volume throughput, especially on hub-to-spoke and spoke-to-spoke routes.

4. Technological Integration

The adoption of Transport Management Systems (TMS), real-time tracking, fleet optimization, and electronic proof-of-delivery (e-POD) is enhancing customer experience and operational efficiency in both contract and general logistics. makes

5. Policy Push for Efficiency

Initiatives like the National Logistics Policy, e-LogS (Logistics Services Platform), and GST implementation have brought greater formalization, visibility, and tax efficiency, making contract for enterprise clients.

While ODC and project logistics cater to specialized high-value cargo, contract and general logistics form the operational backbone of Indias trade and supply chain network. Premier Roadlines presence across both verticals strengthens its position as a multi-service logistics partner, delivering scale, reliability, and integration.

Challenges in ODC & Project Logistics

The over-dimensional cargo (ODC) and project logistics segment is a highly specialized domain within the logistics ecosystem. While demand is expanding due to large-scale infrastructure and industrial activity, the operational realities of this segment make it extremely complex to enter, scale, or standardize without deep expertise.

Key Challenges:

1. Execution Requires Precision and Experience

Project logistics is not just about transport — its about engineering. Each assignment demands technical planning, detailed route surveys, structural assessments, and synchronization with project timelines. Inadequate experience can lead to delays, damage, or compliance failures.

2. Heavy Regulatory & Compliance Burden

ODC cargo requires multiple permissions: state-wise road permits, bridge and road clearances, police escorts, and utility shutdowns. Managing these across geographies is resource-intensive and requires prior working knowledge of regulatory processes and local coordination.

3. Specialized Equipment & Trained Workforce

The movement of high-value equipment like transformers, turbines, reactors, or fabrication modules requires modular trailers, hydraulic axles, cranes, and a crew trainedspecificallyfor ODC handling. Acquiring, maintaining, and operating such assets involves significant capital and operational discipline.

4. Infrastructure Challenges

Not all parts of India are ODC-ready. From low-clearance bridges to narrow rural highways, the route engineering and execution often require civil works, reinforcements, and pilot support — activities that go beyond traditional logistics.

5. Reputational and Financial Risk

A single failure — whether due to route miscalculation, permit delay, or equipment mishandling — can result in multi-crore project losses, affecting all stakeholders. dependent on proven Thisriskprofile experience and systematic controls.

ODC and project logistics is not a commoditized transport service — it is a technical, high-responsibility operation. Success in this space depends on deep operational knowhow, regulatory experience, equipment capabilities, and logistics more attractive a highly skilled workforce. These inherent complexities make scaling in this segment highly dependent on long-term expertise, and limit easy entry or expansion by general logistics providers.

Industry Outlook

Indias logistics sector is on a transformative growth trajectory, driven by infrastructure expansion, industrial investment, and government-backed reforms. As the economy moves toward becoming a global manufacturing and export hub, the role of specialized logistics — particularly ODC and project logistics — will become increasingly indispensable.

Key Trends Shaping the Industry:

1. Sustained Infrastructure Spending

The Union Budget 2025–26 allocated Rs. 11.21 lakh crore for capital expenditure, with focused investments in transportation, power, renewable energy, defense, and heavy industry. These sectors generate consistent demand for project logistics, especially for transporting large, time-sensitive, and high-value equipment.

2. Rising Complexity in Cargo Movement

As infrastructure projects become larger and more geographically distributed, the need for end-to-end logistics partners with capabilities in multimodal planning, real-time coordination, and regulatory compliance is growing. ODC will continue to be a critical enabler for these time-bound deliveries.

3. Emergence of Technology-Driven Logistics

The integration of digital freight platforms, GPS-enabled tracking, route simulation tools, and automated permit workflows is reshaping execution.

Logistics players with technology-led capabilities will gain competitive advantages in speed, visibility, and customer service.

4. Policy and Structural Reforms

National programs like PM Gati Shakti, National Logistics Policy, and the Development of Multi-Modal Logistics Parks (MMLPs) are improving connectivity and formalizing the sector. These structural shifts will reduce transit delays, improve efficiency, and open up new regional corridors for cargo movement.

5. Sectoral Growth Driving Logistics Demand

The expected growth in Indias transformer market

(CAGR 8.5%), defense manufacturing, and refining capacity (667 MTPA by 2040) indicates a steady pipeline of heavy equipment transportation needs. Similarly, large solar and wind installations will continue to push demand for specialized handling of long, delicate, and heavy components.

Indias logistics industry is transitioning into a more integrated, technology-led, and specialized ecosystem. The ODC and project logistics segment, in particular, is poised for long-term growth, powered by national development goals, industrial diversification, and growing expectations for on-time, engineered delivery.

Operators with the right mix of experience, asset readiness, manpower, and digital agility will be best placed to lead in this evolving landscape.

Company Overview & Strategic Positioning

Premier Roadlines Limited is a diversifiedlogistics 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 2024–25, 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. In FY25, Premier successfully executed several critical ODC deliveries, including Indias largest TBM and multi-megawatt transformers for clients in power and EPC sectors.

• 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

Premier currently manages over 25 long-term logistics contracts with clients requiring daily dispatch operations across 1MT to 40MT load capacities. These include in-plant logistics, dedicated fleet 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, 2025, the Company had a total manpower of 245 employees, a pan-India network of 28 branch offices, and a managed fleet of over 23,000 vehicles, combining owned and third-party capacities. The Company added 7 pullers and 74 hydraulic axles in FY25, funded through a mix of IPO proceeds and internal accruals.

Premier served 695 clients during the year, focusing on high-value, long-term accounts in power, defense, hydro, and EPC verticals. The Companys service mix in FY25 was comprised of ODC (30%), Project Logistics (16%), Contract Integrated Logistics (15%), and General Logistics (39%). The Companys operating model combines deep technical digital visibility, and a expertise, scalable vendor network. It continues to emphasize quality execution, regulatory compliance, and route optimization, especially in remote and infrastructure-constrained regions.

Looking ahead, Premier Roadlines is strategically positioned to benefit from sustained public and private investment in infrastructure, energy, and industrial capacity creation. Its focus remains on strengthening capabilities in core segments, expanding integrated logistics offerings, and enhancing technology-driven service delivery across all touch points.

Strategic SWOT Summary

As Premier Roadlines Limited continues to expand its footprint across ODC, project logistics, contract logistics, and global supply chain services, it operates in an environment shaped by both structural strengths and operational complexities. The following SWOT summary outlines the Companys strategic positioning:

Strengths

• Proven capability in handling complex Over-Dimensional Cargo (ODC) and project logistics across critical sectors such as power, hydro, defense, and oil & gas.

Nationwide reach through 28 branch offices,

245+ employees, and over 23,000 vehicles under management.

• Balanced business model across ODC, project, contract integrated, and general logistics, offering revenue stability.

• Regulatory expertise and technical know-how in route surveys, permits, bypass construction, and risk management.

• Investment in ERP systems, GPS tracking, and digital workflows for better operational visibility and customer service.

Weaknesses

High capital intensity associated with specialized fleet additions and asset upkeep, particularly in the ODC segment.

• Dependency on infrastructure and project execution cycles, which can influence cargo movement volumes.

• Ongoing transition toward fewer but higher-value clients may temporarily impact volume diversification.

Opportunities

Sector-specific logistics demand from ongoing national investments in power transmission, renewable energy, and defense manufacturing.

• Growth potential in global freight, warehousing, and 3PL services through its subsidiary Premier Worldwide Logistics Pvt. Ltd. (Formerly known as PRL Supply Chain Solutions Pvt. Ltd.).

• Rising adoption of digital logistics platforms and centralized permitting processes favoring organized players.

• Increasing preference among enterprise clients to consolidate logistics under experienced and accountable partners.

Threats

• Operational risks in ODC and project logistics, particularly when executing assignments in remote or infrastructure-deficient locations.

• Physical limitations in road and bridge infrastructure that restrict movement of super-heavy cargo.

• Volatility in fuel prices, rental rates, and regulatory costs impacting margins in general and contract logistics.

• Competitive intensity from emerging digital freight aggregators and regional transport operators in commoditized segments.

Outlook for the Company

Premier Roadlines Limited enters FY 2025–26 with strong momentum, having demonstrated execution strength in H2 FY25 across high-margin segments such as Over-Dimensional Cargo (ODC) and Project Logistics. The Company anticipates continued growth led by robust demand from power transmission, defense, hydro, and refining sectors, supported by sustained infrastructure spending and an improving macro environment.

The Company remains focused on:

• Scaling specialized logistics operations, backed by the addition of 7 pullers and 74 hydraulic axles using IPO proceeds;

Consolidating order flow from strategic clients in critical sectors;

• Leveraging technology through GPS-enabled tracking, automated permit workflows, and ERP-driven operations for enhanced transparency and efficiency.

In addition to strengthening its core verticals, Premier Roadlines will continue to build on its presence in Contract Integrated Logistics and expand into global freight, warehousing, and supply chain services through its subsidiary, Premier Worldwide Logistics Pvt. Ltd. (Formerly known as PRL Supply Chain Solutions Pvt. Ltd.).

With a growing reputation for reliable and timely project execution, a modernized fleet, and a balanced, asset-light approach, the Company is well-positioned to capitalize on long-term logistics demand across infrastructure and industrial value chains.

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, 2025, Premier Roadlines Limited employed 245 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 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 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 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.

Key Financial Ratios

Particulars	FY 2024-25	FY 2023-24	% Change	Reason, if any
Debtors Turnover Ratio	3.01	3.35	-10.21	-
Interest Coverage Ratio	11.58	5.94	95.00	-
Debt Service Coverage Ratio	3.31	4.40	-24.70	Due to increase in earning and decrease in debt
Debt Equity Ratio	0.44	0.93	-52.85	Due to increase in equity and decrease in debt
Operating Profit Margin (%)	14.70	15.74	-6.61	Due to increase in profit &
Net Profit Margin (%)	5.44	5.52	-1.49	Due to increase in profit &
Return on Net Worth	24.36	37.77	-35.51	-

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.

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: 09.07.2025
Place: Delhi