Rapid Fleet Management Services Ltd Management Discussions

1. Company Overview and Corporate Snapshot

Particulars	Details
Corporate Identity Number (CIN)	L60232TN2017PLC120205
Date of Incorporation	26 December 2017
Registered Office	Kanaga Saraswathi Towers, New No. 9, Old No. 5, Coral Merchant Street, Chennai - 600 001, Tamil Nadu
Listing	NSE Emerge (SME) Platform - Symbol: RAPIDFLEET (listed March 2025)
Nature of Business	B2B pan-India full truckload (FTL), over-dimensional cargo (ODC)/project logistics, and integrated road transport solutions
Key Sectors Served	Automobile, Renewable Energy (wind/solar), FMCG, Electronics & White Goods, Health & Hygiene, and allied industries
Owned Fleet (as on 31 March 2026)	250+ vehicles, including SXL/MXL trucks, 40 ft trailers, low- bed/semi-low-bed/high-bed trailers, 62-metre extendable trailers with prime movers, hydraulic modular axles, tower- section trailers, pullers and mobile cranes (up to 80 tonnes)
Network Reach (FY26)	300+ destinations; 2,450 lanes operated; 72,689 trips; 2.01 crore+ kilometres covered
Workforce	190+ employees (approx. 13% women representation)
Market Capitalisation (as of latest available data)	%141 crore

2. Mission, Vision and Business Profile

Rapid Fleet Management Services Limited is a Chennai-headquartered, asset-backed B2B road transportation company providing pan-India full truckload and specialised project cargo logistics to corporate customers. Since its incorporation in 2017, the Company has built its business model around an owned and diversified fleet, an in-house proprietary Transport Management System (TMS), and dedicated in-house maintenance infrastructure, enabling it to deliver efficient, predictable and transparent logistics services that lower the effective landed cost for its customers.

The Companys mission is to provide logistics and fleet management solutions that are efficient, reliable and transparent, thereby enhancing the competitiveness of its customers supply chains. Its vision is to be a nationwide leader in infrastructure-focused logistics, expanding its capabilities in electric and CNG-powered mobility while deepening its specialised franchise in renewable-energy and heavy/over-diniensional cargo logistics.

During FY26, the Company continued to scale its Over-Dimensional Cargo (ODC) vertical relating to renewable energy logistics - a higher-realisation revenue stream that complements its core full- truckload operations and meaningfully broadens its addressable market. Key operational milestones during the year included the successful transport of an 89.50-metre windmill blade (an industry-first execution in Indian road logistics), the operationalisation of a dedicated 30-acre yard near Thoothukudi for windmill component logistics, and the induction of 80+ tonne hydraulic mobile cranes to strengthen heavy-lift capability.

In recognition of its yard management capabilities, the Company received the Collaboration Catalyst Award 2025 for Best Yard Management from a leading Original Equipment Manufacturer (OEM) of Wind Turbine Generators (WTG).

3. Industry Structure and Developments

3.1 Macro-Economic Overview

The Indian economy continued to demonstrate resilience through FY26 amid a mixed global backdrop, including persistently elevated global interest rates for part of the year, volatility in crude oil prices, and uneven global trade conditions arising from tariff-related developments among major economies. India remained among the fastest-growing large economies globally, with domestic demand, sustained government capital expenditure on infrastructure, and easing retail inflation providing support to overall economic momentum through the year.

Continued investment in national logistics and transport infrastructure, digital public infrastructure, and policy reform aimed at reducing the cost of logistics as a share of GDP provided a favourable operating backdrop for organised, asset-backed road transport operators such as the Company.

3.2 Indian Logistics and Road Transport Industry

Road transportation continues to be the dominant mode of freight movement in India by tonnage, ahead of rail, air and coastal/inland waterways. The industry remains structurally fragmented, with a large base of unorganised, owner-operator capacity alongside a smaller but growing segment of organised, technology-enabled and compliance-focused players. The post-GST formalisation of freight movement has continued to shift business toward compliant, asset-backed providers capable of offering nationwide reach, real-time visibility and specialised handling capability - a trend from which the Company continues to benefit.

Key structural growth drivers for the industry during FY26 included continued rollout of the National Logistics Policy (NLP) and the PM Gati Shakti Master Plan, sustained government capital expenditure on national highways, expressways and multi-modal logistics parks, the stated national objective of reducing logistics costs to single digits as a percentage of GDP, and robust demand from renewable energy, power and infrastructure, automobile, FMCG, tyres and electronics sectors - each of which are among the Companys core served industries.

3.3 Renewable Energy Logistics - A Structural Growth Driver

Indias continued build-out of wind and solar generation capacity, supported by government policy incentives, has created sustained demand for specialised over-dimensional and heavy-lift logistics capable of transporting windmill blades, nacelles, towers and associated components. The Companys investment in extendable trailers, hydraulic modular axles and heavy cranes, along with dedicated yard infrastructure, positions it to capture a growing share of this specialised, higher- realisation segment of the logistics market.

4. Business and Operational Review - FY26

Operational Parameter	FY26	FY25
Owned Fleet (vehicles)	250+	220+
Destinations Served	300+	300+
Lanes Operated	2,450	N.A. (not separately disclosed)
Total Trips (annual)	72,689	-72,000 (approx., FY25 annual report)
Total Distance Covered	2.01 crore + km	N.A. (not separately disclosed)
Net Carrying Value of Fleet (Rs. crore)	51.48	36.59

Sources: Company press release on Audited Financial Results - H2 FY26 & FY26 (May 22,2026) and FY25 Annual Report.

The net carrying value of the Companys owned fleet increased by approximately 40% year-on-year, from Rs.36.59 crore as on March 31,2025 to Rs.51.48 crore as on March 31, 2026, reflecting calibrated capital expenditure across vehicle categories, including specialised heavy-haulage equipment for the ODC and renewable-energy logistics vertical.

5. Sector-wise Revenue Contribution

The Companys revenue continues to be diversified across its core served industries - Automobile, Renewable Energy, FMCG and other sectors (including electronics, white goods and building materials). During FY26, the Automobile sector remained the single largest contributor to revenue, while the Renewable Energy segment recorded a meaningful increase in its share of total revenue as compared to FY25, reflecting the scale-up of the Companys ODC and project-cargo franchise. The FMCG and other-sector share moderated correspondingly as a proportion of the overall, larger revenue base.

This shift in sector mix is consistent with the Companys strategy of broadening its addressable market through higher-realisation specialised cargo movements, while continuing to deepen wallet share with its existing marquee B2B customers across all served sectors.

6. Opportunities and Threats

6.1 Opportunities

Continued formalisation of Indias freight movement post-GST, shifting business from unorganised operators toward compliant, asset-backed providers such as the Company.

Structural growth in Indias renewable energy capacity addition, driving sustained demand for specialised ODC and heavy-lift logistics.

Policy tailwinds from the National Logistics Policy and PM Gati Shakti Master Plan, and continued government capital expenditure on highway and multi-modal infrastructure.

Opportunities to deepen wallet share with existing large corporate customers across automobile, FMCG, electronics and renewables.

Expansion of heavy-lift and specialised equipment capability (extendable trailers, hydraulic modular axles, high-tonnage cranes) as a competitive differentiator in project cargo.

Potential to extend network reach into Tier-II and Tier-Ill markets as customer supply chains decentralise.

Continued technology adoption - GPS-enabled tracking, e-POD, route optimisation - to improve service reliability, asset utilisation and customer transparency.

6.2 Threats

Intense competition from both organised logistics players and a large base of unorganised, price-sensitive operators.

Volatility in diesel and fuel prices, which directly affects operating costs and margins.

Infrastructure bottlenecks, congestion and regional disruptions affecting turnaround times.

Increasing regulatory and compliance requirements applicable to road transport, motor vehicles and cross-border/inter-state movement.

Macroeconomic slowdown or demand contraction in key end-user industries (automobile, FMCG, renewables) that could affect shipment volumes.

Shortage of trained commercial/heavy-vehicle drivers and rising wage costs across the logistics sector.

Concentration risk arising from reliance on a limited number of large corporate customers for a significant share of revenue.

7. Segment-wise / Product-wise Performance

The Company operates in a single reportable segment - road transportation and logistics services, comprising full truckload, over-dimensional cargo/project logistics, and allied value-added services - consistent with the manner in which the Companys chief operating decision maker reviews performance and allocates resources. Accordingly, no separate segment-wise financial disclosures are presented, in line with the applicable Indian Accounting Standard on operating segments.

Within this single segment, the Companys revenue mix by served industry (Automobile, Renewable Energy, FMCG and Others) is discussed in Section 5 above.

8. Discussion on Financial Performance

8.1 Standalone Financial Results - Full Year

Particulars (1 in Lakhs)	FY 2025-26	FY 2024-25	YoY Growth
Revenue from Operations	20,435.08	17,243.98	18.51%
EBITDA	2,841.32	2,358.99	20.45%
Profit Before Tax (PBT)	1,667.81	1,356.32	23.0%
Profit After Tax (PAT)	1,247.16	1,027.97	21.3%
Earnings Per Share (1)	16.77	19.97	(16.0%)

Source: Companys Press Release and Investor Presentation on Audited Financial Results for H2 FY26 & FY26, filed with NSE on May 22,2026 pursuant to Regulation 30 of the SEBILODR Regulations.

8.2 Standalone Financial Results - H2 FY26 vs H2 FY25

Particulars (Rs. in Lakhs)	H2 FY26	H2 FY25	YoY Growth
Revenue from Operations	12,928.57	8,741.43	47.9%
EBITDA	1,786.35	1,054.97	69.33%
Profit Before Tax (PBT)	1,116.89	430.28	159.6%
Profit After Tax (PAT)	835.04	326.63	155.65%
Earnings Per Share 0Rs.)	11.23	6.17	82.0%

Revenue from operations for FY26 increased by 18.51% year-on-year to Rs.20,435.08 lakh, led by continued strong execution across the Companys existing customer base spanning automobile, FMCG, electronics, white goods and renewables, together with scale-up of the higher-realisation ODC and renewable-sector project cargo vertical. The Companys performance was notably stronger in the second half of the year, with H2 FY26 revenue growing 47.9% year-on-year, reflecting seasonally higher renewable-sector project execution and continued deepening of existing customer relationships.

EBITDA increased by 20.45% to Rs.2,841.32 lakh in FY26 from Rs.2,358.99 lakh in FY25, with the EBITDA margin improving to approximately 13.91% in FY26 from approximately 13.68% in FY25, reflecting operating leverage from higher fleet utilisation and the increasing contribution of higher- margin specialised cargo movements. PBT and PAT grew 23.0% and 21.3% respectively, with the pace of profit growth accelerating sharply in H2 FY26 (PBT up 159.6% and PAT up 155.65% year- on-year), underscoring the operating leverage inherent in the Companys asset-backed model as volumes and specialised project execution scaled through the year.

Earnings per share for FY26 was Rs.16.77, as compared to Rs.19.97 in FY25. The decline in EPS, notwithstanding growth in absolute PAT, reflects an increase in the weighted average number of equity shares outstanding during FY26 following further equity-related activity undertaken by the Company during the year (see Section 9 below).

9. Capital Structure and Shareholding Pattern

As on March 31, 2025, the Companys issued, subscribed and paid-up equity share capital stood at 74,34,800 equity shares of Rs.10 each, following completion of a bonus issue (49,00,000 shares), a preferential allotment (1,50,000 shares) and the Companys Initial Public Offering of 22,84,800 equity shares (raising Rs.60.14 crore against an initial target of Rs.43.68 crore), pursuant to which the Companys equity shares were listed on the NSE Emerge platform.

10. Details of Significant Changes in Key Financial Ratios

In terms of Schedule V, Part B, Clause (ix) and (x) of the SEBI LODR Regulations, the Company is required to disclose significant changes (i.e., 25% or more as compared to the immediately preceding financial year) in key financial ratios, together with detailed explanations, including any change in Return on Net Worth. The table below sets out the ratios computable from figures disclosed in the Companys FY26 results press release and investor presentation, together with the corresponding FY25 audited ratios as previously reported.

Ratio	FY26	FY25	Change	Remarks
EBITDA/Operating Profit Margin (%)	13.91%	13.68%	+0.23 pp	Improved fleet utilisation and higher contribution from specialised ODC and renewable cargo movements.
PBT Margin (%)	8.16%	7.87%	+0.29 pp	Operating leverage as revenue scaled, particularly in H2FY26
Net Profit Margin (%)	6.10%	5.96%	+0.14 pp	PAT growth outpaced revenue growth, supporting a steady improvement in net profitability.

Ratio	FY26	FY25	Change	Remarks
Earnings Per Share (Rs.)	16.77	19.97	-3.2	Declined primarily due to an increase in weighted average shares outstanding during FY26.
Current Ratio	2.22 X	3.15X	-0.93X	Moderated following deployment of cash towards fleet capex. Remains healthy and well above lx.
Debt-Equity Ratio	0.21x	0.36x	-0.15x days	Improved through scheduled repayment of long-term borrowings and accretion to reserves from FY26 profits.
Debtors (Trade Receivables) Turnover	83.90 days	65.80 days	+18.10 days	Collection period increased following H2FY26 revenue scale-up and higher year end trade receivables.
Inventory Turnover	N.A	N.A	N,A	Not applicable to the services business, which does not carry raw material or Finished-goods inventory.
Debt Service Coverage Ratio (DSCR)	2.0 5x	2.12x	-0.07x	Moderated marginally as higher scheduled principal repayments were largely offset by lower Finance costs and improved operating profit.
Return on Net Worth / Returnon Equity	16.55%	23.03%	-6.48 pp	Moderated due to the enlarged equity base following the FY25 IPO, while PAT grew 21.3% YoY in FY26.

11. Outlook

Indias road logistics sector continues to be supported by strong structural tailwinds - the National Logistics Policy, the PM Gati Shakti Master Plan, sustained government capital expenditure on infrastructure, and the stated national objective of reducing logistics costs as a percentage of GDP to single digits. Demand from the Companys core served industrial verticals - including renewables, power and infrastructure, FMCG, tyres, automotive components and electronics - remains healthy, and the continuing post-GST formalisation of freight movement is expected to keep shifting business from unorganised operators to compliant, asset-backed providers such as the Company.

Against this backdrop, the Company will focus on deepening wallet share with existing marquee B2B customers, scaling its ODC and project-cargo franchise on the back of its specialised fleet of hydraulic modular axles, extendable trailers and heavy-lift equipment, and continuing calibrated fleet expansion supported by GPS-enabled monitoring, route optimisation and in-house maintenance capabilities. The Company believes it is well positioned to deliver sustained, profitable growth and to consolidate its position as a trusted nationwide partner for B2B road logistics in India.

12. Risks and Concerns

Operational Risk: Delays arising from traffic congestion, vehicle breakdowns, weather disruptions or infrastructure constraints.

Financial Risk: Exposure to rising fuel costs, interest rate movements on borrowings, and dependence on customer credit and payment cycles.

Market Risk: Pricing pressure from unorganised and price-sensitive competitors, particularly outside the specialised ODC segment.

Regulatory Risk: Compliance with evolving motor vehicle, safety, labour, environmental and inter-state movement regulations.

Technology Risk: The continuing need for investment in and upgradation of the Companys proprietary TMS and digital infrastructure.

Concentration Risk: Reliance on a limited number of large corporate customers for a significant share of revenue.

Execution Risk: Complexity inherent in ultra-long and heavy over-dimensional cargo movements (e.g., windmill blade transport), which require specialised equipment, route surveys and regulatory clearances.

Talent Risk: Industry-wide shortage of trained commercial and heavy-vehicle drivers and rising wage costs.

The Company reviews these risks on a periodic basis through its Audit Committee and Board of Directors, and takes proactive mitigating measures, including fuel-price pass-through arrangements where feasible, diversification of its customer base across sectors, and continued investment in preventive maintenance and driver training.

13. Internal Control Systems and their Adequacy

The Company has instituted an internal control framework, in accordance with Rule 8(5)(viii) of the Companies (Accounts) Rules, 2014, commensurate with its size and the nature of its operations. These controls are designed to safeguard Company assets, ensure the reliability and integrity of financial and operational reporting, and support compliance with applicable laws, rules and regulations.

The Audit Committee, comprising Independent and Non-Executive Directors, periodically reviews the adequacy and effectiveness of these controls, along with the observations of the Companys Internal Auditor, and monitors the implementation of corrective actions arising from such reviews. The Companys Statutory Auditors and Secretarial Auditors have not reported any material weakness in the internal control environment for the financial year under review.

14. Material Developments in Human Resources / Industrial Relations

The Company regards its workforce as central to its service quality and operational reliability. As on March 31,2026, Rapid Fleet employed 190+ people across fleet operations, logistics, technology, sales and administration, with women representing approximately 13% of the workforce.

During FY26, the Company continued to invest in recruitment of skilled drivers and logistics professionals, safety and skill-development training programmes, and performance-linked incentive schemes to support retention. The Company also continued to invest in driver training as part of its in-house service centre operations at its Kanchipuram and Thiruvallur yards, in addition to the newly operationalised Thoothukudi yard for windmill component logistics. Industrial relations remained cordial through the year, with no material disruptions reported.

15. Board and Corporate Governance Matters

The Board of Directors met periodically during FY26 to review the Companys strategy, operating performance and compliance status, consistent with the requirements of Section 173 of the Companies Act, 2013 and the SEBI LODR Regulations. At its meeting held on May 21, 2026, the Board approved the Companys audited Financial results for FY26 and considered matters relating to Board composition, including the appointment of a new Independent Director and a resignation from among the Companys Directors/Key Managerial Personnel/Senior Management Personnel. Full particulars of these changes, including names, effective dates and reasons, have been separately disclosed by the Company to NSE under Regulation 30 of the SEBI LODR Regulations and will also be reflected in the Boards Report and Corporate Governance Report forming part of the FY26 Annual Report.

The Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee and CSR & Sustainability-related governance structures continued to operate in accordance with Sections 177,178 and 135 of the Companies Act, 2013 and the corresponding SEBI LODR provisions.

16. Related Party Transactions

All transactions entered into by the Company with related parties during FY26 were on an arms length basis and in the ordinary course of business, in compliance with Section 188 of the Companies Act, 2013 and Regulation 23 of the SEBI LODR Regulations. Such transactions were placed before the Audit Committee and the Board for approval, as applicable, and are disclosed in the notes to the audited Financial statements forming part of the Companys FY26 Annual Report.

17. Sustainability and ESG Initiatives

Continued adoption of CNG-powered vehicles within the fleet mix, with an ongoing roadmap for electric and hybrid vehicle integration.

Preventive maintenance programmes at the Companys in-house service yards (Kanchipuram, Thiruvallur and Thoothukudi) aimed at reducing breakdowns, emissions and downtime.

Al/technology-driven route optimisation through the Companys proprietary TMS, aimed at lowering empty running and fuel consumption.

Continued focus on workplace safety, driver welfare and skill development as part of the Companys people-first philosophy.

Compliance with the Maternity Benefit Act, 1961 and the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal] Act, 2013, including maintenance of an Internal Complaints Committee.

18. Cautionary Statement

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or plans may be forward-looking statements within the meaning of applicable securities laws and regulations. Such statements are based on certain assumptions and expectations of future events, and actual results could differ materially from those expressed or implied, depending on economic conditions, government policy, tax regulations, fuel prices, competitive dynamics, execution risks associated with specialised project cargo, and other factors beyond the Companys control. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future

events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Report.

For and on behalf of the Board of Directors

Rapid Fleet Management Services Limited

Sd l-

Anand Poddar

Managing Director

(DIN: 00697859]

Place: Chennai