S J Logistics India Ltd Management Discussions

Overview

Over the past two decades, the Company has evolved from a freight Forwarder into a maritime infrastructure Company offering services across ocean freight, air freight, multimodal transportation, customs clearance, warehousing, Direct Vessel operations and specialized project cargo logistics with an expanding international footprint, serving customers across global trade corridors. We have three wholly-owned subsidiaries i.e. SJA Logisol India Private Limited, S.J.L. Group Singapore Pte. Ltd. and S J Logisol Shipping L.L.C, Dubai.

FY 2025-26 marked a defining milestone in the growth journey of S J Logistics (India) Limited. While global trade continued to operate amid geopolitical tensions, supply chain realignments and freight market volatility, S J Logistics remained focused on disciplined execution and sustainable growth. During the year, the Company strengthened its position as an integrated international shipping and logistics solutions provider by expanding its maritime capabilities, growing its specialised project logistics business and adding Direct Vessel Operations enhancing its international presence across strategically important trade corridors. The Company further strengthened its presence across the Middle East, North Africa, the Mediterranean, Red Sea and Black Sea region.

The commencement of Direct Vessel Operations through the wholly owned subsidiary in Dubai represented a significant strategic transition from a traditional freight forwarding model towards a forward integration of business. This strategic evolution, together with disciplined commercial execution and prudent financial management, enabled the Company to deliver its highest-ever revenue, EBITDA and profit after tax.

This integrated structure allows the Company to offer customers a single-window logistics platform, from cargo planning and customs documentation to transportation, vessel deployment and final door delivery unifying the experience and cargo security and ultimately customer satisfaction.

The Company continued to focus on high-value and specialised logistics assignments, particularly project cargo requiring customised engineering, route planning and execution capabilities. These operations strengthened customer relationships, improved business quality and contributed to enhanced profitability. The Company has also strengthened its service portfolio through the addition of air freight capabilities following IATA accreditation. While air freight is not presently a significant focus area, it enhances the Companys ability to offer integrated multimodal logistics solutions and provides flexibility to address evolving customer requirements across select cargo segments.

Operational excellence remained central to the Companys growth strategy. Investments in process improvement, technology-enabled execution, global partnerships and customer engagement enhanced service reliability across multiple logistics verticals. The Companys asset-light operating philosophy, supported by selective deployment of assets were commercially attractive, continued to provide flexibility while ensuring prudent capital allocation.

The Company also maintained a disciplined approach towards working capital management. Strong customer relationships, rigorous credit evaluation, efficient collections and robust internal controls enabled the Company to support higher business volumes while preserving financial strength. This disciplined financial approach, together with continued operational expansion, translated into improved earnings and stronger returns for stakeholders.

As global supply chains continue to evolve, S J Logistics remains focused on profitable growth, expansion of its maritime capabilities, strengthening its international network and delivering integrated logistics solutions that create long-term value for customers, business partners and stakeholders alike.

Industry Structure and Developments

The global logistics industry continued to operate in a dynamic environment characterised by geopolitical developments, evolving shipping routes, supply chain diversification and periodic freight market volatility. Despite these challenges, demand for dependable multimodal logistics solutions remained resilient as businesses increasingly prioritised supply chain reliability over pure freight cost.

India continued to emerge as one of the fastest-growing logistics markets, supported by structural initiatives including PM Gati Shakti, the National Logistics Policy, Sagarmala and Bharatmala, Dedicated Freight Corridors and continued investment in multimodal infrastructure. These reforms are expected to improve logistics efficiency and create long-term opportunities for organised logistics companies.

The maritime logistics segment has witnessed significant transformation as global trade routes continue to evolve in response to geopolitical developments and changing customer requirements. Freight markets have experienced periodic volatility; however, the increasing preference for dependable logistics partners with diversified service capabilities has created opportunities for organised players with strong operational execution and international networks.

Against this backdrop, S J Logistics remains well positioned to capitalise on emerging opportunities through its diversified service portfolio encompassing freight forwarding, project cargo, customs clearance, multimodal transportation and direct vessel operations. The Companys continued expansion into strategic international markets, strengthening of maritime capabilities and customer-centric operating model provide a strong foundation for sustainable long-term growth. Its integrated service offerings enable customers to optimise their supply chains while benefiting from operational flexibility, specialised logistics expertise and a reliable global network.

The Company believes that continued investments in technology, process excellence, international partnerships and human capital, together with Indias growing importance in global supply chains, will continue to support the long-term growth trajectory of the organised logistics sector and create meaningful opportunities for businesses with scalable and resilient operating models.

Operational & Strategic Highlights

FY2025-26 was characterized by a series of strategic initiatives that strengthened the Companys competitive positioning and enhanced its ability to deliver integrated logistics solutions across global markets. Management remained focused on expanding service capabilities, strengthening international presence and improving operational efficiency while maintaining its asset-light philosophy. A key milestone during the year was the commencement of direct vessel operations through S J Logisol Shipping L.L.C., Dubai. This initiative represents an important step in the Companys long-term strategy of increasing participation across the maritime logistics value chain. Direct vessel operations enhance operational flexibility, strengthen customer service capabilities and provide opportunities to optimise route planning and freight solutions.

Project Cargo continued to remain a strategic growth driver. The establishment of a dedicated domestic heavy- lift vertical enhanced the Companys ability to execute specialised logistics assignments involving infrastructure, industrial equipment, renewable energy and engineering projects. This capability differentiates the Company within a specialised segment where execution expertise, planning and safety standards are critical success factors.

The Company continued to follow a disciplined CAPEX-light strategy, selectively deploying capital where commercially attractivewhileleveraging long-termfinance lease arrangementsfor containersand otheroperational assets. This approach supports business expansion while preserving financial flexibility and maintaining healthy returns on capital.

During the year, the Company further enhanced its global visibility through participation in leading industry exhibitions and continued engagement with international customers, shipping partners and logistics networks. These initiatives support customer acquisition, strengthen strategic partnerships and reinforce the Companys positioning as an emerging integrated shipping and logistics solutions provider.

Financial Performance

The Company delivered another year of strong financial performance during FY 2025-26, reflecting the benefits of its diversified business model, disciplined commercial strategy and continued focus on higher-value logistics solutions. Revenue growth was supported by increased business volumes across freight forwarding, project cargo, and the commencement of direct vessel operations, while prudent cost management and an improving business mix contributed to enhanced profitability.

Consolidated

• Revenue from Operations increased to ?653.78 Crores (30% Y-o-Y Growth)

• EBITDA in absolute terms increased to ?119.98 Crores (59% Y-o-Y Growth)

• EBITDA margin increased from 15.00% to 18.3%

• PAT in absolute terms increased to ?75.80 Crores (44% Y-o-Y Growth)

• PAT margin increased from 10.45% to 11.59%

Standalone

• Revenue from Operations increased to ?446.21 Crores (34.72% Y-o-Y Growth)

• EBITDA in absolute terms increased to ?74.23 Crores (68.13% Y-o-Y Growth)

• EBITDA margin increased from 13.31% to 16.63%

• PAT in absolute terms increased to ?41.24 Crores (45.46% Y-o-Y Growth)

• PAT margin increased from 8.56% to 9.24%

Key Financial Ratios Consolidated

Ratios	2025-26	2024-25	Change
Current Ratio	3.22	7.00	-3.78%
Debt Equity Ratio	0.38	0.28	+010%
Interest Coverage Ratio	7.14	13.77	-6.63%
Trade Receivables Turnover	3.01	3.69	-0.68%
Trade Payables Turnover	25.67	39.85	-14.18%
Networking Capital Turnover	3.12	3.40	-0.28%
Net Profit Ratio (%)	11.60	10.45	+1.15%
Return on Capital Employed (%)	26.93	26.42	+0.51%
Return on Net worth Ratio (%)	25.01	24.14	+0.87%

Standalone

Ratios	2025-26	2024-25	Change
Current Ratio	3.91	9.46	-5.55%
Debt Equity Ratio	0.47	0.28	+0.12%
Interest Coverage Ratio	5.00	9.66	+4.66%
Trade Receivables Turnover	2.93	3.50	-0.57%
Trade Payables Turnover	52.10	53.11	-1.01%
Networking Capital Turnover	2.85	3.07	-0.22%
Net Profit Ratio (%)	9.24	8.56	+0.68%
Return on Capital Employed (%)	21.89	19.30	+2.59%
Return on Net worth Ratio (%)	19.03	16.36	+2.67%

Human Resources and Governance

People remain the Companys most valuable asset. During the year, the Company continued strengthening its governance framework, internal control environment and leadership capabilities while fostering a culture of operational excellence, compliance and customer-centricity across all business functions.

Employee strength: 99 consolidated basis; 75 stand-alone basis.

Opportunities & Threats Opportunities

• Growth in Maritime Logistics and Vessel Operations: The commencement of direct vessel operations through the Companys Dubai subsidiary represents a significant strategic milestone. Greater operational control over shipping capacity enhances service reliability, strengthens competitiveness and provides opportunities to improve margins through integrated maritime solutions.

• Expansion of Direct Vessel Operations: With the expansion of Direct Vessel operations across strategic international locations including Red Sea, Black Sea & MENA, the Company has strengthened its ability to serve emerging trade corridors. A broader global network enhances market access, diversifies cargo flows and creates opportunities to deepen customer relationships while reducing dependence on any single geography.

• Strengthening Project Cargo Capabilities: Continued investments in specialized project logistics position the Company to benefit from increasing infrastructure, renewable energy, engineering and industrial investments. Its capability to execute complex, time-critical cargo movements differentiates the Company in a niche, higher-margin segment.

• Integrated End-to-End Logistics Solutions: The ability to provide customers with freight forwarding, customs clearance, multimodal transportation, vessel operations and project cargo under one platform strengthens customer retention and creates cross-selling opportunities while enhancing overall service value.

• Policy and Infrastructure-led Growth: Government initiatives focused on improving logistics infrastructure, multimodal connectivity and ease of doing business are expected to support sustained industry growth. Organised logistics companies with scalable operations are well positioned to benefit from these structural reforms.

• International Visibility and Partnerships: Participation in international exhibitions and industry forums continues to strengthen the Companys brand recognition, facilitate strategic partnerships and support customer acquisition across global markets.

• Indias Expanding Role in Global Supply Chains: As global manufacturers diversify sourcing and strengthen supply chain resilience, India continues to emerge as a preferred manufacturing and export destination. The Companys growing international footprint positions it to benefit from increasing cross-border trade volumes.

Threats & Risk Management

• Global Economic and Geopolitical Uncertainty: Trade disruptions, geopolitical conflicts, sanctions, inflation and freight market volatility may influence cargo volumes, shipping routes and operating costs. The Company mitigates these risks through diversification and disciplined commercial decisions.

• Competitive Intensity: The logistics sector remains highly competitive across pricing, network capability and service quality. Continued focus on operational excellence, customer service and value-added solutions remains critical to sustaining market position.

• Regulatory and Compliance Requirements: Operations across multiple jurisdictions require compliance with customs regulations, maritime laws, taxation and trade requirements. Robust governance and internal controls remain essential to managing regulatory risk.

• Execution and Safety Risks in Project Cargo: Complex heavy-lift assignments involve specialized planning, equipment and safety protocols. Strong project management practices and risk assessment processes are integral to successful execution.

• Risk Management: Risk management remains an integral component of the Companys governance framework. Given the inherently global nature of the logistics industry, the Company is exposed to risks arising from geopolitical developments, freight market volatility, currency fluctuations, regulatory changes, supply chain disruptions and evolving customer requirements.

Management continuously evaluates these risks through a structured risk management process that focuses on identification, assessment, mitigation and periodic monitoring. Diversification across geographies, customers, service offerings and trade corridors reduces concentration risk while strengthening business resilience.

The Company also places significant emphasis on compliance, operational controls and customer service standards. Robust internal processes, prudent credit management, careful contract evaluation and continuous monitoring of working capital support effective risk mitigation. As the business expands internationally, management remains committed to strengthening governance practices, technology- enabled controls and business continuity planning to ensure sustainable long-term growth.

Outlook & Conclusion

FY 2025-26 marked a breakout year for S J Logistics-with record revenue and profitability, strategic diversification, and a strong balance sheet. As the company integrates across verticals and expands globally, the focus now shifts to translating earnings into free cash flow and sustaining robust operational momentum.

The Company enters FY 2026-27 with strong operational momentum and an enhanced maritime platform. Management remains focused on expanding direct vessel operations, strengthening its presence across strategic international trade corridors, scaling specialised project logistics and deepening integrated multimodal logistics capabilities. The Company believes these strategic priorities, together with disciplined capital allocation and operational excellence, will support sustainable long-term value creation for all stakeholders. Backed by strong management, technology adoption, and a customer-centric approach, the company aims to sustain double-digit profit margins while enhancing service integration and expanding its global footprint.

Forward-looking Statement

This Management Discussion and Analysis contains forward-looking statements based on current expectations, estimates and assumptions. Actual results may differ materially due to economic conditions, regulatory developments, geopolitical events, freight market dynamics and other risks beyond the Companys control. The Company undertakes no obligation to publicly update these forward-looking statements.

For and on behalf of the Board of Directors

S J Logistics (India) Limited

Sd/-

Rajen Hasmukhlal Shah

Chairman & Managing Director

DIN: 01903150

Place: Thane

Date: August 24, 2026