S J Logistics (India) Ltd Management Discussions

S J Logistics (India) Limited stands as a premier international logistics service provider, encompassing an array of services including freight forwarding, transportation, warehousing, Non-Vessel Operating Common Carrier (NVOCC), and customs clearance. It has three wholly-owned subsidiaries i.e. S J Logisol Shipping L.L.C, SJA Logisol India Private Limited and S.J.L. Group Singapore Pte Ltd.

Overview

S J Logistics continues its position as a premier international logistics service provider, offering freight forwarding (Air, Sea, Land), NVOCC services, Customs Clearance, transportation, warehousing, and project cargo handling. Through its subsidiaries-SJA Logisol India Pvt Ltd and S.J.L. Group Singapore Pte Ltd and S J Logisol Shipping LLC -the company has expanded its global capabilities.

FY25 has been a transformative year for S J Logistics, marked by expansion into strategic global hubs and consistent operational performance across verticals. The launch of NVOCC services to Libya and Russia and the operational base in Dubai position the company well in the evolving MENA trade landscape. The Companys focus on high-value, complex logistics solutions; particularly project cargo shipments; continues to shape its business mix. These projects command superior margins and have supported strong top-line growth and a meaningful step-up in profitability.

The Companys air cargo division is gaining momentum post IATA accreditation, and the successful scaling of operations in high-growth trade corridors further strengthens its future outlook. The Company continues to diversify across multimodal logistics while staying asset-light and agile. As regional trade shifts and demand for complex logistics solutions rise, early-mover advantage, customer-centric approach, and resilient execution are enabling the company to deliver long-term sustainable growth.

The Company has always adopted a disciplined approach towards working capital management. Its longstanding client relationships, robust internal systems, and track record of recoveries reflect the comfort operating within these business contours. Over the years, this has enabled the company to maintain balance sheet integrity while continuing to scale operations efficiently.

As the company deepen its presence in this segment, its ability to manage large-scale, time-sensitive cargo with precision reinforces its position as a preferred logistics partner for mission-critical movements. The financial outcomes of this strategic direction are reflected in the consistent improvement in earnings and return metrics, underscoring the value the company is creating through operational depth and commercial discipline. The Company remain focused on profitable growth, prudent working capital management, and enhancing shareholder value

Key milestones include:

• IATA Accreditation received in July 2024, enabling full-scale air freight services, despite being launched midyear, contributed Rs.14.26 Cr which is approximately 2.8% of the topline.

• Subsidiary Acquisition: The Company recently acquired a 100% Subsidiary in UAE i.e. S J Logisol Shipping LLC in FY 2025-26 to cater to its NVOCC business.

• PSU Listing: The Company recently got listed as empanelled Logistics Service Provider for SAIL (Steel

Authority of India Limited) and is exciting to cater to its diverse logistics requirement.

• Awards & Recognitions: Recently CFO & Director, Mr. Jeet Rajen Shah has been honoured with the “Next- Gen Entrepreneur of the Year" award for Excellence in the Maritime & Logistics Sector at the India Maritime Awards 2025. Also, Logistics Outlook magazine has published an article covering a recent interview featuring Mr. Rajen Shah, CMD & Mr. Jeet Rajan Shah, Director & CFO of S J Logistics (India) Limited.

• Exhibitions: The Company has participated in various exhibitions and events showcasing its products & services during the last year including being Title Sponsor for Mega Cargo Show CTL & BHP 2025

Industry Structure & Developments

The Indian Logistics Sector, is expected to touch ~$450 bn by 2027, is undergoing rapid growth due to e-commerce, manufacturing, and policy support (Gati Shakti, National Logistics Policy). Technologies like AI, IoT, and blockchain are being adopted to enhance supply chain transparency. With infrastructure upgrades (Dedicated Freight Corridors, logistics parks, Sagarmala) underway, the environment is conducive for firms like S J Logistics to scale.

Opportunities and Threats

Opportunities

1. Policy and Infrastructure Push: The continued rollout of the PM Gati Shakti National Master Plan, National Logistics Policy (NLP), and integrated multimodal logistics parks is transforming Indias logistics ecosystem. These government-led reforms aim to reduce logistics costs, improve efficiency, and foster ease of doing business-presenting long-term structural advantages for organized logistics players like S J Logistics.

2. Air Freight Expansion Post-IATA Accreditation: With the company now IATA-accredited, S J Logistics has formally entered the air freight segment, unlocking access to high-margin, time-sensitive cargo segments such as pharmaceuticals, perishables, e-commerce, and electronics. This move diversifies revenue streams and positions the company in a fast-growing logistics vertical.

3. Strategic PSU Partnerships: Registration and engagement with Public Sector Undertakings (PSUs) to manage their complex, large-scale logistics needs represent a significant growth lever. The companys early traction in securing long-term contracts will likely yield recurring and scalable revenue, while also enhancing credibility in the government and enterprise logistics segment.

4. Project Cargo and Heavy Engineering Logistics: With increasing global investment in energy, infrastructure, and transmission projects, India-based logistics firms with engineering and execution capabilities are well positioned to support specialized project cargo movement. S J Logistics proven track record in end-to-end project logistics is a strong differentiator in this niche segment.

5. NVOCC Focus: The Company has announced the expansion of its NVOCC operations to Misurata Libya, and Novorossiysk, Russia going up to Moscow in line with its strategic growth vision to strengthen global trade corridors and unlock new market opportunities.

6. Digitalization and Technology Adoption: Adoption of digital tools such as AI-based routing, IoT-enabled tracking, and digital freight platforms is no longer optional. S J Logistics focus on tech-driven visibility, automation, and data intelligence is a strategic advantage in an industry rapidly embracing digital transformation.

Global Supply Chain Diversification: Indias rising stature as a manufacturing and logistics alternative to China, coupled with evolving global trade dynamics, is opening opportunities for India to play a larger role in global supply chains. S J Logistics, with its international presence via its Singapore & UAE subsidiaries and planned expansion into the Middle East, is well-positioned to leverage this macro shift

Threats

1. Macroeconomic and Geopolitical Volatility: The global logistics environment remains vulnerable to disruptions caused by inflation, interest rate volatility, geopolitical conflicts, trade policy shifts, and shipping route disruptions. These factors can adversely impact freight movement volumes and rates.

2. Intense Competition and Price Pressures: Both global freight forwarders and local aggregators are aggressively competing on pricing, service bundling, and technology. Maintaining margins while retaining clients in such an environment requires continuous innovation, operational discipline, and differentiation.

3. Execution Risks in Scaling New Verticals: Rapid scale-up in air freight, container services, and international operations introduces execution complexity. Failure to integrate systems, manage resources, or meet service-level expectations could impact brand and financial performance.

4. Regulatory and Compliance Risk: As the company expands internationally, exposure to complex and evolving customs, tax, and transport regulations increases. Non-compliance could lead to penalties, delays, and reputational impact.

Segment-Wise Performance

The company operates solely in the Shipping & Logistics segment, but across multiple service arms-air, sea, land, warehousing, NVOCC, and project cargo. FY 2024-25 maintained broad growth across all lines, particularly in high-margin project cargo.

Financial Performance Consolidated

• Revenue from Operations increased to Rs.502.49 Crores (86% Y-o-Y Growth)

• EBITDA in absolute terms increased to Rs.75.39 Crores (156% Y-o-Y Growth)

• EBITDA margin increased from 10.87% to 15.00%

• PAT in absolute terms increased to Rs.52.49 Crores (132% Y-o-Y Growth)

• PAT margin increased from 8.35% to 10.45%

Standalone

• Revenue from Operations increased to Rs.331.19 Crores (123% Y-o-Y Growth)

• EBITDA in absolute terms increased to Rs.44.15 Crores (223% Y-o-Y Growth)

• EBITDA margin increased from 9.17% to 13.31%

• PAT in absolute terms increased to Rs.28.35 Crores (181% Y-o-Y Growth)

• PAT margin increased from 6.77% to 8.56%

Key Financial Ratios

Consolidated

Ratios	2024-25	2023-24	Change
Current Ratio	7.00	4.16	+2.84
Debt Equity Ratio	0.28	0.12	+0.16
Interest Coverage Ratio	13.77	11.26	+2.51
Trade Receivables Turnover	3.69	4.24	-0.55
Trade Payables Turnover	39.85	23.19	+16.66
Networking Capital Turnover	3.40	3.77	-0.37
Net Profit Ratio (%)	10.45	8.35	+2.10
Return on Capital Employed (%)	26.42	25.14	+1.28
Return on Net worth Ratio (%)	24.14	20.18	+3.96

Standalone

Ratios	2024-25	2023-24	Change
Current Ratio	9.46	4.58	+4.88
Debt Equity Ratio	0.28	0.08	+0.20
Interest Coverage Ratio	9.66	6.38	+3.28
Trade Receivables Turnover	3.50	3.91	-0.41
Trade Payables Turnover	53.11	25.68	+27.43
Networking Capital Turnover	3.07	3.50	-0.43
Net Profit Ratio (%)	8.56	6.77	+1.79
Return on Capital Employed (%)	19.30	15.75	+3.55
Return on Net worth Ratio (%)	16.36	10.85	+5.51

Operational & Strategic Highlights

• CAPEX-light model continues with Containers being purchased on Long Term Finance Lease model.

• High-margin project cargo segment-maintained growth-FY25 saw Rs.267 Cr+ in project cargo, up from Rs.105 Cr previously

• Air freight launch bolstered service spectrum post-IATA license.

• Global footprint expanding with Singapore operations and Dubai acquisition

Risk Management & Concerns

Key risks include geopolitical tensions, currency fluctuations, and disruptions in supply chains. The company is actively mitigating these risks through diversification of routes, hedging strategies, and strong supplier relationships

Human Resources & Governance

• Employee strength: 87 consolidated; 63 stand-alone.

• Strengthened board and audit functions post-IPO to uphold compliance and internal controls.

• Recognition of leadership excellence: CMD awarded at the 14th Maritime & Logistics Awards and CFO awarded at the India Maritime Awards,2025, reinforcing the firms industry standing.

Outlook

S J Logistics (India) Limited enters FY 2025-26 with strong momentum, having demonstrated robust growth, service diversification, and operational resilience in the previous year. With the successful foray into NVOCC, Air Freight Services, strategic partnerships, and expanding presence in high-value segments like project cargo, the company is well-positioned to capitalize on Indias growing role in global trade and the ongoing transformation of the domestic logistics landscape. 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.

Conclusion

FY 2024-25 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.

Forward-Looking Statement

This MD&A contains forward-looking statements based on current expectations and assumptions. Actual results could differ due to market conditions, regulatory changes, and execution efforts. The company does not undertake any obligation to update these statements publicly.

For and on behalf of the Board of Directors	Sd/-
	Rajen Hasmukhlal Shah
Place: Thane	Chairman and Managing Director
Date: August 01, 2025	DIN: 01903150