Sahara Maritime Ltd Management Discussions

INTRODUCTION:

Our company was originally incorporated as a Private Limited under the name Sahara Maritime Private Limited under the provisions of the Companies Act, 1956 and Certificate of Incorporation was issued by the Registrar of Companies, Maharashtra, Mumbai on March 06, 2009. Eventually, the status of our Company was changed to Public Limited and the name of our Company was changed to Sahara Maritime Limited vide Special Resolution passed by the Shareholders at the Extra-Ordinary General Meeting of our Company held on February 24, 2023. The fresh Certificate of Incorporation consequent to conversion was issued on April 28, 2023 by the Registrar of Companies, Mumbai. The Corporate Identification Number of our Company is U61200MH2009PLC190786. Further the Company has issued share pursuant to Initial Public Offer (IPO) and listed on SME platform of BSE LTD on December 26, 2023. Our Company was initially incorporated with conducting the work as custom clearance broker and later moved across domains, geographies, and industries to offer a gamut of services for the logistics industry. We offer our customers, transport management services, and also freight related services. We provide complete range of services like Freight Forwarding (Sea freight, Warehousing, Transportation, Multimodal Transportation, loading/unloading of items to facilitate our customers with end-to-end solutions and other related value-added services

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian maritime industry in FY 2025-26 continued to benefit from the reforms envisaged under the Maritime India Vision 2030, which lays down a comprehensive framework for sustainable growth and modernization of the sector. With a strong policy push towards port-led development, digitalization, and green shipping initiatives, the industry is moving steadily towards positioning India as a major global maritime hub.

The governments focus on improving port infrastructure, inland waterways, and logistics efficiency has created an enabling environment for growth. Major projects under Sagarmala and Bharatmala are progressing, aimed at improving last-mile connectivity, decongesting ports, and integrating supply chains. As the government continues to implement these reforms, the Indian maritime industry is anticipated to see robust growth, creating new opportunities for companies like Sahara Maritime Limited. However, challenges such as port congestion, high logistics costs, and evolving environmental regulations remain key areas to address for the industrys continued progress.

Globally, the maritime industry in FY 2025-26 experienced mixed trends. While trade volumes showed gradual recovery supported by growth in emerging markets, the industry also faced challenges due to geopolitical tensions, disruptions in global supply chains, and volatility in crude oil prices. Nevertheless, opportunities in sustainable shipping, increased containerization, and the adoption of digital technologies are reshaping the industrys future.

OPPORTUNITIES AND THREATS:

Opportunities:

- Private Port Expansion : Growing investment and efficiency improvements in private ports offer scope for enhanced cargo handling and trade facilitation. Enhancements in the functionality and efficiency of private ports are creating avenues for increased private sector involvement and investment.

- Government Support: I Programs such as Sagarmala, Bharatmala, and Gati Shakti continue to provide a strong boost to logistics and port connectivity. These programs aim to boost the competitive edge of Indian ports, enhance hinterland connectivity, and facilitate smoother cargo movement.

- Technology Integration: Wider adoption of automation, AI-driven logistics platforms, and blockchain is expected to streamline operations and reduce turnaround time. Enhanced data analytics and digital platforms are expected to improve decision-making processes and operational efficiency across the maritime supply chain.

- Sustainability Initiatives: Compliance with global environmental standards is fostering demand for eco-friendly solutions, cleaner fuels, and emission-reducing technologies. The push for adherence to global environmental regulations presents opportunities for investing in green technologies and sustainable practices.

- Emerging Market Growth: Expanding trade with Asia, Africa, and the Middle East offers new business opportunities. The rise of emerging markets offers new avenues for trade and growth. Increased trade with these markets can drive demand for shipping services and open up new revenue streams for maritime companies.

- Infrastructure Modernization: New terminal developments and enhanced inland transport systems are reducing congestion and improving overall efficiency. The developments in port infrastructure and inland waterways are set to alleviate congestion and enhance logistics efficiency.

Threats:

- Infrastructure Limitations: Persistent issues with inadequate infrastructure and port congestion may impact operational efficiency and extend turnaround times. Delays and inefficiencies at key ports could affect the timeliness of cargo deliveries and increase overall logistics costs.

- Manpower Availability: Ensuring skilled manpower and managing crew rotations remain key operational concerns. Ensuring the availability of qualified crew members and managing crew rotations effectively are crucial for maintaining operational continuity.

- Regulatory Uncertainty: Dynamic trade and maritime regulations require continuous monitoring and compliance.. Changes in trade policies and regulations can influence shipping routes, cargo volumes, and overall operations. Adapting to regulatory changes and ensuring compliance with evolving international standards are essential for mitigating potential disruptions.

- Maintenance Costs: Regular inspection, survey, and compliance requirements lead to increased costs and possible operational delays. Ensuring timely maintenance and adhering to regulatory requirements are critical for maintaining vessel safety and performance.

- Security Risks: Cyber threats, piracy, and geopolitical instability continue to impact the maritime ecosystem. Implementing robust security measures and safeguarding against potential threats are essential for protecting assets and ensuring safe operations.

- Global Volatility: Ongoing geopolitical conflicts and trade sanctions may cause disruption in global trade routes and cost escalations. Political tensions and tariff sanctions can lead to increased shipping costs, disruption of global trade, and financial risks for all parties involved.

Company Outlook:

Looking ahead, Sahara Maritime Limited remains optimistic about the long-term prospects of the maritime industry. Our Company is Company is strategically placed to capitalize on industry growth trends and emerging opportunities. Our strategic focus on service excellence, technological advancement, and market expansion will continue to drive growth and strengthen our market position. We are committed to delivering value to our shareholders, clients, and stakeholders while navigating the evolving logistics landscape.

Risk Management

The maritime industry is inherently exposed to various risks, including market, operational, regulatory, and environmental risks. Sahara Maritime Limited has a robust risk management framework in place to identify, assess, and mitigate these risks.

Market Risk: The company is exposed to fluctuations in freight rates, demand-supply dynamics, and changes in trade policies. To mitigate these risks, Sahara Maritime Limited diversifies its client base and engages in long-term contracts.

Operational Risk: The company addresses operational risks through regular maintenance of its fleet, adherence to safety protocols, and investment in technology to enhance operational efficiency.

Regulatory Risk: Compliance with global maritime regulations is critical. The company actively monitors regulatory developments and ensures adherence to environmental, safety, and governance standards.

Material Developments in Human Resources:

Sahara Maritime Limited is committed to creating a work environment that attracts and retains top talent. Our human resource management efforts focus on providing employees with opportunities for growth and development, recognizing and rewarding their contributions, and fostering a culture of collaboration and teamwork. We firmly believe that our human resources are crucial enablers of the companys growth and valuable assets. Consequently, the success of our company is closely aligned with the goals of our workforce. In light of this, we continue to invest in developing our human capital and enhancing our brand to attract and retain the best talent in the industry.

Environment and Safety:

The need for environmentally clean and safe operations is the Companys key priority. The Company policy requires the conduct of all operations in such a manner so as to ensure the safety of all concerned, compliance of statutory requirements for environment protection and conservation of natural resources to the extent possible.

Internal Control Systems and Their Adequacy:

Sahara Maritime Limited maintains internal control systems that are well-suited to the nature, size, and complexity of its operations. We ensure that our internal controls are rigorously tested and certified by statutory, as well as key business areas, on a routine basis.

Our approach involves regular evaluation and testing of the effectiveness of these controls, with a focus on assessing associated risks and business processes. This process includes benchmarking our controls against industry best practices to ensure they remain current and effective. By upholding a robust internal control environment aligned with industry standards, we effectively manage risks and ensure the smooth functioning of our business operations.

Financial Performance:

During the year under review, the revenue from operations amounted to Rs. 1,350.48 lakhs, while total expenses were Rs. 1,285.11 lakhs. The Company recorded a net profit of Rs. 77.98 lakhs.

Key financial Ratios:

Particular	Numerator	Denominator	As on 31 st March, 2026	As on 31 st March, 2025
Current Ratio	Current Assets	Current Liabilities	14.21	8.62
Debt-Equity Ratio	Total Debt	Shareholders Equity	0.04	0.08
Return on Equity Ratio	Profit After Tax	Average Shareholders Equity	6.39%	2.00%
Trade Receivables turnover ratio (in times	Revenue	Average Trade Receivable	3.73	6.72
Trade payables turnover ratio (in times)	Purchase of Services & other Expenses	Average Trade Payables	36.36	61.64
Net capital turnover ratio (in times)	Revenue	Net Working Capital	1.49	2.29
Net profit ratio	Net Profit	Revenue	4.26%	0.93%
Return on Capital employed	Operating Profit	Total Capital Employed	7.40%	1.81%

Disclaimer Statement:

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, and expectations may be considered as forward-looking statements under applicable laws and regulations. Actual results could differ materially from those expressed or implied due to various factors, including industry trends, changes in government regulations, significant shifts in the political and economic environment, evolving environmental standards, tax laws, and litigation. The Company assumes no responsibility in respect of forward-looking statements which may undergo change on the basis of subsequent development events.