Shahi Shipping Ltd Management Discussions

a) INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian shipping and maritime sector continues to play a critical role in the countrys trade and logistics infrastructure. During FY 2025-26, Indias Major Ports handled approximately 915.17 million tonnes of cargo, registering growth of around 7.06% over the previous year. The total cargo handled by Major and Non-Major Ports stood at approximately 1,668 million tonnes, reflecting continued growth in maritime trade and logistics activity.

The sector is undergoingsignificanttransformation through capacity expansion, mechanisation, digitalisation, improved logistics connectivity, sustainability initiatives and increased private-sector participation. These developments provide opportunities for coastal shipping, cargo handling, vessel operations and allied maritime services. b) GLOBAL SHIPPING INDUSTRY

The global shipping industry continues to be influenced by changing trade patterns, geopolitical developments, freight-rate movements, environmental regulations and technological advancements. Digitalisation, automation, artificial intelligence and connected technologies are increasingly being adopted to improve operational efficiency and reduce costs.

At the same time, environmental and decarbonisation requirements are increasing compliance and operational costs for vessel owners and operators. Companies are therefore required to focusonfuelefficiency,vessel maintenance, safety and sustainable operating practices. c) OPPORTUNITIES AND OUTLOOK

Indias maritime sector significantlong -term opportunities due to increasing domestic and international trade, presents development of ports and coastal infrastructure and Government initiatives under Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047.

During FY 2025-26, Indias port capacity reached approximately 2,817 MTPA and total cargo throughput reached approximately 1,668 million tonnes. The Government continues to promote port modernisation, coastal shipping, inland waterways, multimodal connectivity and private-sector participation.

These developments provide opportunities for companies engaged in coastal shipping, lighterage, tug services, bunkering and feeder services. d) RISKS, THREATS AND CONCERNS

The shipping industry remains exposed to fluctuations in freight rates, fuel and operating costs, interest rates, regulatory changes, geopolitical tensions and changes in domestic and international trade.

Other operational risks include vessel maintenance and dry-docking requirements, shortage of skilled manpower, cybersecurity threats, environmental compliance requirements and marine safety risks. The Company continues to monitor these risks and take appropriate operational and compliance measures. e) SEGMENT-WISE PERFORMANCE

The Company operates primarily in the shipping segment and accordingly does not have separate reportable business segments.

The Company provides services including container and liquid cargo lighterage, petroleum and chemical cargo handling, bulk cargo lighterage, tug services, bunkering and container feeder services along the Indian coast. f) FINANCIAL PERFORMANCE

The financial performance of the Company during FY 2025 26, compared with FY 2024 25, was as follows:

Revenue from operations declined during FY 2025-26 compared with the previous year. However, the loss after tax reduced from 3.57 crore in FY 2024-25 to 1.82 crore in FY 2025-26.

The Company continues to focus on improving operational efficiency, controlling costs and optimising utilisation of its resources.

g) BUSINESS OUTLOOK

The Company remains focused on strengthening its presence in coastal shipping and allied maritime services. The growth in Indias port and logistics infrastructure, together with increasing cargo movement and Government initiatives, is expected to provide opportunities for the Company.

The Company will continue to evaluate suitable business opportunities and focus on efficient utilisation of its fleet and resources.

h) QUALITY AND SAFETY

Safety remains an important priority of the Company. The Company continues to focus on vessel maintenance, operational safety, employee training and compliance with applicable maritime requirements.

i) HUMAN RESOURCES

The Company considers its employees an important contributor to its operations and growth. The Company continues to focus on maintaining an appropriate workforce and providing necessary training and development.

j) INTERNAL CONTROL AND RISK MANAGEMENT

The Company maintains internal control systems commensurate with the nature and size of its operations. The management regularly reviews operational, financial, regulatory and other business risks and takes appropriate measures for their mitigation. The Company continues to strengthen its internal controls to safeguard its assets, ensure proper financial reporting and support compliance with applicable laws and regulations.

k) CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations and future outlook may constitute forward-looking statements within the meaning of applicable securities laws. Actual results may differ materially from those expressed or implied due to various economic, regulatory, operational, market and other factors.