Shreeji Translogistics Ltd Management Discussions

Driven by a clear strategic vision and a robust execution framework, the Company continues to reinforce its position as a trusted logistics partner across diverse industry segments. Its unwavering focus on operational excellence, digital transformation, and customer value creation remains central to building a resilient and future-ready enterprise.

The transport and logistics sector represents the backbone of global economic progress, enabling the seamless movement of goods, facilitating international trade, and strengthening the interconnected fabric of modern commerce. As the industry continues to evolve, it is being reshaped by a new era of transformation driven by digital intelligence, sustainable mobility solutions, strategic infrastructure development, progressive policy frameworks and the changing dynamics of global trade.

Supported by visionary investments, regulatory advancements, and continuous innovation, the sector is transitioning towards a future characterized by enhanced efficiency, operational resilience, environmental stewardship, and greater supply chain visibility. With its expanding infrastructure, technology-driven capabilities, and growing integration with global markets, the Indian logistics sector is positioned to play a defining role in shaping the future of commerce and sustainable growth.

The logistics sector in India can be divided into the following segments:

1. Transportation- Roadways, Railways, Airways, Waterways

2. Warehousing- Cold Storage, Container Freight Stations, Inland Container Depots, etc.

3. Value Added/ Other Services- Freight Forwarding, Custom Clearing, Logistics Packaging, etc.

Indian logistics is highly fragmented and has over several active participants including major local players, & global industry leaders. The industry includes transportation, warehousing, and value-added services like packaging, labelling, and inventory management. With the advent of technology, Indias logistics industry has witnessed tremendous development including operational efficiency, lowering costs and improving customer service in recent years.

The Indian logistics sector is currently valued at approximately USD 300 billion to USD 350 billion and contributing significantly to the nations gross domestic product. Driven by the rapid expansion of quick commerce, third-party logistics (3PL), and automated warehousing, the industry is projected to reach between USD 500 billion and USD 626 billion by the early 2030s, reflecting a robust compound annual growth rate (CAGR) of 8.5% to 10.9%. While road freight continues to command the largest share of transport tonnage, structural shifts are underway to optimize supply chain costs and enhance multi-modal efficiency. This transformation is heavily supported by pivotal government initiatives, such as the National Logistics Policy (NLP) and the PM Gati Shakti National Master Plan, which aim to streamline infrastructure and foster a digitally integrated, competitive ecosystem that currently employs over 22 million people.

On the outcomes side, Indias rank in the World Banks Logistics Performance Index improved to 38 in the 2023 assessment, reflecting progress across infrastructure, customs, international shipments, logistics competence, tracking and tracing, and timeliness. While continued improvement is required to converge with global best- in-class benchmarks, the direction of travel is supportive for organised logistics providers that can translate policy tailwinds into customer value propositions.

Changing consumption patterns are further reshaping freight movement across the country. Rising disposable incomes, deeper market penetration in Tier-II, Tier-III and emerging urban centres, and the increasing formalisation of businesses are driving higher shipment volumes across diverse industry segments. Sectors such as pharmaceuticals, chemicals, automotive, engineering goods, electronics, FMCG and retail are increasingly prioritising logistics partners that offer regulatory compliance, time-bound deliveries, digital tracking, operational flexibility and nationwide service capabilities. Customers are also moving beyond standalone transportation services, seeking comprehensive supply chain solutions encompassing warehousing, inventory

management, in-plant logistics, packaging, kitting, reverse logistics, customs facilitation and value-added fulfilment services through a single integrated partner.

Against this evolving industry landscape, the Company is well positioned to capitalise on multiple high-growth opportunities. Its established expertise in bonded transportation and customs-compliant logistics provides a strong competitive advantage in servicing freight forwarders, airlines, customs brokers, exporters and multinational enterprises requiring secure cross-border cargo movement. Looking ahead, the Company also intends to explore adjacent growth segments such as temperature-controlled logistics, specialised contract logistics and integrated supply chain solutions through a calibrated, asset-light approach supported by strategic partnerships, customer- led expansion and disciplined capital allocation.

Full Truck Load Transport service is the Companys core business and in this space, the Company has been a trusted name for Time-Bound Deliveries. Clients can rent or lease out the entire vehicle to transport goods across India as per their requirements. The fleet size ranges from 5 ft to 70 ft. The Company ensures that clients receive the best, most cost-effective service options. Company is operating in over 650 routes across India.

further distributed to specific locations which enables faster freight movement.

The Company is into the Over Dimensional Cargo (ODC) Services. ODC is a cargo that extends beyond the normal loading deck of a cargo in order to deliver oversized goods and it is a specialized service having good yields.

The Company is also into Railway Rake Handling & Transportation. In this segment, the Company does off loading of steel materials from rail wagon through cranes and seamlessly transitioning them onto trailers for last mile delivery for our valued clients on PAN India Basis which is a critical link in steel supply chain. Through this new business, the Company aims at achieving Cost Efficiency for Customers through Multi-Modal Transportation by smoothly combining Rail and Road networks.

The Company provides 3PL and Warehousing services in and around Mumbai, Bangalore & Chennai. These services can be provided at other locations based on client requirement and project feasibility.

The Company owns and operates a strong fleet of commercial vehicles consisting of around 202 owned trucks and more than 4500 outsourced trucks. The Company operates different types of trucks on the basis of design and size along with varying capacities. Our Container Trucks are used for transportation of parcels, white goods, FMCG, etc.

while our Platform Trucks are mainly used for import export containers and also for transportation of heavy duty goods like automotive parts and machineries. With more than 4 decades of experience in freight management, logistics solutions & warehousing services, the Company has made a stalwart progress along the highways of India.

The following diagrams depict the breakup of revenue, percentage-wise for the years ended 31^st March, 2026 and 31^st March, 2025 on the basis of different types of services:

The logistics and transportation industry operates in an increasingly dynamic business environment shaped by evolving customer expectations, regulatory developments, technological advancements, and macroeconomic factors. While these trends present significant opportunities for growth, they also introduce a range of operational and strategic challenges. The principal challenges and responses by the Company are summarised below.

Risk/Concern: The road transportation industry is highly competitive and largely fragmented, resulting in continuous pressure on freight rates, may adversely impact operating margins and overall profitability.

Mitigation: The Company focuses on enhancing operational efficiency through route optimisation, improved fleet utilisation, and disciplined cost management. It maintains long-term relationships with customers, emphasises service quality and timely deliveries, and periodically reviews pricing strategies to align freight rates with prevailing market conditions.

Risk/Concern: Lower fleet utilisation, idle vehicles, or increasing vehicle ageing may adversely affect operational efficiency and profitability.

Mitigation: The Company continuously monitors fleet productivity, undertakes preventive maintenance, optimises asset deployment, and periodically upgrades its fleet to improve operational efficiency and minimise downtime.

Risk/Concern: Natural disasters, pandemics,

geopolitical developments, transportation disruptions, or infrastructure failures may interrupt business operations.

Mitigation: The Company has established business continuity measures, diversified operational routes wherever feasible, strengthened customer communication, and continuously reviews contingency plans to minimise operational disruptions.

Risk/Concern: The industry faces a structural shortage of trained commercial drivers, leading to idle capacity and service constraints.

defined career pathways for drivers, and training on safety, fuel-efficient driving and customer etiquette. These measures have improved retention and fleet utilisation while elevating safety culture.

Risk/Concern: Rapid technological advancements require continuous investment in digital infrastructure to remain competitive.

Mitigation: The Company continues to invest in GPS- enabled fleet management, digital documentation, analytics-driven decision-making, automation of operational processes, and technology upgrades to enhance efficiency and customer experience.

Strengths: The Companys strength lies in its robust operational foundation, experienced leadership, established customer relationships, and disciplined execution. A reliable transportation network, technology-enabled fleet management, and customercentric approach enable the Company to deliver dependable and responsive transportation solutions while maintaining high standards of service quality and operational reliability.

The Company continues to enhance its operational capabilities through fleet and route optimisation, digital transformation, process standardisation, and prudent cost management. These initiatives are driving greater asset utilisation, efficiency, agility, and scalability, while strengthening the Companys ability to respond effectively to evolving customer needs and market dynamics.

With a clear focus on operational excellence, technology adoption, and sustainable resource optimisation, the Company remains well positioned to strengthen its competitive edge, build longterm resilience, and create sustainable value for its stakeholders.

The Companys ability to effectively navigate business risks is supported by its strong operational foundation, experienced leadership, customer- focused approach, and disciplined execution capabilities. Well-established customer relationships, a reliable transportation network, technology-enabled fleet management, and a steadfast commitment to operational excellence enable the Company to deliver consistent and dependable logistics solutions.

The Company has an adequate internal audit and control system commensurate with its size and nature of business to ensure operational efficiency, accuracy

and promptness in financial reporting and compliance of various laws and regulations. The Audit Committee of the Board of Directors reviews the Internal Audit Report and the adequacy and effectiveness of internal controls periodically.

Analysis of Profit and Loss Statement and Balance Sheet including the key ratios based on consolidated results is mentioned as follows:

The consolidated performance of the Company for the financial year ended 31^st March, 2026 is as follows:

The Consolidated Revenue from Operations of the Company was Rs. 24653.48 Lac during the year under consideration as compared to Rs. 23103.99 Lac. During the year there was no Trading Turnover. The entire revenue of Rs. 24653.48 Lac earned during the year was derived from the provision of transportation services as compared to revenue of Rs. 20890.69 Lac derived from services during the previous year.

The depreciation and amortisation expense was Rs. 403.89 Lac as against Rs. 489.03 Lac during the previous year. The finance cost was Rs. 411.39 Lac as against Rs. 435.00 Lac during the previous year.

The consolidated net profit after tax for the year is Rs. 357.77 Lac whereas the consolidated net profit after tax was Rs. 198.99 Lac for the previous year.

Inventory Turnover Ratio is not applicable to the Company, as the Company is primarily engaged in the business of Transportation Service. There are no significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in other key financial ratios like Interest Coverage Ratio, Debtors Turnover Ratio, Current Ratio, Debt Equity Ratio and Operating Profit Margin, therefore, explanation for the same have not been given.

People are central to the Companys operating philosophy. As at 31^st March, 2026, the Company had a workforce of approximately 326 employees across corporate, regional and branch locations, supported by contractual manpower for loading/ unloading and yard operations. A decentralised leadership structure empowers regional managers with clear KPIs around service levels, safety, productivity and cost, while shared services (planning, finance, HR and IT) drive standardisation and scale benefits.

health checks, hazardous goods handling, and emergency response. Fuel-efficient driving modules, aided by telematics insights, have helped reduce idling and over-speeding incidents. In addition, the Company facilitates insurance and welfare benefits and recognises high performers through awards, fostering pride and retention.

Capability building for staff includes structured induction, role-based training (operations, sales, customer service, control tower), and cross-functional projects to inculcate problem-solving and data literacy. Managers are trained on contract management, cost analytics and continuous improvement to institutionalise a performance culture. HR continues to strengthen the talent pipeline through internal mobility, targeted external hiring for digital and analytics roles, and mentoring by senior leadership.

Industrial relations remained cordial throughout the year, with no work stoppages. The Company continues to ensure fair and transparent processes in performance appraisal, grievance redressal and disciplinary actions. Diversity and inclusion are areas of ongoing focus, particularly in support and customer service roles, as the Company expands into new geographies.

Indias logistics sector is expected to witness sustained momentum, supported by infrastructure investments, policy reforms and increasing adoption of integrated supply chain solutions. The Company will continue to align its strategy with these structural trends by enhancing operational capabilities, improving service offerings and maintaining financial discipline. This approach is expected to support resilient growth and strengthen the Companys long-term market position.

Network Expansion: Strengthen the transportation network by expanding coverage across key industrial corridors, manufacturing hubs and emerging consumption centres.

Fleet Modernisation: Continue to modernise the fleet with fuel-efficient and technologically advanced vehicles to improve operational reliability, safety and cost efficiency.

Technology Integration: Enhance digital capabilities through GPS-enabled fleet tracking, Transport Management Systems (TMS), e-POD, telematics and data analytics to improve visibility and operational performance.

Multimodal Transportation: Increase focus on integrated road-rail logistics solutions to provide cost- effective and sustainable transportation for long-haul cargo.

Specialised Transportation: Strengthen capabilities in specialised transportation segments such as bonded trucking, high-value cargo, project cargo and industry-specific logistics solutions.

LTL & Distribution Network: Expand the Less- than-Truckload (LTL) and distribution network to support growing demand from SMEs, organised retail, e-commerce and manufacturing sectors.

Digital Freight & Process Automation: Leverage digital platforms and automation to improve shipment planning, capacity utilisation, documentation and customer service.

Safety & Compliance: Continue to strengthen safety standards, regulatory compliance and driver training to ensure reliable and secure transportation services.

The Company enters the coming year with a clear strategic focus on enhancing fleet productivity, strengthening nationwide connectivity and improving service reliability through technology-driven operations. By prioritising operational efficiency, customer satisfaction, safety and sustainable business practices, the Company aims to reinforce its position as a trusted transportation and logistics partner while delivering long-term profitable growth.