Sindhu Trade Links Ltd Management Discussions

A. MACRO ENVIRONMENT OVERVIEW

i. Global Economy

The global economy remained resilient through 2025, growing by 3.4%, broadly in line with the 3.3% recorded in 2024. Supportive monetary and fiscal policies, stable financial conditions, and continued investment in technology helped offset the impact of geopolitical tensions, trade policy uncertainty, and elevated sovereign debt levels. Inflation also moderated during the year, easing to 4.1% from 5.8%, supported by lower energy prices and the gradual normalization of global supply chains. However, the disinflation process remained uneven, with services inflation continuing to stay elevated across several advanced economies.

Global trade outpaced overall economic growth, with trade volumes expanding by 5.1% during the year. Goods trade grew by an estimated 4.6%, driven by businesses advancing shipments ahead of expected tariff measures and sustained demand for tariff-exempt technology products. Services trade also remained healthy, expanding by around 5.3%, although growth moderated as the post-pandemic recovery in international travel gradually lost momentum.

Looking ahead, the global outlook has become more challenging entering 202627, with geopolitical tensions once again emerging as the key source of uncertainty. Following the escalation of conflict in West Asia in late February 2026, the IMF revised its 2026 global growth forecast down to 3.1% and lowered its projection for global trade growth to 2.8%, highlighting the risk of a broader or more prolonged conflict. Inflation is also expected to edge higher, with the IMF raising its 2026 forecast to 4.4% amid rising energy prices and shipping disruptions. At the same time, heightened market volatility, the possibility of a correction in richly valued technology stocks, increasing protectionist measures, and growing concerns over sovereign debt sustainability continue to cloud the outlook, reinforcing the need for coordinated fiscal, monetary, and multilateral policy action.

GDP Growth estimates for 2026 and 2027

Source: IMF World Economic Outlook April 2026

ii. Indian Economy

India continued to be the worlds fastest-growing major economy, supported by resilient domestic demand and sustained economic momentum throughout the year. Reflecting this strength, the IMF revised its 2025 growth estimate for India upward to 7.6%, following stronger-than-expected performance in the second and third quarters of the fiscal year and continued momentum in the fourth quarter. Looking ahead, the economy is projected to grow by 6.5% in both 2026 and 2027, supported by the carryover momentum from 2025 and the reduction in incremental US tariffs on Indian exports from 50% to 10%, which is expected to partly offset the impact of the ongoing Middle East conflict. On a Q4-over-Q4 basis, the IMF projects an even stronger near-term trajectory, with growth of 7.5% in 2025 and 7.1% in 2026, before moderating to 6.5% in 2027, highlighting the continued strength of domestic demand even as annual growth gradually normalises.

The Reserve Bank of India (RBI) also remains constructive on the domestic growth outlook. At its monetary policy meeting held between August 3 and 5, 2026, the Monetary Policy Committee (MPC) unanimously kept the repo rate unchanged at 5.25% for the fourth consecutive review while retaining its neutral policy stance. The Standing Deposit Facility rate was maintained at 5.0%, while the Marginal Standing Facility rate and the Bank Rate remained at 5.5%. Encouraged by resilient private consumption, steady expansion in manufacturing and services, and healthy export growth, the RBI marginally raised its FY27 real GDP growth forecast to 6.7% from 6.6%. Governor Sanjay Malhotra noted that Q1 FY27 growth is tracking at around 7.0%, with quarterly growth expected at 6.4% in Q2, 6.5% in Q3, and 6.8% in Q4.

On the inflation front, the RBI marginally lowered its FY27 CPI inflation forecast to 5.0% from 5.1%, although it expects headline inflation to rise in the near term and peak at 5.9% in Q3 FY27 before easing. The expected increase is largely driven by supply-side pressures, particularly food and fuel prices, rather than broad-based demand. The Governor also highlighted that the renewed escalation of the Middle East conflict since early July 2026 has added fresh volatility to global energy prices, reinforcing the need for policy continuity despite the improving growth outlook.

More broadly, inflation in India is expected to gradually move closer to the RBIs target after unusually soft food prices drove a sharp moderation during 2025. This contrasts with the global inflation outlook, where the IMF expects headline inflation to reverse course, rising from 4.1% in 2025 to 4.4% in 2026, before easing to 3.7% in 2027, as higher energy and food prices linked to the Middle East conflict continue to keep global inflationary pressures elevated.

Source: IMF World Economic Outlook April 2026 and RBI MPC Meeting August 2026 Indias GDP Growth over the years

Source: RBI - Database on Indian Economy

https://data.rbi.org.in/BOE/OpenDocument/2409211437/OpenDocument/opendoc/open Document.jspRs.logonSuccessful=true&shareId=1

B. INDUSTRY OVERVIEW

i. Global Logistics Market

The global logistics market was valued at approximately US$9.41 trillion in 2023 and is projected to grow at a CAGR of 8.1%, reaching US$14.39 trillion by 2029. Growth continues to be driven by expanding e-commerce, infrastructure development, rising cross-border courier, express and parcel (CEP) volumes, and increasing public-private investment in logistics infrastructure. While freight transportation remains the foundation of global trade, demand is steadily shifting towards integrated logistics solutions, including freight forwarding, warehousing, and last-mile delivery. At the same time, strong growth across Asia-Pacific, tighter sustainability regulations, and increased adoption of automation, real-time visibility, and predictive analytics are reshaping the industrys competitive landscape and improving operational efficiency.

Source: https://www.mordorintelligence.com/industry-reports/freight-logistics-market-study

The near-term outlook, however, has become more cautious. According to the WTOs March 2026 outlook, global merchandise trade growth is expected to moderate sharply to 1.9% in 2026, from 4.6% in 2025, before recovering gradually thereafter. Risks remain tilted to the downside, with sustained high oil and LNG prices potentially reducing global GDP growth by 0.3 percentage points and lowering merchandise trade growth by up to 1.0 percentage point in energy-dependent regions, bringing overall trade growth down to as low as 1.4%. Given the close correlation between merchandise trade and freight movement, a slowdown in global trade is likely to weigh on freight volumes, port activity, and shipping demand, creating a more challenging operating environment for logistics providers.

Source: https://www.wto.org/english/news e/news26 e/stat 19mar26 329 e.htm Logistics Market Size by Country and % of GDP as of 2025

Source: https://www.cargoson.com/en/blog/how-big-is-the-logistics-market

*Figures for USA and Canada are for 2024 and 2023 for China

ii. Global Coal Market

Global coal production remained broadly stable in 2025 at an estimated 9,111 million tonnes (Mt), largely unchanged from the record 9.1 billion tonnes produced in 2024, signalling a plateau before a gradual decline expected later in the decade. Output softened in key exporting countries such as Indonesia (778 Mt) and Australia (446 Mt) as lower coal prices and weaker import demand weighed on production. While China continued to increase output to 4,730 Mt, the pace of growth moderated as authorities implemented temporary supply curbs during the summer to manage inventories amid subdued prices.

Looking ahead, global coal production is projected to gradually decline to around 8,641 Mt by 2030, driven primarily by lower output in China, alongside continued declines in the European Union and the United States as coal phaseouts and cost pressures gather pace. Although supportive policy measures are expected to moderate the pace of contraction in the US, Indonesias production is also forecast to decline as shrinking export demand outweighs growth in domestic consumption. India is expected to remain the principal source of incremental production growth, supported by expanding captive and commercial mining operations, although this will not be sufficient to offset production declines in other major coal-producing regions. As a result, global coal supply is expected to trend lower through the second half of the decade. Source: https://www.iea.org/reports/coal-2025/supply

Global coal demand increased marginally by around 0.5% in 2025 to 8.85 billion tonnes, reflecting continued resilience despite the rapid expansion of renewable energy. However, the International Energy Agency (IEA) expects global coal demand to decline by around 3% by 2030, indicating a gradual moderation rather than a sharp contraction. The slowdown is expected to be driven primarily by China, where the rapid expansion of solar and wind power capacity is steadily reducing reliance on coal-fired electricity generation, even as coal continues to play an important role in the global energy mix.

Source: https://geoconversation.org/en/shorts/coal-mining-countries-who-is-increasing-volumes-and- why-asia-rules-the-market/

For Indonesia, National coal production in 2025 reached ~790 million tons, a 5.5 percent decrease compared to the 836 million tons produced in 2024. Out of the total production, approximately 514 million tons or 65.1 percent were exported. Meanwhile, the domestic market obligation (DMO) reached 254 million tons, or roughly 32 percent. The remaining stock at the end of 2025 stood at 22 million tons, or 2.8 percent. For 2026, The Ministry of Energy and Mineral Resources has confirmed plans to reduce the national coal production target in the 2026 work plan and budget (RKAB) to approximately 600 million tons. This figure is lower than the previous years target of 735 million tons with the aim to stabilize coal prices.

Source: https://en.tempo.co/read/2079285/indonesia-to-cut-2026-coal-output-to-600-million-tons

Source: https://www.iea.org/reports/coal-2025/supply

iii. Indian Logistics Market

The Indian logistics industry continues to witness robust growth, supported by strong structural drivers on both the demand and supply sides. Rising investments in transportation infrastructure, warehousing, and integrated supply chain solutions, coupled with the sectors ongoing formalization, are strengthening its long-term growth outlook. Having expanded from INR 12.8 trillion in FY19 to INR 23.4 trillion (US$276.7 billion) in FY25, representing a 10.6% CAGR, the industry is projected to reach approximately INR 37 trillion (US$437.6 billion) by FY30, growing at a 9.6% CAGR. Recognized as a key enabler of Indias economic ambitions, the logistics sector is expected to play a pivotal role in improving supply chain efficiency, enhancing trade competitiveness, and supporting the countrys long-term growth trajectory. Source: Economic Survey, Lattice Freight Forwarding Industry Report 15^th September 2025

Key Growth Drivers for the Indian Logistics Industry

• Robust FDI Inflows: India attracted cumulative FDI inflows of US$748.8 billion during FY2014-FY2025, a 143% increase over the preceding eleven-year period, supporting industrial expansion and logistics demand.

• Government-Led Infrastructure Investment: The Union Budget 2025-26 earmarked approximately US$134 billion (3.1% of GDP) for infrastructure development, reinforcing investments in transportation and logistics networks.

• Rising Merchandise Exports: Indias merchandise exports increased from US$422 billion in FY22 to US$437.4 billion in FY25. Supported by the Make in India initiative, this is boosting manufacturing activity and creating additional demand for logistics services.

• Manufacturing Expansion: Continued growth in domestic manufacturing under the Make in India programme is strengthening industrial ecosystems and driving higher demand for transportation, warehousing, and supply chain solutions.

• Regulatory Reforms: Initiatives such as GST, e-way bills, faster regulatory clearances, and infrastructure status for the logistics sector are improving operational efficiency and reducing supply chain bottlenecks.

• Workforce Development: Greater focus on skill development and dedicated logistics training infrastructure is enhancing the availability of skilled talent across the sector.

• E-commerce Growth: Rapid expansion of e-commerce and increasing participation of MSMEs in digital commerce continue to accelerate demand for warehousing, fulfilment, and last-mile delivery services.

• Expansion into New Markets: Rising internet penetration (approximately 66% in FY25) and growing smartphone adoption are expanding demand beyond Tier-I and Tier-II cities, opening new growth opportunities for logistics providers.

Source: Lattice Freight Forwarding Industry Report 15^th September 2025

iv.Indian Coal Market

India continued to strengthen its energy security by crossing the 1 billion tonne (BT) coal production milestone for the second consecutive year, highlighting the countrys growing self-reliance in meeting its energy requirements. During FY25, raw coal production stood at 1,047.5 million tonnes (MT) against a target of 1,080.2 MT, enabling the country to meet rising power demand while maintaining record coal inventories at thermal power plants. The achievement reflects improved planning, operational efficiency, and stronger coordination across the coal value chain, reinforcing coals critical role in supporting Indias economic growth and energy security.

Source: https://www.pib.gov.in/PressReleasePage.aspxRs.PRID=2243291&reg=3&lang= 1,

Ministry of Coal Annual Report 2025-26

FY26 marked a watershed year for Indias coal sector, with captive and commercial coal mines surpassing the 200 million tonne (MT) production and dispatch milestone for the first time, underscoring the sectors growing contribution to the countrys energy security. Coal production from these mines increased 10.2% year-on-year to 210.5 MT, while dispatches rose 7.4% to 204.6 MT, reflecting improved operational efficiency, stronger evacuation and logistics infrastructure, and enhanced mining capabilities. This milestone highlights the increasing role of captive and commercial mining in meeting Indias rising energy demand and supports the Governments broader objective of improving domestic coal availability while reducing dependence on imports.

Source: https://coal.gov.in/sites/default/files/2026-04/Press020426.pdf

Looking ahead, the Ministry of Coal has set an ambitious target to increase Indias domestic coal production by 42% over the next five years, from 1,080 million tonnes (MT) in FY26 to 1,533 MT by FY31. The production roadmap reflects the Governments continued focus on enhancing energy security, reducing dependence on imported coal, and ensuring adequate fuel availability to support the countrys expanding power generation and industrial requirements. Continued expansion of commercial and captive mining, alongside investments in mining infrastructure and evacuation networks, is expected to play a key role in achieving this target.

Source: https://www.instituteforenergyresearch.org/fossil-fuels/coal/india-to-increase-domestic-coal-production-by-42-over-5-years/

v. India Biomass Market

Indias biomass power sector is expected to grow from 11.58 GW in 2025 to 14.97 GW by 2030, registering a CAGR of 5 .3%, supported by abundant biomass feedstock, increasing renewable energy adoption, and sustained policy support. The Government continues to promote the sector through initiatives such as the National Bioenergy Programme and biomass-based cogeneration schemes, encouraging greater utilization of agricultural residues and industrial biomass. Backed by rising clean energy investments and Indias broader renewable energy ambitions, the biomass industry is expected to play an increasingly important role in diversifying the countrys energy mix, reducing greenhouse gas emissions, and strengthening long-term energy security.

Source: https://www.mordorintelligence.com/industry-reports/india-biomass-market

C. SWOT OVERVIEW

i. Strengths

• Diversified, asset-backed operations: The Companys business spans coal mining and trading, transportation and logistics, power generation and petroleum retailing, and is supported by an owned fleet of over 200 tippers and loaders. This spread of activities gives it more than one lever to lean on when any single business line goes through a soft patch.

• Decades of experience in coal logistics: The Company has a long track record of loading and transporting raw and washed coal for both public and private sector clients, giving it operational know-how and established relationships that are not easy to replicate. This positions it well to ride Indias expanding captive and commercial coal mining activity.

• Improved balance sheet: Standalone debt was brought down by 63.4% year-on-year to approximately Rs. 372 crore in FY25, and the consolidated debt-to-equity ratio has fallen from about 66% five years ago to roughly 40% currently. A lighter debt load gives the Company more room to fund growth without over-stretching itself.

• Building scale through acquisitions: The Company has approved acquiring a 78.26% stake in Advent Coal Resources Pte. Ltd., Singapore (which owns the MEC Coal Project in Indonesia along with associated logistics infrastructure), and a 50.1% stake in Sainik Mining and Allied Services Limited (FY25 turnover of Rs. 1,088.53 crore), a mine development and overburden removal contractor. Together, these deals move the Company up the value chain, from being largely a logistics and trading player to also holding direct mining assets.

• High promoter commitment: Promoters continue to hold close to three- fourths of the Companys equity, which reflects a meaningful degree of alignment between promoter and shareholder interests.

ii. Weaknesses

• Uneven revenue trend: Quarterly revenue has been volatile through FY26, with Q4 FY26 net sales down over 61% year-on-year to Rs. 115.26 crore, the lowest in the trailing twelve months. This makes near-term revenue visibility harder to predict than one would like for a Company of this scale.

• Thin core profitability: Return on equity has averaged around 2.25% over the last three years, and rising interest costs (Rs. 17.11 crore in Q4 FY26 alone) continue to eat into margins. A meaningful part of reported earnings also comes from other income rather than core operations, which makes the underlying profitability picture a little harder to read.

• Stretched working capital: Debtor days stand at a high 230, and overall working capital days have risen sharply from 171 to 395. This ties up cash in the business and adds to receivable risk, particularly in a segment where counterparties can themselves face payment delays.

• Limited institutional participation: With promoters holding close to 75% and institutional ownership at roughly 2-3%, the free float available to institutional investors is small. This can mean less analyst coverage and sharper price swings on news flow than one would see in a more widely held stock.

• Recent leadership change: The Companys CEO stepped down in February 2026 for personal reasons. While the transition has been managed in the normal course, a leadership change at a time of major acquisitions does add some near-term execution risk.

iii. Opportunities

• A supportive coal policy backdrop: The Ministry of Coal has set a target to raise Indias domestic coal production by 42%, from 1,080 million tonnes in FY26 to 1,533 million tonnes by FY31, with captive and commercial mines having already crossed the 200 million tonne production and dispatch milestone for the first time in FY26. As a coal logistics and mining services player, the Company sits directly in the path of this growth.

• Moving up the value chain: The proposed acquisitions of Sainik Mining and Advent Coal Resources give the Company mine development, overburden removal and overseas coal asset exposure in Indonesia, rather than just logistics and trading. If integrated well, this can open up a more stable, higher-margin revenue stream alongside the existing business.

• A foothold in cleaner energy: The Companys existing biomass-based power generation business gives it some exposure to Indias energy transition, which could be built upon over time as the countrys energy mix gradually diversifies.

• Room for further consolidation: Indias mine services and coal logistics landscape remains fairly fragmented. Having recently raised capital through preferential issuances of over Rs. 922 crores for its recent acquisitions, the Company has demonstrated an ability to access growth capital, which could support further bolt-on opportunities

iv. Threats

• Exposure to coal price and volume cycles: Coal trading and mining revenues are closely tied to global and domestic coal prices and volumes. For instance, Indonesia has cut its 2026 coal production target to around 600 million tonnes specifically to support prices, a reminder that supply-side interventions elsewhere can affect trading economics for players like the Company.

• Long-term regulatory and ESG headwinds: Even as near-term demand for coal in India remains healthy, the Companys coal-linked businesses face longer-term policy and financing headwinds as the country and the world gradually shift towards decarbonisation, which could affect access to capital and cost of funding over time.

• Equity dilution from recent deals: The Advent Coal Resources and Sainik Mining acquisitions, together valued at over Rs. 922 crores are being funded through preferential issuance of equity shares and compulsorily convertible preference shares. Once these convert, existing shareholders will see their holding diluted.

• Small-cap liquidity risk: With a market capitalisation of around Rs. 4,000 crore and a thin institutional shareholder base, the stock is more exposed to broad small and mid-cap liquidity swings than larger, more widely tracked peers, as seen during the FY26 correction across the segment.

• Macro and geopolitical uncertainty: Elevated global energy prices and the risk of shipping disruptions, particularly linked to the ongoing conflict in West Asia, could raise input costs and disrupt trade flows relevant to the Companys logistics and coal trading operations.

D. BUSINESS AND OPERATIONAL OVERVIEW

i. About the company

Sindhu Trade Links Limited is a diversified, India-based holding company headquartered in Gurugram, incorporated in 1992, and formerly known as Bhandari Consultancy and Finance Limited before it was renamed in June 2011. The company, together with its subsidiaries, seeks to power Indias progress by streamlining coal supply, driving global leadership in coal mining & logistics and expanding into new growth ventures worldwide. It employs roughly 715 people and is classified under the "Conglomerates" industry.

The company has an experience of over 3 decades with strong national and international presence with long standing relationships with clients in coal mining, coal washing, power & power generation, steel and cement plant segments, significant investments in Indonesian Coal mines and undertakes contract mining with leading coal companies. The company also has a strong fleet network consisting of a significant number of Tippers, Excavators, Loaders and Surface Miners catering to diverse set of industries.

ii. Business Verticals

The company operates across the following segments

• Coal Logistics Business - India

The Companys primary revenue contributor, backed by a well-established presence in coal transportation and logistics through diversified in-house transport modes and contract mining services for coal companies.

• Coal Mining Business - Indonesia

Established international footprint, supported by coal mining concessions and strategic investments in marquee coal mining assets in Indonesia. Growth to be fuelled by significant aspirational ramp-up in coal mine production supported by thermal power demand and planned investment in infrastructure expansion.

• Sudha Bio-Power Plant

Generation of electricity through 12MW Bio-Mass power plant set up in Chhattisgarh with capability of electricity supply as per available opportunities and requirements. Set up in a power purchase agreement with the Chhattisgarh State Power Distribution Company.

In addition to the above verticals, as part of its long-term diversification strategy, the Company has announced plans to invest USD 100 million in strategic mining opportunities across India and international markets. The investment is aimed at capitalising on the growing demand for minerals essential to electric mobility, renewable energy, advanced manufacturing, and infrastructure development, while building a diversified portfolio of resource assets. The Company intends to pursue opportunities through a combination of participation in government auctions, strategic acquisitions, and partnerships, while evaluating prospective assets across mineral-rich regions in Asia, Africa, and Australia. This initiative is expected to diversify the Companys revenue streams, strengthen its global resource footprint, and create a sustainable platform for long-term growth.

E. FINANCIAL OVERVIEW AND ANALYSIS

Fiscal 2026 tells two different stories for the Company, and both are needed for a fair picture of the year. On a standalone basis the Companys core transportation, logistics, financing and oil trading operations revenue and profit moderated from an unusually strong Fiscal 2025, even as profitability in the largest segment, Transportation, Logistics & Construction, improved. On a consolidated basis, reported numbers were dominated by swings in the Overseas Coal Mining & Trading segment, where the Company has clarified that the movement was largely a currency-translation effect rather than a comparable change in underlying business, and by the continuing voluntary administration of the step-down foreign subsidiary, Oceania Resources Pty Limited, which remains outside the consolidated numbers. Both are set out below.

Particulars (Rs. in Crore)	FY2026	FY2025	Change (%)
Revenue from operations	423.75	485.51	(12.7)
Other income	20.12	22.60	(11.0)
Total income	443.87	508.11	(12.6)
EBITDA*	80.47	93.98	(14.4)
EBITDA margin (%)	19.0	19.4	(1.9)
Profit before tax	33.19	46.15	(28.1)
Profit after tax	24.57	38.50	(36.2)
PAT margin (%)	5.8	7.9	(26.9)
Basic EPS (Rs.)	0.16	0.25	(36.2)
Total equity	946.04	918.53	3.0
Total borrowings	393.55	331.49	18.7
Debt-to-equity (x)	0.42	0.36	15.3

i. Standalone Performance Revenue from operations

Standalone revenue from operations declined 12.7% to Rs. 423.75 crore in FY2026 from Rs. 485.51 crore in FY2025. The decline was concentrated in two of the Companys four reporting segments rather than spread evenly across the business:

• Finance Operations revenue fell 80.7% to Rs. 4.59 crore (FY2025: Rs. 23.80 crore), the single largest contributor to the overall decline;

• Oil Drilling Operations revenue fell 76.5% to Rs. 10.52 crore (FY2025: Rs. 44.75 crore);

• Transportation, Logistics & Construction the Companys principal segment, contributing close to 89% of standalone revenue was comparatively resilient, declining only 2.8% to Rs. 376.61 crore (FY2025: Rs. 387.55 crore)

• Oil, Lubricants & Spares grew 8.9% to Rs. 32.03 crore (FY2025: Rs. 29.40 crore), partly cushioning the decline elsewhere.

Operating profitability

EBITDA declined 14.4% to Rs. 80.47 crore in FY2026 from Rs. 93.98 crore in FY2025, with the EBITDA margin broadly steady at around 19% of revenue in both years. This overall stability, however, masks divergent segment trends. Results from the Transportation, Logistics & Construction segment actually improved 23.5% to Rs. 57.58 crore (FY2025: Rs. 46.63 crore), aided by lower other expenses during the year. This improvement was more than offset by the Finance Operations segment, which swung from a profit of Rs. 12.01 crore in FY2025 to a loss of Rs. 9.31 crore in FY2026, together with declines of 61.1% and 45.5% in the results of the Oil, Lubricants & Spares and Oil Drilling Operations segments respectively.

Unallocated finance costs, relating to corporate-level borrowings, were largely stable at Rs. 37.03 crore (FY2025: Rs. 39.02 crore).

Profit after tax

Profit after tax fell 36.2% to Rs. 24.57 crore in FY2026 from Rs. 38.50 crore in FY2025, with PAT margin narrowing to 5.8% from 7.9%. The decline was driven principally by the swing to a loss in the Finance Operations segment and the fall in Oil Drilling Operations profit, only partly offset by the stronger performance of the core transportation business. Basic and diluted EPS fell in step, to Rs. 0.16 from Rs. 0.25.

Balance sheet and cash flows

The standalone balance sheet remained comfortably capitalised. Total equity increased 3.0% to Rs. 946.04 crore as of 31 March 2026 (31 March 2025: Rs. 918.53 crore), aided by retained profit. Total borrowings increased 18.7% to Rs. 393.55 crore (31 March 2025: Rs. 331.49 crore) as the Company drew fresh long-term borrowings during the year, taking the debt-to-equity ratio to 0.42x from 0.36x. Trade receivables reduced to Rs. 288.89 crore from Rs. 307.57 crore, and the current ratio improved sharply to 4.17x from 2.69x, aided by a reduction in current liabilities, particularly trade payables and other financial liabilities. Net cash generated from operating activities was Rs. 41.86 crore in FY2026 (FY2025: Rs. 88.22 crore), while capital expenditure moderated to Rs. 4.80 crore from Rs. 10.61 crore. The net cash outflow on investing activities of Rs. 67.16 crore was largely on account of higher loans and advances given and fixed deposits placed during the year, funded in part by fresh borrowings, reflected in a net cash inflow from financing activities of Rs. 24.99 crore against a net outflow of Rs. 69.00 crore in FY2025.

ii. Consolidated Performance

Particulars (Rs. in Crore)	FY2026	FY2025	Change(%)
Revenue from operations	524.08	1,731.10	(69.7)
Other income	55.56	561.60	(90.1)
Total income	579.65	2,292.70	(74.7)
EBITDA*	129.68	342.08	(62.1)
Profit before tax	66.35	166.33	(60.1)
Profit after tax	57.44	121.59	(52.8)
- attributable to owners of the Company	41.43	25.66	61.5
- attributable to non-controlling interests	16.01	95.93	(83.3)
Basic EPS (Rs.)	0.27	0.17	58.8
Total equity	2,260.37	2,146.50	5.3
Total assets	2,883.68	2,729.71	5.6

Consolidated revenue from operations declined 69.7% to Rs. 524.08 crore in FY2026 from Rs. 1,731.10 crore in FY2025, and other income fell 90.1% to Rs. 55.56 crore from Rs. 561.60 crore. Both movements were overwhelmingly driven by the Overseas Coal Mining & Trading segment, whose reported revenue fell from Rs. 1,208.35 crore in FY2025 to Rs. 50.24 crore in FY2026. As the Company has clarified in its results, the negative figure recorded for this segment in the fourth quarter was purely a translation effect of adverse currency movements and does not indicate an equivalent fall in underlying volumes; FY2025 other income had also been unusually elevated on account of one-off items connected with the same segment.

Consolidated profit after tax fell 52.8% to Rs. 57.44 crore in FY2026 from Rs. 121.59 crore in FY2025. A more relevant lens, however, is profit attributable to owners of the Company, which actually rose 61.5% to Rs. 41.43 crore in FY2026 from Rs. 25.66 crore in FY2025 the fall in total consolidated profit was concentrated in the share attributable to non-controlling interests (down to Rs. 16.01 crore from Rs. 95.93 crore), reflecting the minority stake in the coal trading subsidiary. Consolidated basic EPS accordingly improved to Rs. 0.27 from Rs. 0.17.

The consolidated balance sheet also strengthened, with total equity increasing 5.3% to Rs. 2,260.37 crore and total assets increasing 5.6% to Rs. 2,883.68 crore as of 31 March 2026. The step-down foreign subsidiary, Oceania Resources Pty Limited, remained under voluntary administration through the year and continues to be excluded from consolidation; the Deed of Company Arrangement governing its affairs has been extended to 30 June 2026.

iii. Key Financial Ratios

Pursuant to Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details of significant changes (25% or more compared to the immediately preceding financial year) in key financial ratios, along with explanations, are set out below.

Ratio	FY2026	FY2025	Change (%)	Explanation (where change > 25%)
Debtor turnover (x)	1.59	5.02	(68.3)	Decline driven by the sharp fall in consolidated revenue (down 69.7%) following the currency-translation-led contraction in the Overseas Coal Mining & Trading segment, even as trade receivables reduced only marginally
Current ratio (x)	4.84	3.32	45.8	Improved on a reduction in current liabilities, particularly trade payables and other financial liabilities, alongside growth in loans and other current financial assets
Debt-equity ratio (x)	0.20	0.17	17.1	Below the 25% threshold; increase reflects fresh long-term borrowings drawn during the year, partly offset by growth in net worth
Return on net worth (%)	2.4	1.6	48.1	Computed on profit and net worth attributable to owners of the Company; improved as profit attributable to owners rose 61.5% even as total consolidated profit (including non-controlling interests) declined
Operating (EBITDA) margin (%)	24.7	19.8	25.2	Margin expansion despite the sharp revenue decline, as FY2025 included unusually high other expenses, including a one-off loss on disposal of subsidiaries, that did not recur in FY2026
Net profit margin (%)	11.0	7.0	55.9	Improvement driven by the absence of the large one-off other expenses and subsidiary-disposal related charges recorded in FY2025, partly offset by continued weakness in reported revenue

iv.Return on Net Worth

Return on net worth, computed as profit after tax attributable to owners of the Company divided by net worth attributable to owners, stood at approximately 2.4% in FY2026, against 1.6% in FY2025. Although total consolidated profit after tax (including the share attributable to non-controlling interests) declined 52.8% year-on-year, profit attributable to the Companys own shareholders increased 61.5%, to Rs. 41.43 crore from Rs. 25.66 crore, which is reflected in the improvement in return on net worth. Net worth attributable to owners increased 9.0% to Rs. 1,752.91 crore from Rs. 1,607.83 crore, aided by retained profit and other comprehensive income, including gains on translation of the Companys foreign operations. Management expects return on net worth to improve further as the currency-translation effects in the Overseas Coal Mining & Trading segment normalise and as the pending Sainik Mining and Advent Coal Resources acquisitions begin contributing to consolidated earnings.

F. OUTLOOK

The Company remains cautiously optimistic about its outlook for FY27, supported by Indias resilient economic growth, favourable industry dynamics, and its ongoing strategic initiatives. Continued investments in infrastructure, logistics, mining, and energy are expected to support demand across the Companys core businesses.

The logistics business is well positioned to benefit from the continued formalisation of the sector, infrastructure development, and rising demand for integrated transportation solutions. In the mining segment, the proposed acquisition of Advent Coal Resources and Sainik Mining, subject to the completion of customary approvals and conditions, is expected to strengthen the Companys mining portfolio, enhance operational scale, and diversify its revenue base. The biomass business is also expected to benefit from the Governments continued focus on renewable energy and increasing adoption of biomass co-firing, creating opportunities across biomass aggregation, pellet manufacturing, and related logistics.

The Company also continues to pursue new growth opportunities through investments in strategic resource assets across India and overseas, supporting its long-term diversification strategy. While geopolitical uncertainties, energy price volatility, and supply chain disruptions remain key external risks, the Company remains focused on improving operational efficiency, strengthening working capital management, reducing leverage, and executing its growth plans in a disciplined manner. Backed by a diversified business portfolio and favourable long-term industry fundamentals, the Company believes it is well positioned to deliver sustainable growth over the medium to long term.

G. RISKS AND CONCERNS

i. Macroeconomic & Geopolitical Risks

The Companys transportation and mining businesses remain sensitive to fluctuations in fuel prices, inflation, and global economic conditions. Escalation of geopolitical tensions, particularly in the Middle East, could disrupt global supply chains, increase crude oil prices, and elevate operating costs. Additionally, slower industrial activity or trade disruptions could adversely affect freight movement and coal-related demand.

ii. Industry & Operational Risks

A significant portion of the Companys business is linked to the coal value chain, exposing it to changes in mining regulations, environmental policies, coal demand, and production levels. The logistics sector also remains highly competitive, with increasing participation from organised and technology-driven players. The Companys mining, coal trading, and biomass businesses are subject to stringent regulatory approvals and environmental compliance requirements, and any changes in the regulatory framework could impact operations.

iii. Execution & Financial Risks

The Company continues to focus on improving working capital efficiency and receivables management following the moderation in business activity during FY26. The proposed acquisition of Advent Coal Resources and Sainik Mining, while expected to strengthen the Companys mining portfolio, carries execution, integration, and equity dilution risks. The Company is also exposed to interest rate and foreign exchange fluctuations arising from its borrowings and overseas operations. Further, the recent leadership transition following the resignation of the Chief Executive Officer may present short-term execution challenges until the transition process is completed.

The Company has established a robust risk management framework that enables the systematic identification, assessment, and monitoring of risks across its diversified business portfolio. Identified risks are classified into defined categories based on their severity, facilitating effective prioritisation and the implementation of appropriate mitigation measures. The framework supports informed decisionmaking and strengthens the Companys ability to respond proactively to evolving business and operating risks. While the Company believes it has appropriate mitigation strategies in place to manage the identified risks, there can be no assurance that these risks will not materially affect its business operations, financial condition, or future performance.

H. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established adequate internal control systems commensurate with the size, nature, and complexity of its diversified operations. These controls are designed to safeguard assets, ensure the accuracy and reliability of financial reporting, promote operational efficiency, and ensure compliance with applicable laws, regulations, and internal policies.

The Companys internal control framework is aligned with the principles prescribed by the Institute of Chartered Accountants of India (ICAI). An independent Internal Audit function periodically reviews the effectiveness of internal controls, risk management practices, and compliance across business operations. The Audit Committee regularly reviews the audit findings, monitors the implementation of corrective actions, and oversees the adequacy of the internal control framework.

The Company has also implemented a Vigil Mechanism/Whistle Blower Policy to enable directors and employees to report genuine concerns relating to unethical conduct, fraud, or violations of the Companys Code of Conduct. Based on the reviews carried out by the Internal Auditors and the report of the Statutory Auditors, the Board is of the opinion that the Companys internal financial controls were adequate and operated effectively during the year under review.

I. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company continues to view its human capital as central to executing its diversified operating strategy across mining, transportation, coal trading, and allied businesses. Industrial relations remained cordial during the year under review, and the Company continues to invest in workforce safety, skill development, and retention across its field and corporate teams. As of March 31, 2026, the Company employed 586 permanent employees across its operations. The Board places on record its appreciation for the contribution of employees at all levels toward the Companys performance during the year.

CAUTIONARY STATEMENT

This Management Discussion and Analysis contain forward-looking statements relating to the Companys objectives, expectations, estimates, projections, and outlook. These statements are based on the managements current assumptions, expectations, and beliefs regarding future events and are subject to various known and unknown risks and uncertainties, many of which are beyond the Companys control. Actual results may differ materially from those expressed or implied in these statements.

Factors that could cause actual results to differ include, among others, changes in domestic and global economic conditions, fluctuations in commodity and fuel prices, changes in government policies and regulatory frameworks, geopolitical developments, interest rate and foreign exchange movements, competitive intensity, project execution, integration of acquisitions, working capital and liquidity management, and other risks discussed in the "Risks and Concerns" section of this Report.

The Company undertakes no obligation to publicly update or revise any forwardlooking statements, whether because of new information, future events, or otherwise, except as required under applicable law. Readers are advised not to place undue reliance on these statements and should read them in conjunction with the Companys financial statements and the accompanying notes forming part of this Annual Report.

Sd/-	Sd/-
(Saurabh Sindhu)	(Rudra Sen Sindhu)
Director	Director
Din no.-02291158	Din no.-00006999