Total Transport Systems Ltd Management Discussions

<dhhead-MANAGEMENT DISCUSSION AND ANALYSIS REPORT (MDAR)</dhhead-

Global Economic Overview

The global economy during FY26 continued to operate amid a challenging environment marked by geopolitical conflicts, inflationary pressures, disruptions in global shipping routes, and fluctuating commodity prices. Trade flows remained uneven across regions as businesses adjusted supply chains and sought greater resilience through diversification of sourcing and manufacturing locations.

The logistics and freight industry experienced continued volatility in freight rates and transportation costs. Geopolitical developments in key trade corridors, including disruptions affecting maritime routes, resulted in increased transit times and higher insurance and freight costs for certain cargo movements. Despite these challenges, global trade remained resilient, supported by gradual recovery in manufacturing activity and increasing supply chain diversification.

Indian Economic Overview

India continued to be one of the fastest-growing major economies globally, supported by robust domestic consumption, infrastructure spending, manufacturing expansion, and policy reforms. The Governments sustained focus on infrastructure development has significantly enhanced connectivity across ports, highways, railways, airports, and logistics corridors.

Initiatives such as PM Gati Shakti, the National Logistics Policy, Dedicated Freight Corridors, logistics parks, and digital logistics platforms are creating a more efficient and integrated logistics ecosystem. Indias logistics costs have reduced significantly over the last decade, improving the competitiveness of Indian businesses and supporting economic growth.

Industry Overview

The Indian logistics industry remains one of the key enablers of economic growth and global trade. Rising manufacturing activity, e-commerce penetration, infrastructure investments, increasing exports, and formalization of supply chains continue to drive demand for integrated logistics solutions.

The freight and logistics market in India is expected to witness sustained growth over the medium term, supported by multimodal transportation infrastructure, warehousing development, digital adoption, and government-led reforms. The sector is increasingly moving towards technology-driven, asset-light, and integrated logistics models that offer end-to-end supply chain solutions.

About Total Transport Systems Limited (TTSL)

Total Transport Systems Limited (TTSL) is a leading player in the global logistics and multimodal transport segment, offering integrated, end-to-end logistics solutions across ocean, air, and surface transport. The Company has built deep operational expertise in Less-than-Container Load (LCL) consolidation, Full Container Load (FCL) forwarding, air cargo handling, and last-mile delivery, with a growing presence across India and select international markets. Headquartered in Mumbai, TTSLs infrastructure includes Container Freight Stations (CFSs), Inland Container Depots (ICDs), bonded warehouses, and an extensive network of transport partners, agents, and offices that ensures uninterrupted cargo flow across the country.

Key Strengths and Competitive Advantages

• Multi-modal capability across sea, air, and land transport, enabling end-to-end visibility and operational control.

• Pan-India network with presence at all key ports, ICDs, and metros, supported by strategically located warehouses and partners.

• Technological edge through real-time tracking, digital documentation, automated invoicing, and ERP-backed service delivery.

• A diversified client base spanning manufacturing, automotive, pharma, textiles, and retail sectors.

• Strong financial position and operational flexibility, allowing the Company to scale quickly across new geographies and verticals.

Strategic Initiatives - FY26

• Continued scale-up of the "Abhilaya" last-mile delivery platform, expanding pin-code coverage and shipment volumes.

• Deepening of the 3PL and contract logistics business, including order fulfilment, warehousing, and reverse logistics services.

• Continued groundwork on international expansion, including the Companys proposed entry into select African markets.

• Ongoing investment in digital platforms and ERP systems to improve service turnaround, visibility, and customer experience.

• Focus on operational efficiencies, including reduced cargo dwell time and strengthened vendor and carrier partnerships.

Operational Performance LCL Consolidation

LCL continues to remain one of the Companys core strengths. During FY26, Total Transport handled 4,11,379 CBMs of cargo compared with 4,23,143 CBMs in FY25. Despite market volatility and lower freight activity in certain regions, the Company maintained its strong market position through network strength and customer relationships.

FCL Freight Forwarding

FCL volumes increased from 17,062 TEUs in FY25 to 19,901 TEUs in FY26, reflecting the Companys ability to capture opportunities across global trade lanes and improve customer penetration.

Air Freight

Air freight volumes increased to 1,436 tons during FY26 from 1,371 tons in FY25. The growth was supported by demand for time-sensitive cargo movements and specialized logistics requirements.

Last-Mile Delivery - Abhilaya

Abhilaya continued its strong growth trajectory. Revenue increased to Rs. 112 crore in FY26 from Rs. 104 crore in FY25. Shipment volumes reached 45 million, while the business maintained its network across approximately 1,500 pin codes. The business remains well-positioned to benefit from the continued growth of e-commerce and organized distribution networks in India.

Volume-wise Comparison

Financial Performance Review

The Company reported revenue of Rs. 621.6 crore during FY26. While revenue was impacted by softer freight rates and trade activity in certain segments, EBITDA improved by 11.9% to Rs. 14.9 crore. EBITDA margins expanded by 40 basis points to 2.4%, reflecting improved operational efficiencies and disciplined cost management. PAT stood at Rs. 7.9 crore during FY26.

Opportunities

• Growth in Indias exports and manufacturing sector.

• China strategy driving diversification of global supply chains.

• Expansion of e-commerce and last-mile logistics.

• Development of multimodal logistics infrastructure.

• Increasing adoption of integrated logistics and supply-chain solutions.

• Digitalization and automation across logistics operations.

• Continued infrastructure and policy reforms, including Dedicated Freight Corridors, PM Gati Shakti, and the National Logistics Policy, opening faster and more cost-effective routing options.

• Proposed international expansion into select African markets, supporting cross-border LCL and FCL growth.

Risks and Concerns

• Geopolitical tensions affecting trade routes and freight rates.

• Volatility in fuel prices and transportation costs.

• Foreign exchange fluctuations.

• Regulatory changes affecting international trade.

• Competitive intensity within the logistics industry.

• Global economic slowdown impacting trade volumes.

• Infrastructure bottlenecks, including port congestion and underdeveloped last-mile infrastructure in remote areas, which can increase transit times and operating costs.

• Price pressure from intensifying competition, including the entry of global logistics players and digital-first start-ups. Internal Control Systems

The Company maintains adequate internal control systems commensurate with the nature and scale of its operations. Internal controls support operational efficiency, financial reporting reliability, regulatory compliance, and risk management. Periodic reviews and audits are conducted to strengthen governance standards and ensure effective control mechanisms.

Human Resources

The Company recognizes its employees as its most valuable asset. Continuous focus is placed on employee engagement, skill development, leadership enhancement, and fostering a culture of operational excellence and customer service. The Company remains committed to providing a safe, inclusive, and performance-oriented work environment. on March 31, 2026, Company is giving direct employment to 417 employees.

SEGMENT- WISE OR PRODUCT- WISE PERFORMANCE

The Company is engaged in the business of Consolidation/deconsolidation of cargo freight forwarding, logistics, warehousing and transportation along with last mile delivery business. The Company is dealing only in this single segment and hence segment wise performance is not applicable to the Company.

RISKS AND CONCERNS

Like every business, the Company faces risks, both internal and external, in the undertaking of its day-to-day operations and in pursuit of its longer-term objectives. A detailed policy drawn up and dedicated risk workshops are conducted and key support functions wherein risks are identified, assessed, analyzed, and accepted / mitigated to an acceptable level within the risk appetite of the organization. The risk registers are also reviewed from time to time.

The Company faces the following Risks and Concerns:

Credit Risk

To manage its credit exposure, TTSL has determined a credit policy with credit limit requests and approval procedures. Company does its own research of clients financial health and project prospects before bidding for a project. Timely and rigorous process is followed up with clients for payments as per schedule. The Company has suitably streamlined the process to develop a focused and aggressive receivables management system to ensure timely collections.

Interest Rate Risk

The Company has judiciously managed the debt-equity ratio. It has been using a mix of loans and internal cash accruals. The Company has well managed the working capital to reduce the overall interest cost.

Competition Risk

This risk arises from more players wanting a share in the same pie. Like in most other industries, opportunity brings with itself competition. We face different levels of competition in each segment, from domestic as well as multinational companies. The Company has created strong differentiators in project execution, quality and delivery which make it resilient to competition. Furthermore, the Company continues to invest in technology and its people to remain ahead of the curve. A strong, stable client base consisting of large and mid-sized corporations further helps to insulate the Company from this risk.

Liability Risk

This risk refers to our liability arising from any damage to cargo, equipment, life and third parties which may adversely affect our business. The Company attempts to mitigate this risk through contractual obligations and insurance policies.

Outlook

The outlook for Indias logistics sector remains positive, supported by strong macroeconomic fundamentals, rising trade activity, manufacturing growth, infrastructure investments, and policy reforms. Continued investments under PM Gati Shakti and the National Logistics Policy are expected to improve supply chain efficiency and create long-term opportunities for organized logistics providers.

With its diversified business model, strong global network, growing last-mile delivery platform, and focus on operational excellence, Total Transport Systems Limited is well-positioned to capitalize on emerging opportunities and create sustainable value for all stakeholders.

Key Financial ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations 2018, the Company is required to give details of significant changes (Change of 25% or more as compared to the immediately previous year) in key sector specified financial ratio.

COMMENTS ON RATIO:-

1. The reason for increase in Debt -Equity ratio on account of new long term loan taken

2. The reason for decrease in Interest Coverage ratio is majorly because of decrease in profit in the current year as compared to previous year.

3. The reason for decrease in Net Profit ratio is because revenue has decreased in the current year as compared to previous year.

4. The reason for decrease in Return on net worth ratio is majorly because profit has decreased in the current year as compared to previous year