Transvoy Logistics India Ltd Management Discussions

INDUSTRY OVERVIEW

The Indian logistics sector is one of the largest in the world and presents a huge addressable opportunity. The sector is critical for the countrys economic growth as it connects various elements of the economy and consists of transportation, warehousing and other supply chain solutions ranging from suppliers to end customers.

Indias logistics industry is a critical enabler of economic activity, connecting manufacturers, suppliers, distributors, retailers and consumers across domestic and international markets. The sector covers road and rail transportation, coastal shipping, air cargo, warehousing, freight forwarding, express delivery, last-mile delivery and integrated supply-chain services.

Recent industry estimates indicate that the Indian logistics market is on a strong growth trajectory. A CRISIL industry report estimates the combined market covering road, rail, domestic air cargo, coastal transport and industrial warehousing at approximately 11-12 trillion in FY2025, with the market projected to reach around 17-19 trillion by FY2030, implying approximately 9-10% CAGR. Road transportation remains the dominant segment, accounting for about 65% of the FY2025 market, while warehousing is also expected to grow rapidly.

SEGMENT WISE PERFORMANCE

The Company is a Logistics business and is engaged in the business of export, import, sales and trading. Based on geographical areas, the Company has one operating segment i.e. domestic sales. The share of domestic sales in the revenue from operations of the Company during FY 2025-26 was Rs.6318.73 Lakhs. The segment wise revenue and results of the company as on March 31, 2026 are as under:

(Rs.in Lakhs)

Revenue	Amount
Domestic Sales	6318.73
Net Sales / Income from Operations	6318.73
Segment Results:
Profit before tax and interest from each segment	199.84
Net Profit for the year	175.02

OPPORTUNITIES AND THREATS

Opportunities:

1. Strong Economic Scenario: India has emerged as one of the worlds fastest growing major economies. The overall macro-economic scenario in the country is positive with low inflation, reduced key interest rates, low commodity prices, rising foreign investments and improved global confidence in the region various structural reforms and government initiatives.

2. Regulatory Changes:

The major regulatory changes by the Government in the area of Logistics Development, and Urban Development Policy enhance the positive atmosphere among the people and Industries as whole.

3. Governments Outlook to Investing in the Indian Logistic Sector: Logistic is a key driver for the Indian economy. Increased spending in this sector has a multiplier effect on overall economic growth as it necessitates industrial growth and manufacturing. This in turn boosts

1. Economy slowdown: Economic slowdown and changes in regulatory environment may impact the construction industry or real estate market, adversely affecting the Companys operations.

Threats:

1. Economy slowdown: Economic slowdown and changes in regulatory environment may impact the construction industry or real estate market, adversely affecting the Companys operations.

2. Fund Crunch:

3. Fund Crunch: The Logistics Industry demands huge long-term investments in projects. Lack of cheap funds or foreign investments may lead to delays in the project resulting in losses. As a government contracting company it requires certain deposits with government department which leads to Blocking of Fund and less working capital.

4. Decline in Bank Credit:

5. Decline in Bank Credit: The rising non-performing assets (NPAs) and cases of fraud have resulted in banks getting stringent on its credit approval leading to a decline in their credit line for all the industries. This is likely to create liquidity issues for the logistic sector as well.

6. Shortage of Labor, supply and Technology:

7. Shortage of Labor, supply and Technology: The Logistic sector in India, being highly dependent on manual labor, is facing a major challenge in terms of availability of manpower which in turn leads to project delays even more due to certain policy of Government Company regarding supply of goods from their side and quality measurement certification leads to delay in work

OUTLOOK:

The logistics sector is poised for significant evolution in the coming years, driven by several key trends and challenges:

1. Technological Advancements: Innovations such as artificial intelligence, robotics, Internet of Things (IoT), and blockchain are transforming logistics. AI is enhancing predictive analytics for demand forecasting and route optimization. Robotics and automation streamline warehousing and sorting operations. Blockchain improves transparency and traceability in supply chains.

2. E-commerce Growth: The rise of e-commerce continues to drive demand for efficient logistics solutions. Companies are investing in faster and more flexible delivery options to meet consumer expectations for quick and reliable service.

3. Sustainability: There is increasing pressure on the logistics sector to reduce its environmental impact. This includes adopting greener technologies, optimizing routes to lower fuel consumption, and investing in electric and hybrid vehicles. Global Supply Chain Resilience: The COVID-19 pandemic highlighted vulnerabilities in global supply chains. Companies are now focusing on building more resilient and diversified supply chains to mitigate risks from disruptions.

4. Last-Mile Delivery Innovations: The last mile of delivery is a critical area of focus. Solutions like autonomous delivery vehicles, drones, and micro-fulfillment centers are being explored to improve efficiency and customer satisfaction.

5. Regulatory Changes: Governments are implementing new regulations related to emissions, safety, and data privacy. Logistics companies need to stay compliant while adapting to these evolving standards.

6. Data Analytics: Leveraging big data and analytics is becoming increasingly important for optimizing operations, improving customer service, and making informed business decisions.

7. Talent and Workforce: The sector is experiencing a shift in the workforce, with a growing demand for tech-savvy professionals. Companies are investing in training and development to keep up with technological advancements.
Overall, the logistics sector is navigating a period of rapid change and innovation, with a strong emphasis on technology, sustainability, and resilience.

RISKS AND CONCERNS:

The logistics sector in India plays a crucial role in supporting the countrys economic growth by enabling
CIN: L63000GJ2015PLC084004

1. Infrastructure Challenges: Roads and Highways: Poor Road conditions and traffic congestion can lead to delays and higher transportation costs. Ports: Inadequate port infrastructure and capacity issues can cause bottlenecks in international trade. Railways: While the rail network is extensive, capacity constraints and outdated facilities can impact cargo movement.

2. Regulatory and Policy Issues: Compliance: Navigating a complex web of regulations, such as GST and various state-level taxes, can be cumbersome and lead to compliance issues. Bureaucracy: Lengthy and often inconsistent bureaucratic procedures can delay processes and add to operational costs.

3. Technological Integration: Digitalization: There is a need for greater adoption of digital technologies like IoT, AI, and blockchain to enhance efficiency. The sector is still catching up in terms of technological integration. Cybersecurity: With increased digitalization, there are growing concerns about data security and cyber threats.

4. Economic Factors: Fuel Prices: Fluctuations in fuel prices can significantly impact transportation costs. Economic Slowdowns: Economic downturns or fluctuations in demand can affect the volume of goods transported and overall sector performance.

5. Environmental Concerns: Sustainability: There is increasing pressure to adopt eco-friendly practices. The logistics sector needs to address issues like emissions and waste management. Climate Change: Extreme weather events and climate-related disruptions can impact logistics operations and infrastructure.

6. Cost Management: Rising Costs: The sector faces rising costs in various areas including labor, maintenance, and technology upgrades. Pricing Pressure: Competitive pressures can lead to margin compression and impact profitability.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has effective internal control system in place, which are regularly reviewed by independent Internal Auditors of the Company and the internal audit reports are periodically reviewed by Audit Committee. The Company has also put in place adequate internal financial controls with reference to the financial statements commensurate with the size and nature of operations of the Company. Based on the assessment carried out by an independent agency and the evaluation of the results of the assessment, the Board of Directors and Auditors are of the opinion that the Company has adequate internal controls over financial reporting that are operating effectively as of March 31, 2026.

FINANCIAL PERFORMANCE:

The Financial Statements have been prepared in accordance with the requirements of the Act, Indian Generally Accepted Principles (Indian GAAP) and the Accounting Standards as prescribed by the Institute of Chartered Accountants of India. The Management believes that it has been objective and prudent in making estimates and judgments relating to the Financial Statements and confirms that these Financial Statements are a true and fair representation of the Companys Operations for the

period under review The salient parameters of the financial performance of the Company during the year under review are as under:

(Rs.In Lakhs)

The brief financial results are as under	Standalone FY 2025-26	Standalone FY 2024-25	Consolidated FY 2025-26	Consolidated FY 2024-25
Revenue from Operations	6318.73	3366.23	6485.73	3540.50
ADD: Other Income	6.88	13.05	9.15	17.89
Total Revenue (A)	6325.61	3379.27	6494.88	3558.39
EXPENSES
Employee Benefit Expenses	158.35	92.97	192.36	142.46
Finance Cost	154.39	54.29	155.38	58.81
Depreciation	287.68	176.99	290.81	181.09
Other Expenses	5525.36	2742.46	5651.75	2889.29
Total Expenses (B)	6125.76	3066.71	6290.30	3271.65
Profit before Tax (A) – (B)	199.84	312.57	204.59	286.74
Less: TAX Expense	24.82	97.67	30.54	100.56
Profit after Tax	175.02	214.90	174.05	186.18
Earnings per Share	6.57	8.07	6.54	6.99

HUMAN RESOURCES & INDUSTRIAL RELATIONS

The Company acknowledges that its principal asset is its employees and believes in establishing and building a strong performance and competency driven culture amongst its employees with greater sense of accountability and responsibility. The industrial relations within the Company have remained harmonious throughout the year.

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