AFCOM Holdings Ltd posted sharp growth in FY26, with net profit rising 230.05% year-on-year to ₹121.90 crore, supported by higher cargo volumes and improved operating leverage.
Revenue for the year climbed 143.86% to ₹587.72 crore, while EBITDA rose 211.72% to ₹238.14 crore.
According to management, most of the company’s operations during FY26 were carried out using only two aircraft.
FY26 Financial Performance
AFCOM reported:
- Revenue: ₹587.72 crore
- EBITDA: ₹238.14 crore
- Net profit: ₹121.90 crore
Year-on-year growth stood at:
- Revenue: 143.86%
- EBITDA: 211.72%
- Net profit: 230.05%
Profitability also improved.
- EBITDA margin expanded to 40.52%, from 24.55% three years ago.
- PAT margin rose to 20.74%, increasing by more than 540 basis points over the previous year.
- Return on equity (ROE) stood at 26.69%.
- Return on capital employed (ROCE) came in at 35.62%.
Asset-Light Business Model
The Chennai-based company operates dedicated cargo aircraft under a dry lease model rather than owning fleets.
Its routes span:
- South Asia
- ASEAN markets
- The Middle East
- Australia-Pacific region
Customers include freight forwarders, logistics firms and enterprise clients requiring time-sensitive cargo movement.
Aircraft Utilisation
During FY26, AFCOM achieved peak aircraft utilisation of 11.45 flying hours per aircraft per day.
Management said this compares with an average of around 7.9 hours in the Asia-Pacific region and is close to the utilisation levels typically seen at global cargo operators such as FedEx and DHL.
Expansion Plans
The company plans to increase capacity over the next two years.
Management said:
- The fourth and fifth narrow-body aircraft are expected to become operational before the next quarter.
- Four Boeing 777 wide-body freighters are scheduled to join the fleet beginning FY27.
- By the second half of calendar year 2027, AFCOM expects to operate nine aircraft.
The planned fleet would comprise:
- Five narrow-body freighters
- Four Boeing 777 aircraft
Management believes additional capacity could more than double revenue generation over the coming years.
Strategic Developments
Several developments strengthened the company’s position during FY26.
These include:
- Receiving India’s Designated Carrier Certification, enabling access to aviation turbine fuel at lower VAT rates.
- Expanding into the Australia-Pacific market through a partnership with Nauru Air Corporation.
- Launching dry lease routes covering the Middle East and Sri Lanka-Maldives sectors.
- Becoming the first cargo aircraft operator at Noida International Airport.
Management estimates that lower fuel costs could improve EBITDA margins by around 200-250 basis points over time.
The company also said:
- Fuel cost increases are passed on to customers through fuel surcharges.
- More than 60% of revenue is billed in US dollars.
Stock Performance
Shares of AFCOM closed around ₹1,194, giving the company a market capitalisation of approximately ₹3,426 crore.
The stock was trading near its 52-week high of ₹1,199 and at a P/E ratio of 40.53.
Risks to Watch
The company highlighted several risks associated with its expansion plans.
These include:
- Volatility in aircraft lease rates.
- Execution challenges in expanding from two aircraft to nine.
- Availability of pilots, engineering support and maintenance infrastructure.
- Integration risks linked to wide-body international operations.
TL;DR:
AFCOM Holdings reported a 230% jump in FY26 profit to ₹121.90 crore and plans to expand its fleet to nine aircraft by 2027, including four Boeing 777 freighters, as it looks to scale up international cargo operations.
AI summary:
- AFCOM’s FY26 net profit rose 230.05% to ₹121.90 crore.
- Revenue increased 143.86% to ₹587.72 crore.
- Most FY26 operations were carried out with two aircraft.
- Four Boeing 777 freighters are scheduled for induction from FY27.
- The company aims to operate nine aircraft by 2027.
