Skyways Air Services IPO

Strengths · 9

• 01Sales have more than doubled in two years. Total income went from Rs 1,316.81 crore in FY2024 to Rs 2,270.99 crore in FY2025 and Rs 2,839.67 crore in FY2026.
• 02Profit after tax has grown every year, from Rs 34.49 crore in FY2024 to Rs 48.14 crore in FY2025 and Rs 63.52 crore in FY2026.
• 03EBITDA has grown even faster, from Rs 48.34 crore in FY2024 to Rs 86.49 crore in FY2025 and Rs 125.65 crore in FY2026.
• 04Net worth more than doubled in two years, from Rs 154.26 crore in FY2024 to Rs 332.64 crore in FY2026.
• 05The company has a long record in this business, having started in 1984 as a Custom House Agent and grown into air and ocean freight forwarding.
• 06It follows an asset light model. Cargo moves through airline and shipping partners instead of an owned fleet, so it does not carry the heavy fixed cost of aircraft.
• 07The service range is wide, covering air freight, ocean freight, trucking, warehousing, custom broking and express cargo, so a customer can be served end to end.
• 08Rs 216.79 crore of the issue money will repay borrowings of the company and its subsidiary Forin Container Line, which will bring down interest cost.
• 09Retail investors get a reasonable share of this issue at 1,48,00,000 shares, which is 35.04% of the offer.

Risks · 9

• 01Debt is high and has kept rising, from Rs 357.34 crore in FY2024 to Rs 558.43 crore in FY2025 and Rs 624.06 crore in FY2026. That is close to twice the net worth of Rs 332.64 crore, and a large loan will remain even after the Rs 216.79 crore repayment.
• 02The profit margin is very thin. PAT margin was 2.14%, which is normal for freight forwarding but leaves almost no cushion when costs rise.
• 03The issue looks expensive for a thin margin business. The offer document data does not state a P/E, but on an EPS of Rs 4.37 the upper band of Rs 138 works out to roughly 31 times earnings.
• 04Return ratios are only moderate, with RoCE of 14.61% and RoNW of 15.85%.
• 05This is a fresh issue combined with an offer for sale, so a part of the money goes to the selling shareholders and not to the company.
• 06Freight rates move with global trade volumes, fuel prices and shipping capacity, none of which the company controls, and a weak trade cycle hits both volume and rate together.
• 07Rs 130 crore of the money is for working capital, which shows how much cash stays blocked in receivables from exporters and importers.
• 08The business depends on airline and shipping partners for cargo space. If capacity gets tight or a partner changes terms, cost goes up immediately.
• 09Promoter holding falls sharply from 79.14% to 56.82% after the issue.

Skyways Air Services Limited is an Indian logistics and air freight forwarding company that was founded in 1984 by S. L. Sharma. The company initially started its operations as a Custom House Agent (CHA) and gradually expanded into the international cargo and logistics sector. Over the years, it has developed into a well-known player in India’s air freight forwarding industry, with headquarters in New Delhi and operations connected to several international logistics networks.
The company provides a wide range of logistics services including air freight forwarding, ocean freight forwarding, trucking, warehousing, custom broking, and express cargo delivery. Its business model is largely asset-light, where it coordinates cargo transportation through airline partners and logistics networks instead of owning aircraft. The company is currently led by Yashpal Sharma, Chairman and Managing Director, who has helped expand the business into multiple logistics segments and international markets.

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