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Afcom Holdings Limited — Q4 FY26 earnings call

Call held 12 Jun 2026

Company page: Afcom Holdings share price, financials & guidance record

Management summary

Afcom reported a strong Q4 and FY26, with significant revenue and profit growth driven by increased charter operations and fleet expansion. The company achieved key industry awards and expanded its strategic partnerships. Management highlighted the successful adoption of Ind AS and outlined plans for further fleet additions, expecting continued growth and improved operational efficiency.

Highlights

  • Q4 Revenue of INR191.88 crores, up 87.80% YoY.

  • FY26 Total Revenue of INR587.72 crores, up 143.86% YoY.

  • FY26 PAT of INR121.90 crores, up 230.05% YoY.

  • FY26 EBITDA Margin at 40.52%, a growth of 211.72% YoY.

  • Awarded 'Fastest Growing Airline' and 'Freighter of the Year' in 2026.

  • Successful strategic relationship with Nauru Air Corporation for Australian Pacific region.

Concerns

  • Q4 EBITDA margin optically lower due to Ind AS adjustments for forex loss and maintenance reserve accounting.

  • Outstanding tax payment of INR33 crores contributing to high interest cost, acknowledged as an area for improvement.

Key financials

2 periods

Q4

  • Revenue
    ₹191.88 Cr
    YoY +87.8%
  • PAT
    ₹44.66 Cr
    YoY +72.9%

FY26

  • Total Revenue
    ₹587.72 Cr
    YoY +143.9%
  • PAT
    ₹121.9 Cr
    YoY +230.1%
  • EBITDA Margin
    40.5%
  • EPS
    ₹48.65

What they filed

Q1 FY27: revenue up 47.9%, net profit up 85.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue89 50 100 119 121 +36%153 +206%190 +90%176 +48%
EBITDA26 13 47 47 39 +50%65 +400%73 +55%71 +51%
Net profit19 9 26 21 28 +47%34 +278%45 +73%39 +86%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed Equity through preferential allotment of shares and QIB
    • Phase two expansion of fleet with wide-body aircrafts
    • Induction of additional third aircraft
    • Induction of fourth and fifth aircraft
    • Induction of Boeing 777 wide-body aircrafts
    And last year, we also have achieved, certain four, very key initiatives. And we have got, the strategic capital infusion. We have done, the QIB and for our, the phase two expansion of the fleet with wide-body aircrafts. And we also have, increased our capacity by the induction of, the additional third aircraft. (page 4) ... with regards to the wide-body aircraft induction, we have raised, you know, the equity through preferential allotment of shares and QIB and that will take care of, you know, the expansion of, you know, addition of, you know, the 777 four units and starting from this calendar year end onwards. So we don't require any further, you know, the fundraise, you know, for the fleet expansion whatever we have envisaged and communicated. (page 18)
  • Liquidity Cash ₹62 Cr Company has INR62 crores of cash in books, which could be used to reduce interest burden from outstanding tax payments.
    We have we have paid some advance tax, sir, but as you I mean, rightly pointed out that it is not to the extent of, you know, our entire this thing. And this is definitely a point of improvement which we will we are working on it. Current year, you know, we will be addressing that, you know, quite positively. (page 16)

Guidance & targets

Capacity

  • Fourth and fifth aircraft operationalization Capacity · before next quarter · High confidence Operational
    Sir, all I would say is that they will be operational, the third aircraft is operational, fourth and fifth will be operational definitely before the next quarter. (page 10)

    — Deepak Parasuraman

  • Wide-body aircraft (Boeing 777s) operationalization Capacity · by end of FY27 last quarter · High confidence One operational
    By the end of the calendar year, this year, it will be inducted, so at least one aircraft will be operational by the end of FY27 last quarter. (page 10)

    — Deepak Parasuraman

  • Total fleet (9 aircrafts) operationalization Capacity · by mid of next year / second half of next calendar year · High confidence Entire fleet operational
    Sometime by the mid of next year, sir. That is the second half of next calendar year, we will have the entire fleet operational. (page 25)

    — Deepak Parasuraman

Revenue

  • FY27 Top Line Growth Revenue · FY27 · Medium confidence Minimum double
    It's very simple, sir. I mean, we have we have put up some numbers, with the available resources. And as the resources, even it becomes double, you can extrapolate it's going to be minimum double. (page 13)

    — Kannan Ramakrishnan

  • Revenue per Boeing 777 aircraft Revenue · High confidence 3 times current 737-800 revenue
    we estimate each of the aircraft, the 777 will provide an average the revenue of three times from the current level of the 737-800's the revenue recorded revenue. (page 23) ... So now on the on the projections, you mentioned that we should take an average of 3x of the 737s. In Q3 we were averaging about INR25 crores a plane and now we've averaged about INR31 crores which is a spike up due to the war. So, basis the guidance you've given, you're basically hinting at about INR75 crores a month on the 777s, is that correct? Correct, yes. (page 25)

    — Kannan Ramakrishnan

Cost Efficiency

  • Overall fuel cost impact from VAT benefit Cost Efficiency · current financial year · Medium confidence 5-7% reduction
    As I mentioned, sir, I mean, it will have an impact of, close to around 5% to 7% on an overall cost of the fuel. (page 12)

    — Kannan Ramakrishnan

What to watch in Q1 FY27

Fourth and fifth aircraft operationalization

before next quarter
Current In process of induction
Target Operational

Why it matters

Operationalization of these aircraft will directly increase capacity and revenue generation, contributing to FY27 growth targets.

Sir, all I would say is that they will be operational, the third aircraft is operational, fourth and fifth will be operational definitely before the next quarter. (page 10)

Risks & concerns

  • Geopolitical Tensions (West Asian conflict)

    medium

    War caused disturbance in scheduled airline operations, leading to high demand for charters and hardened freight rates, which Afcom capitalized on.

    Management acknowledged

  • Regulatory Delays in Aircraft Induction

    low

    Prior plans to induct three more flights were delayed due to regulatory norms, but current induction timelines are set.

    Management acknowledged

  • Fuel Price Volatility

    low

    ATF prices increased by over 100%, but management states it's a direct pass-on to customers via surcharges, mitigating margin impact.

    Analyst acknowledged

  • Impact of Ind AS Accounting Changes

    low

    Ind AS adoption impacts reported EBITDA due to accounting for forex gain/loss and maintenance reserves, making quarter-on-quarter comparisons optically different.

    Management acknowledged

  • High Interest Cost from Outstanding Tax

    low

    INR33 crores in outstanding tax payments lead to high interest costs, which management identifies as an area for improvement in the current year.

    Analyst acknowledged

Q&A highlights

5 direct
Fleet Induction Timeline for new aircraft Direct
Sir, all I would say is that they will be operational, the third aircraft is operational, fourth and fifth will be operational definitely before the next quarter. ... By the end of the calendar year, this year, it will be inducted, so at least one aircraft will be operational by the end of FY27 last quarter.

Clarifies the phased induction and operational timelines for both narrow-body and wide-body aircraft, crucial for future capacity and revenue.

Asked by Priyanshu

Trade Receivables over 6 months old Direct
we don't have any outstanding which are more than 6 months.

Reassures investors about the quality of receivables and effective working capital management, indicating no significant long-overdue payments.

Asked by Chintan

Impact of VAT benefit on fuel costs Partial
the impact of that, to the extent in the month of March was there. And but overall on a yearly basis if you look at it was very less. And again, the designated carrier VAT benefit is applicable, you know, as we fill fuel for our outbound international trips, from any of the stations in within India. ... this this current financial year will have that entire impact of that.

Provides insight into the timing and magnitude of cost savings from the designated Indian carrier status, impacting future profitability.

Asked by Chintan

Utilization of VT-AFN aircraft Direct
Yes, both the aircrafts are flying. With specific mention of AFJ, we are holding on to the aircraft quite a bit and not operating it primarily because, I don't know if I can say it with regard to any of the UPSI, but we are on the threshold of a large contractual flying into the Middle East from the end of this month. The aircraft is fresh out of C-check and I'll be able to carry out as much as 10 to 11 landings on that aircraft per day, so it's just being reserved for that.

Addresses concerns about aircraft downtime and reveals strategic deployment for a new, large contractual opportunity, indicating future revenue potential.

Asked by Smith

FY27 Top Line Guidance Direct
It's very simple, sir. I mean, we have we have put up some numbers, with the available resources. And as the resources, even it becomes double, you can extrapolate it's going to be minimum double.

Sets a clear expectation for significant revenue growth in the next fiscal year, linked directly to planned capacity expansion.

Asked by Chaitanya

High interest cost and outstanding tax payments Partial
this is definitely a point of improvement which we will we are working on it. Current year, you know, we will be addressing that, you know, quite positively.

Highlights a potential inefficiency in capital management and signals management's commitment to address it, which could improve net profitability.

Asked by Neeraj

Fuel cost pass-on mechanism and industry absorption Direct
in our industry fuel cost is a direct pass-on to the end customer. It is done by virtue of a fuel surcharge added to the freight charges... The fueling companies announce their monthly fuel price per station and the surcharge is a direct reflection of the same and 100% of the increased fuel cost is passed on to the customer.

Explains how the company mitigates fuel price volatility, ensuring margin protection despite significant increases in ATF prices.

Asked by Imran

Progress of Nauru partnership and MRO plans Partial
Yes, with Nauru the cooperation and the understanding is at a larger level, which is going progressing well, sir. ... And of course, the MRO is a natural requirement for the airline. And that also is progressing well. And very soon that in the starting from the next quarter, and the activity towards that will pick up momentum, and it will get communicated to the investor's community.

Provides an update on strategic growth initiatives, indicating future business expansion and potential new revenue streams, though specific details are limited.

Asked by Yatish

3 min read 8 chapters

Detailed narrative

Strong Q4 and FY26 Financial Performance

Afcom Holdings Limited delivered robust financial results for Q4 FY26 and the full fiscal year. Q4 revenue reached INR191.88 crores, marking an 87.80% year-on-year growth, with PAT at INR44.66 crores, up 72.85% YoY. For the full FY26, total revenue stood at INR587.72 crores, a significant 143.86% increase YoY. The company's PAT for FY26 was INR121.90 crores, growing an impressive 230.05% YoY, with an EBITDA margin of 40.52%.

Key Operational Milestones and Industry Recognition

The company achieved several significant milestones in 2026, including being awarded 'Fastest Growing Airline in the Freighter Market' by Aviation Cargo Express and 'Top Airline by Air to Air Import' by Velana Awards in Maldives. AFCOM Cargo was also recognized as 'Freighter of the Year'. Furthermore, the company forayed into the Australian Pacific region through a strategic relationship with Nauru Air Corporation, expanding its international footprint.

Fleet Expansion and Utilization Strategy

Afcom is actively expanding its fleet, with the third aircraft already operational and the fourth and fifth expected before the next quarter. Plans are also in place to induct wide-body Boeing 777 aircraft, with one projected to be operational by the end of FY27 last quarter. The entire fleet of nine aircraft (5 existing + 4 new) is expected to be operational by mid-next year. Management noted that the VT-AFN aircraft, previously undergoing maintenance, is now being reserved for a large contractual flying opportunity in the Middle East, capable of 10-11 landings per day.

Impact of Ind AS Adoption on Financial Reporting

The company has fully adopted Ind AS, leading to fundamental changes in financial reporting. Leased assets are now classified as assets and liabilities, with leased rentals charged as financial cost. Maintenance reserves, previously treated in the balance sheet, are now provisioned to the P&L annually. These changes, along with forex gains or losses, are now directly charged to the P&L, impacting reported EBITDA figures.

Fuel Cost Management and Market Dynamics

Despite a more than 100% increase in Aviation Turbine Fuel (ATF) prices, Afcom maintains that fuel cost is a direct pass-on to customers through a fuel surcharge, protecting margins. The geopolitical conflict in West Asia created a surge in demand for charter services due to disruptions in scheduled airline operations, leading to hardened freight rates which the company successfully capitalized on. The designated Indian carrier status is expected to provide a 5-7% reduction in overall fuel costs in the current financial year.

Chennai Airport Growth and Noida Expansion Plans

Chennai airport, a key base for Afcom, recorded a 12.5% year-on-year growth in international cargo volume, transacting 3.26 lakh metric tons, which is 2.3 times the national average. Afcom contributed significantly to this growth. The company also announced plans to commence international operations from Noida airport, which is set to inaugurate its cargo terminal on June 17, 2026, with Afcom being the first cargo aircraft to land there. This expansion aims to leverage highly mechanized logistics systems for future cargo movement.

Capital Structure and Tax Efficiency

The company reported INR62 crores of cash in its books. An analyst raised concerns about INR33 crores in outstanding tax payments contributing to high interest costs, despite the available cash. Management acknowledged this as an area for improvement and committed to addressing it positively in the current financial year, aiming to optimize tax payments and reduce interest burden.

Nauru Partnership and MRO Development

The strategic cooperation with Nauru Air Corporation is progressing well, though specific details remain confidential due to their sensitive nature. Additionally, Afcom is actively developing its Maintenance, Repair, and Overhaul (MRO) capabilities, which is a natural requirement for an airline. Management expects activity in this area to pick up momentum starting from the next quarter, with further communications to the investor community.

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