Financial Performance (Q4 FY26)

  • Revenue: ₹191.88 crores, representing 87.80% year-on-year growth.
  • EBITDA: ₹74.08 lakhs, representing 51.52% year-on-year growth.
  • Profit After Tax (PAT): ₹44.66 crores, representing 72.85% year-on-year growth.
  • Other Income: ₹1.55 crores, primarily from forex gain.

Financial Performance (Full Year FY26)

  • Revenue: ₹587.72 crores, representing 143.86% year-on-year growth.
  • EBITDA: ₹238.14 crores, representing 211.72% year-on-year growth. EBITDA margin expanded to 40.52%.
  • Profit After Tax (PAT): ₹121.90 crores, representing 230.05% year-on-year growth. PAT margin expanded by 542 basis points to 20.74%.
  • Earnings Per Share (EPS): Increased to ₹48.65 for FY26.
  • Other Income: ₹4.61 crores, comprising forex and interest income from deposits.

Accounting Standards Adoption

The company completed its transition to Indian Accounting Standards (Ind AS) in FY26, achieving full main board compliance. This resulted in significant changes to financial reporting:

  • Leased assets are now classified as "right of use" assets on the balance sheet (valued at ₹306 crores for three aircraft).
  • Lease rentals are classified as liabilities (total liability: ₹338 crores; current portion due within 12 months: ₹49 crores plus finance cost of ₹16.1 crores).
  • Maintenance reserves are now provisioned directly to the P&L rather than the balance sheet.
  • Under previous IGAAP, Q4 PAT would have been ₹46.32 crores vs. ₹44.66 crores reported under Ind AS.

Operational Highlights (Q4 FY26)

  • Dry Lease Revenue: ₹160.49 crores.
  • Total Trips: 602 trips, with 415 being pure charters due to Middle East geopolitical disruptions.
  • Volume Handled: Average 10,764.32 kg per trip.
  • Revenue Metrics: Average revenue per trip of $29,295.64; yield of $2.72 per kg.
  • Utilization: Weekly average of 23.42 trips per aircraft.
  • Cost Efficiency: Average cost per kg stood at $1.84.

Operational Highlights (Full Year FY26)

  • Dry Lease Revenue: ₹528.71 crores.
  • Total Trips: 1,923 trips, including 1,129 pure charters.
  • Volume Handled: 24,353.42 tons.
  • Revenue Metrics: Average revenue per trip of $31,243.19; yield of $2.54 per kg.
  • Utilization: Weekly average of 19 trips per aircraft.
  • Cost Efficiency: Average cost per kg stood at $1.58.

Balance Sheet Position (as of FY26)

  • Total Equity: ₹457 crores.
  • Total Assets: ₹935 crores (including right of use assets).
  • Cash Flow from Operations: Positive ₹36 crores.

Key Ratios (FY26)

  • Return on Equity: 26.69%
  • Return on Capital Employed: 35.62%
  • Interest Coverage Ratio: Healthy range (specific figure not quantified)

Cost Structure Analysis (FY26)

  • Direct Expenses: 54.4% of revenue
  • Depreciation: 12.3% of revenue
  • Finance Cost: 7.3% of revenue
  • Employee Cost: 2.4% of revenue
  • Other Expenses: 5.6% of revenue
  • Total Expenses: ₹434.6 crores

Breakdown of fixed costs (39% of total costs):

  • Aircraft lease rental: 36%
  • Maintenance reserve: 38%
  • Crew salary and per diem: 13%
  • Insurance: 6%
  • Other employee cost: 7%

Breakdown of variable costs (48% of total costs):

  • Fuel: 62%
  • Trip support: 24%
  • Ground handling: 10%
  • Commission: 3%
  • Airport charges: 2%

Breakdown of other costs (13% of total costs):

  • Finance cost: 9%
  • Forex loss: 24%
  • Depreciation and amortization: 30%
  • Other expenses: 37%

Fleet Expansion Plans

  • Current Fleet: Three operational aircraft (two narrow-body, one recently added).
  • Near-term Plans: Fourth and fifth narrow-body aircraft expected to be operational before next quarter (Q1 FY27).
  • Wide-body Expansion: Planning to induct Boeing 777 aircraft, with one expected to be operational by last quarter of FY27 (Q4 FY27) and four total wide-bodies targeted by mid-calendar year 2027.
  • Funding: Fleet expansion funded through preferential allotment and QIB raising totaling approximately ₹400 crores, with no further fundraise anticipated.

Market Position and Awards

  • Recognized as "Fastest Growing Airline in Freighter Market" by Aviation Cargo Express.
  • Awarded "Top Airline by Air to Air Import" at Velana Awards in Maldives.
  • Recognized as "Freighter of the Year" in 2026.
  • Strategic relationship established with Nauru Air Corporation for Australian Pacific region operations.

Market Context

  • Chennai airport international cargo volume grew 12.5% YoY (3.26 lakh metric tons), outperforming all-India growth of 5.4%.
  • Company yield of $2.54-$2.72 per kg exceeded IATA industry average of approximately $2.22.
  • Geopolitical tensions in Middle East created surge in charter demand, particularly in March 2026.

Management Guidance

  • With fleet expansion, management indicated revenue potential could "definitely will be minimum double" current levels, with wide-body aircraft expected to generate approximately 3x revenue of narrow-body aircraft.
  • Designated carrier status provides 5-7% reduction in fuel costs through VAT benefits, with full impact expected in FY27.
  • 60%+ of billing is in USD, providing natural hedge.

Q&A Session Key Points

  • Trade receivables are within 60-day norms with no outstanding beyond 6 months.
  • Fuel cost increases are fully passed through to customers via surcharges.
  • Third aircraft (VT-AFJ) is operational but being reserved for major contracted flying starting end of June 2026.
  • Company is exploring opportunities at Noida airport's new cargo terminal.
  • Tax optimization identified as area for improvement (₹33 crores tax outstanding).
  • MRO development with Nauru partnership progressing but details remain UPSI.
  • Capacity utilization stands at 81.42% with potential for improvement.