Afcom profit rises 86% in Q1 as freighter network expands

Afcom Holdings reported an 86% year-on-year rise in profit after tax to ₹392.4 million for the first quarter of FY2026-27, as revenue from operations increased 48% to ₹1.761 billion from ₹1.189 billion in the same quarter a year earlier. The results cover the quarter ended 30 June 2026.

Total income for the quarter stood at ₹1.775 billion, compared with ₹1.191 billion in the same quarter last year. Profit before tax increased to ₹522.3 million from ₹308.9 million, while earnings per share rose to ₹14.16 from ₹8.48.

The company recorded total expenses of ₹1.253 billion during the quarter, compared with ₹882.1 million in the corresponding quarter of FY2025-26. Direct expenses increased to ₹1.096 billion from ₹620.3 million, while employee benefit expenses rose to ₹35.1 million from ₹33.3 million. Finance costs declined to ₹37.1 million from ₹45.9 million.

On a sequential basis, Afcom's revenue from operations was lower than the ₹1.903 billion recorded in the March 2026 quarter. Profit after tax also declined from ₹446.6 million in the previous quarter. For the full financial year ended 31 March 2026, the company reported revenue of ₹5.831 billion and profit after tax of ₹1.219 billion.

The stronger first-quarter performance comes as Afcom continues to deploy funds raised through its equity and warrant issues towards the expansion of its aircraft operations. During the quarter, the company also completed a Qualified Institutional Placement through which it allotted 26,30,520 equity shares at ₹759.72 per share, raising ₹1.998 billion.

The company's expansion is also being supported by new subsidiaries. Afcom Cargo FZCO, a wholly owned subsidiary, has been incorporated in Dubai Airport Freezone with paid-up capital of AED 100,000. The company is yet to commence operations. Its proposed activities include aircraft spare parts and components trading, heavy and light aircraft and helicopter trading, aircraft and requisites leasing and logistics services.

Afcom has also acquired 100% control of Global Indavi, which is intended to undertake aircraft maintenance, repair and overhaul activities. The company was acquired on 16 May 2026 and is yet to commence business operations.

The financial results also show an improvement in cash generation. Afcom generated ₹519.1 million in net cash from operating activities during the quarter, while cash and cash equivalents increased to ₹1.533 billion as of 30 June 2026 from ₹620.6 million at the end of March 2026.

Afcom also operated Noida International Airport’s first cargo flight in June, flying a Boeing 737-800 freighter on the Chennai–Noida–Chennai route and carrying around 20 tonnes of mixed cargo.

Afcom adds Navi Mumbai to operating network
Afcom has shifted its freighter operations from Mumbai to Navi Mumbai, starting 16 August, and is operating three weekly freighter flights from Navi Mumbai International Airport to Dubai World Central (DWC) using a Boeing 737-800 freighter.

For its inaugural flight, Afcom aircraft registered VT-AFJ flew from Chennai to Dubai and then to Navi Mumbai on 16 August, before returning to Dubai in the early hours of 17 August. The freighter carried 20 tonnes of cargo on the Navi Mumbai-DWC route.

Singapore planned as Afcom targets Southeast Asia
Afcom's next stage of network expansion is expected to focus strongly on Southeast Asia, with Singapore among the destinations the company is seeking to add.

In an exclusive interview with The STAT Trade Times at Air Cargo Forum India(ACFI) World Conclave 2026, that took place on 12th and 13th of August in Delhi, Kochat Narendran, President of Afcom said, the company is in the process of applying for approvals across several Southeast Asian countries. Singapore is one of the destinations under consideration, but the start of operations will depend on approval from the Singapore government.

He said Afcom's freighter expansion would be focused on Southeast Asia, where the company sees opportunities across different cargo markets. Vietnam, for example, is seeing demand for electronics, while perishables are moving more towards Southeast Asian markets such as Bangkok.

The company already has an international network covering markets in Southeast Asia, the Maldives and the UAE, while its domestic operations are being used mainly for ad hoc charter opportunities.

Kochat said international operations remain Afcom's main focus. The company has moved electronics and perishables on domestic charter operations, while its international services carry a combination of perishables and general cargo, along with smaller volumes of dangerous goods and pharmaceutical shipments.

For temperature-sensitive and time-critical cargo, Afcom's point-to-point operating model is an important part of its approach, according to Kochat. He said direct services allow customers to use scheduled flights at known timings rather than depending on connecting operations.

Fleet to grow from three to five freighters
The planned route expansion will be supported by a larger freighter fleet.

Afcom currently operates three 737-800 freighter aircraft and plans to increase this to five aircraft by the end of the year. Kochat said the additional aircrafts will also be Boeing 737-800 freighters.

The company is also looking at larger aircraft for the following financial year, although Kochat said there was no firm plan at this stage.

The fleet expansion is expected to support Afcom's plans to add more international routes, particularly across Southeast Asia. The company is also looking at increasing frequencies and adding destinations as it secures the required regulatory approvals.

Maldives remains a key part of network
Alongside its Southeast Asian expansion, Afcom is continuing to develop its Maldives operation. Kochat said the company has seen around 150% growth in transshipment cargo through Velana International Airport over the past two years and has become a leading freighter operator on the route.

Afcom's business model combines scheduled freighter services with ad hoc charters, with international scheduled operations remaining its main focus. The company handles general cargo, perishables, electronics and smaller volumes of dangerous goods and pharmaceutical shipments across its network.

Kochat also said Afcom is looking to work alongside larger carriers and competitors by focusing on niche markets rather than competing directly on every major cargo route. The Maldives operation is one example of this approach, while the planned expansion into Southeast Asia is expected to provide further opportunities for the company.