Skyways Air Services Ltd

Skyways reported a sharp scale up in operations, with revenues increasing to ₹2,248 crore in FY25 compared to ₹1,2 90 crore in FY24, driven by a combination of organic growth and strategic acquisitions. Cargo volumes grew on a year-on-year basis to ~58,000 metric tonne in FY25 (FY24: 52,543 metric tonne) and further scaled to ~40,000 metric tonne in H1FY26, reflecting sustained business momentum. For H1FY26, the company reported revenue of ₹1,328 crore, supported by the consolidation revenue fro

Total debt outstanding increased to ₹565 crore as on March 31, 2025, from ₹364 crore as on March 31, 2024, primarily to fund higher working capital requirements, acquisition-related funding (₹157 crore in FY25), and capex. Despite increase in borrowings, the company maintained a comfortable liquidity buffer, with cash and liquid investments (including unencumbered and lien- marked balances) of ₹384 crore as on March 31, 2025, from ₹262 crore as on March 31, 2024. Consequently, net debt stood at

The Skyways group is promoted by S L Sharma, who has vast experience of over five decades in the logistics business. He served as President, Air Cargo Agents Association of India (ACAAI), from 2013 to 2015 and is presently a Member, Board of Advisors, ACAAI. The promoters are assisted by a team of qualified professionals with substantial experience in the logistics domain. The Skyways group has a long and established presence in the air freight industry of over three decades. The group provides

Over the years, the group diversified its operations across air, ocean, and road logistics through its subsidiaries, supporti ng its overall business risk profile. Air freight forwarding remains the core business, contributing ~76% of group revenues. The consolidated revenue base is expected to further scale up, supported by volume growth, addition of new customers, and improved traction from road, courier, and ocean freight segments.

The company’s operations remain working capital intensive, as evidenced by elevated gross current asset days and a stretched operating cycle. Gross current asset days increased to 162 days in FY24 from 80 days in FY23, however, improved moderately to 135 days in FY25 and 129 days in H1FY26. Increase is driven by elongated receivable cycles and accumulation of GST refund receivables. With implementation of the GST regime, airlines charge GST on freight services rendered to Skyways, as these trans

H1FY26. While average creditor days remained moderate at 36–47 days. Consequently, the sustained working-capital intensity, partly arising from delayed realisation of GST refunds, continues to exert pressure on liquidity and necessitates dependence on short-term funding. Going forward, rationalization of working capital borrowing through release of margin money and realization of stretched current assets will be a critical rating sensitivity.

Operating margin profile continued to remain moderate, with the company posting PBILDT margins of 3.98% in FY25, same as FY24. Operating margins and realisations remain susceptible to volatility in freight costs. Margins have also been impacted by recent acquisitions. However, the group has taken measures for regular price alteration and revision of arrangements with customers to mitigate the risk of cost increases. The company reported operating margins of 4.30% in H1FY26 and expects

The freight forwarding industry is highly fragmented with large number of operators owing to low entry barriers. Presence of players result in intense competition within the industry. High fragmentation and intense competition lead to unhealthy pricewars and discounts resulting in pressure on margins and depressed freight rates. However, Skyways with superior quality of service and presence in different locations across country and diversified clientele across industries with well-established gl

Prospects of shipping and logistics industries are closely linked to global economic conditions and performance of industries served by its customers. Freight movement and profitability are primarily driven by demand–supply dynamics for industrial raw materials and finished goods across international markets. Accordingly, a slowdown in global economic activity could lead to muted cargo volumes and pricing pressure for logistics and freight forwarding companies.