AFCOM Holdings Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing remarkable growth across key financial metrics. The Chennai-based company, operating in the cargo and logistics sector, demonstrated strong operational performance during the reporting period.

Quarterly Financial Performance

The company's Q3 FY26 results reflect substantial improvement in financial performance compared to previous periods. Revenue from operations and profitability metrics showed significant enhancement during the quarter.

Nine-Month Performance Overview

For the nine-month period ended December 31, 2025, AFCOM Holdings achieved exceptional results across all major financial parameters. The company reported revenue from operations of ₹39,286.23 lakhs compared to ₹13,832.79 lakhs in the corresponding period of FY25, representing growth of 184.0%. Net profit for the nine-month period reached ₹9,347.90 lakhs, substantially higher than ₹2,897.75 lakhs in the previous year.

Operational Expenses and Margins

The company maintained effective cost management during the quarter. Operating costs stood at ₹8,309.66 lakhs for Q3 FY26, while employee benefit expenses were ₹839.84 lakhs. Finance costs remained controlled at ₹131.75 lakhs, and depreciation was ₹45.17 lakhs for the quarter.

Balance Sheet Highlights

As of December 31, 2025, the company's total assets stood at ₹55,498.58 lakhs, significantly higher than ₹27,543.74 lakhs as of March 31, 2025. Cash and cash equivalents improved dramatically to ₹14,015.38 lakhs from ₹8.54 lakhs at the end of FY25. Trade receivables increased to ₹9,622.21 lakhs, reflecting business expansion.

Fundraising Activities

During the quarter, AFCOM Holdings raised funds through preference shares and convertible warrants with an aggregate issue value of ₹2,05,03,65,386.30. The company received ₹1,29,61,70,598.80 as of the quarter end, with the balance consideration of ₹75,42,94,787.50 receivable by June 15, 2027.

Regulatory Compliance and Publication

Pursuant to Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published its unaudited financial results in newspapers on February 12, 2026. The results were published in Trinity Mirror (English) and Makkal Kural (Tamil) to ensure compliance with regulatory requirements.

Board Decisions and Corporate Actions

The Board of Directors, in their meeting held on February 10, 2026, approved several strategic initiatives including incorporation of a greenfield partially owned subsidiary in India for aircraft Maintenance, Repair and Overhaul (MRO) services, and appointment of M/s. S.A.E. & Associates LLP as Secretarial Auditors for five consecutive financial years starting FY 2025-26.

The company continues to operate as a single business segment and reported no exceptional or extraordinary items during the period. The strong financial performance reflects the company's operational efficiency and strategic positioning in the cargo and logistics sector.

Afcom Holdings Limited has received a long-term issuer rating of ACUITE BBB+ with a stable outlook from Acuite Ratings & Research Limited, as announced through a press release dated January 8, 2026. The rating assignment was formally communicated to BSE Limited on January 9, 2026, in compliance with SEBI listing regulations.

Rating Details and Rationale

The credit rating assignment reflects Afcom Holdings' strong operational growth, healthy financial risk profile, and improving market position in India's air cargo industry. The rating considers the company's expanding freighter fleet and the extensive aviation experience of its promoter team.

Strong Financial Performance

Afcom Holdings has demonstrated robust revenue growth across recent fiscal years. The company's operating income reached ₹238.72 crores in FY2025, marking approximately 62% growth from ₹147.54 crores in FY2024 and ₹84.14 crores in FY2023.

During H1FY2026, the company registered revenue of ₹240.29 crores against ₹88.76 crores in H1FY2025, with estimated full-year revenue projected between ₹490-510 crores.

Healthy Financial Risk Profile

The company maintains a strong balance sheet position with significantly improved net worth and low debt levels. Net worth increased to ₹220.37 crores as of March 31, 2025, compared to ₹103.25 crores in FY2024 and ₹73.34 crores in FY2023.

The improvement stems from profit retention and equity fundraising of ₹73.84 crores through an initial public offering in August 2024, followed by an additional ₹104.48 crores raised in December 2025 for fleet expansion.

Business Operations and Fleet Expansion

Afcom Holdings operates as an international cargo airline specializing in airport-to-airport air cargo services using its own freighter fleet. The company serves diverse cargo segments including general cargo, high-value shipments, perishables, pharmaceuticals, and specialized cargo across domestic and international routes.

The current revenue growth is driven by full operation of two aircraft and planned capacity addition with a third aircraft from Q4FY2026. The company proposes to add four additional aircraft in the near term, supported by the December 2025 equity raise.

Rating Challenges

Despite positive fundamentals, the rating considers certain operational challenges:

• Working Capital Intensity: Gross current assets of 156 days in FY2025, with high receivables days of 95 days
• Fund-based working capital limits utilized at approximately 96% over the 12 months ending September 2025
• Route Dependency: Performance remains dependent on sustained cargo demand and route profitability
• Regulatory Exposure: Subject to aviation sector regulatory risks and compliance requirements

Management and Outlook

The company benefits from experienced leadership under promoter Capt. Deepak Parasuraman, who brings over two decades of aviation and air-cargo industry experience. The management team comprises senior professionals with expertise in airline operations, engineering, flight safety, and regulatory compliance.

Acuite maintains a stable outlook, expecting the financial risk profile to remain healthy due to strong net worth position and absence of debt-funded capex plans. The rating agency anticipates continued improvement in operating performance through fleet capacity expansion.

Source: Exclusive