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

AFCOM Holdings has expanded its operational fleet by bringing in a third aircraft, marking a significant step in the company's capacity enhancement strategy. This development strengthens the logistics company's ability to serve its customers and expand its service offerings.

Fleet Expansion Details

The addition of the third aircraft represents a strategic move by AFCOM Holdings to bolster its operational capabilities. The expansion comes as part of the company's efforts to enhance its logistics operations and improve service delivery across its network.

Operational Impact

The new aircraft addition is expected to provide AFCOM Holdings with increased operational flexibility and capacity. This expansion allows the company to:

• Enhanced service delivery capabilities
• Improved operational efficiency
• Strengthened market position in logistics sector
• Better customer service potential

Company Profile

AFCOM Holdings operates in the logistics sector and is classified as a small-cap company with a market capitalization of ₹2,059.09 crores. The company is listed on the BSE with scrip code 544224 and trades with a lot size of 120 shares and tick size of ₹0.05.

Strategic Significance

The fleet expansion demonstrates AFCOM Holdings' commitment to growth and operational excellence. By increasing its aircraft count to three, the company positions itself to better compete in the logistics market and potentially capture additional business opportunities. This strategic investment in operational capacity reflects the company's confidence in its business model and market prospects.