Afcom Holdings Limited has received a significant regulatory designation that is expected to enhance its operational efficiency and financial performance. The Ministry of Finance has officially designated the company as a "Designated Indian Carrier" through a gazette notification, opening up substantial cost-saving opportunities in its aviation operations.

Official Designation Details

The Ministry of Finance issued Gazette Notification No. S.O. 859(E) on February 17, 2026, exercising powers under sub-section (5) of Section 5 of the Central Sales Tax Act, 1956. This notification specifically designates Afcom Holdings Limited as a "Designated Indian Carrier" for statutory purposes.

Operational Benefits and Cost Savings

The designation brings immediate operational advantages, particularly in fuel procurement costs. Under this new status, transactions undertaken by the company during export operations qualify for benefits under the applicable statutory framework.

The most significant benefit is the exemption from Value Added Tax (VAT) on Aviation Turbine Fuel purchases. Currently, this VAT rate stands at 29% in Chennai, Tamil Nadu, where the company operates.

Financial Performance Implications

The company anticipates that this designation will result in operational cost efficiencies estimated to be approximately 5% to 7% of overall operational costs. Management expects this cost reduction to have a positive impact on both operating margins and overall financial performance.

The benefits are specifically tied to export operations, aligning with the company's business activities in the aviation and cargo sector. This regulatory advantage positions Afcom Holdings favorably in terms of cost competitiveness within the industry.

Regulatory Compliance

Afcom Holdings Limited disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was made through proper regulatory channels, ensuring transparency with stakeholders and compliance with listing requirements.

The company operates from multiple locations including its registered office in Thiruvanmiyur, Chennai, corporate office in Guindy, Chennai, and airport office at the Integrated Air Cargo Complex in Meenambakkam, Chennai, positioning it strategically for aviation operations in South India.

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.