Skyways Air Services IPO: India's No. 1 Air Freight Forwarder Taps Markets – Should You Subscribe?

At a Glance

Company and its Business Operations

Skyways Air Services Limited (SASL), formerly Skyways Air Services Private Limited, was incorporated in Delhi on December 21, 1984 and converted into a public limited company with a fresh certificate of incorporation dated May 05, 2025. Headquartered at Mahipalpur, New Delhi, it is India's No. 1 Air Freight Forwarder by Air Waybills (AWBs) generated for four consecutive calendar years (2022 to 2025) per World ACD. Having evolved from a Custom House Agent into a multi-modal Logistics provider, it offers air and ocean freight forwarding, trucking, warehousing, customs broking, technology-driven express cargo, and value-added services. Its key carrier relationships include Saudi Cargo, Air India Cargo, Emirates, Lufthansa, and Qatar Airways, serving a diversified base of 9,504 customers across a 1,204 pin-code network. Air cargo handled grew from 48,013.16 tonnes (FY24) to 83,923.81 tonnes (FY26), a ~32.21 per cent CAGR.

Industry Outlook

India's logistics sector — the addressable market (TAM) for the Company — was valued at USD 215 billion in 2021 and is estimated to reach USD 357 billion by FY2026, growing at a 10.7 per cent CAGR, per the D&B/industry report cited in the RHP. Within this, India handled a record 3.96 million metric tonnes (MMT) of air cargo in FY 2025–26 (up from 3.73 MMT in FY 2024–25), with volumes targeted to touch 10 MMT by 2030; the domestic express logistics segment is projected to grow at a 14 per cent CAGR over FY23–FY28. Globally, air cargo volumes are forecast at 71.7 million tonnes in 2026 (a modest 0.2 per cent increase), with India accounting for ~5 per cent of the world market. Structural demand drivers include the National Logistics Policy, PM Gati Shakti and Bharatmala infrastructure programmes, logistics-infrastructure status enabling lower-cost financing, and rapid cross-border e-commerce and pharmaceutical export growth.

Objects of the Issue

• Combination issue of Rs 582.80 crore — a Fresh Issue of Rs 398.80 crore (2,88,98,300 shares) and an Offer for Sale of Rs 184.00 crore (1,33,33,300 shares).
• OFS selling shareholders: Yashpal Sharma (Promoter, 71,20,690 shares); Tarun Sharma (Promoter, 24,60,000 shares); Himanshu Chhabra (Other, 18,66,000 shares); Rohit Sehgal (Other, 18,86,610 shares).
• Fresh Issue net proceeds — repayment/pre-payment of borrowings of the Company and subsidiary Forin Container Line Private Limited: Rs 216.79 crore; incremental working capital: Rs 130.00 crore; balance towards General Corporate Purposes.
• Purpose: deleveraging and working-capital funding for the Company, and a partial exit for promoter and other selling shareholders through the OFS.

SWOT Analysis

Strengths

• Ranked India's No. 1 Air Freight Forwarder by AWBs for four consecutive years (2022–2025) per World ACD.
• Best-in-class profitability among listed peers — RoNW of 12.33 per cent (FY26) versus 0.19–6.40 per cent for peers.
• Diversified customer base — top 10 customers contributed only 20.69 per cent of FY26 revenue.
• ISO 9001:2015 and ISO 14001:2015 certified, with 56 airline relationships (up from 44 in FY24).

Weaknesses

• Thin EBITDA margin of 4.50 per cent (FY26), structurally low for asset-light freight forwarding.
• Elevated borrowings of Rs 624.06 crore (FY26), up from Rs 357.34 crore in FY24.
• Receivables-heavy working capital — trade receivables of Rs 579.48 crore imply ~75 days of revenue.
• Operating cash flow was volatile — negative Rs 9.04 crore (FY24) before recovering to Rs 113.62 crore (FY26).

Opportunities

• India air cargo targeted to reach 10 MMT by 2030 from 3.96 MMT in FY 2025–26.
• Policy tailwinds — National Logistics Policy, PM Gati Shakti, and logistics-infrastructure status lowering financing costs.
• Monetisation of proprietary tech stack (ASAP, SLS HIKE, Skart-Edge) to lift value-added, higher-margin revenue.
• Revenue per customer rising from Rs 17.40 lakh (FY24) to Rs 29.60 lakh (FY26).

Threats

• High supplier concentration — top 10 suppliers (airlines/shipping lines) accounted for 49.00 per cent of FY26 procurement, exposing the Company to capacity and freight-rate risk.
• Cyclical, geopolitically sensitive air-cargo demand and elevated jet-fuel costs.
• Authorized Economic Operator (AEO-LO) status was recently suspended, a compliance/renewal risk flag.
• Intense competition from scaled national and global logistics players.

Financial Performance

All figures in Rs crore. Margins in per cent. Source: RHP (Restated Consolidated Financials).

(a) Profit & Loss

(b) Balance Sheet

(c) Working Capital & Cash Flow

Peer Comparison

Outlook & Relative Valuation

Apply. At the upper price band, Skyways Air is valued at 38.76x FY26 earnings, which is below the P/E multiples of its listed peers. The company also stands out on profitability, with RoNW of 12.33 per cent, significantly higher than its peers. Its leading position in air freight forwarding, diversified customer base and strong revenue growth provide a favourable outlook. The issue is also largely fresh capital, which will support business expansion and debt reduction. However, thin margins, elevated debt and working-capital requirements remain key risks. At the current valuation, the pricing appears reasonable considering the company’s growth and profitability profile. The positive grey market premium also indicates healthy investor interest, although it remains an unofficial and volatile indicator. Overall, we recommend investors to Apply for listing gains, while keeping expectations realistic given the possibility of volatility around listing.