Afcom Holdings FY26 Results (BSE: 544224)
Signal: Margin expansion
The read
FY26 revenue of ₹583 Cr (+144% YoY) and PAT of ₹122 Cr (+230% YoY) confirm the aircraft induction strategy is scaling rapidly with operating leverage — EBITDA margin expanded 605bps. The first Ind AS adoption introduces transparency around lease accounting (ROU assets ₹306 Cr, lease liabilities ₹339 Cr). Net debt ballooned to ₹289 Cr, but cash flow from operations before WC changes of ₹223 Cr provides adequate coverage. The unmodified audit opinion and clean cross-checks support earnings quality.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹583.11 Cr | +144% | N/A |
| EBIT | ₹153.09 Cr | +197% | |
| Net profit | ₹121.9 Cr | +230% | |
| EPS | ₹48.73 | +196% | |
| EBIT margin | 26.26% |
P&L walk
Revenue surged 144% YoY to ₹58,310.84 Lakh driven by aircraft additions; EBITDA margin expanded 605bps to 31.96% (operating leverage from fixed lease costs); PAT grew 230% to ₹12,190.36 Lakh, tracking operating profit; EPS ₹48.73 (+196%) aligns with PAT growth — no dilution from the preferential issue (only 12.10 Lakh shares allotted vs 5 Cr annualized EPS benefit). Finance cost rose in absolute terms but fell as % of revenue. The first Ind AS adoption adds Ind AS 116 lease adjustments, but they are non-cash and disclosed transparently.
Key positives
- Revenue ₹583 Cr, +144% YoY — fleet induction delivering hypergrowth
- EBITDA margin 31.96%, +605bps — fixed lease costs not scaling with revenue
- PAT ₹121.90 Cr, +230% — bottom line growing faster than top line
- EPS ₹48.73 (+196%) aligns with PAT — no dilution despite equity raise
- Unmodified (unqualified) audit opinion — no audit red flags
Key concerns
- Net debt surged to ₹289 Cr from ₹212 Cr — high leverage in a young aircraft fleet
- D/E at 0.88 — comfortable but rising finance cost (₹31.76 Cr) could pressure margins in a rising-rate scenario
- Fuel cost pass-through claim (claim_id 304) not explicitly disclosed — margin resilience depends on this mechanism working
- Fleet of 9 aircraft target (claim_id 305) requires further capex; only 5 aircraft operational, raising execution risk
Research and educational content only. Not investment advice.