Business Desk – Skyways Air Services IPO: Skyways Air Services is preparing to enter the stock market through IPO soon. According to the World ACD report, the company has remained number-1 in terms of air freight for the last four years. In the proposed IPO, the company will issue new shares worth Rs 399 crore, while there will be an offer for sale (OFS) worth Rs 184 crore.

That means there is a preparation to raise a total of Rs 583 crore from IPO. The proceeds from the fresh issue will be used to repay debt and meet working capital needs. The company has also seen rapid growth in its business and profits, but its dependence on global trade is a big risk.

Where will the Rs 399 crore received from IPO be spent?

Skyways Air Services will issue fresh shares worth Rs 399 crore in IPO. The company will use this amount to repay its debt and strengthen the working capital required for day-to-day business.

Apart from this, shares worth Rs 184 crore will be sold through OFS. After the IPO, the promoters' stake in the company will reduce from 79.1% to 56.8%.

Company started in 1984, earns more than 75% from air freight

Skyways Air Services was started in 1984. The company works to deliver goods around the world by air and sea. However, air freight accounts for more than 75% of its total earnings. The company has direct commercial relationships with 56 international airlines. It serves its clients in 12 countries.

The company's air cargo volume has also increased. It was about 48 thousand tonnes in the financial year 2024, which increased to about 84 thousand tonnes in the financial year 2026. Similarly, sea container volume increased from 16,294 TEU to 28,275 TEU.

Revenue increased by 47.7% in 2 years

Between financial years 2024 and 2026, the company's revenue grew by 47.7% annually and increased to Rs 2,812.9 crore. During the same period, the company's operating profit i.e. EBITDA increased by 61.2% to Rs 125.6 crore. Net profit increased by 35.7% to Rs 63.5 crore. There has also been a big improvement in the cash flow of the company. Cash flow was minus Rs 9 crore in FY 2024, which improved to Rs 113.6 crore positive in FY 2026.

What is the biggest risk in the company's business?

The biggest risk for Skyways Air Services is its dependence on global trade. The company's business is largely to cross-border trade.

In such a situation, slowdown in the global economy, change in trade policies or huge fluctuations in foreign exchange can have a direct impact on the company's business. This is why despite strong growth, it is important to understand its global exposure before investing in an IPO.

What is the valuation?

Based on FY 2026 profits, the company's P/E multiple is around 32. It has been compared with companies like TVS Supply Chain Solutions, Shadowfax Technologies, Delhivery and Mahindra Logistics.

The P/E multiple of these companies ranges between 46 to 376. In this context, the valuation of Skyways Air Services appears comparatively low.

What should be invested?

The company is showing strong growth in its revenue, EBITDA, profits and cash flow. Its strong position in the air freight business and relatively low P/E may make it attractive.

However, the company is heavily dependent on global trade. Therefore, recession in international trade, policy changes and currency fluctuations can affect its business. In such a situation, this IPO can be considered more suitable for investors having a long-term perspective and taking relatively higher risks.