The company is expanding its freighter fleet and strengthening its cargo-only model with long-term contracts, high-margin operations, and strong regulatory moats.
India’s first listed pure-play international air cargo airline, Afcom Holdings, is scaling up operations with a sharp focus on cargo-only aviation.
SEBI-registered analyst Rajneesh Sharma said Afcom is not a logistics player using passenger belly space but a pure aviation company focused only on cargo.
It operates Boeing 737-800 freighters, handling dense cargo, hazardous goods, including lithium batteries, perishables like frozen food, medical equipment, and electronics.
It operates on a regular and charter basis across India and ASEAN (Singapore, Vietnam, and Thailand) and is looking to expand to the Middle East.
Revenue Model And Growth Roadmap
According to Sharma, Afcom earns through long-term contracts with large logistics consolidators such as TTK Group, with minimum guaranteed returns per flight that assure revenue even when aircraft are not full.
Extra income comes from non-scheduled flights, bonded trucking, and ancillary services. He noted that Afcom delivered ₹238 crore in revenue in FY25 with 21% PAT margins using just two aircraft.
The company plans to scale to five freighters by FY26, each flying six weekly trips, with targets of over ₹1000 crore in revenue, EBITDA margins of 30–34%, PAT margins of 18–20%, and EPS above ₹75.
Moats And Technical View
Sharma highlighted Afcom’s regulatory, business, operational, and cost moats, including DGCA approvals, contractually assured minimum revenue per flight, capacity to carry cargo types others cannot, and a lean balance sheet with low debt.
On the technical side, he observed the stock trading around ₹892 in a bullish structure, with resistance near ₹1007, and a breakout above this level may trigger some momentum. Immediate support is seen at ₹875, and stronger zones at ₹776.
He said volume spikes and volatility are expected as the stock remains in the SME category.
Afcom’s stock has declined 10.3% so far in 2025.
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