Skyways Air Services (SASL), is a long-standing participant of India’s logistics sectorproviding a comprehensive suite of services, including air freight forwarding, ocean freight forwarding, trucking, warehousing, custom broking, technology driven express cargo and parcel delivery and a wide range of value-added services (VAS) to support the diverse needs of its clientele across domestic and international markets.

The company began its operations as a Custom House Agent (CHA). Now known as a Custom Broker License holder, the company has progressively expanded its service offerings over the years in response toevolving market requirements and international trade dynamics, into a multi-modal logistics service provider.

With over four decades of industry experience, SASL has built a well-integrated logistics infrastructure that offers end-to-end support across the supply chain. With a view to diversifying its business operations and augmenting its presence across the entire logistics value chain, the company has undertaken a strategic initiative to expand into the business of management and maintenance of cargo terminals (Air and Ocean both), container freight stations (CFS), inland container depots (ICD), logistics parks, industrial parks, warehousing complexes, cold storage facilities, freight corridors, dry ports, infrastructure parks, and other logistics and cargo-related infrastructure or facilities, and to provide maintenance or support services.

The company maintains strategic alliances with a diverse range of international air freight carriers, enabling enhanced service capabilities and global reach. It has performance-based agreements with several leading global airlines, including Qatar Airways, Saudi Cargo, Air India Cargo, Turkish airlines and Lufthansa. These partnerships not only strengthen access to key international routes and cargo capacities but also contribute to improved service reliability and competitive transit times for its clients.

In addition to these performance-based agreements, the company is an active member of multiple global logistics networks, which serve as structured platforms for cooperation among international freight forwarders and logistics service providers. The company maintains active affiliations with several globally recognized logistics and freight forwarding networks, including the World Cargo Alliance (WCA), Air & Ocean Partners (AOP), Combined Logistics Networks (CLN), Multi Group Logistics Network (MGLN), Global Freight Alliance (GFA), and the Transport Worldwide International Group (TWIG).

Participation in these established networks offers extensive global exposure and opens access to a wide spectrum of international business opportunities, enabling it to operate efficiently in both established and emerging markets. By aligning with these established networks, the company reinforces its positioning as a globally connected and operationally agile organization within the freight forwarding sector.

In FY26, revenue from operations, about 77.02% is from air cargo services, 15.02% from ocean cargo services, 5.79% from express cargo & parcel, 1.38% from trucking, 0.61% from value added services, 0.13% from warehousing and 0.05% from sale of products (commerce and other retail products).

The contribution of multiple industry verticalsincluded Textile & Apparels( 13.04% in FY26; 12.1% in FY25), Pharmaceuticals (22.89% in FY26 &9.11% in FY25), electronics & electrical equipment (3.20% in FY26 &1.33% in FY25), engineering goods (3.01% in FY25 &3.36% in FY25), perishable cargo (1.99% in FY26 &1.01% in FY25), leather (1.56% in FY26 &2.24% in FY25 ), automotive (3.10% in FY26 &2.09% in FY25), diversified industrials (1.15% in FY26 &2.34% in FY25), industrial goods (2.28% in FY26 &2.29% in FY25), household goods (0.5% in FY26 &1.26% in FY25), food (2.92% in FY26 &3% in FY25), express cargo & parcel (5.79% in FY25 &6.28% in FY25), trucking (1.38% in FY26 &2.69% in FY25) and balance others.

The issue and objects of the issue

The offer comprises a fresh issue as well as OFS by the selling shareholders. The fresh issue comprises issue of 28898300 equity shares of Rs 10 each and the offer for sale comprise sale of 13333300 equity shares of Rs 10 each and of which sale by promoters is 9580690 equity shares[Yashpal Sharma 7120690 shares; Tarun Sharma 2460000 shares] and balance by other selling shareholders [Himanshu Chhabra 1866000 shares; Rohit Sehgal 1886610 shares].

Of the net proceeds from fresh issue the company will utilize Rs 216.7867 crore towards repayment of certain outstanding borrowings availed by the company & its subsidiary and Rs 130 crore towards funding incremental working capital requirements and balance general corporate purposes.

Strengths

Comprehensive range of logistics solutions

Broad network of partners that enhances the reach of the company

Ability to serve a diverse and wide-ranging clientele across multiple industry verticals

Information Technology and its Infrastructure driving Operational Effectiveness.

Long-standing business relationships with the clientele.

Weaknesses

Operate in a highly fragmented and competitive industry

Dependency on carriers for cargo transportation exposes risks related to capacity availability, cost fluctuations, and service disruptions.

Freight forwarding business of the company is closely linked to trade volumes and broader economic conditions, and any slowdown whether driven by weaker global demand, geopolitical uncertainties, or sector specific declines can reduce cargo movement and negatively affect revenues.

Volatility in fuel prices and exchange rate fluctuations influences cost structure, particularly when rising transportation costs cannot be fully or promptly passed on to customers.

Geopolitical tensions, conflicts, and global instability may adversely affect the global economy, supply chains, and its business operations.

About 85.51% of revenue is from Asia reflecting heavily reliant on its operations within certain geographical regions.

The company and Brace Port Logistics, the material subsidiary, along with seven other third parties are jointly part of a criminal matter bearing, FIR No. 172/25 dated December 12, 2025, at Police Station - Economic Offence Wing, Delhi.

Has experienced negative cash flows from operating activities in the past.

Contingent liabilities and commitments as of March 31, 2026, stood at Rs 289.08 crore, which tantamount to 46.5% of its net worth.

The company and certain of its subsidiaries are involved in ongoing proceedings pertaining to direct and indirect taxes involving an aggregate disputed demand of approximately Rs 43.9321 crore.

Valuation

Consolidated re-stated revenue for the fiscal ending March 2026 stood higher by 25% to Rs 2812.90 crore. With OPM expanding by 70 bps to 4.5%, the growth of OP was 47% to Rs 126.53 crore. The PBT before EO was up 33% to Rs 88.57 crore and the PAT was up 33% to Rs 63.57 crore. Finally, net profit after MI was Rs 41.01 crore, a growth of 5%.

On expanded equity, the EPS for FY2026 was Rs 2.9. On upper price band, the PE works out to 34.5 times of its FY26 EPS. The P/BV stood at 2.3 times and EV/Sales stood 0.7 times.

Repayment of Rs 216.7867 crore from net proceeds will bring the borrowings down by about 34.74%, resulting in lower interest outgo. The EPS for FY26 works out to Rs 4 if 34.74% of its interest cost is removed, keeping all other items, including tax rate, same. The reworked PE stands at 25 times.

In comparison, logistics companies though smaller in sales but with freight forwarding business such as Glottis and Om Freight Forwarders quotes at a PE of 11 times and 14.3 times of their FY26 EPS. Similarly other logistics companies such as Patel Integrated and TCI Express quotes at a PE of 13.6 times and 25.8 times respectively. A large logistics players such as Allcargo Logistics quotes at a PE of 25.6 times.