Q1 Results are Just out. Based on the revenue it pretty much looks like VT-AFN is operational for most of the quarter unlike the flight radar not being updated
Afcom Holdings.pdf (2.9 MB)
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The good news is the improvement in margin when the air fuel rates are at peak and also the OCF. The highest EBITA for the company too.
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the 2nd Aircraft VT-AFN made a 90 minutes trip from Chennai and came back to Chennai. I dont think it was operational in May and June in Q1, 2027. Q2 results are going to be amazing with the 3rd (VT-AFJ) and 1st plane (VT-AFO) in full operational mode.
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Would you know what is the inventory related item in the p&l? Because that seems to be contributing significantly to the bottom line
Typically it refers to “consumables and spares, rotables” required for aircraft maintenance and such things.
We don’t see this line item in FY25 AR because then it was opearing the airfcrafts in wet lease model, in which, maintenance and consumable is duty of lessor and where as in dry lease it’s the duty of lessee.
There has been an improvement in operating margin QoQ, even though there is a fall of 7% in topline over same period.
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VT-AFN is flying today to Hanoi, Male, Colombo
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Now there is no fly history for VT- AFO since last 7 days but VT-AFN is running good. It means management using only one plane at one time. In one of the previous concall they said that they need one aircraft for back up. Is it due to this or due to less demand.
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Had noticed this too, pretty sure it’s because they use it as a backup so as not to disrupt services, as stated by the management already.
This is a sound strategy imho, if all aircrafts ply at the same time, if one of them is down, which will inevitably happen, these are machines after all, will lead to the company being unable to deliver on a promise and will affect the long term business prospects of the company.
This statement by the company’s President seems to give a more realistic timeline regarding fleet expansion:
Afcom reports Q1 profit growth, plans fleet and route expansion.
Edit:
Video Link:
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LOI with Boeing for 4 wide body aircrafts. The filing says LOI initiated for “acquisiton”. I’m guessing they mean leasing here.
loi.pdf (345.2 KB)
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Afcom 1st plane AFO which has done most trips for Afcom has stopped flying in the last 15 days.
2nd Plane AFN which stopped flying on April 28, 2026 has resumed flying.
3rd Plane AFJ is also flying good trips.
Lasty year 40% of trips they are doing through charter flights. (1923 trips own flight - AFO & AFN) + 1129 trips through charter)- This can be doubled this year.
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did anyone get any comfort on the capitalization of expenses being done or even the non-payment of advance taxes? it is one thing to inflate bottom line by capitalizing expenses, but playing around with taxes & bearing penalties while having 62cr cash is not right
Which expense is being capitalized?
Afcom 3rd Plane - AFJ is now running daily flights to Dubai. What was announced weekly twice has now become a dedicated route.
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Capitalizing expenses is not necessarily “inflating the bottom line” if the expenditure genuinely creates a capital asset or provides benefits over multiple years.
Similarly, non payment of advance tax does not automatically mean the company is “playing around with taxes.” Advance tax is based on the estimated tax liability, and the final liability can differ depending on timing of profits, depreciation, deductions, provisions and other legitimate tax adjustments and that alone doesn’t establish that the company acted improperly.
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