Synopsis:
Afcom Holdings Ltd. has signed a Cargo Interline Traffic Agreement with Flydubai, expanding its global reach through Flydubai’s UAE network and implementing a revenue-sharing model for joint shipments.
The shares of the Small-Cap company, specializing in operating an international cargo airline, providing air cargo services for airport-to-airport cargo movement and supply chain solutions, jumped by upto 2 percent upon entering into a Cargo Interline Traffic Agreement with Flydubai.
With a market capitalization of Rs. 2,389.07 Crores on Thursday, the shares of Afcom Holdings Ltd rose by 2.2 percent after making a high of Rs. 974.80 compared to its previous closing price of Rs. 953.00.
What Happened
Afcom Holdings Ltd, engaged in operating an international cargo airline, providing air cargo services for airport-to-airport cargo movement and supply chain solutions, has announced that it has entered into an Interline Traffic Agreement (Cargo) with Flydubai (Dubai Aviation Corporation), a UAE-based airline.
This agreement enables both parties to transport air cargo across each other’s network routes, significantly expanding Afcom’s global reach through Flydubai’s international network.
Both companies have agreed to collaborate under a shared framework for cargo movement, including the proportion of revenue for shipments handled jointly. The agreement was officially signed by authorized representatives of both Flydubai and Afcom Holdings Ltd..
This strategic partnership enhances Afcom’s logistical capabilities by providing it access to a broader global cargo network via the UAE, aligning with its goals of expanding international connectivity and operational efficiency.
Financials & Others
The company’s revenue rose by 198 percent from Rs. 40 crore to Rs. 119 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 1 crore to Rs. 27 crore during the same period.
The company has a strong financial profile with a 3-year average ROE of 28.6%, current ROE of 28.9%, and ROCE of 36.0%. It maintains a low debt-to-equity ratio of 0.14, indicating efficient capital use and low financial risk.
AFCOM is an independent international cargo airline based in India, offering fast and efficient airport-to-airport cargo services with delivery within 24 hours. It operates a fleet of two Boeing 737–800 BCF aircraft and has partnered with TT Trucking to provide bonded trucking for last-mile delivery across India.
The company is represented globally through established General Sales and Service Agents (GSSAs). Committed to high customer service standards, AFCOM aims to be a leading player in both the Indian and international air cargo markets, focusing strongly on growth and expansion.
It has established strong partnerships and client relationships with several leading global logistics and airline companies. Its tie-ups include major names like DHL, Etihad Airways, Turkish Airlines, Virgin Atlantic, SriLankan Airlines, VietJet Air, DB Schenker, DSV, Kintetsu World Express (KWE), and others. These collaborations enhance AFCOM’s global connectivity and service capabilities across international cargo networks.
They handle a wide range of cargo types, including general cargo, fresh perishables, pharmaceuticals, and priority shipments. They also manage dangerous goods, high-value items, large project cargo, and express deliveries, ensuring specialized services for diverse shipping needs.
Written by Sridhar J
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