­Experienced management:
AHL benefits from the extensive experience of its promoter, Capt. Deepak Parasuraman, who has over two decades of experience in the aviation and air-cargo industry. His experience in cargo flight operations, aviation safety norms, regulatory processes and international cargo handling practices strengthens the company’s operational capabilities. The promoter is supported by a  second line of able leadership comprising senior professionals with expertise in the airline operations, engineering, flight safety, commercial cargo management and regulatory compliance. Acuite notes that the management’s technical knowledge is expected to support operational stability, particularly during ongoing fleet expansion phase.

Robust growth in operating performance, supported by expanding fleet capacity:
AHLs operating income has grown significantly in FY2025 to Rs.238.72 Cr, almost by ~62 percent on Rs.147.54 Cr. registered in FY2024 and Rs.84.14 Cr. registered in FY2023. This growth in revenue is primarily driven by deployment of two dry-leased aircrafts and expansion of its operations in to domestic and ASEAN markets. Additionally, during the H1FY2026 the company-registered revenue of Rs.240.29 Cr. against the revenue of Rs.88.76 Cr. registered during H1FY2025 and estimated to end the current year with the revenue of Rs.490-510 Cr. The current year revenue growth is driven by full operation of the two-air craft and further capacity addition with third air craft from Q4FY2026. Also, going forward the company proposes to add fleet of another four aircrafts in near term which shall further support growth in the operating revenues.
The operating profit also improved to Rs.67.46 Cr. in FY2025 from Rs.36.19 Cr. in FY2024 and Rs.18.96 Cr. in FY2023 while margins improving to 28.26 percent in FY2025 from 24.53 percent in FY2024 and 22.53 percent in FY2023, owing to better operating efficiency. PAT margin improved to 20.28 percent  in FY2025 from 17.24 percent in FY2024 and 16.28 percent in FY2023. Additionally, during the H1FY2026 the company registered EBITDA margin of ~31 percent and PAT margin of ~23 percent. Acuite believes, AHL’s operating performance will improve over the medium term owing to the expansion in fleet capacity, while operating profit margins are expected to improve marginally.

Healthy financial risk profile:
AHLs financial risk profile is healthy marked by healthy networth, low gearing and healthy debt protection metrics. The net worth stood at Rs.220.37 Cr. as on March 31, 2025 compared to Rs.103.25 Cr. as on March 31, 2024 and Rs.73.34 Cr. as on March 31, 2023. The improvement in networth is due to accretion of profits and raising of equity of Rs.73.84 Cr. through initial public offer in August, 2024. Further, company raised another Rs.104.48 Cr. in December 2025, towards the addition of four fleets, which would onboarded in FY2027. The total debt level of the company (comprising Rs.25.94 Cr. of long-term debt and current maturities of long-term debt of Rs.0.12 Cr.) stood low at Rs.26.05 Cr. as on March 31, 2025. Therefore, the gearing level and total outside liabilities to tangible networth (TOL/TNW) stood healthy at 0.12 times and 0.25 times, respectively as on March 31, 2025. The debt protection metrics also stood healthy with interest coverage ratio (ICR) and debt service coverage (DSCR) of 20.75 times and 15.50 times respectively as on March 31, 2025. Acuite believes, the financial risk profile of the company will remain healthy because of healthy net worth position and absence of debt funded capex plans.

­Moderately intensive working capital operations:
The working capital operations of AHL are moderately intensive as reflected by the gross current asset (GCA) of 156 days in FY2025, improved from 171 days in FY2024 and 282 days in FY2023. The operating cycle is mainly driven by the high receivables days around 95 days in FY2025 against 56 days in FY2024 and 62 days in FY2023. The inventory days, remained at 34 days in FY2025 against 51 days in FY2024 and 52 days in FY2023, consistent with the asset-light nature of cargo handling operations. The payables largely comprise dues payable to operational vendors such as airport handling agents, ground support service providers and other third-party logistics partners which are usually met with in 30-40 days. The fund based working capital limits were utilized at an average of ~96 percent over the past 12 months ending September 2025. Acuite believes AHLs working capital operations to remain moderately intensive, given the inherent nature of the industry.

Dependence on sustained cargo demand and route profitability:
AHLs performance remains inherently dependent on sustained cargo demand and the profitability of its deployed routes. The economics of freighter operations are highly sensitive to load factors, network optimization and yield dynamics on specific lanes. Any weakening in demand on key sectors, emergence of competing capacity or adverse shifts in trade flows can reduce route-level profitability and impact aircraft utilization. As the company undertakes fleet expansion and adds new routes, maintaining consistently profitability will be critical and prolonged underperformance on select lanes may exert pressure on overall operating margins and cash flows.

Exposure to aviation-related regulatory risks
AHL remains exposed to regulatory risks inherent in the aviation and air-cargo sector, including compliance with Directorate General of Civil Aviation (DGCA) norms, airport-operator requirements and evolving safety standards. Any tightening of regulatory frameworks or delays in approvals for fleet induction or route permissions could impact its operations and cost structure.