SKYWAYS AIR SERVICES LTD

Industrials — Integrated Freight & Logistics · NSE

₹109.26+₹3.67 (+3.48%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of SKYWAYS AIR SERVICES LTD — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Skyways Air Services Limited operates as a logistics and freight forwarding service provider.

IndustryIntegrated Freight & Logistics

SectorIndustrials

Annual revenue₹2,813 Cr

How does it make money?

Turns over ₹2,813 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

EBITDA margin5.3%

Net margin1.5%

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 21.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 12.3% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE21.9%

ROE12.3%

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +90% while net margin moved -38% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+90%

Margin effect-38%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 12.3% is moderate
✗ ROE has fallen by 15.6 points over the period

Quality vs. Valuation

Company Quality

50/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

60/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

27.9x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 69% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -69%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

27.9x

P/B

3.82x

EV/EBITDA

14.1x

PEG

5.17

Dividend Yield

0.82%

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 42% over 3 years.
High return on capital employed
ROCE of 21.9% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 244% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 28.0% to 12.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 41.4% to 21.9% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 297% against revenue growth of 90% — customers are taking longer to pay.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 244% over 3 years, from ₹182 Cr to ₹627 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 297% against revenue up 90% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 69% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 297% against revenue up 90%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 28.0% to 12.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 18% a year✓ 23.8% CAGR
Latest reported year was 90.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹55 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹1,588 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.82x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.91

Profitable

Profitable on a per-share basis

ROE

12.3%

Moderate

Moderate capital efficiency

ROCE

21.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.27x

Moderate

Moderate leverage

Revenue Growth (YoY)

90.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

181.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.82%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹55 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹109.26

Operating Margin

3.7%

Weak

Thin margins leave little room for error

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.20

Adequate

Adequate, but no real cushion

52W Range Position

15%

Mid-range

Technical Snapshot

RSI (14)

26.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,484 Cr	₹1,289 Cr	₹2,248 Cr	₹2,813 Cr	+23.8%
EBITDA	₹71 Cr	₹70 Cr	₹105 Cr	₹148 Cr	+28.0%
EBITDA Margin	4.8%	5.4%	4.7%	5.3%	—
PAT (Net Profit)	₹35 Cr	₹31 Cr	₹39 Cr	₹41 Cr	+5.4%
EPS	₹3.01	₹2.15	₹2.69	₹2.82	-2.1%
ROE	28.0%	20.3%	15.8%	12.3%	—
ROCE	41.4%	25.4%	18.7%	21.9%	—
Total Debt	₹182 Cr	₹364 Cr	₹565 Cr	₹627 Cr	+50.9%
Free Cash Flow	₹39 Cr	-₹65 Cr	-₹57 Cr	₹55 Cr	+12.3%

🟢 Revenue has grown at 23.8% a year over 3 years.

🟢 EBITDA has grown at 28.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 5.3% over 3 years.

🟢 PAT (Net Profit) has grown at 5.4% a year over 3 years.

🔴 EPS has shrunk at 2.1% a year over 3 years.

🔴 ROE has fallen from 28.0% to 12.3% over 3 years (-15.6 pts).

🔴 ROCE has fallen from 41.4% to 21.9% over 3 years (-19.5 pts).

🔴 Total Debt has grown at 50.9% a year over 3 years.

🟢 Free Cash Flow has grown at 12.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,508 Cr

Total Liabilities

₹1,014 Cr

Total Debt

₹627 Cr

Cash & Equivalents

₹119 Cr

Operating Cash Flow

₹114 Cr

Capex

-₹59 Cr

Shareholding (proxy)

Institutional Holding

3.5%

Insider Holding

61.3%

Corporate Actions

Dividend Rate

₹0.9

Ex-Dividend Date

09 Oct 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 negative5 general

SKYWAYS AIR SERVICES LTD Share Price

Upstox, 16 Oct

Skyways Air Services approves 40% stake sale in Avito Global Freight

scanx.trade, 15 OctOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Skyways Air Services shares list at 10% discount on IPO price

The Economic Times, 01 Sept

SKYWAYS AIR SERVICES Share Price: 8.11% Fall Analysis

Univest, 07 Sept

Skyways Air Services IPO Day 4: Subscription Status, Timeline & Key Issue Details

Groww, 26 Aug

Skyways Air Services shares list at 9% discount to IPO price on NSE, BSE

Moneycontrol.com, 01 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate9.6/20

🟡Financial HealthAdequate11.3/20

🟡GrowthModest10.9/20

🔴ProfitabilityWeak6/15

🟡ValuationFair7.5/15

🟡RiskModerate5/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 18% a year23.8% CAGR
✓EBITDA margin holds above 3%5.3%
✗Debt / EBITDA falls below 3x4.2x
✗Interest cover stays above 3x2.9x
✓Free cash flow remains positive₹55 Cr