Can Skyways Air Services IPO deliver long-term growth for high-risk investors?

Skyways Air Services, a logistics company specializing in air and ocean freight forwarding, is set to raise ₹399 crore through an IPO and an offer for sale. This capital raise will be used to repay debt and bolster working capital. As a result, the promoter group's stake will decrease from 79.1% to 56.8%. Skyways Air Services is a multi-modal logistics provider that offers end-to-end supply chain solutions, with air freight services accounting for more than three-quarters of its revenue.

The logistics firm has a strong track record, consistently ranking as the top air freight forwarder since 2022. It maintains direct relationships with 56 international airlines and operates in 12 countries through a global network of logistics alliances. Skyways Air Services' revenue grew by 47.7% yearly from FY24 to FY26, reaching ₹2,812.9 crore, with operating profit before depreciation, interest, taxes, and amortisation rising by 61.2% to ₹125.6 crore.

Net profit increased by 35.7% to ₹63.5 crore during the same period. Despite this financial growth, Skyways Air Services' Ebitda margin remains lower than its peers, which range between 5% and 7.8%. However, its net profit margin is higher than the peer average, which falls between 0.2% and 2.7%. Cash flow from operations improved to ₹113.6 crore in FY26 from a deficit of ₹9 crore in FY24.

While the IPO presents an opportunity for high-risk investors seeking long-term growth, the company's heavy reliance on cross-border trade makes it vulnerable to global economic slowdown, changes in trade policies, and currency volatility. With a price-earnings (P/E) multiple of up to 32 expected post-IPO, Skyways Air Services trades at a lower valuation compared to its peers, whose P/E ranges from 46 to 376.