Skyways Air Services defers IPO launch; CMD Yashpal Sharma says Middle East exposure limited

Skyways Air Services is relatively insulated from the ongoing Middle East crisis, with less than 10% of its business directly exposed to the region, chairman and managing director Yashpal Sharma said.

The Delhi-based air freight forwarding and logistics company, which had planned to launch its IPO on March 18, but is now reportedly deferring it amid volatile global conditions, said its diversified operations and ability to create alternate logistics solutions have helped mitigate disruptions caused by the crisis.

“Less than 10% of our business is directly exposed to the Middle East. While certain trade lanes have seen a sudden halt, we are able to reposition shipments through alternative routes and modes,” Sharma said in an interaction with Fortune India.

Skyways Air Services, in its red herring prospectus (RHP) filed with the Securities and Exchange Board of India (Sebi) on March 2, stated that it plans to launch its three-day IPO between March 18 and March 20. The company had earlier filed its draft red herring prospectus (DRHP) with the regulator on June 30, 2025, and received Sebi’s approval on October 31, 2025.

According to the RHP, the IPO comprises a fresh issue of 2.89 crore equity shares and an offer for sale (OFS) of 1.33 crore shares. The company has not yet announced the price band, though reports suggest the IPO could raise around ₹600 crore.

Under the OFS component, promoters Tarun Sharma and Yashpal Sharma, along with other selling shareholders Rohit Sehgal and Himanshu Chhabra, will divest a portion of their holdings.

The proceeds from the fresh issue will be used to repay certain outstanding borrowings of the company and its subsidiary, Forin Container Line Private Limited, as well as to fund incremental working capital requirements and meet general corporate purposes.

Alternate routes, higher realisations cushion impact

With key shipping lanes and airspace disruptions affecting cargo movement in the region, logistics players have been forced to rework supply chains. Skyways said it is leveraging its global network to reroute shipments via other ports, combine air and road transport, or bypass traditional hubs.

This has led to a rise in logistics costs, but the company noted that the impact on its financials remains limited due to its pass-through pricing model.

“In our business, most cost increases are passed on to customers. Even if volumes dip temporarily, higher realisations per kilo tend to offset the impact on revenue,” Sharma added.

Capacity disruptions, but manageable

The Middle East, a key global aviation hub, has seen capacity shrink due to restricted airspace and grounded freighters. Industry estimates suggest global cargo capacity has been hit by 20–25%.

However, Skyways said its strong airline partnerships and flexible sourcing of capacity have helped it navigate the disruption.

“We have been able to pivot cargo to other carriers and even explore direct freighter routes that bypass affected hubs,” Sharma said.

Disruptions an opportunity to gain market share

Interestingly, the company sees such disruptions as an opportunity to gain market share. “In extreme situations, customers rely on players who can provide solutions. Our ability to create alternate routes and manage complexity often helps us win additional business,” Sharma said.

Skyways, which operates across 12 countries and over 30 Indian cities, has been focusing on high-growth segments such as pharmaceuticals and express logistics to diversify revenue streams.

Despite near-term geopolitical uncertainties, the company maintained that its asset-light model, diversified customer base, and operational agility position it well to withstand global supply chain disruptions.

Strengthens position in cargo logistics

Financially, Skyways Air Services has scaled up rapidly over the past three years, with total income rising to ₹2,270.99 crore in FY25 from ₹1,316.81 crore in FY24, while the first half of FY26 has continued to show steady momentum. Profitability, however, has remained relatively stable, with profit after tax at ₹48.14 crore in FY25 compared with ₹34.49 crore a year earlier. The company’s net worth has more than doubled over the past two years to ₹305.07 crore as of September 2025.

Starting out as a customs house agent in 1984, Skyways Air Services has evolved over four decades into a full-service logistics company, building a multi-modal platform that spans air and ocean freight, trucking, warehousing, and technology-driven express delivery.

Today, the company is a key player in India’s cargo logistics sector and ranks as the country’s number one air freight forwarder by AWB generation, according to WorldACD. It offers a broad suite of services, including air and ocean freight forwarding, trucking, warehousing, customs broking, technology-driven express cargo and parcel delivery, along with a range of value-added services (VAS), serving clients across both domestic and international markets.