AFCOM deploys Rs 95.63 crore of QIP proceeds by September 2026

AFCOM HOLDINGS LIMITED used Rs 95.63 crore of its Rs 199.84 crore qualified institutions placement, or QIP, proceeds for stated objects by September 30, 2026, including Rs 52.11 crore for aircraft lease deposits. AFCOM reported Rs 69.01 crore remained unutilised in its designated Monitoring Fund Account and said there was no deviation in use.

How much of AFCOM's QIP proceeds had been deployed?

AFCOM had deployed Rs 95.63 crore towards stated QIP objects as of September 30, 2026. The company allotted 26,30,520 equity shares through the QIP at Rs 759.72 per share, raising gross proceeds of Rs 199.84 crore under Chapter VI of the Securities and Exchange Board of India, or SEBI, Issue of Capital and Disclosure Requirements Regulations, 2018.

AFCOM applied Rs 7.21 crore of the gross proceeds to issue expenses and placed Rs 28 crore in fixed deposits. After those applications and object-wise deployment, it reported Rs 69.01 crore as unutilised in the designated Monitoring Fund Account at September 30, 2026. The company also said it had appointed a monitoring agency under Regulation 173A of the SEBI regulations.

The Rs 95.63 crore deployed consisted of Rs 66.92 crore used up to June 30, 2026 and Rs 28.71 crore used from July 1, 2026 to September 30, 2026. Thus, the September quarter accounted for additional spending across lease deposits, training, equipment, tools and software, after the larger cumulative amount recorded through June 30.

Which QIP object received the most AFCOM funding?

Aircraft lease deposits received AFCOM's largest disclosed QIP allocation, with Rs 52.11 crore used by September 30, 2026 against a proposed cost of Rs 85.72 crore. This total comprised Rs 34.96 crore used up to June 30 and Rs 17.15 crore used during the July-to-September quarter, while the object schedule showed Rs 33.61 crore remaining.

Essential spare parts, identified in the filing as required under Directorate General of Civil Aviation, or DGCA, guidelines, had a proposed cost of Rs 11.45 crore. The schedule recorded Rs 11.64 crore utilised through June 30, 2026, no spending during the September quarter and no balance at September 30, 2026.

AFCOM also recorded full utilisation in several readiness categories. Rotables and consumables had Rs 8.53 crore of cumulative use against Rs 8.42 crore proposed; mandatory special tools had Rs 1.11 crore against Rs 1.10 crore proposed; and ground support equipment had Rs 5.47 crore against Rs 5.42 crore proposed. The September-quarter additions were Rs 1.56 crore, Rs 0.55 crore and Rs 1.88 crore respectively.

What did AFCOM spend during the September 2026 quarter?

AFCOM used Rs 28.71 crore from July 1, 2026 to September 30, 2026, led by Rs 17.15 crore for aircraft lease deposits. SIM training was the next-largest quarterly use at Rs 4.22 crore, followed by Rs 2.76 crore for software subscriptions and Rs 1.88 crore for ground support equipment.

SIM training reached cumulative utilisation of Rs 8.52 crore by September 30, 2026 against a proposed Rs 8.37 crore, after Rs 4.30 crore had been used through June 30. Software subscriptions reached Rs 5.55 crore against a proposed Rs 5.48 crore, with the September-quarter outlay of Rs 2.76 crore following Rs 2.79 crore in the earlier period.

The quarterly schedule also showed Rs 0.59 crore spent on Boeing subscription charges, Rs 1.56 crore on rotables and consumables, and Rs 0.55 crore on mandatory special tools. No July-to-September spending was shown for aircraft insurance, essential spare parts, aircraft paint and decal, pre-purchase inspection, or customs duty and clearance charges.

What QIP-funded uses remained on AFCOM's schedule?

AFCOM's object-wise schedule listed Rs 97.55 crore of balances at September 30, 2026 across the offer-document uses. Separately, the filing reported Rs 69.01 crore of unutilised QIP proceeds in the Monitoring Fund Account and said Rs 28 crore had been placed in fixed deposits; it did not provide a line-by-line reconciliation between the Rs 97.55 crore schedule balance and the account balance.

Customs duty and clearance charges represented the largest remaining object allocation at Rs 42.07 crore, with no utilisation shown through September 30, 2026. Aircraft insurance had Rs 18.68 crore remaining, aircraft lease deposits had Rs 33.61 crore remaining, and aircraft paint and decal had its full Rs 1.68 crore proposed amount unspent.

Pre-purchase inspection retained Rs 1.51 crore of its Rs 3.03 crore proposed cost after Rs 1.51 crore had been used through June 30, 2026. Boeing subscription charges retained Rs 0.59 crore of the Rs 1.18 crore proposed amount, while the schedule showed no balance for spare parts, rotables, special tools, ground support equipment, SIM training or software subscriptions.

How does AFCOM's QIP use compare with its September financial position?

AFCOM reported cash and cash equivalents of Rs 92.31 crore at September 30, 2026, up from Rs 62.06 crore at March 31, 2026. Its cash-flow statement included Rs 87.16 crore in monitoring accounts, Rs 4.96 crore in current accounts and Rs 0.19 crore of cash on hand at the September reporting date.

The standalone balance sheet showed other non-current assets of Rs 326.39 crore at September 30, 2026, compared with Rs 209.05 crore at March 31, 2026. Inventories increased to Rs 34.20 crore from Rs 18.25 crore, while right-of-use assets declined to Rs 280.49 crore from Rs 306.35 crore over the same six-month comparison.

AFCOM reported revenue from operations of Rs 416.32 crore for the half year ended September 30, 2026, compared with Rs 240.19 crore in the half year ended September 30, 2025. Profit after tax increased to Rs 89.95 crore from Rs 47.80 crore, while the filing identified air transportation services as its single operating segment under Ind AS 108.

Conclusion

AFCOM had used Rs 95.63 crore of QIP proceeds by September 30, 2026, principally for aircraft lease deposits and a set of fleet-readiness needs including training, spares, equipment, tools and software. The Rs 28.71 crore deployed during the September quarter added to Rs 66.92 crore used through June 30, while the filing reported no deviation in the use of proceeds.

The next item to watch is deployment of the Rs 69.01 crore unutilised balance held in the Monitoring Fund Account at September 30, 2026. AFCOM's offer-document schedule still carried Rs 42.07 crore for customs duty and clearance charges, Rs 33.61 crore for aircraft lease deposits and Rs 18.68 crore for aircraft insurance, alongside the Rs 28 crore disclosed as fixed deposits.