Fly-Hi routed 46.6% of FY26 revenue through one distributor

Fly-Hi Maritime Travels Limited routed Rs 28.91 crore, or 46.59%, of its Rs 62.04 crore revenue from operations in FY26 through an exclusive distributor. The arrangement makes a large portion of Fly-Hi’s latest revenue dependent on one overseas intermediary continuing to service customers, issue invoices and provide pricing that meets the company’s requirements.

How much of Fly-Hi’s revenue came through the exclusive distributor?

Fly-Hi reported Rs 28.91 crore of revenue through its exclusive distributor in FY26, equal to 46.59% of revenue from operations. Revenue from operations rose to Rs 62.04 crore in FY26 from Rs 45.40 crore in FY25, while distributor revenue rose from Rs 3.04 crore to Rs 28.91 crore over the same period.

The FY26 concentration means that Rs 46.59 of every Rs 100 of Fly-Hi’s revenue from operations was routed through the distributor. Fly-Hi describes the distributor as working exclusively for the company, which makes the continuity of this arrangement relevant to the revenue generated through that channel.

Fly-Hi’s disclosed FY25 percentage does not correspond with the two amounts printed in the same table. Rs 3.04 crore is about 6.69% of Rs 45.40 crore, rather than 66.83%; in contrast, the FY24 and FY26 percentages align with the reported revenue and distributor amounts.

How does Fly-Hi’s distributor arrangement work in practice?

Fly-Hi identifies and finalises customers directly, then introduces them to the overseas distributor where customer requirements call for that arrangement. The company says it has a distributor tie-up in the United Arab Emirates, or UAE, and that it handles all back-office work.

Fly-Hi invoices the distributor, while the distributor invoices customers according to Fly-Hi’s instructions. The company therefore retains a stated role in customer selection and back-office administration, but the distributor remains responsible for servicing customers and issuing their invoices within the arrangement.

Fly-Hi provides crew-travel management services that support movement of crew from their home country to a vessel or port of boarding. The disclosed service chain may include airline tickets, ground travel, hotel stays and visa applications, and Fly-Hi says timely onboarding is relevant to customer acceptance of its services.

A communication failure or misunderstanding of customer requirements by the distributor could lead Fly-Hi to lose a customer or a significant part of that customer’s business, according to the disclosure. Fly-Hi stated that it had not experienced such interruptions as of the prospectus date, but maintaining FY26 distributor revenue requires continued service, accurate communication and suitable commercial terms.

What could interrupt revenue from Fly-Hi’s exclusive distributor?

Fly-Hi identifies disputes, failure to renew arrangements, changes in the distributor’s financial condition, regulatory changes and geopolitical issues as potential threats to the arrangement. The company also says reduced business volumes or an inability to retain customers on commercially reasonable terms could affect revenue, cash flows, financial condition and results of operations.

Pricing is a stated constraint in the model because Fly-Hi says reliance on the exclusive distributor may limit its ability to negotiate arrangements, including pricing. The company also identifies delays, shortages, foreign-exchange fluctuations, transportation and hospitality costs, duties, general economic conditions and competition as factors that can affect customer pricing, costs and profit margins.

The risk does not depend only on formal termination of an agreement. Fly-Hi says that if the distributor curtails or discontinues customer services, or does not provide services at prices competitive with or expected by Fly-Hi, the company’s ability to meet customer requirements could be impaired.

Fly-Hi did not disclose a plan committing it to replace the distributor or reduce this concentration. It says it cannot assure investors that it will maintain historic levels of business from the distributor or significantly reduce customer concentration in the future.

How does distributor dependence fit Fly-Hi’s wider operating model?

Fly-Hi’s revenue concentration exists alongside substantial supplier concentration in its crew-travel service chain. Its top 10 suppliers represented Rs 36.78 crore of Rs 39.07 crore purchases in FY26, or 94.12%, compared with 92.03% in FY25 and 95.39% in FY24.

Gross transaction value, or GTV, is the term Fly-Hi uses in its supplier-concentration disclosure. The company says its vendors support airline travel, hotel stays, local transport, visa applications and other services needed to move crews to their boarding locations, and no supplier had withdrawn support or service obligations during the four fiscal years cited.

Working-capital requirements add a financial link to any disruption in customer servicing or supplier fulfilment. Trade receivables rose to Rs 24.79 crore in FY26 from Rs 9.73 crore in FY25, while the total working-capital requirement rose to Rs 20.26 crore from Rs 9.70 crore.

For FY27, Fly-Hi estimated a working-capital requirement of Rs 47.04 crore, including Rs 31.75 crore of trade receivables. The estimate is based on management assumptions, and the company says defaults by customers, force majeure events and unavailable funding from banks or financial institutions could cause actual requirements to differ.

Conclusion

Fly-Hi’s FY26 disclosure shows that one exclusive distributor accounted for Rs 28.91 crore, or 46.59%, of Rs 62.04 crore in revenue from operations. Fly-Hi’s direct customer origination and back-office role give it involvement in the process, but distributor service, invoicing, communication and pricing remain necessary to preserve revenue routed through that channel.

The next disclosed item to watch is whether Fly-Hi can maintain distributor-linked business while managing its estimated FY27 working-capital requirement of Rs 47.04 crore. The FY25 percentage discrepancy remains unresolved in the supplied table, while Fly-Hi has also disclosed no assurance that historic distributor business can be maintained or concentration significantly reduced.