Fly-Hi Maritime Travels Limited EBITDA margin rose to 20.14%

Fly-Hi Maritime reported an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 20.14% in FY26, up from 5.94% in FY24. The expansion coincided with cost of services falling to 62.99% of revenue from operations from 76.89%, while EBITDA rose from Rs 2.68 crore to Rs 12.49 crore.

How did Fly-Hi Maritime EBITDA margin reach 20.14%?

Fly-Hi Maritime increased EBITDA margin by 14.20 percentage points between FY24 and FY26 because revenue growth exceeded the rise in its service-delivery costs. EBITDA, calculated by the company as profit plus tax, interest and depreciation and amortisation expenses less other income, rose from Rs 2.68 crore in FY24 to Rs 5.27 crore in FY25 and Rs 12.49 crore in FY26.

Revenue from operations was Rs 62.04 crore in FY26, compared with Rs 45.40 crore in FY25 and Rs 45.08 crore in FY24. Revenue grew 0.70% in FY25 before rising 36.66% in FY26, while EBITDA margin had already increased to 11.60% in FY25 from 5.94% in FY24. This shows that the margin expansion began before the larger FY26 revenue increase.

The company calculates EBITDA margin using revenue from operations rather than total income. Total income reached Rs 62.21 crore in FY26 and included Rs 17.71 lakh of other income, against total income of Rs 45.75 crore and other income of Rs 35.06 lakh in FY25. Revenue from ticket, hotel and visa services therefore accounted for almost all FY26 income.

Why did Fly-Hi Maritime cost of services fall as a share of revenue?

Cost of services was the largest change in Fly-Hi Maritime's expense mix, declining from 76.89% of revenue from operations in FY24 to 72.78% in FY25 and 62.99% in FY26. In absolute terms, the cost was Rs 34.66 crore in FY24, Rs 33.04 crore in FY25 and Rs 39.07 crore in FY26, while FY26 revenue increased by Rs 16.64 crore from FY25.

Fly-Hi Maritime provides crew travel arrangements for commercial shipping companies, including tickets, hotels, visas and route planning. The company said FY26 margin increased amid a war scenario in which ticket prices fluctuated and escalated for last-minute crew-transfer bookings. It also cited better vendor pricing from prompt payment terms and negotiations for better exchange rates from banks.

The FY26 cost ratio depends on commercial conditions that may not remain unchanged. Fly-Hi Maritime identifies loss of key customers or suppliers, foreign-exchange-rate changes, inability to collect receivables, customer-contract terminations and changes in laws or regulations as factors that could affect results. Maintaining vendor-pricing benefits and the pricing conditions of crew transfers would therefore be material to sustaining the FY26 ratio.

Which expenses rose alongside Fly-Hi Maritime revenue?

Employee benefits expense rose 33.37% to Rs 4.86 crore in FY26 from Rs 3.65 crore in FY25, but decreased as a proportion of revenue to 7.84% from 8.03%. Fly-Hi Maritime attributed the increase to new staff supporting expanded operations and annual salary and wage increments. Employee benefits had been Rs 3.60 crore, or 7.99% of revenue, in FY24.

Finance costs increased 71.35% to Rs 1.19 crore in FY26 from Rs 69.70 lakh in FY25, raising their revenue share from 1.54% to 1.93%. The company attributed the increase to higher long-term and short-term borrowings. Its capitalisation statement reported total debt of Rs 12.97 crore as of March 31, 2026, while shareholders' funds were Rs 17.96 crore before the issue.

Other expenses increased 61.56% to Rs 5.30 crore in FY26 from Rs 3.28 crore in FY25, lifting their revenue share to 8.54% from 7.23%. FY26 other expenses included Rs 1.12 crore of legal and professional fees, Rs 1.04 crore of rent, rates and taxes, Rs 70.53 lakh of goods and services tax expense, and Rs 56.55 lakh of exchange-fluctuation loss.

How did the margin expansion affect Fly-Hi Maritime profit and cash flow?

Fly-Hi Maritime's profit after tax (PAT) rose to Rs 8.43 crore in FY26 from Rs 3.44 crore in FY25 and Rs 1.82 crore in FY24. PAT margin increased to 13.58% in FY26, compared with 7.59% and 4.04%, respectively. Profit before tax was Rs 11.36 crore in FY26, equal to 18.32% of revenue from operations.

Tax expense reached Rs 2.94 crore in FY26, including Rs 2.92 crore of current tax, compared with total tax expense of Rs 1.27 crore in FY25. Total expenses represented 81.97% of total income in FY26, down from 90.39% in FY25 and 95.10% in FY24. The lower expense share explains why PAT grew faster than revenue during FY26.

Operating cash flow did not move in line with reported FY26 profit, with an outflow of Rs 98.20 lakh following an inflow of Rs 92.09 lakh in FY25. Operating cash flow measures net cash generated from or used in operating activities, rather than accounting profit. The current ratio, calculated as current assets divided by current liabilities, improved to 1.97 times in FY26 from 1.82 times in FY25.

Conclusion

Fly-Hi Maritime's 20.14% FY26 EBITDA margin reflects a change in the relationship between service revenue and cost of services. Cost of services fell by 13.90 percentage points as a share of revenue between FY24 and FY26, while revenue from operations rose from Rs 45.08 crore to Rs 62.04 crore and PAT increased from Rs 1.82 crore to Rs 8.43 crore.

The next results will show whether Fly-Hi Maritime can maintain cost of services near the FY26 level of 62.99% of revenue while finance costs were Rs 1.19 crore and operating cash flow was negative Rs 98.20 lakh. The company has disclosed customer and supplier losses, receivable collection, foreign-exchange movements, contract termination, competition and regulatory changes as unresolved factors that may affect future results.