Skyways Air Services Limited revenue doubled as funding rose

Skyways Air Services Limited more than doubled revenue from operations to Rs 2,812.8989 crore in FY2026 from Rs 1,289.1101 crore in FY2024. However, Skyways ended March 31, 2026 with trade receivables of Rs 579.4765 crore and current borrowings of Rs 516.8802 crore, while operating cash flow changed markedly across the three reported years.

How quickly did Skyways revenue and profit grow?

Skyways revenue from operations increased 118.2% between FY2024 and FY2026, although the annual growth rate declined in the second year. Revenue rose 74.4% to Rs 2,247.8249 crore in FY2025 and a further 25.1% to Rs 2,812.8989 crore in FY2026. Total income, including other income, increased from Rs 1,316.8059 crore in FY2024 to Rs 2,839.6707 crore in FY2026.

Profit after tax rose from Rs 34.4935 crore in FY2024 to Rs 48.1397 crore in FY2025 and Rs 63.5238 crore in FY2026. Cost of services, the largest expense, increased from Rs 1,137.2585 crore to Rs 2,506.9056 crore over the same period and represented 89.1% of FY2026 total expenses of Rs 2,751.1030 crore. Finance costs rose from Rs 18.7740 crore in FY2024 to Rs 48.0764 crore in FY2026, a 156.1% increase that exceeded revenue growth.

The consolidated profit after tax includes earnings attributable to non-controlling interests, which are the interests in subsidiaries not held by the parent company. Profit attributable to those interests rose to Rs 22.5150 crore in FY2026 from Rs 8.9711 crore in FY2025, while profit attributable to Skyways’ equity holders was Rs 41.0088 crore in FY2026. The persistence of the reported profit trend will depend in part on the relationship between service costs, finance costs and revenue as the business expands.

Why did Skyways revenue growth coincide with higher receivables?

Skyways trade receivables rose by Rs 261.4400 crore over two years as revenue grew, increasing the funds recorded as customer balances. Trade receivables were Rs 318.0365 crore at March 31, 2024, Rs 455.9683 crore at March 31, 2025 and Rs 579.4765 crore at March 31, 2026. The FY2026 balance equalled 20.6% of that year’s revenue from operations, compared with 24.7% in FY2024.

The cash-flow statement shows that changes in receivables affected cash conversion differently in each year. Higher trade receivables used Rs 144.8208 crore of cash in FY2024 and Rs 120.8027 crore in FY2026, whereas the movement released Rs 37.0102 crore in FY2025. Skyways also recorded an allowance for expected credit loss, an accounting provision for potential collection losses, of Rs 1.1804 crore in FY2026, compared with Rs 1.5847 crore in FY2025 and Rs 0.2506 crore in FY2024.

Receivables were the largest listed component of current assets of Rs 1,078.1627 crore at March 31, 2026, up from Rs 583.0542 crore at March 31, 2024. FY2026 current assets also included Rs 166.8816 crore of other financial assets, Rs 128.2066 crore of cash and cash equivalents, and Rs 112.9211 crore of other current assets. Revenue growth converts into cash only when collections do not require a comparable further increase in receivables and other working-capital assets.

How dependent was Skyways on current borrowings?

Skyways current borrowings increased 78.3% over two years to Rs 516.8802 crore at March 31, 2026, making them its largest current liability. Current borrowings were Rs 289.9059 crore at March 31, 2024 and Rs 452.5620 crore at March 31, 2025. The FY2026 balance exceeded trade payables of Rs 338.5886 crore due to creditors other than micro and small enterprises.

Total current liabilities increased from Rs 527.3419 crore in FY2024 to Rs 898.8996 crore in FY2026. Within that increase, trade payables to creditors other than micro and small enterprises rose by Rs 131.0731 crore, while current borrowings rose by Rs 226.9743 crore. Non-current borrowings moved from Rs 67.4294 crore in FY2024 to Rs 107.1766 crore in FY2026, so the larger absolute rise in borrowings was within liabilities due in one year.

Skyways received Rs 342.3187 crore from borrowings and repaid Rs 277.8998 crore during FY2026. In FY2025, it received Rs 277.9693 crore and repaid Rs 76.8732 crore. Net cash inflow from financing activities fell to Rs 52.0821 crore in FY2026 from Rs 221.4870 crore in FY2025 after interest payments of Rs 45.8474 crore, share issue expenses and other financing movements.

What does Skyways’ operating cash flow show?

Skyways reported net cash inflow from operating activities of Rs 113.6160 crore in FY2026, compared with Rs 2.0105 crore in FY2025 and net cash outflow of Rs 9.0417 crore in FY2024. Profit before tax was positive in all three years, at Rs 87.6824 crore in FY2026, Rs 67.1465 crore in FY2025 and Rs 48.3805 crore in FY2024. The difference between profit and operating cash reflects non-cash adjustments, income-tax payments and working-capital movements.

FY2026 cash generated from operations before tax was Rs 140.1259 crore, supported by a Rs 99.0197 crore increase in trade payables. That increase partly offset the Rs 120.8027 crore cash use from higher receivables, while income tax paid was Rs 26.5099 crore. This means the FY2026 operating inflow depended on both customer collection timing and supplier-payment timing, rather than accounting profit alone.

Investing activities used Rs 179.1115 crore in FY2026, including Rs 84.7650 crore for acquisition of a subsidiary, Rs 52.9716 crore for property, plant and equipment, and Rs 51.0397 crore of net bank deposits not classified as cash equivalents. Cash and cash equivalents consequently declined from Rs 141.2233 crore at the start of FY2026 to Rs 127.6234 crore at year-end. The statement reports a Rs 13.4134 crore net decrease in cash during FY2026.

Conclusion

Skyways’ FY2024 to FY2026 record combines revenue growth of Rs 1,523.7888 crore and profit-after-tax growth of Rs 29.0303 crore with a larger working-capital and financing requirement. Trade receivables rose by Rs 261.4400 crore, current borrowings increased by Rs 226.9743 crore, and finance costs increased by Rs 29.3024 crore. The reported figures therefore show that earnings growth and cash generation followed different paths across the three financial years.

The next financial update will indicate whether FY2026 operating cash inflow of Rs 113.6160 crore is sustained while receivables and current borrowings rise more slowly than revenue. Skyways disclosed that it raised Rs 48.2319 crore through a pre-IPO placement, with the amount parked in fixed deposits and intended for general corporate purposes. The unresolved issue is whether collection patterns, payment timing and borrowing requirements produce a more consistent cash-flow outcome after FY2026.