Jet Freight ties NatWest valuation to future Gulf orders

Jet Freight says its proposed NatWest acquisition is being valued on anticipated orders, promoter relationships and Gulf-market expansion rather than the target’s current revenue, which an analyst described as below ₹1 crore. Management said the transaction remained unfinished because paperwork was under way and was unlikely to provide much uplift in the current financial year.

Why is Jet Freight pursuing NatWest?

Jet Freight is pursuing NatWest to establish a direct presence in Dubai for the United Arab Emirates (UAE), the Gulf, the Middle East and Saudi Arabia. Management said current customers already have business on these corridors, including sea shipments from India to the UAE that can then move by road to Saudi Arabia. The proposed deal is intended to allow Jet Freight to handle more of that freight itself rather than use partners.

Charter brokerage is a central part of the plan. Jet Freight said it currently brokers cargo charters through Gulf companies, while a Dubai entity could enable it to broker those charters directly. Management said this could improve control of customer and buyer relationships and alter the taxes and costs associated with the business. It also cited NatWest’s local licences as necessary to operate in the market.

Management linked the Dubai plan to its charter activity from March, when it said it handled full-cargo aircraft movements for supermarket customers including Lulu and Nesto. It initially referred to 40 to 50 charters or more, before saying the figure may have been close to 70. The call did not provide audited charter data, but management presented the activity as a reason to develop business in Dubai and Saudi Arabia.

The proposal also aligns with Jet Freight’s existing cargo mix. Management said perishable cargo, including fresh and temperature-controlled agro-products, accounts for about 45% of its business. It described air imports and sea imports as negligible at present, while stating that these services are areas it intends to build over time.

How is Jet Freight justifying the NatWest valuation?

Jet Freight says the NatWest valuation is based on future orders expected from NatWest and its promoters, rather than its current revenue. An analyst asked how the valuation had been reached when NatWest’s revenue was “even below ₹1 crore.” Management did not dispute that description, but did not disclose NatWest’s revenue, the purchase price, the valuation multiple or the value of expected orders.

Management said NatWest’s promoters are connected with Jet Freight’s current customers and that the company intends to build on future orders. This is a forward-looking rationale, not a reported revenue contribution. The transcript does not disclose signed order values, underlying customers, order durations or a timetable for converting the expected business.

Jet Freight also linked the valuation case to its software platform. Management said a large portion of the software under development could be sold in the UAE with NatWest’s help and developed for the local market. It said the platform could give customers and buyers visibility over freight pricing and air or ocean cargo while they are in Dubai or elsewhere in the UAE.

The wider enterprise resource planning system is intended to let customers enter cargo details, receive rates and book shipments, with Jet Freight’s operations team handling execution. Management also cited live tracking, digital know-your-customer onboarding, less manual data entry and quicker sales-to-logistics handoffs. It did not quantify potential UAE software revenue or identify sales expected specifically through NatWest.

What operating synergies does Jet Freight expect from NatWest?

Jet Freight expects the principal synergy to come from bringing business now outsourced to other agents into its own operations. Management said directly handling this business through a Dubai company could improve margins there and benefit the Indian company, while creating more control over customers and buyers. It did not quantify the margin effect or specify outsourced volumes.

Ocean freight is another intended connection. Jet Freight said it is expanding ocean freight gradually because the market is larger and many air-freight customers also use sea transport. Its main ocean-freight operations are centralised at its Okhla Phase 2 office in Delhi, while other Indian offices have one or two employees serving the segment.

Management said customers already move agricultural and pharmaceutical cargo by sea, meaning it plans to expand with existing relationships rather than seek entirely new customers. It also said there are eight or nine important shipping lines with which partnerships are relevant. NatWest could provide an overseas operating point for India-UAE sea freight and Saudi road movements, although no committed volumes or route capacity were disclosed.

The company’s half-year operating data provide context for the scale it plans to extend. Shipments rose to 674 from 430 in the comparable half year, while tonnage increased to 744 tonnes from 545 tonnes. Management described the shipment increase as 56% and the tonnage increase as 32.84% year on year.

When could NatWest affect Jet Freight’s financial results?

Jet Freight does not expect NatWest to provide much financial uplift in the current financial year because the transaction has not been completed. Management said paperwork remained in process and said it expected significant growth in both companies in the next financial year. It did not provide a revenue, profit after tax or margin target attributable to NatWest.

The timing is relevant against Jet Freight’s reported half-year financials for the period ended September 30, 2026. Management reported top line of around ₹297 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) of ₹12.5 crore. It said it planned to close the financial year with top line of around ₹580 crore to ₹600 crore.

Management also referred to a 1.52% profit-after-tax margin and a 4.58% EBITDA margin for the half-year result. It said its current infrastructure could handle up to double its existing business and that costs would remain unchanged beyond a point. That observation concerned the broader business and did not quantify the proposed Dubai operation’s contribution.

Conclusion

Jet Freight is defending the NatWest proposal through prospective Gulf orders, promoter relationships, local licences, charter brokerage, direct customer access and possible UAE software distribution, rather than the target’s current revenue base. Its rise to 674 half-year shipments and 744 tonnes shows the wider operating growth management wants to extend, but neither measure establishes NatWest’s future contribution.

The next disclosed milestone is completion of the transaction, which management said was delayed by paperwork. In the following financial year, management’s expectation of significant growth will depend on whether anticipated orders convert, charter brokerage and India-UAE-Saudi freight move in-house, and the proposed operation appears in reported revenue and profitability.