Logistics stock rallies 12% after its net profit soars 326% in Q3

Synopsis: Afcom Holdings Ltd shares surged 12% after reporting Q3 results, with revenue up 208% YoY to ₹153 crore and net profit up 326% YoY to ₹38.5 crore. The earnings per share (EPS) for the quarterly period stood at ₹15.48

The shares of the Small-Cap company specializing in international air cargo transport and logistics services are in focus after they rallied 12 percent in a single day following their Q3 results with a 326 percent jump in net profits.

With a market capitalization of Rs. 2,267.02 Crores on the Day’s Trade, the shares of Afcom Holdings Ltd jumped upto 12.3 percent, reaching a high of Rs. 960.05 compared to its previous close of Rs. 854.25.

What Happened

Afcom Holdings Ltd, engaged in international air cargo transport and logistics services, is in the spotlight today as it has rallied 12 percent in a single day following its Q3 results, as follows:

Its Revenue from operations rose by 208 percent YoY from Rs. 49.6 Crores in Q3FY25 to Rs. 153 Crores in Q3FY26, and it rose by 26.4 percent QoQ from Rs. 121 Crores in Q2FY26 to Rs. 153  Crores in Q3FY26.

Its Net Profit YoY rose by 326 percent from Rs. 9.04 Crores in Q3FY25 to Rs. 38.5 Crores in Q3FY26, and on a QoQ basis, it rose by 36 percent from Rs. 28.4 Crores in Q2FY26 to Rs. 38.5 Crores in Q3FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 15.48, compared to Rs. 11.42  in the previous quarter.

Other updates

The Board also approved the proposal for the incorporation of a greenfield, partially owned subsidiary in India to undertake the Maintenance, Repair, and Overhaul (MRO) of aircraft. Along with this, the Board approved the recommendation for the appointment of M/s. S.A.E. & Associates LLP, Practising Company Secretaries, as the Secretarial Auditors of the Company for a term of five consecutive financial years commencing from FY 2025–26.

Afcom Holdings Ltd is a professionally managed international cargo airline that commenced operations in Chennai. Founded by experienced industry professionals, the company draws on strong expertise in building successful ventures and collaborating with leaders across Defence, IT, Financial Services, Real Estate, and Aviation.

The company offers comprehensive cargo solutions through international hubs, serving destinations across ASEAN countries. Its diverse product portfolio includes General Cargo, Flying Fresh, Flying Pharma, Flying Priority, Fly Courier, Project Cargo, Dangerous Goods, and High-Value Cargo, designed to address varied logistics requirements.

The company demonstrates strong capital efficiency, with a ROCE of 36.0% and ROE of 28.9%, indicating it generates high returns from both its total capital and shareholders’ equity. Its 3-year average ROE of 28.6% further highlights a consistent and reliable track record of profitability, reflecting effective management and sustainable earnings performance.

Additionally, the company maintains a very low debt-to-equity ratio of 0.12, suggesting conservative leverage and lower financial risk. A PEG ratio of 0.18 indicates the stock may be undervalued relative to its earnings growth, potentially making it attractive from a growth-at-a-reasonable-price perspective.

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