FLY ANYTIME · ANYWHERE
India's emerging DGCA-approved private jet charter company — asset-light operations, over 90% repeat client revenue, serving customers across 6 continents
Independent Research • April 2026
| Incorporated | August 2020, Chennai |
| Listed on | NSE SME (August 2025) |
| IPO Size | ₹102.53 Crore (fresh issue) |
| Promoter Holding | 32.47% |
| Team Size | 21 full-time + 6 retainers |
| Sector | Private Aviation / Charter |
| Revenue (Trailing 12M) | ~₹248 Crore |
| Net Profit (Trailing 12M) | ~₹47 Crore |
| Operating Margin | ~25% |
| Return on Equity (3Y Avg) | 27.7% |
| Revenue Growth (3Y) | Robust |
| Profit CAGR (3Y) | 205% |
FlySBS Aviation is a DGCA-approved private jet charter company based in Chennai. It does not own aircraft — it leases jets and then offers charter services to corporate clients, wealthy individuals, celebrities, and diplomats who need to fly privately, either within India or internationally.
In a dry lease, FlySBS takes full control of the aircraft. It hires the pilots, manages maintenance, buys fuel, and operates the jet entirely on its own. This means higher profit margins because the company captures the full value chain. A dry-leased aircraft breaks even at just 37-38 flying hours per month, while FlySBS currently flies about 74 hours — nearly 2x breakeven. Dry lease revenue has grown from 9.5% of total in FY24 to 34% by Q3 FY26.
In a wet lease, a global lessor provides the jet along with crew and maintenance. FlySBS acts as marketing and sales intermediary. While this was how the company started and still accounts for ~66% of revenue, margins are lower because the lessor captures most of the operating value. Strategy is to progressively replace wet leases with dry leases as fleet grows.
A career pilot with 26+ years in aviation and over 20,000 hours of flying experience across 23 aircraft types. He previously ran a private jet business that captured 94% market share. He also founded AFCOM Cargo Airline, giving him deep expertise in both passenger and cargo aviation.
23 years of operations management, previously with Mercedes-Benz, Emirates Trading Agency, and Tata Finance. He leads day-to-day operations, safety compliance, and customer relationships.
Nearly 30 years in the luxury automobile industry, including a 20-year association with Mercedes-Benz. This gives him direct access to ultra-high-net-worth individuals and corporate leaders who form the core client base for private jet services.
FlySBS has a sister company called Afcom Holdings Limited, which operates 3 Boeing 737-800 cargo aircraft. The two businesses are fundamentally different — Afcom does scheduled cargo while FlySBS does non-scheduled passenger charter — but they share operational synergies like joint fuel procurement, MRO (maintenance) negotiations, and regulatory expertise that help reduce costs for both companies.
However, there is a recurring perception among investors that the promoters are more invested in and focused on Afcom than on FlySBS, given Afcom's larger fleet and the MD's deeper historical roots in cargo aviation. This is subjective, but it surfaces frequently in investor discussions and deserves attention from anyone evaluating this stock.
| Aircraft | Seats | Lease Type | Status |
|---|---|---|---|
| Embraer Legacy 600 | 13 | Dry Lease | Flying |
| Dassault Falcon 2000 | Varies | Wet Lease | Flying |
| Bombardier Challenger 605 | Varies | Wet Lease | Flying |
| Embraer Legacy (2nd) | 13 | Dry Lease | Inducted Mar 2026 |
| Embraer Legacy (3rd) | 13 | Dry Lease | In-Principle Agreed |
| Embraer Legacy (4th) | 13 | Dry Lease | In-Principle Agreed |
| Cessna Citation CJ2+ (1st) | 7 | Dry Lease | Expected by Q1 FY27 |
| Cessna Citation CJ2+ (2nd) | 7 | Dry Lease | Expected by Q1 FY27 |
| Cessna Citation CJ2+ (3rd) | 7 | Dry Lease | Expected by Q1 FY27 |
Important note: The original plan targeted multiple inductions in Q4 FY26, but only one new induction came in Q4 FY26 against estimates. The recent Iran-US conflict and associated disruption in international aviation logistics may push the timeline for remaining fleet additions (including the two 13-seaters signed in-principle) beyond Q1 FY27. Import processes, regulatory clearances, and global aircraft availability could all be affected by the ongoing geopolitical situation.
| FY21 | FY22 | FY23 | FY24 | FY25 | TTM | |
|---|---|---|---|---|---|---|
| Revenue | 16 | 27 | 34 | 106 | 194 | ~248 |
| Operating Profit | 2 | 1 | 5 | 15 | 40 | 63 |
| Operating Margin | 13% | 4% | 14% | 14% | 21% | ~25% |
| Net Profit | 2 | 1 | 3 | 11 | 28 | ~47 |
Revenue has grown from ₹16 Crore in FY21 to approximately ₹248 Crore on a trailing basis — a robust compound annual growth over three years. Net profit has compounded at 205%. Operating margins have improved from 14% to 25% as the company shifts to higher-margin dry lease operations.
During Q3 FY26, they were on track to deliver significantly better than FY25. Extrapolated estimates:
| FY26/FY27 Estimate | ₹330+ Crore | Subject to fleet timelines |
However, this guidance was given before the Iran-US conflict escalated. Since then, global aviation fuel (ATF) prices have come under upward pressure, and operational disruptions in the Middle East — which accounts for a notable portion of FlySBS's international charter demand — may create headwinds. The ~330+Cr revenue target may be difficult to achieve if fuel costs remain elevated, international charter bookings from the Gulf region decline, and planned fleet inductions face delays due to disrupted global aircraft logistics. Investors should treat these projections with caution until the next update provides clarity on the actual impact.
International charters are the dominant revenue source, covering destinations across Europe, Africa, the Middle East, Japan, Southeast Asia, CIS countries, and Australia. International operations only started in 2022 but have rapidly become the company's core business.
Dry lease share has been steadily rising — from 9.5% in FY24, to 23% in FY25, and now 34% in Q3 FY26. The long-term plan is to shift entirely to dry lease for better control and higher margins.
Repeat revenue was 95.6% in FY24, now 79%. This decline is healthy — it means FlySBS is acquiring 45 new clients (₹38.7 Cr revenue) while retaining its base.
Corporates are the backbone. HNI share rising from 5.3% (FY24) to 12.6% as the brand gains luxury market recognition.
India has 6,884 ultra-high-net-worth individuals and is the world's fourth-largest economy — yet it has only about 120 registered private jets. Compare that to the United States, which has over 14,500 private jets, or Europe with roughly 3,000. This enormous gap between wealth and private aviation infrastructure is the fundamental reason why the market is expected to nearly double in the next five years.
There are no listed competitors in India's private jet charter space. The largest unlisted player, VSR Ventures, holds about 33% national share. FlySBS has ~34% of South India and ~7-8% nationally.
Private jet travel for a group of 13 passengers from Chennai to London costs roughly ₹11.03 lakh per person round trip — almost identical to ₹11.04 lakh for first-class commercial tickets. But the private jet saves 5-7 hours each way, with no layovers, no airport queues, and complete privacy. India's rising number of wealthy individuals, the government's UDAN scheme building 100+ new airports, growing economic activity in Tier 2 and Tier 3 cities, and the post-COVID shift toward private travel are all creating strong structural demand for this service.
| Purpose | Allocated | Spent So Far | Remaining |
|---|---|---|---|
| Acquiring pre-owned aircraft on dry lease | ₹80.47 Cr | ₹64.88 Cr | ₹15.59 Cr |
| Repaying outstanding borrowings | ₹7.27 Cr | ₹7.27 Cr | ₹0 (fully repaid Nov'25) |
| General corporate purposes | ₹9.79 Cr | ₹9.10 Cr | ₹0.69 Cr |
| IPO issue expenses | ₹4.99 Cr | ₹4.99 Cr | ₹0 |
| Total | ₹102.53 Cr | ₹86.24 Cr | ₹16.29 Cr remaining |
CARE Ratings initially noted that FlySBS transferred IPO proceeds to its regular cash credit (CC) account for international payments, as the designated monitoring account was not linked to a forex platform. However, management has explicitly clarified that there are no deviations in fund utilization as per monitoring agency reports. The IPO funds are strictly allocated for the fleet, and any minor ancillary expenses were correctly accounted for under General Corporate Purposes (GCP).
The remaining ₹16.29 Crore is in fixed deposits with ICICI Bank: ₹10 Cr (maturing April 2026), ₹5 Cr (May 2026), and ₹2 Cr (May 2026) — all earning 5% annual interest. The company's outstanding term loan was fully foreclosed on November 27, 2025. The Board also approved setting up a wholly-owned subsidiary in the UAE in December 2025 to expand international operations.
FlySBS listed at ₹448.85 on August 8, 2025 — a 99% premium to its IPO price of ₹225. The stock surged to ₹790 within 18 days (August 26). Since then, it has corrected ~47% to ~₹415 in the broader SME sell-off.
| Scenario | FY26E Rev | FY26E PAT | P/E |
|---|---|---|---|
| At Guidance | ₹330+ Cr | ~₹53 Cr | ~13.6x |
| Conservative | ₹280-300 Cr | ~₹48-49 Cr | ~14.7x – 15.0x |
If management delivers ₹330+ Cr revenue with ~16% net margins, the stock trades at ~13.6x forward earnings — attractive for a high-growth business. But SME execution risks and the current geopolitical headwinds warrant a meaningful discount.
DIIs halved their stake (3.21% → 1.21%) in one quarter. Pre-IPO lock-in expiry around August 2026 could add further selling pressure.
The only publicly listed pure-play company in India's $274 million private jet charter market, which is expected to nearly double to $500-550 million by FY29. Revenue has been compounding rapidly over three years, with improving margins as the company transitions to a higher-margin dry lease model. The balance sheet is virtually debt-free with a 34.6% return on capital. India has a massive demand-supply gap — 6,884 ultra-high-net-worth individuals but only 120 private jets. Fleet expansion is funded through IPO proceeds and underway, with management guiding for a ~330+Cr revenue target. The regulatory moat (2+ years for a new NSOP permit) and 90%+ repeat client revenue provide strong barriers to competition.
The existential tail risk of an accident or technical grounding with pre-owned aircraft (~10 years old) is a risk worth mentioning. Other key points to consider: Perception of promoter focus being split between Afcom Holdings and FlySBS, the remote Deccan Chronicle family connection. Pre-IPO lock-in expiry around August 2026 and potential bulk deal exits by early investors may add severe selling pressure. The Iran-US conflict has reverberating effects on the Middle East, which is a key market — this could dampen international charter demand, push up fuel costs, and delay fleet inductions. The ~330+Cr revenue target was issued before the geopolitical situation escalated and may no longer be achievable.
Data as of April 13, 2026 • Sources: NSE, Screener.in, Company Filings, CARE Ratings