What Is the Partnership?
Afcom Holdings Limited has formalized a strategic long-term agreement with HPCL for the supply of Jet A-1 aviation turbine fuel. Effective from September 1, 2026, the contract utilizes IATA Model Terms and includes a specific Location Agreement covering HPCL's extensive fuelling infrastructure across India. This framework ensures Afcom secures a steady, competitively priced fuel supply, which is critical for its expanding cargo operations.
The execution involved leadership from both organizations, specifically Capt. Deepak Parasuraman for Afcom and Mr. Amit Tandon for HPCL, focusing on streamlined coordination and operational flexibility to support current and future network requirements.
Partner Profile
Hindustan Petroleum Corporation Limited (HPCL) is a Government of India Maharatna CPSE and a heavyweight in the integrated energy sector. As a Fortune Global 500 company, it operates a vast nationwide aviation fuelling network serving international airlines, defense, and general aviation. HPCL's infrastructure provides quality assurance under IS 1571:2008 standards, offering the technical and logistical scale necessary to support a growing carrier like Afcom.
Its role as a primary energy supplier to India’s aviation sector underscores the stability this partnership brings to Afcom’s supply chain, providing reliable fuel access through a consistent service approach.
Business & Financial Context
Established in 2013, Afcom Holdings operates as an international cargo airline focusing on airport-to-airport transport across domestic and international markets, including ASEAN and Middle Eastern regions. Financially, the company has demonstrated significant growth, with annual operating revenue surging 142.32% to ₹583.11 crore and net profit increasing by 151.75% year-on-year. The company maintains a market capitalization of approximately ₹4,015.79 crore.
On a trailing twelve-month (TTM) basis, revenue stands at ₹759.29 crore with a net profit of ₹177.37 crore. The stock trades at a P/E TTM of 32.94x, compared to an industry average of 28.96x.
Industry Landscape
- India's air cargo sector is experiencing a strong growth phase driven by e-commerce and express logistics
- Pharmaceutical exports and cross-border trade are key volume drivers for international cargo carriers
- Fuel typically represents a major operating cost, making long-term supply frameworks vital for margin stability
- Strategic tie-ups with Maharatna OMCs provide logistical reliability across diverse airport networks
- Expansion into ASEAN and Middle Eastern markets requires robust domestic fuelling support
Management Perspective
This long-term partnership with HPCL provides Afcom with reliable fuel access, quality assurance and operational support as we expand our cargo network.
