Om Freight Forwarders IPO

It delivers comprehensive Third-Party Logistics (3PL) solutions, with international freight forwarding accounting for 52.12% of FY25 revenue and customs clearance for 17.34%. This integrated model provides a single-window solution, improving client cost efficiency.

Profitability saw sharp growth in FY25, with the PAT Margin rising from 2.52% in FY24 to 4.49% in FY25. This was achieved due to lower operating costs and a decrease in employee benefit expenses.

It demonstrates high capital efficiency metrics, exemplified by the Net Capital Turnover Ratio of 7.23 times and the Net Fixed Asset Turnover Ratio of 5 times in FY25. This indicates strong revenue generation from its equity and fixed assets.

The company rapidly expanded its operational scale, demonstrated by the cargo volume soaring from 21.06 MMTs in Fiscal 2023 to 66.86 MMTs in FY25. Furthermore, it consistently increased its container handling capacity (TEUs) each year, growing from 81,473 in FY23 to 109,914 in FY25.

The company maintains low financial risk while rapidly improving its debt repayment capacity. Its Debt to Equity Ratio remained stable and low at 0.17 times in both FY24 and FY25. Simultaneously, the Debt Service Coverage Ratio (DSCR) increased by 265.74%, rising sharply from 2.22 times in FY24 to 8.13 times in FY25.

It maintains high customer loyalty, having retained 75.34% of its consolidated revenue from existing clients in FY25. This quality is backed by recognitions, including a record-breaking clearance time of just 14 minutes at JNPT in 2019.

It faces a high concentration risk as its top 10 customers accounted for 40.39% of its revenue in FY25. Reliance on its single largest customer, which contributed 11.60% of total revenue, means losing this relationship could severely impact financials.

The company is heavily reliant on one region, with customers located in Maharashtra generating 88.73% of its revenue from operations in FY25. Any adverse economic or political events in this state could materially affect performance.

Its profitability has shown high inconsistency; the Return on Equity (RoE) drastically fell from 21.63% in FY23 to 7.11% in FY24 before recovering to 13.53% in FY25. Such sharp fluctuations indicate unpredictable earnings.

The IPO is primarily used to cash out promoters, not fund the company's growth. The Offer for Sale component makes up 80% of the total IPO size. Consequently, the company only receives 20% of the total funds.

The company does not use long-term agreements with shipping lines. Instead, it uses short-term leasing for vessel space, meaning disputes over pricing, capacity, or service levels could severely hurt business and revenue. This model makes securing favorable terms reliant on the ongoing cooperation of shipping companies.

The business requires intense working capital. It faces volatile operating costs, especially fuel costs and foreign exchange fluctuations. If the company cannot pass these cost increases to customers promptly, it risks major pressure on operating margins and profitability.