What Is the Partnership?
The agreement is structured under the International Air Transport Association (IATA) Model Terms for Aviation Fuel Supply and will be administered through a specific Location Agreement. This framework is designed to meet FlySBS's operational requirements across HPCL’s entire aviation fuelling network in India. The contract ensures that FlySBS receives consistent service and competitively priced Jet A-1 fuel, which is vital for the cost-effective management of its non-scheduled flight operations.
By formalizing this long-term supply chain, the company mitigates fuel availability risks across its diverse domestic flight paths.
Partner Profile
Hindustan Petroleum Corporation Limited (HPCL) is a Government of India Maharatna Central Public Sector Enterprise and a leading player in the integrated energy sector. HPCL’s aviation business unit provides fuel to a wide spectrum of clients, including domestic and international airlines, defense services, and general aviation operators. Its extensive nationwide infrastructure provides the logistical backbone necessary for FlySBS to provide reliable services to its VVIP and corporate shuttle clients, leveraging HPCL's established presence at both major and regional airport hubs across India.
Strategic Growth and Expansion
- Secures high-quality fuel supply for VVIP and bespoke charter services
- Provides planning certainty for fleet expansion and new international destinations
- Streamlines operational coordination through HPCL’s nationwide network
- Optimizes fuel cost management via competitive IATA-linked pricing structures
- Supports the company's Non-Scheduled Operator Permit (NSOP) flight frequency
Financial Context
FlySBS Aviation has demonstrated robust financial performance, with annual operating revenue reaching ₹318.53 crore and net profit hitting ₹60.77 crore. This represents a 71% year-on-year increase in revenue and a profit surge of over 113%. The company maintains an efficient operation with an annual Return on Equity (ROE) of 19.37% and a Return on Assets (ROA) of 15.52%.
Despite its growth trajectory, its current TTM P/E of 19.5 remains below the industry average of 24.99, indicating a different valuation profile compared to its larger sector peers.
Management Perspective
This partnership with HPCL strengthens our operating framework as we continue to expand our business aviation services across India. HPCL’s aviation fuel network, operational experience and service standards will support FlySBS in delivering dependable and efficient travel solutions to our customers.
