FlySBS Aviation Ltd Management Discussions

01 Economic Overview

Global economy

The global economy entered FY 2025-26 in a phase of decelerating but positive growth and encountered a materially less benign second half. The International Monetary Fund has reduced its global growth projection for calendar 2026 to approximately 3.0%. The disinflation that characterised the preceding eighteen months has been interrupted by an energy price shock, and consumer sentiment in several major economies sits close to record lows.

For the industry in which the Company operates, however, the more relevant indicators point the other way. Corporate profitability reached a record level of approximately US$3.95 trillion in the first quarter of calendar 2026. The global population of ultra-high-net-worth individuals — those holding net assets above US$30 million — has risen to more than 713,000 from approximately 551,000 in 2021, an average of roughly 89 individuals crossing that threshold each day. Merger, acquisition and capital markets activity has remained robust. Business aviation demand correlates far more closely with these variables than with headline gross domestic product.

The principal adverse development from the Companys standpoint has been the conflict situation in West Asia. Beyond its human cost, it has constrained a region that had been among business aviations strongest emerging markets, and it has directly restricted the movement of assets through the corridors on which the Companys aircraft induction programme depends.

Indian economy

India remained among the fastest-growing large economies during the year, supported by public capital expenditure, resilient domestic consumption and a broadening of economic activity beyond the traditional metropolitan centres. That geographic broadening is directly material to the Company: it is generating corporate travel demand in cities where scheduled air connectivity is thin, which is the precise circumstance in which charter becomes not a luxury but the only practical option.

India is now the worlds third-largest domestic civil aviation market. The number of operational airports has risen from 74 in 2014 to 157 in 2024, with more than 180 expected during calendar 2026, supported by the UDAN regional connectivity scheme and sustained investment in both greenfield and brownfield airport infrastructure. Airport capacity has, in a number of locations, been created faster than scheduled airlines have deployed aircraft to serve it.

THE MACRO VARIABLE THAT MATTERS MOST TO THIS BUSINESS

It is not GDP growth. It is the rate of formation of wealth and of corporate activity outside the top eight Indian cities. A charter operator earns nothing from a corridor that a scheduled carrier serves eight times a day. It earns a premium from the corridor that has an airport, a reason to travel, and no viable scheduled connection.

02 Industry Structure and Developments

Global aviation and business aviation

The global aviation market was valued at approximately US$1,011 billion in 2023 and is projected to grow at 6–8% annually to approximately US$1,507 billion by 2029. Passenger air transport accounts for roughly 85% of that market, charter air transport approximately 9% and cargo the balance. Within business aviation specifically, the global business jet market is projected to exceed US$33 billion in 2026, with forecasts of approximately 850 new business jet deliveries valued at around US$283 billion over the coming decade. The on-demand charter segment is forecast to grow at approximately 7.9% annually to reach around US$25.8 billion by 2031.

Two structural shifts are reshaping demand. The first is a movement away from outright ownership towards access — charter, fractional and membership models — which broadens the addressable market but also makes demand more elastic in a downturn. The second is demographic: approximately 47% of first-time private jet users are now under 45, a cohort that treats private aviation as a productivity instrument rather than as a status purchase, and which is correspondingly more price-aware and more receptive to subscription structures.

Indian aviation

Indias aviation market was approximately US$15 billion in FY 2023, having grown at approximately 10.3% annually since FY 2019, and is projected to reach US$22–27 billion by FY 2029. Over 60% of Indias more than 220 million air passengers are served by metropolitan airports; future growth is expected to be driven disproportionately by greenfield and upgraded brownfield airports in tier-2 and tier-3 cities.

The private jet and non-scheduled segment

Indias private jet market grew from approximately US$187 million in FY 2019 to approximately US$274 million in FY 2024, and is projected to reach US$500–550 million by FY 2029 at a growth rate of 13–15% annually. Certain industry forecasts place the range higher, at 15–18% annually. The segment remains structurally under-penetrated: India has approximately 115–120 registered private jets, against 14,500–15,500 in the United States and 2,500–3,500 in Europe.

The supply side has expanded but remains narrow. The Directorate General of Civil Aviation recorded 116 non-scheduled operators in FY 2024; its List of Non-Scheduled Operators updated to 31 May 2026 records approximately 138 permit holders. Of these, a substantial proportion operate rotary-wing aircraft, hold permits limited to domestic operations, or operate a single aircraft for a corporate owner. The number of operators with demonstrated international long-range charter capability is materially smaller than the headline count suggests — a distinction that is central to the Companys competitive position.

Indicator	Position	Direction
India private jet market, FY 2024	US$274 million	From US$187 million in FY 2019
India private jet market, FY 2029 projected	US$500–550 million	13–15% annual growth
Registered private jets, India	115–120	Against 14,500–15,500 in the USA
DGCA non-scheduled operators	138 at 31 May 2026	From 116 in FY 2024
Operational airports, India	157 (2024)	74 in 2014; 180+ expected in 2026
Global UHNI population	713,000+	551,000 in 2021
Global business jet market, 2026	US$33 billion+	850 deliveries forecast to 2036

Regulatory developments

- Permit processing: Timelines for charter permit processing have been shortened materially, reducing the administrative friction that has historically constrained short-notice international missions.

- Foreign participation: The framework governing foreign ownership in charter operations has been liberalised, which increases the potential competitive intensity of the segment over the medium term while also expanding the pool of capital and expertise available to it.

- Airworthiness regime: The CAR-M and CAR-145 frameworks continue to raise the compliance burden on operators. The Company regards this as favourable: a rising compliance floor disadvantages marginal operators disproportionately and protects those with established in-house capability.

- Infrastructure policy: Continued investment in regional airports and dedicated general aviation terminals expands the set of viable charter destinations and improves turnaround efficiency at existing ones.

03 Overview of the Company

FlySBS Aviation Limited is a non-scheduled air charter operator holding a valid Air Operator Permit issued by the Directorate General of Civil Aviation. It was incorporated on 7 August 2020, converted from a private limited to a public limited company in 2024, and listed on the EMERGE platform of the National Stock Exchange of India Limited on 8 August 2025. Its registered office and operating base are in Chennai, Tamil Nadu.

The Company provides private, non-scheduled air charter services on domestic and international routes to mid and large corporates, ultra-high-net-worth and high-net-worth individuals, senior public officials, diplomats and public figures. It has operated missions on six continents, including sectors to Japan, West Asia, Europe including its Arctic reaches, North America, New Zealand and Africa.

Operating model

The Company operates through two leasing structures. Under a wet lease or quasi-charter arrangement, the lessor provides the aircraft together with crew, maintenance, insurance and the relevant operating approvals; the Company provides the client relationship and the commercial terms. Under a dry lease, the lessor provides only the aircraft, and the Company assumes responsibility for crew, maintenance, insurance, continuing airworthiness management and all aspects of daily operation, flying the aircraft on its own Air Operator Permit.

The Company commenced operations principally on wet-leased capacity, which enabled rapid scaling with minimal capital commitment. Since the induction of its first dry-leased aircraft in 2023 it has been progressively shifting the mix towards dry lease, which carries higher fixed cost and materially higher retained margin.

Competitive strengths

1. Experienced promoters and management: Combined operating experience across aviation, cargo airline establishment, regulatory approvals, and senior commercial roles in luxury and automotive retail.

2. Strategic positioning in a high entry barrier industry. Air Operator Permit, approved Continuing Airworthiness Management Exposition, certified quality function and demonstrated international operating experience — none of which can be acquired at short notice or with capital alone.

3. In-house fleet and established flight operating experience. A dry-leased long-range aircraft operated on the Companys own permit.

4. Synergies with the group company, Afcom Holdings Limited. A group entity operating in air cargo under its own Air Operator Permit, providing shared regulatory knowledge, operating scale and supplier relationships.

5. Operational excellence and tailored client solutions. A DGCA-approved MRO partnership supporting fleet availability, continuous crew training combining regulatory currency with service standards, and mission planning tailored to individual client requirements.

6. A record of consistent growth and consistent profitability. Revenue from operations has compounded at approximately 82% annually over five years and 111% over three years, and the Company has reported a profit in every financial year since incorporation.

04 Opportunities and Threats

Opportunities

Structural under-penetration

India has approximately 115–120 registered private jets for an economy of its size. Even partial convergence towards comparable markets implies multi-year growth well above nominal GDP.

Margin capture through dry lease

Each aircraft moved from wet-leased access to dry-leased operation on the Companys own permit converts a distributor margin into an operator margin. Six aircraft are funded and contracted.

Tier-2 and Tier-3 corridors

Airport capacity is being created faster than scheduled airlines are deploying to serve it. That gap is the natural habitat of charter demand and is largely uncontested.

Favourable pre-owned aircraft market

Marketing periods for aircraft in the 21-to-25-year band lengthened to approximately 115 days in H1 2026, up nearly 30% year on year. A disciplined buyer of well-maintained older airframes benefits.

Rising compliance floor

Tightening CAR-M and CAR-145 requirements disadvantage marginal operators disproportionately and reinforce the position of operators with established in-house airworthiness capability.

Threats

Geopolitical disruption

The conflict situation in West Asia has already delayed the Companys aircraft induction programme and constrains both a growth region and a corridor on which many of its long-range missions depend.

Operating leverage in reverse

The dry lease model that expands margin in growth also amplifies losses in contraction. Fixed crew, maintenance and airworthiness costs do not fall when utilisation does.

Client and segment concentration

Corporate clients accounted for 92.17% of revenue in FY2025-26 and repeat clients for 87.84%. Concentration that supports stability in normal conditions magnifies exposure in adverse ones.

Supplier and maintenance dependence

A limited supplier base for aircraft, spare parts and maintenance, and reliance on third-party providers for services critical to daily operation, present a genuine continuity risk.

Scarcity of technical talent

Type-rated flight crew, licensed engineers and certified airworthiness personnel are scarce nationally, and scheduled carrier expansion is intensifying competition for them.

Input cost and currency volatility

Aviation turbine fuel is a substantial variable cost, and a majority of revenue is earned internationally, creating exposure to both fuel price and exchange rate movement.

05 Segment-wise and Product-wise Performance

The Company operates in a single reportable business segment — the provision of private, non-scheduled air charter services — and accordingly does not present segment reporting under Accounting Standard 17. The analysis below disaggregates revenue along four operationally meaningful dimensions to assist shareholders in understanding how it is generated.

5.1 By geography

Rs in lakhs	FY 2023–24	FY 2024–25	FY 2025–26
Revenue from international travel	9,184.20	14,922.98	27,617.90
Revenue from domestic travel	1,464.49	4,466.58	4,235.33
Total revenue from operations	10,648.69	19,389.56	31,853.23
International share	86.25%	76.96%	86.70%

International travel has consistently contributed the dominant share of revenue, recovering to 86.70% in FY 2025-26 from 76.96% in FY 2024-25, as international charter activity scaled alongside a maturing domestic segment. Domestic revenue grew approximately ~3 times between FY 2023-24 and FY 2025-26; international revenue grew approximately 3 times over the same period. Management regards a more balanced geographic mix as a strengthening of the revenue base: international sectors carry higher ticket values but are more exposed to overflight, permit and geopolitical disruption, while domestic demand is more frequent, more predictable and supports higher aircraft utilisation.

5.2 By client category

Rs in lakhs	FY 2023–24	FY 2024–25	FY 2025–26
Revenue from corporate clients	10,088.32	18,320.01	29,361.20
Revenue from UHNI and HNI clients	560.37	1,069.55	2,492.03
Total revenue from operations	10,648.69	19,389.56	31,853.23
Corporate share	94.74%	94.48%	92.17%

Corporate demand follows transaction and investment cycles and can pause abruptly; individual demand follows a different and less correlated rhythm. A gradual rebalancing towards individual clients therefore reduces the aggregate cyclicality of the revenue base, notwithstanding that corporate work remains the larger and operationally more efficient segment.

5.3 By client vintage

Rs in lakhs	FY 2023–24	FY 2024–25	FY 2025–26
Revenue from repeat clients	10,182.39	17,307.76	27,979.80
Revenue from first-time clients	466.40	2,081.80	3,873.43
Total revenue from operations	10,648.69	19,389.56	31,853.23
Repeat client share	95.62%	89.26%	87.84%

06 Financial Performance

6.1 Statement of profit and loss

Rs in lakhs	FY 2025-26	FY 2024-25	Change
Revenue from operations	31,853.23	19,389.56	+64.28%
Other income	1,558.91	148.82	+947.51%
Total income	33,412.14	19,538.38	+71.01%
Total expenses (before finance cost, depreciation and tax)	24,934.92	15,397.16	+61.94%
EBITDA	8,477.22	4,141.22	+104.70%
EBITDA margin (on total income)	25.37%	21.20%	+417 bps
Finance cost	328.64	209.87	+56.59%
Depreciation and amortisation	57.07	31.57	+80.77%
Profit before tax	8,091.51	3,899.78	+107.49%
Profit before tax margin (on total income)	24.22%	19.96%	+426 bps
Tax expense	2,014.18	1,059.17	+90.16%
Effective tax rate	24.89%	27.16%	-227 bps
Profit after tax	6,077.34	2,840.61	+113.94%
Profit after tax margin (on total income)	18.19%	14.54%	+365 bps
Earnings per equity share (Rs )	38.76	24.65	+57.24%

6.2 Revenue from operations

Revenue from operations increased 64.28% to Rs 31,853.23 lakhs. Growth was driven by the combination of higher aircraft utilisation, an increased proportion of revenue earned on dry-leased capacity, expansion of the domestic client base.

Revenue was weighted towards the second half of the year. Revenue from operations in the first six months was Rs 13,760.63 lakhs; in the second six months it was Rs 18,092.60 lakhs, representing 56.80% of the full year. The fourth quarter alone contributed approximately Rs 9,616.82 lakhs, the highest quarterly revenue in the Companys history.

6.3 Operating expenses

Total expenses before finance cost, depreciation and tax increased 61.94% to Rs 24,934.92 lakhs, against revenue growth of 64.28%. Expenses therefore grew marginally more slowly than revenue, which is the direct evidence of operating leverage in the business. The cost base is dominated by aircraft lease and charter costs, aviation fuel, crew costs, maintenance, navigation and landing charges, ground handling and insurance.

6.4 Finance cost and depreciation

Finance cost increased 56.59% to Rs 328.64 lakhs, reflecting higher average working capital borrowing during the year, with short-term borrowings rising from Rs 1,026.18 lakhs to Rs 3,479.04 lakhs. Notwithstanding the increase, interest coverage improved from 19.58 times to 25.62 times, and the Companys leverage remains conservative at a debt–equity ratio of 0.12 times. Long-term borrowings reduced from Rs 766.49 lakhs to Rs 186.58 lakhs following the repayment of borrowings identified in the Prospectus, completed in November 2025.

Depreciation and amortisation increased 80.77% to Rs 57.07 lakhs, remaining immaterial in the context of total income.

6.5 Taxation

Tax expense of Rs 2,014.18 lakhs represents an effective tax rate of 24.89%, against 27.16% in the preceding year. The reduction of 227 basis points should be explained by reference to the tax reconciliation in the notes to the financial statements.

6.6 Profitability

Profit after tax more than doubled to Rs 6,077.34 lakhs, and the profit after tax margin on total income improved 365 basis points to 18.19%. On revenue from operations, the net profit margin was 19.08% against 14.65%. Earnings per equity share increased 57.24% to Rs 38.76. The differential between profit growth of 113.94% and earnings per share growth of 57.24% reflects the increase in the weighted average number of equity shares following the issue of 45,57,000 shares in August 2025.

07 Financial Position and Cash Flows

7.1 Balance sheet

Rs in lakhs	As at 31 Mar 2026	As at 31 Mar 2025	Change
ASSETS
Property, Plant & Equipment and Intangible Assets	710.43	543.23	+30.78%
Other non-current assets	21,638.73	7,076.29	+205.78%
Total non-current assets	22,349.16	7,619.52	+193.31%
Inventories	1,850.45	890.93	+107.70%
Trade receivables	3,820.69	2,087.39	+83.03%
Other current assets	11,133.28	8,585.73	+29.67%
Total current assets	16,804.42	11,564.06	+45.32%
Total assets	39,153.58	19,183.58	+104.10%
EQUITY AND LIABILITIES
Equity share capital	1,730.38	1,274.68	+35.75%
Reserves and surplus	29,637.88	13,762.99	+115.34%
Net worth	31,368.26	15,037.67	+108.60%
Long-term borrowings	186.58	766.49	-75.66%
Other non-current liabilities	170.46	182.59	-6.64%
Total non-current liabilities	357.05	949.08	-62.38%
Short-term borrowings	3,479.04	1,026.18	+239.03%
Trade payables	998.06	409.56	+143.69%
Short-term provisions	2,044.53	1,014.82	+101.47%
Other current liabilities	906.65	746.27	+21.49%
Total current liabilities	7,428.27	3,196.83	+132.36%
Total equity and liabilities	39,153.58	19,183.58	+104.10%

Net worth more than doubled to Rs 31,368.26 lakhs, reflecting the issue proceeds of Rs 102.53 crore together with retained profit for the year. Total assets increased in proportion.

7.2 Cash flows

Rs in lakhs	FY 2025–26	FY 2024–25
Net cash generated from operating activities	3,154.23	54.63
Net cash used in investing activities	(13,410.16)	(2,813.67)
Net cash generated from financing activities	11,797.56	6,908.12
Net increase in cash and cash equivalents	1,541.62	4,149.09

Cash generated from operating activities increased from Rs 54.63 lakhs to Rs 3,154.23 lakhs. This is the most improved line in the Companys accounts. In FY 2024–25, operating cash conversion was less: profit of Rs 2,840.62 lakhs generated almost no operating cash, as growth absorbed working capital. In FY 2025–26 the position reversed, with working capital days reducing from approximately 51 to 33 notwithstanding a 64.28% increase in revenue.

Net cash used in investing activities of Rs 13,410.16 lakhs reflects the deployment of issue proceeds into the aircraft acquisition programme. Net cash from financing activities of Rs 11,797.56 lakhs comprises the issue proceeds net of issue expenses, together with the net increase in borrowings and net of the repayment of borrowings identified in the Prospectus.

08 Key Financial Ratios

Ratio	FY 2025–26	FY 2024–25	Change	Note
Debtors turnover ratio	10.78x	14.12x	-30.98%	—
Debtor days	43.8	39.3	+11.45%	—
Interest coverage ratio	25.62x	19.58x	+30.85%	A
Current ratio	2.26x	3.62x	-37.52%	B
Debt–equity ratio	0.12x	0.12x	-1.98%	—
Operating profit margin (on revenue from operations)	21.72%	20.59%	+5.49%	—
Net profit margin (on revenue from operations)	19.08%	14.65%	+30.24%	C
Return on net worth (on closing net worth)	19.37%	18.89%	+2.58%	D
Return on equity (on average net worth)	26.19%	26.22%	-0.11%	D
Return on capital employed	0.24%	0.24%	0%	—

Explanations for changes:

NOTE A — INTEREST COVERAGE RATIO: IMPROVED FROM 19.58X TO 25.62X (+30.85%)

Earnings before interest, depreciation and tax grew 104.70% while finance cost grew 56.59%. The improvement is therefore a function of earnings growth substantially outpacing the growth in borrowing cost, notwithstanding a material increase in average working capital borrowing during the year. Long-term borrowings were reduced from Rs 766.49 lakhs to Rs 186.58 lakhs following the repayment, in November 2025, of the borrowings identified in the Prospectus.

NOTE B — CURRENT RATIO: REDUCED FROM 3.62X TO 2.26X (-37.52%)

Current assets increased 45.32% to Rs 16,804.42 lakhs while current liabilities increased 132.36% to Rs 7,428.27 lakhs. The principal drivers on the liabilities side were an increase in short-term borrowings from Rs 1,026.18 lakhs to Rs 3,479.04 lakhs to fund the enlarged working capital cycle, an increase in short-term provisions from Rs 1,014.82 lakhs to Rs 2,044.53 lakhs largely reflecting higher current tax provision on more than doubled profit, and an increase in trade payables from Rs 409.56 lakhs to Rs 998.06 lakhs in line with the higher scale of operations.

A current ratio of 2.26 times remains comfortable. The reduction reflects a more efficient balance sheet rather than a deterioration in liquidity: working capital days reduced from approximately 70 to 33 over the same period, and cash generated from operations increased from Rs 54.63 lakhs to Rs 3,154.22 lakhs.

NOTE C — NET PROFIT MARGIN: IMPROVED FROM 14.65% TO 19.08% (+30.24%)

Profit after tax grew 113.94% against revenue growth of 64.28%. The improvement is attributable to three factors in descending order of magnitude: the increase in other income from Rs 148.82 lakhs to Rs 1,558.91 lakhs majorly on account of forex gains operating leverage from the continuing shift towards dry-leased capacity, which improved the operating margin on revenue from operations by 113 basis points; and a reduction in the effective tax rate from 27.16% to 24.89%.

NOTE D — RETURN ON NET WORTH: 19.37% AGAINST 18.89%

Return on net worth computed on closing net worth was broadly stable, improving 48 basis points. Return on equity computed on average net worth was 26.19%.

The stability of this ratio is the notable feature, and it warrants explanation. Net worth more than doubled during the year, from Rs 15,037.67 lakhs to Rs 31,368.26 lakhs, following the equity issue in August 2025. In the ordinary course, a doubling of the capital base would depress return on net worth materially in the year of issue, because the new capital is available for only part of the year and is not immediately productive. That return on net worth was nevertheless maintained reflects the fact that profit after tax more than doubled over the same period.

09 Internal Control Systems and their Adequacy

The Company maintains internal control systems commensurate with the nature, size and complexity of its operations. In an aviation business, internal control extends considerably beyond the financial domain: the controls that matter most are those governing whether an aircraft is airworthy, whether a crew is legally and physically fit to operate, and whether a mission may be dispatched.

Operational and airworthiness controls

- Continuing airworthiness: Managed in-house under a DGCA-approved Continuing Airworthiness Management Exposition prepared in accordance with CAR-M. All maintenance and airworthiness activity is monitored on a continuing basis for both compliance and effectiveness.

- Quality assurance: A dedicated quality department operating under a documented quality policy and annual quality plan, with audits conducted by personnel certified in CAR-M, CAR-145, safety management systems and human factors. The quality function reports independently of commercial functions.

- Contractor oversight: Maintenance performed by third-party organisations is supervised against both contractual and regulatory standards. Delegation of the work does not delegate the responsibility.

- Flight dispatch and duty time: Mission authorisation is subject to verification of aircraft airworthiness status, crew licensing and currency, flight duty time limitations, permits and clearances.

Financial and compliance controls

- Authorisation and approval: Defined authority limits govern expenditure commitment, contracting and payment. Transactions are recorded and reported in accordance with applicable accounting standards.

- Statutory audit: The financial statements are audited by the Companys statutory auditors, whose report for the year ended 31 March 2026 was unmodified.

- Independent monitoring of issue proceeds: Utilisation of issue proceeds is verified quarterly by CARE Ratings Limited as monitoring agency, supported by chartered accountant and management certification, and reported to the National Stock Exchange. The agencys observations, including adverse observations, are placed before the Board and disclosed to the exchange.

- Board oversight: The Board comprises six directors, of whom three are independent, with independent expertise in banking, corporate law and company secretarial practice, and quality audit.

10 Human Resources and Industrial Relations

As at March 31, 2026, the Company had 21 employees. The trained cabin crew complement stood at nine members during the year, against eight in FY 2024-25.

Our organisation conducting a technically complex, safety-critical operation across multiple jurisdictions, frequently at short notice. It functions because individuals carry wider briefs and greater personal accountability than the equivalent roles would carry in a larger operator. That is a genuine strength in terms of responsiveness and accountability, and a genuine dependency in terms of key personnel.

Training and development

- Regulatory currency. Continuing DGCA-compliant training across flight operations, cabin safety, engineering and airworthiness management, with certification maintained in CAR-M, CAR-145, safety management systems and human factors.

- Service standards. Cabin crew receive luxury hospitality training in addition to safety qualification, reflecting that the cabin experience is an integral part of the service rather than an adjunct to it.

- Capacity ahead of fleet. Crew and engineering capacity is being built in advance of aircraft induction. This creates cost without corresponding revenue in the intervening period and is accepted as a condition of safe expansion.

Industrial relations

Industrial relations remained cordial throughout the year. There were no material disputes or disruptions to operations arising from employee relations.

11 Outlook

Management does not offer earnings guidance. The following sets out the operating priorities for FY 2026–27 and the conditions on which their achievement depends.

Operating priorities

- Complete the fleet induction and achieve utilisation. The acquisition of aircraft is only the first half of the exercise. An inducted aircraft that does not fly is fixed cost without offsetting revenue ? the precise inverse of the model the Company is building. Demand generation is being planned in parallel with each induction rather than following it.

- Protect the operating margin as the fixed cost base grows. The dry lease model rewards utilisation and punishes idleness. The test of the thesis is whether the operating margin on revenue from operations continues to expand as the fleet enlarges, not merely whether revenue grows.

- Sustain the repeat-client base while widening it. Service consistency is the mechanism by which repeat revenue is generated, and consistency is what is most at risk during rapid scaling. Management monitors absolute repeat revenue and first-time client contribution separately.

- Scale the safety and quality function ahead of the fleet. A quality system built for a single-aircraft operation does not scale automatically. Capacity is being built in advance, and this is treated as a precondition of expansion rather than a consequence of it.

12 Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events, and actual results could differ materially from those expressed or implied.

Important factors that could cause actual results to differ materially include, among others: changes in economic conditions in India and in the markets served; the availability and timing of aircraft deliveries; geopolitical developments affecting airspace availability and the movement of assets; changes in regulatory requirements including those of the Directorate General of Civil Aviation; movements in aviation fuel prices and foreign exchange rates; the availability and cost of qualified flight crew and engineering personnel; changes in demand for private charter services; disruption at key suppliers or service providers; and litigation or other legal proceedings.

The Company assumes no obligation to publicly amend, modify or revise any forward-looking statement on the basis of any subsequent development, information or event, except as required by applicable law. Readers are cautioned not to place undue reliance on forward-looking statements.