ZEAL - Zeal Global Serv

📊 NSE: ZEAL 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 15:21

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Air Transportation Services, which grew 90.49% YoY to INR 36,781 Lacs in FY 2024-25. For H1 FY 2024-25, standalone revenue grew 80.80% YoY to INR 17,037.14 Lacs.

Geographic Revenue Split

While not explicitly split by percentage, the company reported foreign exchange earnings of INR 848.01 Lacs in FY 2024-25 (approx. 2.3% of total revenue) and has expanded operations into the UAE via a new subsidiary.

Profitability Margins

Operating Profit Margin decreased from 14.62% in FY 2023-24 to 10.00% in FY 2024-25 due to increased operating costs. Net Profit Ratio also declined from 6% to 4% in the same period.

EBITDA Margin

Standalone EBITDA for H1 FY 2024-25 increased by approximately 79.46% YoY, reflecting strong core operational growth despite margin compression in the full prior fiscal year.

Capital Expenditure

The company invested INR 353.85 Lacs to incorporate a 100% subsidiary, Zeal Global Services LLC-FZ, in the UAE on September 4, 2024.

Credit Rating & Borrowing

Non-current borrowings were reduced to INR 45.80 Lacs as of September 30, 2025, from INR 51.93 Lacs in March 2025. Interest Coverage Ratio improved significantly from 11.12 to 25.77 due to lower interest costs.

⚙️ Operational Drivers

Raw Materials

As a service provider, the primary 'raw material' is air freight capacity and cargo space, representing the bulk of operating costs which rose significantly in FY 2024-25.

Import Sources

International markets, as evidenced by a total foreign exchange outgo of INR 9,647.61 Lacs in FY 2024-25 for service procurement.

Key Suppliers

Key airline partners including South African Airways, for whom the company acts as a General Sales and Service Agent (GSSA).

Capacity Expansion

The company delivered approximately 15% volume growth in cargo business tonnage during H1 FY 2024-25.

Raw Material Costs

Operating costs increased in FY 2024-25, leading to a 31.59% decrease in the Operating Profit Margin Ratio to 10.00%.

Manufacturing Efficiency

Not applicable for service-based air transportation; efficiency is measured by cargo tonnage growth (15% in H1 FY25).

Logistics & Distribution

Distribution is split into 'Online' (direct India operations) and 'Offline' (connecting through other airlines out of India).

📈 Strategic Growth

Expected Growth Rate

80.80%

Growth Strategy

Growth is driven by network expansion, specifically the incorporation of a UAE subsidiary (Zeal Global Services LLC-FZ) and new GSSA appointments such as South African Airways to capture international cargo volumes.

Products & Services

Air transportation services, Cargo tonnage management, and General Sales and Service Agent (GSSA) services for airlines.

Brand Portfolio

Zeal Global

New Products/Services

Expansion of GSSA services for South African Airways and the launch of operations in the UAE market.

Market Expansion

Targeting the Middle East market through the newly incorporated UAE subsidiary as of September 2024.

Strategic Alliances

Partnership with South African Airways as their appointed GSSA for cargo distribution.

🌍 External Factors

Industry Trends

The air cargo industry is seeing a shift toward faster delivery demand, supporting the company's 15% volume growth in tonnage.

Competitive Landscape

The company competes with other global and domestic GSSAs and logistics providers in the air transportation segment.

Competitive Moat

Moat is built on GSSA network effects and established relationships with international airlines, though sustainability is challenged by rising operating costs.

Macro Economic Sensitivity

Highly sensitive to global trade volumes and international air cargo demand trends.

Consumer Behavior

Increased demand for rapid international shipping is driving higher cargo volumes.

Geopolitical Risks

Trade barriers or disruptions in the India-UAE or India-Africa corridors could impact GSSA volumes.

⚖️ Regulatory & Governance

Industry Regulations

Subject to international air transportation norms and civil aviation regulations in India and the UAE.

Environmental Compliance

Not applicable for the service industry per Rule 8 of the Companies (Accounts) Rules 2014.

Taxation Policy Impact

Effective tax rate for FY 2024-25 was approximately 26.28%, with a tax provision of INR 512.06 Lacs on a PBT of INR 1,948.37 Lacs.

Legal Contingencies

The company reported non-compliance regarding audit trail requirements, as its accounting software lacks an edit log facility. No material court orders impacting going concern were reported.