Skyways Air vs Annu Projects IPO: Which Is Better?

India’s primary market has two very different mainboard IPOs competing for investor attention this week: Skyways Air Services and Annu Projects. While Skyways Air is an integrated logistics and freight-forwarding company, Annu Projects operates in infrastructure EPC, with exposure to telecom, sewerage, gas pipelines and railway signalling.

The two issues also differ sharply in size, financial profile and valuation. Skyways Air is seeking ₹582.80 crore, compared with ₹175.06 crore for Annu Projects. At the upper end of their respective price bands, Skyways Air is valued at about 31-39 times FY26 earnings depending on the earnings basis used, while Annu Projects is valued at around 19.6 times FY26 earnings.

So, Skyways Air offers greater scale and stronger current IPO demand, while Annu Projects offers higher operating margins and a lower earnings multiple. For investors deciding between the two, the choice ultimately comes down to whether they prefer logistics-sector growth or infrastructure-led earnings visibility.

Data and subscription status in this article are based on information available on August 26, 2026.

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Skyways Air vs Annu Projects IPO: Key comparison

Particulars	Skyways Air Services	Annu Projects
IPO size	₹582.80 crore	₹175.06 crore
Issue type	Fresh issue + OFS	Fresh issue
Price band	₹131-138	₹94-99
Lot size	100 shares	151 shares
Minimum investment	₹13,800	₹14,949
IPO dates	Aug 24-27, 2026	Aug 25-28, 2026
Tentative listing	Sep 1, 2026	Sep 2, 2026
FY26 revenue	₹2,839.67 crore	₹244.59 crore
FY26 PAT	₹63.52 crore	₹33.03 crore
FY26 EBITDA margin	~4.4%	20.81%
Post-issue P/E	~31-39x, depending on basis	~19.6x
Issue proceeds	Debt repayment, working capital, GCP	Working capital, machinery, GCP

Skyways Air’s IPO comprises a fresh issue of ₹398.80 crore and an offer for sale of ₹184 crore. Annu Projects, in contrast, is entirely a fresh issue, meaning the ₹175.06 crore raised is intended to go into the business after issue-related expenses. (The Economic Times)

Skyways Air IPO: Scale, logistics exposure and debt reduction

Skyways Air Services is an integrated logistics and freight-forwarding company with operations spanning air and ocean freight, trucking, warehousing, customs broking, express cargo and other value-added services.

The company has maintained the No. 1 position in India in air freight forwarding by air waybill generation for the past four calendar years, according to its IPO disclosures. Its business also has international exposure and relationships with multiple airlines.

The company’s financial scale is substantially larger than Annu Projects. Consolidated revenue rose to ₹2,839.67 crore in FY26 from ₹2,270.99 crore in FY25, while profit after tax increased to ₹63.52 crore from ₹48.14 crore. Net worth stood at ₹332.64 crore at the end of FY26. (IPOReports)

However, Skyways operates on relatively thin margins. Its FY26 PAT margin was around 2.2%, which means profitability can be sensitive to freight rates, carrier costs, fuel-related surcharges and global trade volumes. This is an important distinction from Annu Projects.

How Skyways Air will use IPO proceeds

The company plans to use ₹216.79 crore of the fresh issue to repay or prepay borrowings of the company and its subsidiary Forin Container Line. Another ₹130 crore is earmarked for incremental working capital, with the balance intended for general corporate purposes. (The Economic Times)

The debt-reduction component is a positive because lower borrowings could reduce interest costs and provide greater financial flexibility. At the same time, the significant working-capital requirement reflects the nature of the logistics business.

Skyways also received ₹174.54 crore from anchor investors ahead of the issue, with institutions including Nomura and Citi participating in the anchor book. (Business Today)

Annu Projects IPO: Higher margins, infrastructure exposure

Annu Projects operates as an EPC contractor focused on essential infrastructure. Its activities include telecom infrastructure, sewerage projects, gas pipelines and railway signalling.

As of June 30, 2026, the company had 23 ongoing projects with a total value of about ₹1,959.35 crore. The portfolio included four telecom projects, 14 sewerage projects, four gas pipeline projects and one railway-signalling project. (The Economic Times)

Financially, Annu Projects is much smaller than Skyways but has significantly higher margins.

Revenue increased from ₹155.42 crore in FY24 to ₹182.35 crore in FY25 and ₹244.59 crore in FY26. FY26 PAT stood at ₹33.03 crore, compared with ₹21.10 crore in FY25. EBITDA was ₹50.19 crore, giving the company an EBITDA margin of 20.81%. (ipostation)

The company reported a debt-to-equity ratio of about 0.34, ROE of 21.27% and ROCE of 22.66% for FY26. (flattrade.in)

How Annu Projects will use IPO proceeds

Annu Projects is raising ₹175.06 crore entirely through a fresh issue. Of the proceeds, ₹115 crore is earmarked for working capital and ₹15.41 crore for machinery and equipment. The balance is intended for general corporate purposes and issue-related requirements. (Zerodha)

The large working-capital allocation is significant because EPC companies generally need to fund projects before receiving customer payments. Consequently, efficient working-capital management will remain important to cash-flow generation.

Skyways Air vs Annu Projects: Which has better financials?

On absolute scale, Skyways Air is clearly ahead. Its FY26 revenue was more than 11 times that of Annu Projects.

But size is not the whole story.

Annu Projects generated ₹33.03 crore of FY26 profit on ₹244.59 crore of revenue, while Skyways generated ₹63.52 crore on ₹2,839.67 crore of revenue. This highlights the very different economics of the two businesses.

Annu’s 20.81% EBITDA margin provides a larger cushion against cost pressures, whereas Skyways’ low-margin freight-forwarding model depends heavily on scale and volume.

The counterpoint is that Skyways has a much broader revenue base and exposure to India’s growing logistics and cross-border trade ecosystem. Annu’s business is more closely linked to infrastructure spending, government-linked projects and EPC execution.

Valuation: Annu Projects has the advantage

Valuation is one of the clearest differences between the two IPOs.

At ₹138, Skyways Air’s IPO valuation translates into a market capitalisation of roughly ₹2,006 crore. Depending on the earnings methodology used in market reports, the issue is valued at roughly 31-39 times FY26 earnings. (Samco)

Annu Projects, at ₹99, has a post-issue market capitalisation of around ₹648 crore and a post-issue P/E of approximately 19.6 times FY26 earnings. (flattrade.in)

This makes Annu Projects considerably cheaper on an earnings-multiple basis.

However, investors should not assume that the lower P/E automatically makes Annu the better IPO. The two companies operate in completely different industries, have different margin structures and carry different execution risks.

IPO subscription and GMP: Skyways has the stronger momentum

Investor response has so far favoured Skyways Air by a wide margin.

By the end of Day 2, Skyways Air had received bids for about 2.95 crore shares against 1.20 crore shares available to investors, taking overall subscription to approximately 2.46 times. The retail portion was subscribed about 3.54 times. (The Economic Times)

Annu Projects, meanwhile, had a more subdued start. At the end of Day 1, the issue was subscribed 0.34 times, with QIBs at 0.57 times, NIIs at 0.36 times and retail investors at 0.28 times. By Day 2, the issue had reached about 0.38 times subscription at 10:25 a.m., according to available exchange-linked data. (The Economic Times)

Grey market premium, or GMP, is unofficial and should not be treated as a reliable valuation measure. As of August 26, Skyways Air’s GMP was being reported at around 21%, while Annu Projects’ GMP was around zero. (The Economic Times)

Brokerage views

Brokerage opinion is constructive on both issues, although the reasoning differs.

For Skyways Air, Swastika Investmart and Ventura have recommended subscribing, while SBI Securities has taken a more cautious neutral view. The positive case centres on the company’s established position in air freight forwarding, industry growth and potential benefits from debt reduction. (Business Standard)

For Annu Projects, Anand Rathi has assigned a “Subscribe – Long Term” recommendation. However, the brokerage also described the valuation at the upper price band as fully priced. (The Economic Times)

These are brokerage views, not guarantees of performance.

Bull case and bear case

Skyways Air: Bull case

• Strong position in air freight forwarding.
• Large and diversified logistics platform.
• Revenue and PAT have grown strongly over FY24-FY26.
• IPO proceeds will reduce debt.
• Exposure to long-term growth in India’s logistics and cross-border trade.
• Strong IPO subscription and anchor participation indicate healthy market interest.

Skyways Air: Bear case

• Thin profit margins leave earnings sensitive to freight-rate movements.
• Significant dependence on third-party carriers.
• Exposure to global trade cycles, currency movements and geopolitical disruptions.
• Working-capital intensity remains high.
• Valuation is materially higher than Annu Projects on P/E.

Annu Projects: Bull case

• Strong FY26 revenue and profit growth.
• EBITDA margin of more than 20%.
• Large order book relative to current revenue.
• Exposure to telecom, sewerage, gas pipeline and railway infrastructure.
• Lower P/E than Skyways Air.
• Fresh capital can support working capital and project execution.

Annu Projects: Bear case

• Smaller scale than Skyways Air.
• Significant dependence on telecom and sewerage projects.
• Customer and geographical concentration risks.
• EPC businesses can face execution delays and working-capital pressures.
• Muted IPO subscription and zero GMP indicate weaker near-term market enthusiasm.

Skyways Air vs Annu Projects IPO: Which IPO is better?

For investors prioritising valuation, profitability and operating margins, Annu Projects appears more attractive on the numbers available at the IPO price.

For investors prioritising business scale, logistics-sector exposure, market leadership and stronger IPO momentum, Skyways Air has the more compelling growth narrative.

However, Skyways Air’s higher valuation means investors are already paying more for that growth. Its low PAT margin also makes execution and freight-market conditions particularly important.

Annu Projects offers a cheaper entry valuation and stronger margins, but its smaller scale, EPC concentration and dependence on project execution introduce a different set of risks.

On a risk-adjusted fundamental basis, Annu Projects has an edge on valuation and margins, while Skyways Air has an edge on scale, market positioning and current investor demand.

Neither should be viewed purely as a listing-gain opportunity. GMP can change rapidly and does not guarantee the listing price.

Investor Takeaway: What should investors watch next?

Investors comparing the two IPOs should focus on five factors:

1. Final subscription levels: Whether Annu Projects can attract stronger demand before the August 28 closing date.
2. Skyways’ debt reduction: How quickly lower borrowings translate into interest savings and improved profitability.
3. Annu’s order-book execution: Whether its large project pipeline converts into revenue and cash flows without margin deterioration.
4. Working capital: Both companies are committing substantial IPO proceeds to working capital, making cash conversion an important post-listing metric.
5. Valuation after listing: Investors should reassess both stocks based on their actual market prices rather than relying on IPO pricing or GMP.

Conclusion

Skyways Air Services and Annu Projects offer investors exposure to two different structural themes: India’s expanding logistics ecosystem and infrastructure-led EPC spending.

Skyways Air brings greater scale, an established air-freight franchise and strong investor demand, but its valuation is higher and its profit margins are relatively thin. Annu Projects is smaller but has significantly stronger operating margins, a sizeable project pipeline and a lower earnings multiple.

Therefore, Annu Projects looks stronger on valuation and profitability, while Skyways Air offers the stronger combination of scale, market positioning and IPO momentum. Investors should choose between the two based on their risk tolerance, investment horizon and preference for logistics versus infrastructure rather than treating either IPO as a guaranteed listing-gain opportunity.

FAQs (Frequently Asked Questions)

Which IPO is bigger, Skyways Air or Annu Projects?

Skyways Air is substantially larger. Its IPO is worth ₹582.80 crore, compared with ₹175.06 crore for Annu Projects. (The Economic Times)

Which IPO has better FY26 profit margins?

Annu Projects has the clear advantage. Its FY26 EBITDA margin was about 20.81%, while Skyways Air operates with much thinner net margins. (flattrade.in)

Which IPO is cheaper on P/E?

Annu Projects is cheaper at approximately 19.6 times FY26 earnings at the upper price band. Skyways Air’s valuation is materially higher, at roughly 31-39 times FY26 earnings depending on the earnings basis used. (flattrade.in)

Which IPO has stronger subscription demand?

Skyways Air has attracted substantially stronger demand so far. It was subscribed 2.46 times by the end of Day 2, while Annu Projects was at 0.38 times during Day 2. (The Economic Times)

What is the minimum investment for each IPO?

The minimum investment is ₹13,800 for Skyways Air at the upper price band and ₹14,949 for Annu Projects. (The Economic Times)

Which IPO is better for long-term investors?

There is no universally suitable answer. Annu Projects offers lower valuation and higher margins, while Skyways Air offers greater scale and a stronger logistics-sector franchise. Investors should compare valuation, execution risk and their own risk tolerance before subscribing.

Disclaimer

This article is for informational and educational purposes only and should not be construed as investment advice, a recommendation to buy or sell securities, or a guarantee of IPO listing gains or future returns. IPO subscription data and grey market premiums can change during the issue period. Grey market premium (GMP) is unofficial, unregulated and should not be used as a standalone basis for investment decisions. Investors should read the respective Red Herring Prospectus and assess their financial objectives, risk tolerance and investment horizon before making any investment decision. Brokerage recommendations mentioned in this article are the views of the respective brokerages and do not represent the editorial view of the publication.