Shipwaves Online IPO

The company claims to have developed an advanced software platform that provides a single, unified solution for all shipping needs. It states that this unique platform enhances efficiency and improves client satisfaction.

The company claims that by using advanced technology, streamlining processes, and forming strategic partnerships, it combines cost efficiency with high-quality service. This approach helps reduce operational expenses while maintaining reliability and value for clients.

The company serves a diverse customer base across various industries, including both Indian corporations and multinational companies. It states that this wide portfolio of clients demonstrates its versatility and strong presence in the logistics sector.

It offers comprehensive third-party logistics (3PL) services, covering transportation, warehousing, and other value-added solutions. The company states that these tailored, end-to-end services support seamless supply chain operations, including cross-border freight transportation and other services that improve clients’ operational efficiency.

The company has witnessed a consistent increase in its revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 69.31 crore in FY23 to Rs 96.71 crore in FY24 and Rs 108.28 crore in FY25. PAT increased from Rs 2.24 crore in FY23 to Rs 6.29 crore in FY24 and Rs 12.20 crore in FY25.

The company’s top 5 customers accounted for Rs 27.57 crore (67.27 percent) of the company’s total revenue for the period ended September 30, 2025, Rs 77.90 crore (71.94 percent) in FY25, Rs 62.24 crore (64.36 percent) in FY24, and Rs 57.53 crore (83.01 percent) in FY23. The top customer accounted for Rs 14.24 crore (34.76 percent) of the company’s revenue for the period ended September 30, 2025, Rs 42.77 crore (39.50 percent) in FY25, Rs 44.40 crore (45.91 percent) in FY24, and Rs 47.15 crore (68.04 percent) in FY23. If the company loses any of these customers or there is a cancellation or reduction of business from them, it could adversely affect its operations and finances.

The company’s top 5 suppliers accounted for Rs 11.88 crore (45.39 percent) of the company’s total purchases for the period ended September 30, 2025, Rs 35.34 crore (45.15 percent) in FY25, Rs 31.16 crore (41.51 percent) in FY24, and Rs 34.65 crore (55.03 percent) in FY23. Any disruption in supplies from one or more of these suppliers could adversely affect the company’s business and finances.

The company reported negative cash flows from operating activities amounting to Rs 0.31 crore in FY25. It also recorded negative cash flows from investing activities amounting to Rs 0.84 crore for the period ended September 30, 2025, Rs 6.54 crore in FY25, Rs 11.17 crore in FY24, and Rs 2.61 crore in FY23. Furthermore, a decrease in cash and cash equivalents amounted to Rs 0.05 crore for the period ended September 30, 2025, and Rs 0.15 crore in FY23. If cash outflows continue to exceed inflows, the company may face liquidity challenges in the future.

The company’s financial performance depends on global trade activity and India’s import and export volumes. Any slowdown in trade growth or a drop in freight rates could negatively impact its business, operating results, and overall financial health.

The company offers a wide range of logistics services, such as air and marine freight and warehousing, but does not hold its own Customs House Agent (CHA) license. It relies on third-party CHA license holders for customs clearance. Any delays, inefficiencies, or service interruptions from these agencies can slow cargo clearance and disrupt delivery schedules, leading to financial losses or customer compensation claims.

The Red Sea crisis that disrupted global shipping routes, forcing vessels to bypass the Suez Canal and travel around the Cape of Good Hope, led to longer transit times, delivery delays, higher fuel expenses, and rising freight rates on key routes such as Asia to Europe. These factors increase the company’s operating costs, putting pressure on profit margins.

The company’s freight forwarding operations rely on a network of overseas agents to meet customer logistics requirements. Losing these partnerships or experiencing poor service from these agents could reduce revenue and harm profitability.

Some customers operate in industries with seasonal demand, which affects the company’s performance. This can cause fluctuations in quarterly or half-yearly financial results, and a drop in demand during peak seasons could have a serious negative impact on the business.

The company, its promoters, directors, and group companies are involved in certain ongoing legal proceedings, including criminal and tax-related disputes. Any adverse judgment in any of these cases can be detrimental to the company’s business prospects.

As of September 30, 2025, the company’s total indebtedness amounts to Rs 40.04 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.