+
Airport Capex to Grow 12% to Rs 600 Billion by FY27: CRISIL
AVIATION & AIRPORTS

Airport Capex to Grow 12% to Rs 600 Billion by FY27: CRISIL

The cumulative capital expenditure (capex) of Indian airports is projected to rise by 12% to Rs 600 billion by FY27, compared to Rs 530 billion during 2022-24, according to a CRISIL Ratings report. This investment aims to enhance infrastructure to accommodate 65 million additional passengers annually, with 70% of the funding expected to come from debt. The projections are based on a study of 11 private airports, which handled 60% of India’s passenger traffic in FY24. CRISIL anticipates an average annual revenue growth rate of 17% for private airports from FY25 to FY27, driven by increased passenger traffic, higher tariffs, and spending within the airport ecosystem. Passenger volumes are expected to grow at a compound annual growth rate (CAGR) of 8-9% over FY25-27, up from 376 million in FY24. Growth in domestic traffic, accounting for over 80% of the total, will be fuelled by rising demand in business and leisure travel, along with government initiatives to expand air travel penetration. The government’s regional connectivity UDAN scheme, which has operationalised 84 airports and 579 routes as of July 2024, contributes approximately 2% of domestic air traffic. While this is a small share, these routes provide essential feeder traffic to metro airports. International traffic is also expected to rise, supported by increased business travel, relaxed visa policies, and expanded airline routes. To meet the growing demand, airport operators are investing in terminal expansions, new runways, and non-aeronautical facilities such as lounges, retail spaces, and parking, which will further boost revenues. CRISIL highlights that despite 70% of the capex being debt-funded, private airports will maintain strong credit profiles due to robust revenue growth projections. "The revenue growth will stem from rising passenger volumes, regulated tariff hikes, and increased non-aeronautical revenues," said Ankit Hakhu, Director at CRISIL Ratings. (ET)

The cumulative capital expenditure (capex) of Indian airports is projected to rise by 12% to Rs 600 billion by FY27, compared to Rs 530 billion during 2022-24, according to a CRISIL Ratings report. This investment aims to enhance infrastructure to accommodate 65 million additional passengers annually, with 70% of the funding expected to come from debt. The projections are based on a study of 11 private airports, which handled 60% of India’s passenger traffic in FY24. CRISIL anticipates an average annual revenue growth rate of 17% for private airports from FY25 to FY27, driven by increased passenger traffic, higher tariffs, and spending within the airport ecosystem. Passenger volumes are expected to grow at a compound annual growth rate (CAGR) of 8-9% over FY25-27, up from 376 million in FY24. Growth in domestic traffic, accounting for over 80% of the total, will be fuelled by rising demand in business and leisure travel, along with government initiatives to expand air travel penetration. The government’s regional connectivity UDAN scheme, which has operationalised 84 airports and 579 routes as of July 2024, contributes approximately 2% of domestic air traffic. While this is a small share, these routes provide essential feeder traffic to metro airports. International traffic is also expected to rise, supported by increased business travel, relaxed visa policies, and expanded airline routes. To meet the growing demand, airport operators are investing in terminal expansions, new runways, and non-aeronautical facilities such as lounges, retail spaces, and parking, which will further boost revenues. CRISIL highlights that despite 70% of the capex being debt-funded, private airports will maintain strong credit profiles due to robust revenue growth projections. The revenue growth will stem from rising passenger volumes, regulated tariff hikes, and increased non-aeronautical revenues, said Ankit Hakhu, Director at CRISIL Ratings. (ET)

Related Stories

Gold Stories

Next Story
Infrastructure Urban

India’s Global CE Connect

India’s construction equipment industry is entering a phase where scale is increasingly being matched by productivity, technology, localisation and lifecycle economics. Against this backdrop, bauma ConExpo India 2026, scheduled for September 15-18 at the India Expo Centre, Greater Noida, will bring the global and Indian construction machinery ecosystem together.The eighth edition is expected to be the largest yet, with the exhibition sold out across around 1.45 million sq ft. More than 1,100 exhibitors from over 100 countries are expected to participate, with visitor numbers projected to exc..

Next Story
Real Estate

Orris, Godrej Properties Settle Dispute Over Gurugram Project

Orris Infrastructure and Godrej Properties Limited have reached an amicable settlement over matters related to the jointly developed Godrej Air project in Gurugram, bringing an end to the dispute between the two companies.The Bombay High Court, while hearing a petition filed by Orris Infrastructure, ordered the immediate and unconditional release of Orris Managing Director Amit Gupta on August 25, 2026, after being informed about the settlement agreement between the parties.A single-judge bench led by Justice Milind N. Jadhav noted that in view of the settlement agreement signed by both compan..

Next Story
Infrastructure Urban

Panasonic Launches Second Cycle of Startup Co-Creation Programme

Panasonic Life Solutions India (PLSIND), through its IGNITION Open Innovation platform, has announced the second cycle of Co.lab Studio, a startup collaboration initiative focused on developing scalable digital services and solutions.The new cycle will focus on Safety & Security and Daily Living solutions for communities by leveraging Panasonic’s AI and IoT-enabled connected living platform, MirAIe. The programme aims to help startups move from innovation concepts to pilot deployments, platform integrations and commercialisation-ready solutions.The first cycle of Co.lab Studio received 1..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code