Adani Airports aero yield to surge 1.5-2.5 times; revenue set to hit ₹19,108 crore by FY28: Jefferies

Adan Airports Holdings Limited—the airport operating arm of Adani Enterprises—is likely to see its aero yield per passenger increase by 1.5-2.5 times, investment banking and capital markets firm Jefferies said in a report. Aero yield per passenger refers to the average revenue generated by an airport per passenger kilometre flown. The report said that the company’s airport business is expanding capacities across its airports with capacity likely to increase from 9 crore to 24 crore passengers by Financial Year 2031 across eight airports.

Currently, the company is undertaking capital expenditure at the Navi Mumbai Airport and Guwahati terminal development. It recently commissioned a new terminal in Lucknow. The new tariff orders received by its six airports are likely to increase its aero yield per passenger, which will reflect positively on the EBITDA going ahead, Jefferies noted.

Meanwhile, the company has said that its Navi Mumbai International Airport Limited (NMIAL) will be operational in the next 90 days, which will be followed by commercial commissioning of airport operations in the following months.

Jefferies added that Adani's initial capex on the NMIAL is projected at Rs 20,000 crore in Phase 1, which includes an initial airport capacity of 20 million passengers and 0.8 million tonnes of cargo annually. The airport has a runway of 3.7 km and a full-length dual parallel taxiway, 29 aircraft contact stands, 13 aircraft remote stands, 7 cargo aircraft stands, 70 general aviation aircraft stands, 17 general aviation hangars.

Across eight airports, Adani Airports has 657 acres of land for development. The company is looking to build a host of hotels, convention centres and commercial spaces, among various projects to monetise the land parcels.

It also plans to develop 114 acres across eight airports over the next 3-5 years. The expansion will introduce luxury hotels, convention centres, retail spaces, multiplexes and entertainment zones to enhance the passenger experience while boosting the company’s non-aero revenues, Jefferies said.

20 hotels, including two 5-star luxury, five 5-star, nine 4-star, and four 3-star properties, spanning 5.4 million square feet. Additionally, five convention centres will add 1.4 million square feet of premium event space.

These projects will be developed as mixed-use properties and will be managed by industry specialists in hospitality, retail and entertainment.

Currently, Adani Airports operates 42,000 square metres of retail space across eight airports, which will expand to 75,000 square metres post-optimisation. With the upcoming Navi Mumbai International Airport (NMIAL) Phase-1 commissioning, the total retail footprint will reach 1,00,000 square metres.

As per Jefferies, Adani Airports’ revenue is likely to improve to ₹10,219.80 crore in FY25. The revenue is likely to rise to ₹13,522 crore in FY26 and to ₹19,108 crore by FY28.

Its operating profit also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA) is expected to come in at ₹3,558 crore in the current fiscal year. Its EBITDA is likely to go up to ₹5,532 crore in FY26 and by FY28 EBITDA is expected to go up to ₹8,433.90 crore.

Adani Enterprises shares have so far this year declined 8.27% underperforming the NIFTY50 index which has advanced 0.10% year to date (YTD).