AAI’s profit after tax declined to Rs 6,522.37 crore in FY2025-26 even as revenue remained broadly stable.
Higher employee, operating and administrative expenses weighed on the state-run airport operator’s profitability.
Highlights
- AAI’s profit after tax declined 9.8% to Rs 6,522.37 crore in FY26.
- Profit before exceptional items and tax stood at Rs 8,837.10 crore.
- Total expenditure increased 6.34% to Rs 11,689.36 crore.
- Revenue stood at Rs 20,526.46 crore in FY26.
- Revenue from airport leases and public-private partnership airports declined.
- AAI declared a dividend of Rs 1,956.71 crore to the government.
New Delhi: State-run Airports Authority of India (AAI) reported a 9.8% decline in profit after tax (PAT) to Rs 6,522.37 crore in FY2025-26, as higher expenses weighed on profitability despite revenue remaining broadly stable.
On a year-on-year basis, AAI’s expenses increased during the financial year, while its revenue remained largely flat amid lower income from airport leases and some other revenue streams.
AAI’s total expenditure increased 6.34% to Rs 11,689.36 crore from Rs 10,992.79 crore in the previous financial year. Employee benefit expenses rose to Rs 4,873.66 crore from Rs 4,767.76 crore, while operating expenses increased to Rs 2,666.43 crore from Rs 2,395.77 crore. Administrative and other expenses also increased.
Profit before exceptional and extraordinary items and tax stood at Rs 8,837.10 crore in FY26, compared with Rs 9,655.46 crore in the previous year.
According to the financial statements, AAI’s total revenue stood at Rs 20,526.46 crore in FY2025-26, compared with an under-recovery amount of Rs 2,231.80 crore from FY2024-25 revenue in the previous year.
Revenue from airport leases, including public-private partnership airports, declined to Rs 5,824.99 crore during the year from Rs 7,376.82 crore in FY2024-25. Other income, however, increased to Rs 1,329.47 crore from Rs 1,175.71 crore.
The decline in profitability came despite a significant increase in AAI’s profit after tax in the previous year. PAT had jumped 55.5% to Rs 7,233.28 crore in FY2024-25 from Rs 4,651.31 crore a year earlier.
AAI also recognised an exceptional item of Rs 354.54 crore in FY26 in connection with alleged embezzlement of funds by an employee at Dehradun and Jaipur airports.
The airport operator declared a dividend of Rs 1,956.71 crore to the government, equivalent to 30% of its FY2025-26 profit after tax. Of this, an interim dividend of Rs 852.39 crore had already been paid during the year.
AAI operates and manages airports across the country and plays a key role in India’s civil aviation infrastructure.
