Adani Airports IPO: Is India’s Fastest-Growing Airport Network Ready for Takeoff?

Synopsis: Adani Airports is gearing up for a Rs 1 lakh crore expansion and may pursue an IPO or a demerger in the next few years. As India’s aviation sector grows rapidly, the big question is whether spinning it off could unlock real value for Adani Enterprises shareholders.

India’s aviation story is taking off, with Adani Airport Holdings Ltd at its center. This company, part of the Adani Group, has built one of the country’s largest private airport networks over the past few years.

Now, the group plans to invest nearly Rs 1 lakh crore over the next five years and may pursue an IPO. The key question is whether a demerger could create value for the shareholders of Adani Enterprises Ltd. To understand this, we need to look at the current structure.

About Adani Airports Holding Ltd

Adani Airports Holding Ltd (AAHL) operates under Adani Enterprises, which is the main company in the group. Historically, Adani Enterprises has developed new businesses, scaled them up, and eventually listed them separately or let them operate independently. We’ve seen this with Adani Green and Adani Total Gas. AAHL is India’s largest and one of the fastest-growing airport infrastructure companies.

The airport business is still under heavy investment. It operates seven major airports: Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram, along with the newly opened Navi Mumbai International Airport. The group plans to increase passenger capacity significantly across its network to support long-term growth in air travel demand. 

The airports handled over 9.4 crore passengers in the financial year 2024–25, which gave it roughly 23 percent of all domestic air traffic and nearly 29–33 percent of India’s international passenger and air‑cargo traffic

Revenue rose sharply to Rs 1,068.20 crore in Q3 FY26, compared to Rs 640.49 crore in the December 2024 quarter, marking a growth of nearly 67 percent year-on-year. Net profit also saw strong growth during the period as PAT rose 56 percent to Rs 541.97 crore in the December 2025 quarter, compared to Rs 346.45 crore in the corresponding quarter last year.

IPO Details

There are reports that the airport business might be listed between 2027 and 2028, though this could be pushed to 2030 depending on market conditions and financial readiness. Importantly, the group has stated that the airport division needs to become financially self-sustaining before any listing occurs. While the business is reportedly EBITDA positive, it is still investing heavily to build future capacity. The Adani unit may come with an IPO or could also be done through a demerger from Adani Enterprises Ltd, which may help unlock shareholder value.

This is where the idea of a demerger becomes relevant. A demerger would separate the airport business from Adani Enterprises, allowing it to be listed as its own company. Right now, the airport business is just one part of a larger group. Investors buying shares in Adani Enterprises gain exposure to multiple businesses, such as airports, data centers, mining services, and other infrastructure projects.

However, markets often value standalone businesses higher than conglomerates because they are easier to understand. When a business is carved out and independently listed, investors can assign a valuation based on its own earnings, growth potential, and cash flows. This clarity can lead to better price recognition.

For shareholders of Adani Enterprises, a demerger could mean receiving shares in the new airport company proportional to their existing holdings. If the airport business is valued highly due to India’s aviation growth, shareholders could see significant benefits.

India’s aviation market supports this growth. Passenger traffic has steadily increased, bolstered by rising incomes, urbanization, and better connectivity. The government’s initiative to privatize airports has opened doors for private operators like Adani to grow quickly. The group is also interested in bidding for additional airports as new opportunities arise.

Before the IPO, the company plans to invest around 1 lakh crore (approximately $11 billion) over the next five years for the expansion of terminals, raising passenger capacity, and the development of commercial spaces at airports. It is currently operating major airports like Mumbai and Ahmedabad and has also initiated operations at Navi Mumbai International Airport. They want to greatly increase the passenger handling capacity before going public.

The planned crore investment over five years shows great ambition. This money will go toward expanding terminals, developing runways, upgrading technology, and improving city-side commercial infrastructure. Airports today generate revenue from retail shops, parking, advertising, hotels, and real estate, not just from flights. As these non-aeronautical revenues grow, profit margins can rise considerably.

Another factor that supports the IPO plan is financing. Adani Airports has raised $750 million in funds through global financing and has previously attracted long-term investors at the asset level. Strengthening the balance sheet before a listing is essential, as public market investors prefer stable, cash-generating infrastructure assets.

One needs to be very explicit about what hasn’t been decided yet. As of early 2026, there is no DRHP for Adani Airport Holdings Ltd submitted to SEBI, the Indian market regulator, and AAHL does not feature in the latest lists of companies that have either filed or received SEBI approval for IPOs.

This implies that specifics such as the exact IPO dates, issue size, price band, and whether there will be an offer for sale by Adani Enterprises or only a fresh issue of shares are still not known. The company will make all that information public only when it formally files its IPO documents, which will be closer to the planned listing date.

Whether this value is realized will depend on execution, capital management, and market sentiment at the time of listing. Currently, the groundwork is being prepared; the actual takeoff may happen in the next few years.

Industry highlights

India’s aviation industry is expanding rapidly. Today, India is the third-largest domestic aviation market in the world, ranking just behind the United States and China. Rising incomes, urbanization, and improved connectivity have made air travel increasingly common, even among middle-class families. In the first seven months of FY26 (April–October 2025), total passenger traffic reached over 23.7 crore. 

Air cargo is expanding alongside passenger traffic. During April–October FY26, freight traffic reached 2.28 million metric tonnes, reflecting high demand for goods movement by air. IndiGo continues to dominate the domestic market with the largest fleet and an extensive route network. Overall, India’s aviation sector is emerging as a crucial pillar of economic growth, creating long-term opportunities for airport operators and infrastructure developers.

Growth isn’t limited to just passenger numbers. India’s airport infrastructure has significantly expanded over the past decade. In 2014, the country had only 74 operational airports. By October 2025, that number has increased to 163. The government’s long-term vision aims for 350 to 400 airports by 2047. This expansion is driven by government initiatives and private sector involvement. More airports enhance regional connectivity, increase flight frequency, and stimulate economic activity in surrounding areas.

Looking ahead, the growth outlook remains promising. By 2040, passenger traffic is expected to increase sixfold to around 1.1 billion annually. India’s commercial airline fleet is projected to grow from about 400 aircraft in 2014 to nearly 2,359 by March 2040. The aviation sector is also anticipated to create around 25 million jobs by 2040, becoming a key factor in India’s push to become a developed economy.

India is expected to surpass China and the United States to become the world’s third-largest air passenger market by 2030, according to the International Air Transport Association (IATA). Rising demand is also speeding up fleet expansion, with the number of airplanes projected to reach 1,100 by 2027. The Airports Authority of India plans to spend Rs. 25,000 crore (US$ 3 billion) between 2022 and 2027 to improve infrastructure facilities.

Challenges

However, risks still exist. Airports require a lot of capital and are sensitive to economic changes. Passenger traffic can decline during downturns. Regulatory changes, tariff controls, and project delays can impact profitability. Heavy debt during expansion phases can also affect valuations if not managed properly.

For shareholders of Adani Enterprises, the main question is whether the market currently undervalues the airport business within the larger conglomerate. If investors see strong long-term cash flow potential in the airports division, a separate listing could highlight its value and lead to a re-evaluation.

Historically, Adani Enterprises has acted as a business incubator. As new divisions mature, they are either listed separately or valued independently. If Adani Airports takes a similar route, it could align with the group’s broader goal of unlocking value from capital-intensive infrastructure businesses.

In simple terms, the demerger or a IPO could look like this: build the airports, stabilise operations, demonstrate steady cash generation, separate the business, list it independently, and allow investors to value it directly. If the execution remains strong and the aviation sector continues to grow, this plan could benefit shareholders.

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