State-run Airports Authority of India (AAI) has reported a 9.8 per cent decline in its net profit, or profit after tax (PAT), to ₹6,522.37 crore for the financial year 2025-26 compared to the previous year. This contraction follows a strong performance in FY2024-25, during which AAI's PAT had jumped by 55.5 per cent to ₹7,233.28 crore from ₹4,651.31 crore.
According to AAI’s financial statements, total revenue for FY2025-26 stood flat at ₹20,526.46 crore, compared with ₹20,648.25 crore in the preceding financial year. AAI noted that revenue declined by ₹121.78 crore, or 0.59 per cent, on a direct comparative basis. However, after excluding an under-recovery amount of ₹2,231.80 crore from the FY2024-25 revenue, the adjusted increase in revenue for FY2025-26 stands at ₹2,110.02 crore, or 11.46 per cent.
The stagnation in headline revenue was largely affected by lower income from airport leases, including public-private partnership (PPP) airports. Revenue from this segment fell to ₹5,824.99 crore during the year, down from ₹7,376.82 crore in FY2024-25. In contrast, other income increased to ₹1,329.47 crore from ₹1,175.71 crore.
On the expenditure side, AAI’s total expenses increased by 6.34 per cent to ₹11,689.36 crore, up from ₹10,992.79 crore in the previous year. This rise in operational outlays was led by higher employee benefits, operating expenses, and administrative costs. Employee benefit expenses rose to ₹4,873.69 crore from ₹4,767.76 crore, while operating expenses grew to ₹2,666.43 crore from ₹2,395.77 crore. Administrative and other expenses climbed to ₹1,126.21 crore compared to ₹854.60 crore previously.
Consequently, profit before exceptional and extraordinary items and tax stood at ₹8,837.10 crore in FY2025-26, down from ₹9,655.46 crore in the prior year. Additionally, AAI recognized an exceptional item of ₹254.54 crore during the fiscal year linked to the alleged embezzlement of funds by an employee concerning the Dehradun and Jaipur airports.
Despite the dip in net earnings, AAI declared a total dividend of ₹1,956.71 crore to the Government of India, representing 30 per cent of its PAT for FY2025-26. This figure includes an interim dividend of ₹852.39 crore paid during the course of the year. Furthermore, the airport operator appropriated ₹1,826.26 crore—equivalent to 40 per cent of profits after the dividend appropriation—to its Airport Development Reserve, while transferring the remaining balance of ₹2,739.40 crore to the General Reserve.
"The financial performance of the Airports Authority of India for FY2025-26 highlights the operational challenges that large-scale infrastructure operators face when managing rising administrative and employee costs alongside fluctuations in lease revenues. While top-line adjustments show underlying resilience in core operations, the dip in net profitability underscores the critical need for tighter internal controls, especially given the exceptional losses reported from fund embezzlement. Maintaining rigorous governance and cost-efficiency will be essential for sustained capital allocation toward vital reserves and national infrastructure development." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
