FCC

Adani Begins City-Side Projects Across 8 Airports

2025-08-05

The Adani Group’s airport division has launched a phased city-side development across eight airports in India, covering a total of 655 acres. The first phase spans 114 acres, with 50 acres in Mumbai and Navi Mumbai, and the remaining 64 acres spread across airports in Ahmedabad, Lucknow, Jaipur, Guwahati, Bengaluru, and Thiruvananthapuram.

City-side development refers to infrastructure built adjacent to airport terminals, including hotels, retail outlets, food courts, offices, and entertainment zones. These projects aim to enhance non-aeronautical revenue streams and improve urban connectivity.

Adani Enterprises Ltd (AEL) Group CFO Jugeshinder Singh confirmed the Phase-1 rollout during a recent investor call. “We’ve initiated Phase-1, focusing on hospitality, retail, and entertainment targeted at the city-side population. Phases 2 and 3 will see evolving retail mixes,” he said.

Singh added that, aside from Mumbai, other airports are undergoing brownfield expansions, including Navi Mumbai, which is expected to secure operational clearances by October 2025 and reach capacity within six months. A second terminal at Navi Mumbai is also under consideration.

In Q1 FY26, Adani Airport Holdings Ltd (AAHL) reported a 25 per cent year-on-year income growth to Rs 102.24 billion. The airport network handled 23.4 million passengers (up 3 per cent) and 280,000 tonnes of cargo (up 4 per cent).

As of June 2025, AEL held consolidated external debt of Rs 615 billion, of which Rs 309 billion is tied to its airport business, Rs 146 billion to roads, and Rs 87 billion to its Australia project.

Commenting on broader market trends, Singh acknowledged persistent global trade volatility and pricing pressures affecting AEL’s integrated resource management business. Weak performance in this and other verticals, such as commercial mining and new energy, led to a 45 per cent year-on-year decline in AEL’s consolidated profit margins in Q1 FY26.