State-run Airports Authority of India’s (AAI) net profit or profit after tax (PAT) declined by 9.8 per cent to ₹6,522.37 crore in FY2025-26 on a year-on-year basis.
The decline comes as AAI’s expenses increased during the year, while its revenue remained broadly flat amid lower income from airport leases, even as other revenue streams recorded growth.
Besides, AAI recognised an exceptional item of ₹254.54 crore in FY2025-26 in connection with the alleged embezzlement of funds by an employee in respect of Dehradun and Jaipur airports.
Notably, the decline in profitability comes after AAI’s PAT had jumped 55.5 per cent to ₹7,233.28 crore in FY2024-25 from ₹4,651.31 crore a year earlier.
Revenue and PAT
As per AAI’s financial statements reviewed by businessline, AAI’s total revenue stood at ₹20,526.46 crore in FY2025-26, compared with ₹20,648.25 crore in the previous year.
The airport operator’s total expenditure, meanwhile, increased 6.34 per cent to ₹11,689.36 crore from ₹10,992.79 crore.
Profit before exceptional and extraordinary items and tax stood at ₹8,837.10 crore in FY2025-26, compared with ₹9,655.46 crore in the previous year.
Revenue from airport lease, including public-private partnership (PPP) airports, declined to ₹5,824.99 crore during the year from ₹7,376.82 crore in FY2024-25.Other income, however, increased to ₹1,329.47 crore from ₹1,175.71 crore.
Employee Benefits
According to the financial statement, AAI’s revenue had declined by ₹121.78 crore, or 0.59 per cent, from the previous year.
However, after excluding an under-recovery amount of ₹2,231.80 crore from FY2024-25 revenue, the increase in revenue for FY2025-26 works out to ₹2,110.02 crore, or 11.46 per cent.
Furthermore, the increase in expenses was led by employee benefits, operating expenses and administrative costs.
In FY26, employee benefits expenses rose to ₹4,873.69 crore from ₹4,767.76 crore, while operating expenses increased to ₹2,666.43 crore from ₹2,395.77 crore.
Administrative and other expenses rose. The expense on this account increased to ₹1,126.21 crore from ₹854.60 crore.
AAI declared a total dividend of ₹1,956.71 crore to the Government of India, equivalent to 30 per cent of PAT for FY2025-26. Of this, an interim dividend of ₹852.39 crore had already been paid during the year.
The airport operator appropriated ₹1,826.26 crore to its Airport Development Reserve, equivalent to 40 per cent of profits after appropriation for dividend, while the balance ₹2,739.40 crore has been transferred to the General Reserve.