By Kavita Mistry 
Capital expenditure (capex) at India’s small private airports is projected to increase by 50-60 per cent in the next three fiscal years (2026-2028), driven by rising terminal utilisation levels and surging passenger demand, according to a recent analysis by Crisil Ratings. This surge in investment is expected as small airports expand their capacity to accommodate growing air traffic.
A Crisil Ratings analysis covering 11 operational private airports and two soon-to-be-operational private airports, representing over 95 per cent of India’s private airport passenger traffic, highlights that while small private airports will see a significant rise in capex, large private airports will experience a slowdown in investment. Capex at large airports is expected to decline as most capacity expansions are either complete or nearing completion.
Ankit Haku, Director at Crisil Ratings, explained, “Small private airports are expected to embark on a significant expansion of up to 1.5 times of their current capacity by fiscal 2028. This is in response to escalating travel demand and moderate capacity on the ground. Passenger traffic at these airports recorded a compound annual growth rate (CAGR) of around 45 per cent between fiscals 2022 and 2025, but capacity growth has lagged, creating a need for expansion.”
In contrast, large private airports, having already undergone significant capacity expansion over the past three years, will see reduced capex, focusing instead on maintenance and infrastructure upgrades. These airports have maintained stable terminal utilisation levels of 80-85 per cent despite strong traffic growth.
Gauri Gupta, Team Leader at Crisil Ratings, noted, “While capex intensity for small private airports will rise significantly, project risks will be manageable due to these being expansions of existing airports. Sponsors’ experience in operating large airports and their strong fund-raising capabilities will further mitigate risks.”
Despite the differing capex trends, the credit risk profiles of both small and large private airports are expected to remain stable, supported by healthy debt service coverage ratios (DSCRs) of around 1.6 times for large airports and 1.3 times for small airports over the next three years.
Crisil Ratings also cautioned that external factors such as geopolitical uncertainties affecting air travel, timely adjustments for lower traffic, and approvals for any cost overruns will be crucial to monitor.
