Press Release September 08, 2025 AIRPORTS AUTHORITY OF INDIA Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	3400.00	ACUITE AAA | Stable | Reaffirmed	-
Total Outstanding	3400.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­ACUITE has reaffirmed its long term rating of 'ACUITE AAA' (read as ACUITE triple A) on the RS 3,400 Cr. bank facilities of Airports Authority of India (AAI). The outlook is 'Stable'. Rationale for rating The reaffirmation in the rating is primarily driven by the strategic importance of Airports Authority of India to Government of India (GoI) for operating, maintaining & developing the aviation infrastructure, providing Communication Navigation Surveillance / Air Traffic Management (CNS/ATM) services for controlling the civil aviation traffic. AAI controls and manages the Indian airspace & adjoining oceanic areas and is the sole entity providing these services. The rating also factors in the improving scale of operations & profitability, strong financial risk profile and strong liquidity profile supported by improvement in aircraft and passenger movement (pax) for FY 25 against FY 24, AAI created multiple revenue streams i.e. Navigational Services, non-aeronautical revenue services and lease revenue (including airports running under PPP model). The above-mentioned rating strengths are partly balanced by the vulnerability of operations to fluctuations in aircraft and passenger movement and impact of privatization of revenue generating airports. Acuite notes that arbitration between the AAI and DIAL / MIAL (Delhi / Mumbai International Airport Limited) regarding the excess payment of annual fee from 2006 to 2016, decision is pending in Hon’ble Delhi High Court. AAI has deposited Rs. 471 cr. and Rs. 1,159 cr. with the High Court, covering the MAF refunds to DIAL and MIAL respectively including interest. Any adverse outcome may impact the liquidity profile of AAI and will be key monitorable.

About the Company

­Airports Authority of India (AAI) was constituted by an Act of Parliament and came into being on 1st April 1995 by merging erstwhile National Airports Authority and International Airports  Authority of India. The merger brought into existence a single Organization entrusted with the responsibility of creating, upgrading, maintaining and managing civil aviation infrastructure both on the ground and air space in the country. It is a Government of India owned organisation. The corporate office is in New Delhi and the organisation is currently being managed by its chairman Mr. Vipin Kumar.

Unsupported Rating

­Not Applicable.

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of AAI while arriving at the rating.

Key Rating Drivers

Strengths

­Strategic Importance to GoI AAI is a strategically important to GoI as it is the only entity who controls, manages and develops the aviation infrastructure in India. AAI is a sole entity providing Communication Navigation Surveillance/Air Traffic Management (CNS/ATM) services in the country and controls the entire airspaces of the India and adjoining oceanic areas. AAI is having JVC for two major airports (Delhi & Mumbai). Further, the AAI has awarded six airports namely Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvanthapuram and Mangalore under Public Private Partnership (PPP). AAI provides air navigation services over 2.8 million square nautical miles of air space. Acuite believes AAI will continue to benefit form its strategic position in the civil aviation space. Improving scale of operations & profitability The revenue of the Airports Authority of India (AAI) increased substantially by 30.14% in FY 2025(prov.)  to Rs. 19,472.54 cr. against Rs. 14,962.76 cr. in FY24. The growth in revenue is emanating from the growth in passenger traffic and aircraft movements year on year. The operational profit (EBITDA) improved from Rs. 7,940.56 cr. with a margin of 53.07% in FY 24 to Rs. 11,566.52 cr. in FY 25(prov.) with a margin of 59.40%. The increase in margin is mainly due to better absorption of fixed cost. Similarly, the net profits improved from Rs. 4,651.31 cr. in FY 24 to Rs. 7,233.28 cr. in FY 25 (prov.). Acuite believes that going forward, the revenue from operations & profitability will improve in medium to long term on the account of GOI’s focus on civil aviation by increasing the number of airports under schemes like ‘Viksit Bharat’ and ‘UDAN’ (Ude Desh Ka Aam Nagarik). Strong Financial Risk Profile The financial risk profile of AAI is marked by strong net worth, low gearing and strong debt protection metrics. The tangible net worth of the company improved & stood at Rs. 23,963.19 cr. as on 31st March 2025(prov.) against Rs. 18,904.25 cr. as on 31st March 2024. The improvement in net worth is due to accretion of profits to reserves. The gearing ratio improved & stood at 0.10 times in FY 2025 (prov.)against 0.13 times in FY 2024. The TOL/TNW at 1.12 times in FY 2025(prov.) as against 1.20 times in FY 2024. Further, debt protection metrices (i.e. DSCR & ISCR) stood at 63.96 & 85.49 times for FY 25(prov.). Acuite believes that the financial risk profile of the company will remain strong on account of no major debt funded capex planned.

Weaknesses

­Vulnerability to the fluctuations in aircraft & passenger movement and privatization of airports AAI's revenue is vulnerable to changes in air passenger traffic, as was seen during the COVID-19 pandemic. This risk is amplified because a limited number of AAI's airports are profitable and some of its more lucrative airports have been privatized. However, AAI's revenue share from previously privatized airports and per-passenger fees from recently privatized ones help lessen this impact. Additionally, AAI's airports earn relatively less from non-aeronautical sources compared to privatized airports.

Rating Sensitivities

­Movement in Aircraft and passenger movements

Liquidity Position

Strong

­The liquidity position of AAI is strong on the account of generating net cash accrual of Rs. 10,066.33 cr. in FY 25(prov.) against debt obligation of Rs. 11.88 cr. for the same period. AAI has unencumbered cash and bank balance of around Rs. 1,306.56 cr. as on 31st March 2025(prov.). The current ratio stood at 1.03 times for FY 25(prov.). AAI is expected to generate net cash accruals of Rs. 11,000 cr. to Rs. 13,000 cr. in FY 26 to 27 against nominal debt obligations. Acuite believes going forward the liquidity profile of AAI will remain strong in near to medium term on the account of steady accruals.

Outlook - Stable

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Other Factors affecting Rating

­None.

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	19472.54	14962.76
PAT	Rs. Cr.	7233.28	4651.31
PAT Margin	(%)	37.15	31.09
Total Debt/Tangible Net Worth	Times	0.10	0.13
PBDIT/Interest	Times	85.49	84.54

Status of non-cooperation with previous CRA (if applicable)

­Not Available.

Any other information

NDS received till July 2025.

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 10 Jun 2024 Term Loan Long Term 900.00 ACUITE AAA | Stable (Reaffirmed) External Commercial Borrowing Long Term 414.35 ACUITE AAA | Stable (Reaffirmed) Term Loan Long Term 625.00 ACUITE AAA | Stable (Reaffirmed) External Commercial Borrowing Long Term 375.00 ACUITE AAA | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 1085.65 ACUITE AAA | Stable (Reaffirmed) 13 Mar 2023 Term Loan Long Term 2350.00 ACUITE AAA | Stable (Assigned) External Commercial Borrowing Long Term 1050.00 ACUITE AAA | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating State Bank of India Not avl. / Not appl. External Commercial Borrowing Not avl. / Not appl. Not avl. / Not appl. 21 Mar 2026 414.35 Simple ACUITE AAA | Stable | Reaffirmed State Bank of India Not avl. / Not appl. External Commercial Borrowing Not avl. / Not appl. Not avl. / Not appl. 04 Jan 2032 375.00 Simple ACUITE AAA | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Foreign Currency Term Loan Not avl. / Not appl. Not avl. / Not appl. 15 Nov 2031 625.00 Simple ACUITE AAA | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Foreign Currency Term Loan 07 Jun 2022 Not avl. / Not appl. 15 Jun 2032 900.00 Simple ACUITE AAA | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1085.65 Simple ACUITE AAA | Stable | Reaffirmed

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Kartik Arora Senior Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.