India's Aviation Soars: GMR Profit Surge, Adani Revenue Jumps, DreamFolks Faces Setback
Overview
India's air passenger traffic surged to a record 154.5 lakh in November 2025. GMR Airports Infrastructure reported a significant profit turnaround, driven by strong operational results and airport expansion. Adani Enterprises' airport division posted robust revenue growth fueled by tariff hikes and increased passenger volumes. DreamFolks Services, however, saw declining revenue and profits amid lounge access disputes, prompting a pivot to international services.
Stocks Mentioned
Record Passenger Surge Boosts Aviation Sector
India's air passenger traffic reached an unprecedented 154.5 lakh in November 2025, marking an 8.4% year-on-year increase. This surge, coupled with a 10.1% rise from October, signals robust demand in the aviation sector. Capacity has remained steady, leading to higher load factors across flights. Over the first eight months of fiscal year 2026, domestic passenger numbers reached 1,096.5 lakh, a 2.2% growth from the previous year. International travel also demonstrated strength, with Indian carriers flying 29.9 lakh passengers in October 2025, an 8.3% year-on-year increase.
Airport Operators Shine on Higher Footfalls
Elevated passenger volumes directly benefit airports and related services, boosting footfalls and asset utilization. GMR Airports Infrastructure, a key player in airport development and operation, reported a significant turnaround in its second quarter of fiscal year 2026. Consolidated gross income soared 47% year-on-year to ₹3,670 crore. Critically, the company posted a net profit of ₹35 crore in the September quarter, reversing a loss of ₹429 crore in the same period last year. Delhi Airport recorded its highest-ever monthly traffic of 73 lakh passengers in November 2025.
Adani Enterprises' Airport Division Expands
Adani Enterprises, a diversified conglomerate with substantial airport operations, has established its airport business as a distinct vertical. Together with GMR, these entities now manage nearly half of India's air passenger traffic. In the first half of fiscal year 2026, Adani's airport segment handled 4.6 crore passengers, a 2% year-on-year rise. Segment revenue climbed 32% to ₹5,882 crore, supported by tariff revisions and increased non-aeronautical income, which saw a 34% jump per passenger.
DreamFolks Services Faces Challenges
DreamFolks Services, India's largest airport service aggregator, encountered significant headwinds. Terminated agreements to operate airport lounge services, stemming from pricing disputes, impacted its performance. In the September quarter, revenue fell to ₹205.5 crore from ₹316.9 crore a year prior, and net profit declined to ₹11.2 crore from ₹16 crore. The company is now shifting its focus to international lounge access and exploring railway lounges.
Valuation Disparities Emerge
Valuations across these aviation-linked entities present a mixed picture. GMR Airports trades at an Enterprise Value to EBITDA (EV/EBITDA) multiple of 28.2, slightly above its three-year median, with a Return on Capital Employed (ROCE) of 6.9%. Adani Enterprises' airport business is valued at 24.5 times EV/EBITDA, with a ROCE of 9.4%. DreamFolks Services, however, commands a much lower EV/EBITDA of 5.5, reflecting its asset-light model and high ROCE of 33.7%, but also its recent operational disruptions.
