With major terminal upgrades at Delhi and Bengaluru now operational, India’s aviation infrastructure cycle has entered a critical execution phase. Investors are shifting focus from order wins to bottom-line delivery as companies like L&T, GMR Airports, and Ahluwalia Contracts navigate a landscape of rising passenger traffic and specialized greenfield development. This audit examines how these four key players are positioned to convert a massive project backlog into sustainable earnings growth in FY27.
Government spending on airport infrastructure in India is expected to rise in the coming years. The Airports Authority of India (AAI) has taken up developmental projects worth around Rs 25,000 crore for the period between 2025 and 2029. These projects include expansion and modification of existing terminals. They also include construction of new terminals, strengthening of runways and aprons, and development of control towers and air navigation infrastructure.
At the same time, private airport operators are also investing in capacity expansion. PPP airports at Delhi, Hyderabad and Bengaluru have undertaken development projects worth around Rs 30,000 crore for terminal upgrades and infrastructure expansion. In addition, around Rs 36,000 crore has been planned for the development of new greenfield airports across the country under the PPP model.
As airport development gathers pace, companies involved in building airport infrastructure may see new opportunities. Large projects such as terminal construction, runway expansion and airport facilities usually involve engineering and construction companies. Airport operators may also benefit as expansion improves capacity and supports rising passenger traffic.
MR Airports is mainly engaged in the development, maintenance and operation of airports, generation of power, coal mining and exploration activities, development of highways, development, maintenance and operation of special economic zones, and construction business including engineering, procurement and construction (EPC) contracting activities.
GMR Airports Limited operates some of India’s largest airport assets including Delhi, Hyderabad and Mopa (Goa). Airports managed by the group handled 31.9 million passengers in Q3 FY26, up 2.5% year-on-year (YoY), and accounted for roughly 27% of India’s passenger traffic. This highlights the company’s central role in the country’s airport infrastructure ecosystem.
