India’s 154 Lakh Passenger Surge: Which 3 Aviation Stocks Benefit?
Key Points
- 1India's domestic air passenger traffic surged to 154.5 lakh in November 2025, driving revenue for airport-linked businesses.
- 2GMR Airports and Adani Enterprises form a duopoly, controlling nearly 50% of India's air passenger traffic.
- 3Dreamfolks Services is pivoting to international lounges and non-airport services after domestic lounge contract terminations.
- 4Valuations vary significantly, with GMR and Adani reflecting capital-intensive airport growth, while Dreamfolks shows a low-asset, high-ROCE model.
India’s aviation sector continues its strong growth trend. Domestic air passenger traffic reached 154.5 lakh in November 2025. This marks an 8.4% increase from the previous year, according to industry data. The volume also grew 10.1% over October. Capacity remains steady, leading to fuller planes.
Over the first eight months of FY2026, domestic passenger numbers reached 1,096.5 lakh. This reflects a modest 2.2% growth year-on-year. International travel is also picking up momentum. Indian carriers flew 29.9 lakh passengers in October 2025, an 8.3% rise year-on-year. These elevated passenger volumes directly benefit businesses linked to airport footfalls and utilisation.
While airlines face cost pressures, traffic-led businesses remain relevant. Revenues for these companies are often linked to passenger volumes. This article focuses on three major entities in this space. They represent airport-led models and passenger-linked services.
The Airport Infrastructure Duopoly
Two major groups now control nearly 50% of India’s total air passenger traffic. This effectively creates a high-moat infrastructure duopoly. It captures every second traveler in the country.
GMR Airports: The Capacity King
GMR Airports focuses on airport development, maintenance, and operation. The company reported strong operational results for Q2 FY26. Consolidated gross income rose 47% year-on-year to Rs 3,670 crore. The company turned a profit of Rs 35 crore in the September quarter. This followed losses in the two previous quarters. Delhi Airport recorded its highest-ever monthly traffic in November 2025. This followed the reopening of an upgraded runway and Terminal 2. Hyderabad Airport also showed strong traffic growth. Project execution remains a key focus for GMR. The new Bhogapuram airport is expected to start operations in December 2026. GMR Airports’ share price surged 33.4% in the past year.
Adani Enterprises: Infrastructure Scale
Adani Enterprises reports its airport business as a separate vertical. This reflects its growing scale within the Adani Group. The airport business handled 4.6 crore passengers in H1 FY26. Segment revenue rose 32% to Rs 5,882 crore. Performance was supported by tariff revisions at four airports. Higher non-aeronautical income also helped. Non-aero income per passenger increased by 34%. The business is now running at an EBITDA level over Rs 1,000 crore per quarter. The Navi Mumbai greenfield airport has already started operations. The pace of execution at new airports will shape future growth. The company’s share price was down 9.4% in the past year.
Dreamfolks Services: Pivoting to Global Skies
DreamFolks Services is India's largest airport service aggregator platform. The company faced a sharp setback earlier in FY26. Agreements to operate domestic airport lounge services were terminated. This disruption was due to intense pricing disputes and contract renegotiations. Net profit fell to Rs 11.2 crore in the September quarter. This was down from Rs 16 crore a year earlier. The company is now shifting focus. It is prioritizing international lounge access and non-airport services. Revenue from global lounges improved sequentially. DreamFolks now has access to over 900 international locations. It has also entered railway lounges. Near-term performance depends on how quickly these new segments scale.
The Valuation Verdict
Valuations show different market expectations across the three businesses. The Enterprise Value to EBITDA (EV/EBITDA) multiple is a key yardstick. GMR Airports trades at 28.2 times EV/EBITDA. This is slightly above its three-year median of 26.8 times. Its Return on Capital Employed (ROCE) is 6.9%. This shows the business is still in a build-up phase. Adani Enterprises is valued at 24.5 times EV/EBITDA. This is lower than its three-year median of 30 times. Its airport business ROCE is 9.4%. DreamFolks Services trades at a lower 5.5 times EV/EBITDA. Its three-year median is 24.6 times. Its ROCE is a high 33.7%. This reflects a business model with lower asset intensity. The gap between traffic growth and earnings remains a critical factor. Investors must focus on where passenger movement clearly shows up in revenues and cash flows. For more commercial aviation news, visit flying.flights.
As traffic growth normalizes, execution and discipline will matter more than optimism, according to recent analysis of the sector by the DGCA.
Topics
You Might Also Like
Discover more aviation news based on similar topics
Why Dense Fog and 'Very Poor' Air Quality Crippled North India Flight Schedules
Airlines across North and East India, including IndiGo and Air India, issued advisories as dense fog and 'very poor' air quality caused widespread flight disruptions.
Why IndiGo Grounded Dozens of Flights Amid India's Winter Fog Crisis
IndiGo cancelled 67 flights across India on Thursday and Friday due to widespread winter fog and poor visibility, impacting several major airports.
Which North American Airports Have the Worst Turbulence?
Denver International Airport and several mountainous flight routes top the new 2025 North America turbulence rankings, according to aviation data site Turbli.com.
Akasa Air Flight Hygiene Allegation Sparks Passenger Health Crisis After Bengaluru Departure
Akasa Air is reviewing a passenger's claim that unhygienic conditions on a Bengaluru-Ahmedabad flight caused a severe fungal infection, raising concerns about airline sanitation
How Will Navi Mumbai International Airport's New Prepaid Fare System Impact Your Trip?
Navi Mumbai International Airport (NMIA) introduced a prepaid fare system for taxis and auto-rickshaws, overseen by the ARTO, to prevent overcharging and ensure predictable ground
Rajasthan's Kota-Bundi Greenfield Airport Set to Launch Operations by 2027
Lok Sabha Speaker Om Birla announced the Kota-Bundi Greenfield Airport in Rajasthan is expected to be operational by 2027, with construction tenders underway.