Delhi International Airport Limited (DIALIN)

DIAL's current credit quality should be viewed from the perspective of international foreign-currency bonds as an upper high-yield airport-concession credit broadly consistent with S&P's BB/Positive rating. The credit direction can be assessed as moderately improving because the FY2026 results confirmed post-CP4 revenue improvement and DSCR improvement on a full-year basis. The probability of rapid credit deterioration has declined when viewed only from the operating side, but the liquidity view remains provisional as long as refinancing of the 2026 foreign-currency notes is unconfirmed.

The core supports for this view are the strong single asset of Delhi Airport and the realised improvement after the CP4 tariff. FY2026 passenger traffic of 78.7 million, operating revenue of Rs 7,568.04 crore, EBITDA of Rs 2,882.43 crore, DSCR of 2.01x, and ISCR of 2.08x show that DIAL has gradually started to absorb the heavy finance costs and depreciation after Phase 3A. The previous report characterised the position as the start of improvement based on H1 and Q3 supplementary information; the FY2026 audited results now take this one step further to confirmation of full-year improvement.

However, the constraints on credit quality remain significant. The debt/equity ratio was still 14.61x in FY2026, and current liabilities exceeded current assets by Rs 4,082.82 crore. For the senior secured foreign-currency notes due in October 2026, the company relies on a refinancing plan and undrawn credit facilities, but completion cannot be confirmed from public information alone. Revenue sharing with AAI reached Rs 3,231.94 crore in FY2026, and the AAI appeal and CP4 appeal remain. DIAL's improvement is real, but bondholders still need confirmation of refinancing and regulatory disputes before materially lowering required returns.