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Issuer Flash: Delhi International Airport Limited / DIALIN

Issuer Flash: Delhi International Airport Limited / DIALIN

Report date: 2026-05-31 Event date: 2026-05-27 Event title: FY2026 Audited Results

1. Flash Conclusion

Delhi International Airport Limited’s FY2026 audited results, submitted to BSE on May 27, 2026, confirm a full-year improvement following the CP4 tariff reset. Operating revenue was Rs 7,568.04 crore, EBITDA was Rs 2,882.43 crore, and profit after tax was Rs 476.87 crore, marking a swing back to profit from a loss in FY2025. DSCR improved from 1.07x to 2.01x, while ISCR improved from 1.10x to 2.08x, indicating that the tariff improvement has started to feed through into the company-disclosed debt-servicing capacity.

However, short-term risks remain. Even at FY2026-end, the D/E ratio was 14.61x and the current ratio was 0.45x, with current liabilities exceeding current assets by Rs 4,082.82 crore. The results support the holding case for DIALIN 2029 as evidence of “post-CP4 improvement,” but the next key confirmation point is the refinancing of the 2026 foreign-currency bond. ICRA’s reaffirmation of [ICRA]AA(Stable) supports domestic funding access, but investors in the international foreign-currency bond need to distinguish between the domestic rating, S&P’s international rating referenced in the existing issuer_summary, secured-bond recovery, and FX/refinancing risk.

2. Disclosed Information

On May 27, 2026, DIAL submitted to BSE its audited standalone results for the quarter and full year ended March 31, 2026. These results are the first audited full-year results that allow the effect of AERA’s fourth control period, or the CP4 tariff that became effective in April 2025, to be observed over a full year.

For FY2026, operating revenue increased 39.3% year on year, while EBITDA rose 64.4%. At the same time, the annual fee payable to AAI also increased to Rs 3,231.94 crore. Under DIAL’s concession, even when operating revenue grows, a substantial portion flows through to AAI. On May 21, 2026, DIAL also notified BSE that ICRA had reaffirmed the main NCDs at [ICRA]AA(Stable). The rated amount totals Rs 5,257 crore, which is evidence of credit recognition in the domestic capital market.

3. Credit Reading

The source of the improvement is relatively clear. In GMR Airports’ Q4 FY2026 investor presentation, Delhi Airport’s aeronautical revenue in the fourth quarter is shown as having increased 178% year on year. Meanwhile, FY2026 passenger traffic was 78.7 million, down 0.7% year on year. It is therefore more natural to read the full-year improvement as driven primarily by the tariff framework improvement and higher airport revenue yield, rather than by a sharp increase in passenger volumes.

The improvement in debt-service metrics is also clear. DSCR of 2.01x and ISCR of 2.08x indicate a recovery from around 1x in FY2025. However, these are improvements in company-disclosed ratios and do not directly show the actual refinancing terms for the foreign-currency bond, hedging arrangements, restricted accounts, or reserve balances.

The liquidity reading should remain cautious. At FY2026-end, cash and cash equivalents were Rs 81.14 crore, other bank balances were Rs 48.76 crore, and current investments were Rs 1,221.47 crore. Other financial assets of Rs 1,789.59 crore cannot be sufficiently assessed from the current materials alone in terms of their composition, whether they are restricted, or how readily they can be monetised. Current borrowings were Rs 4,952.77 crore, and near-term maturity management remains the central issue.

Regulatory and contractual issues also remain. DIAL has filed an appeal with TDSAT against the CP4 tariff order. As of the notes to the results, the next hearing was scheduled for May 28, 2026, but the outcome after that date has not been confirmed as of the date of this report. In addition, in the dispute with AAI over the minimum annual fee / MAF during the COVID period, AAI’s appeal remains outstanding, with the next hearing scheduled for August 12, 2026.

4. Key Figures

Amounts are in Indian rupee crore unless otherwise stated, and ratios are on a company-disclosed basis. Q4 refers to the quarter, while FY2025 and FY2026 refer to the full year.

Metric FY2025 Q4 FY2026 FY2026
Operating revenue Rs 5,432.80 crore Rs 1,990.89 crore Rs 7,568.04 crore
AAI fee Rs 2,496.08 crore Rs 874.12 crore Rs 3,231.94 crore
EBITDA Rs 1,752.94 crore Rs 748.00 crore Rs 2,882.43 crore
Profit after tax Rs -976.16 crore Rs 123.34 crore Rs 476.87 crore
DSCR / ISCR 1.07x / 1.10x 3.00x / 3.15x 2.01x / 2.08x
D/E ratio / current ratio 24.38x / 0.53x 14.61x / 0.45x 14.61x / 0.45x

The figures should be read in two stages. Operating revenue, EBITDA, profit after tax, DSCR, and ISCR clearly improved. However, the current ratio and leverage remain weak. DIAL operates a strong airport asset, but its financial structure remains that of a highly leveraged issuer after a large concession investment.

5. Next Points to Watch

First is the refinancing of the October 2026 foreign-currency bond. The items to confirm are whether the refinancing is completed, the amount, currency, maturity, collateral, hedging, and use of bank facilities. The current results confirm operational improvement, but they do not remove the maturity concentration.

Second is the actual post-CP4 revenue from FY2027 Q1 onward. FY2026 showed a significant CP4 effect, but the question is whether DIAL can continue to maintain DSCR while absorbing aeronautical revenue, non-aeronautical revenue, AAI fees, and finance costs.

Third are the CP4 appeal and the AAI MAF appeal. The procedural outcome after May 28, 2026 for the CP4 appeal is unconfirmed as of the date of this report, while the next hearing for AAI’s appeal is scheduled for August 12, 2026. The tariff framework and value allocation to AAI are directly linked to the repayment resources available to DIAL creditors.

6. Unconfirmed Items

7. Sources