Air India SATS Airport Services Pvt. Ltd. (AISATS) plans to invest about ₹600 crore in FY27 and more than double its revenue over the next five years, as the airport services provider expands beyond traditional ground handling into cargo, warehousing and airport logistics infrastructure.
The unlisted company, a 50:50 joint venture between Tata Group-owned Air India and Singapore-based ground handler SATS Ltd., is targeting revenue of ₹3,000-3,500 crore over the next five years from around ₹1,400 crore currently, with cargo and warehousing expected to drive much of the growth.
“We are looking over a period of five years to reach a turnover of around ₹3000-3500 crore over a five-year period,” Vikas Agarwal, chief financial officer of AISATS, told Mint.
The company’s expansion comes as airport operators increasingly focus on non-aeronautical revenue streams to diversify earnings beyond passenger traffic and airline charges.
Investment roadmap
The investment plan includes about ₹125-150 crore towards equipment and technology upgrades and another ₹450 crore for setting up the first phase of an integrated warehousing and logistics zone at Noida International Airport.
“Around ₹600 crore capex investment in FY27 (is planned),” Agarwal said. “And subsequently across later phases it will go up to ₹7,000 crore.”
The latest spending follows a period of elevated investment by the company.
AISATS invested roughly ₹700 crore in FY26, including the completion of its integrated cargo terminal at Noida and routine capital expenditure.
Future projects will be funded through a combination of internal accruals and bank financing, Agarwal said.
“From a cargo perspective, if you ask, yes, then the world is completely open,” he added.
Cargo handling, warehousing and logistics services typically generate long-term contractual revenues and are less dependent on passenger traffic cycles than traditional airport ground-handling operations.
Noida opportunity
AISATS is among the largest beneficiaries of the new Noida airport ecosystem, having secured a 37-year concession to develop and operate cargo and warehousing infrastructure there.
Its integrated cargo terminal, built at an investment of about ₹550 crore, commenced operations alongside the airport on Monday.
“We are in talks with 5 or 6 freighters. Three of them have already tied up their movements with us,” Agarwal said.
The first phase of the integrated warehousing and logistics zone will involve an investment of ₹450 crore and be operational in another 12-18 months.
The Noida expansion builds on a series of cargo and logistics investments by AISATS. The company invested about ₹200 crore in a logistics park near Kempegowda International Airport Bengaluru and invested in cargo-handling facilities at Ranchi and Raipur airports.
Revenue diversification
Passenger traffic growth has softened in FY27, with airlines cutting capacity due to high operating costs caused by airspace restrictions over Pakistan and rising jet fuel prices, due to the war in West Asia.
For example, GMR Airports, the country’s largest airport operator, is developing a 50.5-acre Cargo City at Delhi airport. The project is designed to create an integrated cargo and logistics ecosystem around the airport. At the same time, the airport operator is expecting a slowdown in passenger traffic in the first half of FY27.
“The strategy of AISATS to foray into cargo services, warehousing and logistics could lead to more feeder business for belly cargo in Air India, as well as (for) dedicated freighters,” said Amit Mittal, director at Aerointellect Aviation, a Delhi-based consultancy.
AISATS’s growth strategy increasingly centres on businesses beyond traditional ground handling, which currently accounts for roughly 80% of revenue.
“Ground handling will remain the largest bucket, which will generate around 60 to 65% of our revenue going forward, (but) will come down from around 80% down (current levels),” Agarwal said.
AISATS reported revenue from operations of ₹1,356.03 crore in FY26, up 9.6% from ₹1,236.8 crore in FY25, while total income rose 13.3% to ₹1,423.91 crore from ₹1,256.43 crore a year earlier.
He said cargo and warehousing could account for around 25% of revenue over time, while technology services and other ancillary aviation businesses could contribute another 12-15%.
State-run AI Airport Services Ltd (AIASL) is the largest ground handling operator having a presence in 80 airports of the country. During FY 2024-25, the total revenue of the company, as per its annual report, was ₹1003.7 crore. The net profit after tax during the period was roughly ₹3 crore. The company is unlisted and is yet to announce its FY26 numbers.
New growth engines
AISATS is also exploring aircraft-interior maintenance services covering seats, flooring and cabin fittings, and is pursuing regulatory approvals to enter the segment.
AISATS currently provides ground-handling services at six airports—Delhi, Bengaluru, Hyderabad, Thiruvananthapuram, Mangaluru and Kochi—and is evaluating opportunities to expand as new airport tenders are issued.
The company derives around 65-70% of its business from Air India, with the remainder coming from international airlines and charter operators.
Analysts say the strategy reflects a broader shift in India’s aviation ecosystem, where airport-linked infrastructure and services are emerging as attractive growth segments.
“For example, in the initial days Noida Airport would have to rely on cargo traffic to drive revenues in the initial days,” said Satyan Nayar, secretary general of Association of Private Airport Operators (APAO). “It’s a softer period for the sector. So yes, they will need alternatives including revenues from non-aero businesses.”
Aerointellect’s Mittal said it makes sense for Noida Airport to develop multiple revenue streams until passenger traffic picks up in the coming months.
Agarwal said AISATS remains cash-flow positive and does not currently require fresh equity support from its shareholders.
“Currently, based on our own cash flows, we don’t have to go back to the shareholders for any equity or any funding requirement,” he said.
