Adani Airports Poised For High Growth With Navi Mumbai Airport Launch And Dual-Airport Strategy: Jefferies

Adani Airports is poised for high growth with the Navi Mumbai Airport launch and dual-airport strategy, according to Jefferies. The brokerage maintains a buy rating for Adani Enterprises Ltd., with a target price of Rs 3,000.

PM Modi inaugurated the Navi Mumbai International Airport on Wednesday, marking a significant milestone in India's aviation landscape. Situated approximately 35 km from the existing Mumbai International Airport, NMIA is poised to ease the chronic congestion at one of the country's busiest aviation hubs.

"NMIA's inauguration marks a strategic expansion in India's aviation infra, easing congestion for MMR. Phase-1 adds 20 million passengers capacity (total: 90mn), and bridges gaps to underserved regions," said Jefferies.

Adani Enterprises' dual airport strategy- owning NMIA/MIAL-enables coordinated slot allocation & removes intra-regional competition. "A strong non-aero focus across retail, hospitality, & RE should enhance monetisation, positioning NMIA as a high-growth asset in Adani's airport portfolio," the brokerage added.

The new airport enhances physical capacity across the Mumbai Metropolitan Region and serves as a strategic enabler for India's growing aviation and tourism sectors.

"With AEL owning both airports in the MMR, coordinated slot allocation and the absence of intra-regional airport competition are expected to drive operational efficiency," it added.

The airport is designed to handle 90 million passengers and approximately 3 million tonnes of cargo annually. NMIA should rank among the world's largest greenfield airport projects. The project broke ground in Sep-21 and phase-1, expected to be operational soon, will accommodate 20 million passengers and 0.8 million tonne of cargo. Among the top four Indian Airports, Delhi, Mumbai, Bengaluru, and Hyderabad handled 79 million, 55 million, 42 million, and 29 million passengers, respectively, in FY25.

The brokerage noted that NMIA is expected to be in the Top 10 airports by pax handled in FY27. "This should provide a boost to Adani Airport's market share from the current 23% including current operations at seven Airports," it added.

NMIA will boost international tourism by improving access for long-haul carriers to Mumbai, while also enabling low- cost airlines to expand regional routes.

Adani Airports is executing a major non-aero and city-side development strategy at NMIA, aiming to shift a large part of its revenue mix away from purely aero services toward mixed-use commercial, hospitality, retail, and RE activities. Envisioned as a walkable business district, this precinct will cater not just to travellers but also to locals and visitors, with F&B, entertainment, commercial office spaces, and experiential retail.

Jefferies noted, the non-aero strategy goes beyond leasing space to third parties - it also includes developing and scaling its own in-house retail and F&B brands, allowing greater control over margins, customer experience, and monetisation of passenger footfall.

The brokerage highlighted that the airport will be accessible via the Mumbai Trans Harbour Link, suburban rail, and national highways. "Future connectivity enhancements include metro lines, water taxis, and EV buses. Additionally, the elevated Ulwe Coastal Road-slated to open in 2026-will offer direct last-mile access, reducing travel time," it added.

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