Sector: Infrastructure / Aviation
Industry: Airport Infrastructure & Aviation Services
Status: Public Limited – Unlisted
Headquarters: Kannur, Kerala
CIN: U63033KL2009PLC025103
ISIN: INE02Y401013
Face Value: ₹100 per share
Incorporated: December 2009
Commercial Operations: 9 December 2018
1. Company Overview
Kannur International Airport Limited (KIAL) owns and operates Kannur International Airport, located at Mattannur in Kannur district, Kerala.
KIAL was promoted by the Government of Kerala to develop an international airport serving the North Malabar region, the large NRI population in Kerala, business travellers and tourists.
The airport was developed on approximately 2,300 acres under a Public-Private Partnership framework and commenced commercial operations on 9 December 2018. It is the fourth international airport in Kerala.
The company remains unlisted, but has a broad shareholder base comprising the Government of Kerala, central public-sector entities, NRIs, financial institutions, industrialists and other investors. KIAL reported around 9,327 shareholders as of August 2024.
2. Why Kannur Airport Is Strategically Important
Kannur Airport was created to serve a region with:
- A large expatriate population
- Strong Gulf-region connectivity requirements
- Significant tourism potential
- A large population across Kannur, Kasaragod, Wayanad and surrounding areas
- Growing domestic travel demand
- Potential for cargo and logistics development
The airport’s location gives it access to the wider North Malabar economic and tourism belt.
Unlike a conventional standalone airport investment, KIAL’s long-term opportunity depends on increasing passenger traffic, improving international connectivity, expanding non-aeronautical revenue and increasing aircraft movements.
3. Airport Infrastructure
KIAL was developed as a large greenfield airport.
Key infrastructure includes:
- Approximately 2,300 acres of land
- 3,050-metre runway
- Passenger terminal exceeding 97,000 sq. metres
- International and domestic passenger facilities
- Cargo facilities
- Airport support infrastructure
- Commercial and retail facilities
The company has stated that the runway is planned for eventual extension to approximately 4,000 metres, which could support larger aircraft and additional long-haul connectivity.
4. Passenger Traffic
Passenger growth is one of the most important indicators for KIAL.
Passenger Traffic
| Financial Year | International | Domestic | Total |
|---|---|---|---|
| FY2022 | 5.22 lakh | 2.81 lakh | 8.03 lakh |
| FY2023 | 8.64 lakh | 4.10 lakh | 12.74 lakh |
| FY2024 | 7.80 lakh | 4.20 lakh | 11.99 lakh |
| FY2025 | 9.79 lakh | 3.85 lakh | 13.64 lakh |
| FY2026* | — | — | ~14.34 lakh |
*FY2026 figure reported as approximately 14.34 lakh passengers.
During FY2025-26, passenger traffic increased from approximately 13.40 lakh to 14.34 lakh, while aircraft movements increased from 11,572 to 11,735.
The airport also achieved a significant milestone in calendar 2025, handling approximately 15.1 lakh passengers, its highest-ever annual passenger traffic. International traffic accounted for approximately 10.51 lakh passengers and domestic traffic approximately 4.58 lakh.
This is an important development because the airport’s economics are highly dependent on increasing passenger volumes.
5. FY2025-26 Operational Improvement
According to Airports Council International, KIAL’s financial performance improved significantly during FY2025-26.
The airport reported that it was operating at an operational profit for the six months preceding the February 2026 update, with revenues covering operational expenses and finance costs.
This represents an important shift from the historical loss-making phase of the airport.
However, investors should distinguish between:
Operational profitability
and
reported accounting PAT.
The latest audited annual financial statements available on KIAL’s investor portal are for FY2024-25.
6. Financial Performance
Consolidated Financial Performance
₹ crore
| Particular | FY2024 | FY2025 |
|---|---|---|
| Revenue from operations | 99.24 | 190.93 |
| Other income | 2.39 | 4.29 |
| Total income | 101.62 | 195.22 |
| Total expenses | 275.27 | 296.91 |
| Loss before tax | (173.64) | (100.89) |
| PAT | (168.52) | (93.79) |
KIAL’s FY2025 consolidated revenue from operations increased by approximately 92%, while the reported loss narrowed materially from approximately ₹168.5 crore to ₹93.8 crore.
This improvement is important, although the company remained loss-making at the reported PAT level in FY2025.
7. Revenue Mix
One of the most interesting aspects of KIAL’s FY2025 financials is the sharp improvement in aeronautical revenue.
FY2025 Revenue from Operations
| Revenue Segment | ₹ Crore |
|---|---|
| Aero Revenue | 160.15 |
| Non-Aero Revenue | 25.77 |
| License fee for unpaved land | 5.01 |
| Total operating revenue | 190.93 |
Aeronautical revenue increased substantially from approximately ₹75.52 crore in FY2024 to ₹160.15 crore in FY2025.
Major sources included:
- User Development Fee
- Landing charges
- Parking charges
- Inline X-ray charges
- Aerobridge charges
- Ground-handling revenue share
- Cargo operations
- Terminal navigation charges
The largest component was User Development Fee (UDF) at approximately ₹95.36 crore in FY2025.
8. Non-Aeronautical Revenue
Non-aeronautical revenue is another potential long-term growth area.
FY2025 non-aeronautical revenue was approximately ₹25.77 crore.
Major sources included:
- Space rentals
- Concessionaire revenue share
- Visitor entry fees
- Common User Infrastructure charges
- Other commercial income
Revenue share from concessionaires increased from approximately ₹11.91 crore in FY2024 to ₹19.16 crore in FY2025.
This provides an opportunity for KIAL to increase revenue per passenger without relying entirely on higher aircraft movements.
9. Cargo Opportunity
Cargo is another potential growth area for Kannur Airport.
The airport is strategically located in a region with:
- Agricultural products
- Seafood
- Perishable goods
- Handicrafts
- Small and medium-sized businesses
- Large export-oriented communities
FY2025 revenue from cargo operations was approximately ₹2.98 crore, compared with ₹1.98 crore in FY2024.
The cargo business remains relatively small compared with passenger-related revenue, leaving scope for future development.
10. International Connectivity – The Key Variable
For KIAL, international connectivity is particularly important because of Kerala’s large overseas population.
The airport’s international traffic has historically been affected by the availability of foreign airlines and international route permissions.
KIAL’s FY2025 annual report specifically notes that traffic was affected by the non-operation of foreign airlines and the non-award of Point of Call status, which contributed to lower passenger and aircraft movement levels.
Therefore, the future growth trajectory of KIAL depends significantly on:
More airlines → more routes → more passengers → higher airport revenue.
11. Point of Call Status
The Point of Call issue is one of the major structural factors affecting KIAL.
Obtaining additional international connectivity can allow foreign airlines to operate more routes from Kannur.
For KIAL, this could potentially improve:
- International passenger traffic
- Aircraft movements
- Airport charges
- Duty-free revenue
- Retail revenue
- Parking revenue
- Concession income
- Cargo traffic
However, investors should treat any future regulatory change as an uncertain catalyst, rather than assuming it will occur within a particular timeframe.
12. 2025 Passenger Milestone
Calendar year 2025 was particularly encouraging from a traffic perspective.
KIAL handled approximately 15.1 lakh passengers, exceeding its previous calendar-year peak of around 14.7 lakh in 2019. Passenger traffic grew approximately 16% over CY2024.
International passenger traffic grew approximately 15%, while domestic passenger traffic increased approximately 21%.
The strongest routes included:
- Abu Dhabi
- Doha
- Dubai
- Sharjah
- Bengaluru
- Muscat
- Mumbai
- Delhi
Air India Express and IndiGo accounted for the entire passenger traffic reported by ACI for CY2025, with approximately 53% and 47% shares respectively.
13. Shareholding Pattern
KIAL has a diversified institutional and individual shareholder base.
Based on the company’s disclosed shareholding information:
| Shareholder | Approx. Holding |
|---|---|
| Government of Kerala | 39.23% |
| Bharat Petroleum Corporation Ltd. | 16.20% |
| M.A. Yusuffali | 8.59% |
| Airports Authority of India | 7.47% |
| Other shareholders | 28.51% |
The Government of Kerala remains the largest shareholder.
BPCL and AAI also provide significant institutional participation.
The company’s paid-up equity capital as of 31 March 2026 was approximately ₹1,338.39 crore, representing 13.38389 crore shares of ₹100 each.
14. Government of Kerala’s Role
Government ownership is strategically important for KIAL.
The Government of Kerala:
- Is the largest shareholder
- Has provided land and infrastructure support
- Has participated in funding arrangements
- Has provided subordinate debt
- Has an interest in expanding aviation connectivity in North Kerala
The FY2025 annual report shows ₹113 crore of subordinate debt from the Government of Kerala.
This government involvement provides institutional support, although it does not eliminate financial or operating risks.
15. Debt Position
Debt remains one of the major considerations for KIAL.
As of 31 March 2025:
Total non-current borrowings: approximately ₹1,212.81 crore
This included borrowings from:
- Canara Bank
- Federal Bank
- South Indian Bank
- REC Limited
- Funded interest term loans
- Government of Kerala subordinate debt
The company reported a standalone debt-to-equity ratio of 2.42x in FY2025, compared with 1.95x in FY2024.
Therefore, although passenger traffic and revenue are improving, the balance sheet remains an important part of the investment thesis.
16. Historical Accumulated Losses
KIAL has gone through a long gestation period since beginning commercial operations in 2018.
The FY2025 annual report reported accumulated losses of approximately ₹838.86 crore.
The reduction in annual losses is therefore an important milestone.
The key future question is whether increasing traffic and revenue can eventually produce:
Operational profit → EBITDA improvement → lower finance burden → PAT profitability → balance-sheet strengthening.
17. New Growth Opportunities
✈️ 1. Passenger Growth
The biggest immediate opportunity is increasing passenger traffic beyond the current 14–15 lakh annual level.
🌍 2. International Connectivity
More Gulf and international routes could materially increase passenger volumes.
🛍️ 3. Non-Aeronautical Revenue
Duty-free, retail, food & beverage, advertising, parking, lounges and concessions can improve revenue per passenger.
📦 4. Cargo
The airport can potentially become a larger logistics gateway for North Kerala.
🏗️ 5. Commercial Development
Airport-linked commercial infrastructure can diversify revenue.
☀️ 6. Solar Power
KIAL has been developing solar-power infrastructure to reduce its energy costs and improve sustainability.
ACI reported in February 2026 that the airport’s solar power plant was nearing completion.
🛫 7. Additional Airlines
The potential entry/expansion of airlines can increase aircraft movements and passenger traffic.
ACI reported that Air India Express and IndiGo were expected to reinstate certain cancelled flights during the summer schedule, while prospective operations by Alhind Air and Air Kerala could potentially strengthen connectivity.
18. Current Unlisted Share Price
KIAL shares are not listed on NSE or BSE.
Unlisted-market prices therefore vary depending on the intermediary and transaction.
Recent September 2026 indicative references include:
- Around ₹124 in one unlisted-share market reference
- Around ₹127 on Moneycontrol’s partner-derived indicative price
- Around ₹131.80 on Planify as of 14 September 2026
- Around ₹135 on another unlisted-market platform
These are indicative private-market references, not exchange prices.
Indicative Equity Value
Using 13.38389 crore outstanding shares:
| Indicative Price | Approx. Implied Equity Value |
|---|---|
| ₹120 | ₹1,606 Cr |
| ₹125 | ₹1,673 Cr |
| ₹130 | ₹1,740 Cr |
| ₹135 | ₹1,807 Cr |
| ₹140 | ₹1,874 Cr |
These calculations represent implied equity value only and should not be interpreted as fair-value estimates.
19. Valuation Consideration
KIAL is a particularly interesting valuation case because conventional P/E analysis is currently not meaningful while the company remains loss-making.
The investment case therefore needs to focus on:
- Passenger growth
- Revenue per passenger
- International connectivity
- Aeronautical revenue
- Non-aeronautical monetisation
- EBITDA improvement
- Finance-cost reduction
- Debt reduction
- Path to sustainable PAT profitability
At approximately ₹125–₹135 per share, the implied equity value is roughly ₹1,670–₹1,810 crore.
Investors should compare this equity value against the airport’s asset base, debt, passenger-growth potential and eventual earnings capacity rather than relying solely on current EPS.
20. IPO / Listing Status
KIAL remains an unlisted public company.
Moneycontrol currently shows DRHP Status: No, meaning there is no DRHP reflected on its platform at present.
Therefore, investors should not assume that an IPO is imminent.
An eventual listing could provide liquidity and broader price discovery, but there is no confirmed IPO timetable that should be treated as certain.
21. Management
The company’s board includes representatives from:
- Government of Kerala
- Airports Authority of India
- Bharat Petroleum Corporation
- Private investors
- Independent directors
The company’s FY2024-25 annual report identified C. Dinesh Kumar as Managing Director.
The current company website lists Dinesh Kumar C as Managing Director along with directors representing government, AAI, BPCL and other stakeholders.
22. Key Strengths
1. Government-backed airport infrastructure
Government of Kerala is the largest shareholder.
2. Strategic location
Kannur serves the North Malabar region and a large overseas population.
3. Strong international passenger mix
International traffic remains a major component of total passenger movement.
4. Improving traffic
FY2026 passenger traffic reached approximately 14.34 lakh, while CY2025 traffic reached a record 15.1 lakh.
5. Revenue growth
FY2025 operating revenue almost doubled year-on-year.
6. Loss reduction
FY2025 consolidated loss narrowed to approximately ₹93.8 crore from ₹168.5 crore.
7. Multiple revenue streams
Aeronautical + non-aeronautical + cargo + commercial revenue.
23. Key Risks
1. Continued Losses
KIAL remained loss-making at the PAT level in FY2025.
2. High Debt
Debt-to-equity was approximately 2.42x in FY2025.
3. Finance Costs
Finance costs were approximately ₹125.43 crore in FY2025, creating significant pressure on profitability.
4. International Connectivity
The airport’s growth is highly dependent on additional international routes and airline participation.
5. Point of Call Uncertainty
The absence or delay of additional international connectivity permissions can constrain passenger growth.
6. Airline Concentration
A large portion of traffic is concentrated among a limited number of airlines.
7. Unlisted Liquidity
Shares are not traded on NSE/BSE, and investors may face difficulty finding buyers.
8. Price Discovery
Unlisted-market prices can vary considerably among intermediaries.
9. IPO Uncertainty
Investors should not assume that an eventual IPO will happen within a particular timeframe.
24. KIAL – Company Snapshot
| Particular | Details |
|---|---|
| Company | Kannur International Airport Limited |
| Sector | Infrastructure / Aviation |
| Industry | Airport Infrastructure |
| Status | Public Unlisted |
| CIN | U63033KL2009PLC025103 |
| ISIN | INE02Y401013 |
| Face Value | ₹100 |
| Incorporated | December 2009 |
| Commercial Operations | 9 December 2018 |
| Airport Location | Mattannur, Kannur, Kerala |
| Runway | 3,050 metres |
| FY2026 Passenger Traffic | ~14.34 lakh |
| CY2025 Passenger Traffic | ~15.1 lakh |
| FY2025 Revenue from Operations | ₹190.93 Cr |
| FY2025 Consolidated PAT | -₹93.79 Cr |
| FY2025 Aero Revenue | ₹160.15 Cr |
| FY2025 Non-Aero Revenue | ₹25.77 Cr |
| FY2025 Debt | ~₹1,213 Cr |
| Debt/Equity | ~2.42x |
| Government of Kerala Holding | 39.23% |
| BPCL Holding | 16.20% |
| AAI Holding | 7.47% |
| M.A. Yusuffali Holding | 8.59% |
| Outstanding Shares | 13.38389 Cr |
| Current Unlisted Reference | ~₹124–₹135 |
| DRHP Status | No |
| IPO | No confirmed timetable |
25. Investment Perspective
Kannur International Airport represents an airport-infrastructure turnaround and growth story rather than a conventional profitable infrastructure company.
The historical challenge has been the combination of:
High capital expenditure + high finance costs + relatively low passenger traffic + limited international connectivity.
The emerging opportunity is:
Higher passenger traffic + improving international traffic + rising aeronautical revenue + increasing non-aeronautical revenue + operating break-even.
The most important numbers to monitor going forward are:
- Passenger traffic
- International passenger growth
- Aircraft movements
- Number of international destinations
- Airline additions
- Aero revenue
- Non-aero revenue
- EBITDA/operating profit
- Finance cost
- Debt reduction
- Annual cash generation
- Any formal development regarding Point of Call status or listing
The FY2025-26 operating data provides encouraging evidence of improving traffic and operating economics, but the company still carries substantial debt and had accumulated losses in its latest audited financial statements.
Therefore, the central long-term question for KIAL is whether rising passenger volumes and commercial monetisation can eventually translate into sustainable net profitability and balance-sheet improvement.
26. Important Links
Official Website:
Kannur International Airport – Official Website
Investor Information:
KIAL Investor Information
Annual Report FY2024-25:
KIAL Annual Report 2024-25
Traffic Information:
KIAL Passenger & Aircraft Traffic Data
Company Information:
KIAL About Us
Board of Directors:
KIAL Board of Directors
Unlisted Share Reference:
KIAL Unlisted Share Price – Planify
Unlisted Share Reference – Moneycontrol:
KIAL Unlisted Share Information – Moneycontrol
ACI Passenger Traffic Update:
Kannur Airport – 2025 Passenger Traffic Update
Disclaimer
This report is prepared for informational and educational purposes only and should not be considered investment advice, an offer to buy or sell securities, or a guarantee of future returns.
Kannur International Airport Limited is an unlisted company. Unlisted share prices are indicative, privately negotiated and may vary between intermediaries and transactions. Liquidity may be limited and price discovery is less transparent than for exchange-listed securities.
Financial information is based primarily on company disclosures and publicly available financial statements. FY2025 is the latest audited annual financial period available through the company’s investor-information portal used for this report, while FY2025-26 operational figures are based on subsequent company/industry updates.
An IPO or listing is not guaranteed, and investors should not base an investment decision solely on expectations of a future listing.
Investors should independently verify the latest financial statements, shareholding, taxation, regulatory developments, unlisted-market price and transaction terms before investing.
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