Government spending on airport infrastructure in India is expected to rise in the coming years. The Airports Authority of India (AAI) has taken up developmental projects worth around Rs 25,000 crore for the period between 2025 and 2029. These projects include expansion and modification of existing terminals. They also include construction of new terminals, strengthening of runways and aprons, and development of control towers and air navigation infrastructure.
At the same time, private airport operators are also investing in capacity expansion. PPP airports at Delhi, Hyderabad and Bengaluru have undertaken development projects worth around Rs 30,000 crore for terminal upgrades and infrastructure expansion. In addition, around Rs 36,000 crore has been planned for the development of new greenfield airports across the country under the PPP model.
As airport development gathers pace, companies involved in building airport infrastructure may see new opportunities. Large projects such as terminal construction, runway expansion and airport facilities usually involve engineering and construction companies. Airport operators may also benefit as expansion improves capacity and supports rising passenger traffic.
For this article, we focused on companies that are closely linked to this infrastructure cycle. Some of them build large infrastructure projects, including airport terminals and related facilities. Others develop and operate airports directly. The idea was to select companies that are likely to benefit from airport expansion rather than firms that have only limited exposure to the aviation sector.
#1 GMR Airports: The Direct Proxy for Passenger Growth
GMR Airports is mainly engaged in the development, maintenance and operation of airports, generation of power, coal mining and exploration activities, development of highways, development, maintenance and operation of special economic zones, and construction business including engineering, procurement and construction (EPC) contracting activities.
GMR Airports Limited operates some of India’s largest airport assets including Delhi, Hyderabad and Mopa (Goa). Airports managed by the group handled 31.9 million passengers in Q3 FY26, up 2.5% year-on-year (YoY), and accounted for roughly 27% of India’s passenger traffic. This highlights the company’s central role in the country’s airport infrastructure ecosystem.
Financial performance improved during the quarter. Gross income rose to Rs 40.8 billion in Q3 FY26, up about 49% YoY. However, net profit stood at around Rs 1.7 billion, slightly lower than the Rs 2.0 billion reported in the same quarter last year.
The company is also expanding its infrastructure footprint. The Bhogapuram airport project in Andhra Pradesh is nearly complete with about 95.8% progress, and is expected to be operational by Q2 FY27. At the same time, the group continues to develop commercial assets around airports, including office space, retail projects and hotels.
Despite its strong position in the airport ecosystem, the company’s financial fundamentals remain relatively weak due to high debt and historically volatile profitability. GMR remains a pivotal play for investors seeking direct exposure to India’s airport volumes.
As passenger traffic grows and new airport projects become operational, companies that operate major airport assets may benefit from rising aero and non-aero revenues over time.
In the past year, share price of GMR Airports rallied 32.7%
GMR Airports 1 Year Share Price Chart
#2 Larsen & Toubro: The EPC Giant with a Rs 7-Trillion Order Backlog
Larsen & Toubro (L&T) is a multinational conglomerate which is primarily engaged in providing engineering, procurement and construction (EPC) solutions in key sectors such as infrastructure, hydrocarbon, power, process industries and defence, information technology, and financial services in domestic and international markets.
For the quarter ended December 2025 (Q3 FY26), the group reported revenue of about Rs 71,400 crore, up around 10% YoY. Recurring profit after tax rose about 31% YoY to Rs 4,400 crore, reflecting improved operational efficiency and higher project activity. However, reported net profit stood at Rs 3,200 crore, down about 4% YoY due to a one-time provision linked to new labour code regulations.
Order inflows remained strong during the quarter. The company secured new orders worth about Rs 1.36 trillion, registering a 17% increase compared with the same period last year. L&T’s total order book stood at around Rs 7.33 trillion as of December 2025, up roughly 30% year-on-year. Infrastructure and energy projects together account for nearly 92% of the order book.
L&T has also built a strong track record in airport infrastructure development. The company has executed construction works for several major airports including Navi Mumbai International Airport and Bhogapuram International Airport in Andhra Pradesh, along with expansion works at Delhi, Hyderabad, Bengaluru and Chennai airports.
These projects typically involve large EPC contracts covering terminal buildings, runways, airside infrastructure and air traffic control towers. This experience places the company among the key engineering contractors capable of executing large airport infrastructure projects in India.
Beyond India: The Middle East Pivot in Airport Engineering
International markets are also becoming increasingly important for L&T. Nearly half of the order book comes from overseas projects, with the Middle East accounting for a large share. Governments in the region continue to invest heavily in energy infrastructure, digital infrastructure and large urban development projects.
Looking ahead, the company’s project pipeline remains strong. L&T reported a near-term prospects pipeline of about Rs 5.9 trillion, driven largely by infrastructure and energy opportunities. As public and private sector capex continues to expand, the company is likely to remain a key engineering partner in large infrastructure projects, including airport development.
In the past year, share price of Larsen Toubro surged 22.1%
Larsen Toubro 1 Year Share Price Chart
#3 NCC: A Strategic Play on Urban Civil Aviation Infrastructure
Incorporated in 1978, NCC undertakes turnkey EPC contracts and build, operate, and transfer (BOT) projects on public-private partnership basis.
For the quarter ended December 2025, NCC reported consolidated revenue of about Rs 4,868 crore, compared with Rs 5,345 crore in the same quarter last year. Consolidated net profit stood at around Rs 135 crore during the quarter as compared to Rs 206 crore reported in the same quarter a year ago. Margins remained relatively stable even as execution slowed in some projects.
The company continues to maintain a strong project pipeline. As of December 31, 2025, NCC had an order book of around Rs 79,571 crore. In the December quarter, the company secured new orders worth about Rs 12,430 crore.
A large part of the work comes from building projects, which form about 31% of the order book. Transportation projects account for around 22%, while electrical transmission and distribution work contributes about 18%. The rest includes mining, water, railway and irrigation projects. These segments often overlap with large urban infrastructure projects, including airport terminals, civil works and related infrastructure.
NCC has also executed airport infrastructure projects in India. The company has delivered work at airports such as Agartala in Tripura, Patna in Bihar and Lucknow in Uttar Pradesh. It is also involved in works related to the Navi Mumbai International Airport project. These projects typically involve terminal construction, civil works and supporting infrastructure, highlighting the company’s capabilities in complex public infrastructure projects.
Navigating Execution Headwinds: The Jal Jeevan Impact
Execution during the quarter slowed mainly due to payment delays in Jal Jeevan Mission water supply projects. The company had expected to execute Rs 4,000–Rs 5,000 crore worth of work in this segment during the year. However, delayed payments affected project progress. Management said some payments have started to come in and execution is gradually picking up again.
Despite near-term execution challenges, NCC retains a large order backlog and continues to bid for infrastructure projects across sectors. As payment flows improve and projects move from mobilization to execution, the company expects activity to gradually recover in the coming quarters.
In the past year, share price of NCC tumbled 20.7%
NCC 1 Year Share Price Chart
#4 Ahluwalia Contracts (India): Winning the High-Value Terminal Redevelopment Race
Ahluwalia Contracts (India) is engaged in engineering and contract construction, delivering state of-the-art infrastructure and buildings projects for clients in India.
The company has experiences in working on residential, commercial, institutional, corporate offices, power plants, hospitals, hotels, IT parks, Metro stations and depots, and automated car parking lots for the government as well as private clients
For the quarter ended December 2025 (Q3 FY26), the company reported income from operations of about Rs 1,061 crore, compared with Rs 952 crore in the same quarter last year. Revenue in the quarter was higher than the same period last year by about 11%. Net profit came in at around Rs 54 crore, compared with Rs 49.4 crore in Q3 FY25.
The company also has a large order book. As of December 31, 2025, the total order book stood at about Rs 26,586 crore. Out of this, around Rs 18,679 crore is yet to be executed. During the year so far, the company has won orders worth about Rs 9,562 crore, which will keep work going in the coming years.
Ahluwalia Contracts is currently handling several projects across different construction segments. These include the redevelopment of Chhatrapati Shivaji Maharaj Terminus (CSMT) in Mumbai with a project value of about Rs 2,450 crore, along with large residential and commercial developments in cities such as Mumbai and Gurugram.
Airport infrastructure also forms part of the company’s project portfolio. The company has executed and undertaken works at several airports, including terminal construction projects at Darbhanga Airport in Bihar and Birsa Munda Airport in Ranchi. It is also executing a Rs 893 crore terminal development project at Lal Bahadur Shastri International Airport in Varanasi.
In addition, Ahluwalia Contracts has delivered airport-related infrastructure such as the Pullman and Novotel hotels within the Delhi IGI Airport precinct, while emerging as the L1 bidder for the proposed Kota greenfield airport project in Rajasthan.
In terms of segment mix, residential projects account for about 44.7% of the unexecuted order book. Infrastructure work forms about 19.7% of the order book. Commercial projects contribute around 19.2%. The rest of the work comes from areas such as hospitals, institutional buildings and hotels. In terms of clients, the private sector accounts for nearly 68% of the order pipeline, while the remaining share comes from government projects.
The company also has a large order backlog and projects across different types of construction work. This allows it to take up large projects such as airport terminals, transport hubs and other urban developments. As infrastructure activity continues in the country, such projects may support future growth.
In the past year, share price of Ahluwalia Contracts is up 4.5%
Ahluwalia Contracts 1 Year Share Price Chart
Valuation Check: Are These Stocks Trading at a Premium to History?
Let’s now turn to the valuations of the companies in focus, using the Enterprise Value to EBITDA multiple as a yardstick.
Valuations of Companies in focus
| Sr No | Company | EV/EBITDA Ratio | 5-Year Average EV/EBITDA | Industry Median | ROCE | ROE |
| 1 | GMR Airports | 23.9 | 26.4 | 15.0 | 6.9% | – |
| 2 | Larsen Toubro | 15.8 | 15.5 | 9.2 | 14.5% | 16.6% |
| 3 | NCC | 5.5 | 6.2 | 21.7% | 11.4% | |
| 4 | Alhuwalia Contracts | 8.3 | 12.0 | 18.5% | 11.9% |
Return ratios give an idea of how efficiently companies are using capital. NCC reports the highest ROCE at 21.7%. Ahluwalia Contracts reports ROCE of 18.5%. Larsen & Toubro has ROCE of 14.5% and ROE of 16.6%. These numbers point to steady returns for a large engineering company. GMR Airports shows ROCE of 6.9%. Airport businesses usually need heavy investment, so returns tend to be lower.
Valuations are also different across these companies. GMR Airports trades at 23.9 times EV/EBITDA, higher than the industry median of 15, though still below its five-year average of 26.4. Larsen & Toubro trades at 15.8 times EV/EBITDA, close to its five-year average of 15.5, but above the industry median of 9.2. NCC trades at 5.5 times EV/EBITDA, lower than its five-year average of 6.2. Ahluwalia Contracts trades at 8.3 times EV/EBITDA, also below its five-year average of 12.
India is planning to expand airport infrastructure in the coming years. Building airports requires work on terminals, civil structures, runways and other facilities. Construction companies are usually involved in these projects.
GMR Airports operates airport assets and benefits directly from expansion. Larsen & Toubro, NCC, and Ahluwalia Contracts work as engineering contractors that build large infrastructure projects. Their order books and project execution will decide how much they benefit as airport development moves ahead.
The Bottom Line: Can Infrastructure Capex Outpace Sector Headwinds?
Air travel in India has been growing over the past few years. More people are flying and several airports are expanding their capacity. New terminals are being planned and some cities are also getting new airports.
Such projects usually create work for companies involved in construction and infrastructure. Airport operators benefit from higher passenger traffic. Construction companies take up work related to terminals and other airport facilities.
The companies discussed above are connected to this broader theme in different ways. Some operate airports, while others build the infrastructure. Investors may keep an eye on these companies and see how they benefit as airport development continues.
You can track how these benefit from increased government spending on airport infrastructure by adding stocks to your watchlist.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to deep dive into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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