KOCHI: Cochin International Airport Ltd (CIAL) has drawn up a Rs4,000-crore capital expenditure programme to expand and modernise its airport infrastructure over the next five years, with around half the investment proposed to be financed through debt, according to a recent rating rationale.
The investment, planned during the fourth control period (April 1, 2026 to March 31, 2031), will cover expansion of Terminal 1 and associated airside works, development of a pier at Terminal 3, modifications to the cargo complex, revamp of safety infrastructure, IT systems and scanning equipment, besides airport buildings and road infrastructure.
The report said the airport operator proposes to fund nearly 50 per cent of the capital expenditure through borrowings, while the balance will be met from existing cash balances and internal accruals.
The proposed funding plan indicates that debt could account for around Rs2,000 crore of the total investment over the five-year period.
CIAL has already submitted its multi-year tariff proposal to the Airports Economic Regulatory Authority (AERA) for the fourth control period.
Revised tariff plan
However, implementation of the revised tariff is expected to be delayed by around six months from the earlier expectation of April 2026.
The proposed expansion comes as CIAL continues to maintain a comfortable financial position. The report estimates the airport's consolidated revenue at around Rs1,367 crore in FY26, compared with Rs1,312 crore in the previous year, while the company's audited financial statements for FY26 are yet to be released.
The report also noted that CIAL had around Rs950 crore of unencumbered cash balances as on March 31, 2026, providing adequate liquidity to support the planned investment programme. It added that despite the proposed borrowings, the airport's leverage and debt-servicing metrics are expected to remain comfortable, supported by healthy operating cash flows.
The expansion programme is expected to strengthen passenger handling capacity, improve cargo infrastructure and upgrade operational, safety and digital systems to support future growth.
