KOCHI: The Lulu group chairman, M.A. Yusuffali, has added another 11 lakh shares of Cochin International Airport Ltd (CIAL) to his holding, taking his stake in the airport company to 12.34 per cent from 12.11 per cent in FY26.
Yusuffali held 5.79 crore CIAL shares at the beginning of FY26. By March 31, 2026, this had risen to 5.90 crore shares — an increase of exactly 11 lakh shares.
Interestingly, the increase did not come through a fresh issue of shares by CIAL. The company's paid-up share capital remained unchanged at 47.82 crore shares during the year, indicating that the shares acquired by Yusuffali were transferred from existing shareholders.
Who sold the 11 lakh shares, however, is not disclosed in CIAL's annual report. That leaves an interesting piece of the transaction unexplained.
Yusuffali's increased holding also comes against a backdrop of significant concentration among CIAL's three largest shareholders. The Kerala government holds 33.38 per cent, Yusuffali 12.34 per cent and N.V. George 5.92 per cent. Together, they account for 51.64 per cent of CIAL.
The concentration itself is not new — the three had already crossed the 51 per cent mark in FY23. But Yusuffali's latest purchase further strengthens his position among CIAL's largest private shareholders.
Yusuffali's airport interests extend beyond CIAL. He is also the second-largest shareholder in Kannur International Airport Ltd (KIAL), with an 8.59 per cent stake, behind the Kerala government's 39.23 per cent.
The contrast between the two airports is striking. CIAL remains strongly profitable, while KIAL has remained loss-making since commencing commercial operations in December 2018. KIAL's loss narrowed substantially in FY25, but it still reported a consolidated loss of about Rs94 crore.
CIAL shares in grey-market
The latest share purchase also puts a spotlight on the value at which CIAL's unlisted shares are changing hands.
The indicative grey-market price is around Rs450 a share, against a book value (BV) of roughly Rs56. That puts CIAL's valuation at around eight times book value — a substantial premium for an airport company that is not listed on any stock exchange.
The comparison with listed airport operator GMR Airports needs some caution because the two businesses and their balance-sheet structures are very different.
GMR operates a much larger portfolio of airports, while CIAL is centred on Kochi. Still, the steep premium over book value commanded by CIAL's unlisted shares underlines how investors value the airport's profitability and cash-generating ability.
CIAL's FY26 numbers provide some support for that valuation.
Total income rose to about Rs1,220 crore, while profit after tax (PAT) increased to Rs502 crore from Rs490 crore a year ago. More significantly, standalone borrowings fell to about Rs277 crore from Rs401 crore — a reduction of more than 30 per cent.
User fee cut, but collections rise
CIAL's financial performance has also benefited from its aeronautical revenues. But the user development fee (UDF) story is particularly interesting.
The UDF was cut, not increased, from January 1, 2026 — from Rs270 to Rs230 for domestic passengers and from Rs570 to Rs480 for international passengers. Yet CIAL's UDF revenue rose to nearly Rs236 crore in FY26 from Rs232 crore in FY25, helped by higher passenger traffic.
Shareholders have repeatedly raised the prospect of listing CIAL's shares at the company's AGMs. CIAL, however, has said it currently has no plans for an IPO, citing regulatory requirements relating to the debt-equity ratio.
So, while the possibility of a CIAL listing remains firmly on the ground, its shares are already finding their own market — and at a price that values the airport at roughly eight times its book value (BV).
