Insights into Unlisted Shares of Cochin International Airport Limited (CIAL)

Cochin International Airport Limited (CIAL) is a trendsetter for India’s aviation industry and has set standards in infrastructure on all counts and has made greater strides in sustainability and business innovation. As the first greenfield airport in India constructed by the public-private partnership (PPP) model, CIAL has transformed the functioning of airports.

One of the key milestones for CIAL was becoming the first airport in the world to run entirely on solar power in 2011, a move that placed it at the forefront of sustainability and technological pioneer. Commercial operations at the airport began on 10 June 1999 and, within four years, it had become the fourth-busiest international airport in India in terms of international passenger traffic.

CIAL unlisted shares are an intriguing opportunity for investors, as the company has decent financials, a strong market position, and growing operations.

The Visionary Leaders Behind CIAL

Mr. V. J. Kurian, IAS, founder and former managing director, is the brain behind CIAL’s success. It was Mr. Kurian who got the approval for an international airport on a PPP model with the backing of the late Mr. K. Karunakaran, the former Chief Minister of Kerala. Under his leadership, CIAL went from an idea to an international aviation success story.

Business Growth in FY22

• In FY22, revenue jumped to ₹525 crores, from ₹269 crores in FY21.
• CIAL was third among international airports in the country with a passenger volume of 4.7 million.
• Passenger movement remained 92.66% higher, but inbound-outbound aircraft movement rose to 60.06%.
• Maintaining hydrant fuelling systems in all aircraft parking areas, CIAL is one of the few airports in India with this at its premises, which helps for quicker refuelling and lesser turnaround time.
• GENEVA: Due to its ideal location, the airport is becoming a popular fuel stopover hub for flights between the Middle East and SouthEast Asia.
• International cargo movement increased from 35,000 tons in FY21 to 46,000 tons in FY22 and domestic cargo from 10,000 tons to 13,000 tons.

Business Model & Revenue Streams of CIAL

CIAL’s diversified business model distinguishes revenue between aeronautical and non-aeronautical sectors which provide sustainable profitability.

• Aeronautical Revenue (50% of Total Revenue)
• This segment contains revenue from core operations of the airport:
• User Development Fees (UDF): 30% of the revenue in FY24
• Landing fees: Applicable to airlines, ₹160 crores.
• Common Use Terminal Equipment (CUTE) & X-ray Screening: ₹100 crores
• Cargo Operation: ₹43 crores revenue added.

Key Financial Highlights

• EBITDA margins grew to 62%, a measure of operational efficiency.
• PAT however increased by 52.7% indicating solid profitability.
• Financial Stability — The business is financially sound, positioning itself for ongoing sustainability.

Future Growth Prospects of CIAL

CIAL’s long-term growth strategy is focusing on expansion, premium services and new airport projects.

1️⃣ Infrastructure Development

• T3 BACKGROUND Terminal 3 (T3) already needs to be expanded to cater more passengers.
• This new five-star property is located in collaboration with Taj Hotels, designed for the elite travelers.

2️⃣ Premium Services & Diversification

• Increased revenues from duty-free sales and solar power generation.
• Management and bids for new airports—like Adani’s airport privatization.

3️⃣ Growth of the Market & Boom in Air Travel

• India’s aviation industry has been growing 10-12% every year.
• Increasing per capita income has also been contributing to air travel demand, which is beneficial for CIAL.
• Valuation and Investment Potential of CIAL Unlisted Shares
• CIAL has a market capitalization of ₹21,000 crores.
• At ₹447 crores in PAT, the P/E ratio for the company is at 46x.
• FY23 PAT of Bangalore Airport at ₹500 crores now valued at ₹35,000-40,000 crores

CIAL is a high-profit, high-revenue growth company, which makes it a good candidate for an investment.

Final Thoughts: Why CIAL Unlisted Shares Are Worth The Investment?

✅ Financially Strong – EBITDA margins of 50-60%, increasing revenue & profitability.

✅ Go green – a fully solar powered company with plans to grow.

✅ Variegated Business Model – Butted and Guaged aeronautical & non-aeronautical top-line.

✅ The 3rd largest International Airport in India – Strategic Market Position.

✅ Long-Term Growth Potential – Auction new airports + Premium Services

The Crux: The unlisted CIAL shares are placing long-term shareholders at an upside owing to booming India’s aviation sector.