MRO Sector Poised for 50% Growth, Revenue to Hit ₹4,500 Crore by FY26

The Indian aircraft maintenance, repair and overhaul (MRO) sector is projected to experience a 50 percent revenue growth to Rs 4,500 crore in FY26, driven by new demand from airline operators increasing their fleet size, ratings agency Crisil reported on Monday.

The rating agency's research on three MRO operators, which represent 90 percent of the industry's revenue, also highlighted that decreasing GST on aircraft parts and services not only enhances the competitiveness of local MRO firms against international rivals but also alleviates their working capital constraints.

Indian MRO companies usually offer three categories of services -- line checks (conducted prior to each takeoff), air frame checks (every 12-18 months requiring the aircraft to be grounded for 3-4 weeks), and redelivery checks (when the lease period of 6-7 years concludes).

"The revenue from the domestic aircraft maintenance, repair, and overhaul sector is expected to exceed Rs 4,500 crore in fiscal 2026, marking a remarkable 50 percent increase compared to fiscal 2024." Crisil Ratings stated that the growth in scale will boost profit margins, and combined with stable debt levels, this should enhance debt protection metrics and fortify credit profiles.

According to the agency, the fleet of domestic operators is projected to increase by 20-25 percent by the following year, supported by the addition of new aircraft and the return of grounded planes (after resolving engine-related problems).