Adani Defence Secures 99.98% Stake in Air Works India

Adani Consolidates Control Over Aviation MRO Firm

Adani Enterprises announced that its wholly-owned subsidiary, Adani Defence Systems & Technologies Ltd (ADSTL), has increased its stake in Air Works India (Engineering) Pvt. Ltd. to 99.98%. This move, which gives the Adani Group near-total control over one of India's oldest and largest Maintenance, Repair, and Overhaul (MRO) companies, was finalized after acquiring an additional 14.2% shareholding from Punj Lloyd Aviation Ltd.

The transaction solidifies Adani's strategic presence in the Indian aviation services and defence sectors. It is a significant step in the group's ambition to build a comprehensive aerospace and defence ecosystem, aligning with national initiatives like 'Aatmanirbhar Bharat' (Self-reliant India).

Details of the Transaction

According to a regulatory filing, ADSTL executed a Share Purchase Agreement (SPA) on March 1, 2026, to acquire the additional stake. This purchase increased its existing holding of 85.76% to the current 99.98%. The deal was a cash transaction conducted at an enterprise value of ₹400 crore. The company confirmed that the acquisition does not fall under related party transactions and was conducted at arm's length.

This acquisition effectively completes a near-total takeover of Air Works, allowing Adani Enterprises to directly oversee its strategic direction and operational management. The move is expected to unlock significant operational synergies and cross-selling opportunities with other Adani Group ventures in the aviation and defence industries.

Strategic Importance for Adani Group

The acquisition is a cornerstone of Adani's broader strategy to establish a dominant presence in India's aviation landscape. By integrating Air Works, Adani aims to create a robust platform for MRO services, complementing its existing interests in airport infrastructure and other aviation-related services. The group plans to consolidate its MRO operations, potentially integrating Air Works with other entities like Indamer Technics, to create a leading private MRO platform in the country.

This enhanced control over Air Works also bolsters Adani's defence MRO capabilities, supporting the government's push for indigenous defence manufacturing and maintenance. The integration is expected to provide end-to-end solutions across the defence and aerospace value chain, from manufacturing to long-term maintenance support.

Air Works India: A Legacy in Aviation Services

Established in 1951, Air Works is India's largest privately-owned aviation services and MRO company. It provides a wide range of maintenance services to aircraft owners, operators, lessors, and airlines both in India and internationally. The company has demonstrated strong financial growth in recent years.

This consistent growth highlights the company's strong market position and operational efficiency, making it a valuable asset for the Adani Group's expansion plans.

Context of the Sale: Punj Lloyd's Liquidation

The sale of the 14.2% stake by Punj Lloyd Aviation Ltd is part of the parent company's ongoing liquidation process. Punj Lloyd Limited is undergoing liquidation under the supervision of the National Company Law Tribunal (NCLT). Adani Infra (India) Limited had previously emerged as the successful bidder for a portfolio of Punj Lloyd's assets, which included its defence unit and the stake in Air Works. This transaction, therefore, represents a key milestone in the asset realization process for Punj Lloyd's creditors.

Market Reaction and Future Outlook

Following the announcement on March 11, 2026, shares of Adani Enterprises Limited closed at ₹1,974.70 on the National Stock Exchange (NSE), marking a decline of 1.09% for the day. The market's reaction reflects a broader sentiment, while investors in Adani Enterprises see this as a strategic consolidation in a high-growth sector.

With near-complete ownership, Adani's immediate focus will be on the seamless integration of Air Works' operations into its larger corporate structure. The group is expected to leverage its management expertise to enhance operational efficiencies, develop new MRO service lines, and aggressively expand its market share in both the commercial and defence aviation sectors.

Conclusion

Adani Defence's acquisition of a 99.98% stake in Air Works India is a decisive move that significantly strengthens its position in the Indian aerospace and defence MRO market. By taking near-total control, the Adani Group is well-positioned to capitalize on the growing demand for aviation services in the country, drive synergies across its businesses, and contribute to India's self-reliance goals in critical industrial sectors. The focus now shifts to the successful integration and future growth of Air Works under its new ownership.