Oh man, things are not looking good for Çelebi in India. The fallout from the security clearance revocation has basically destroyed their operations in the country. They were bringing in a whopping ₹1,522 crore in revenue and ₹393 crore in EBITDA in FY24. That’s a big chunk of change right there. And to make matters worse, operations at nine of India’s busiest airports, including the big ones like Delhi, Mumbai, Bengaluru, and Chennai, have come to a screeching halt. Ouch.
So, the Indian government decided to pull the plug on Çelebi’s airport operations because of “national security” concerns. This move has not only wiped out nearly $200 million in shareholder value but also decimated a third of the Turkish company’s global revenue. I mean, that’s a huge blow. The company’s stock took a nosedive, plummeting 20% over two trading sessions. Shareholders must be feeling the pain right now.
To add insult to injury, Çelebi’s market capitalization dropped to ₹10,700 crore, which is a whopping 30% below its recent high. And get this, their most profitable units in India, Çelebi Delhi Cargo and Çelebi NAS, were raking in a combined ₹188 crore in profit after tax. India was a major cash cow for them, accounting for over $195 million of their $585 million global revenue. Now, with operations at major airports in India at a standstill, the company is facing an uphill battle to recover.
The company is now stuck with ₹183 crore in outstanding loans tied to its Indian business, and with operations on hold, the future looks uncertain. Their massive investment in ground handling and cargo infrastructure across India is now at risk of going down the drain. Çelebi has resorted to seeking relief from the Delhi High Court, but with the government citing national security concerns, it’s going to be a tough road ahead. Even if they win in court, it might not be enough to salvage lost contracts or regain investor trust.
Over 3,800 employees are feeling the brunt of this mess, with airports promising to find them new gigs with other service providers. The whole situation is a hot mess, and it’s unclear how things will unfold for Çelebi in the coming days. Let’s hope they can find a way to bounce back from this disaster, but the road ahead looks pretty rocky.