NEW DELHI, Dec. 31 -- Star Air, owned by Ghodawat Enterprises Pvt Ltd, expects revenue to rise to about Rs.1,100 crore in FY26-nearly 70% higher than the Rs.650 crore recorded last year-as the regional airline scales up operations, expands its fleet and raises fresh capital to double down on India's smaller cities.

In FY25, the company reported revenue of around Rs.650 crore, of which nearly a third, about Rs.200 crore, came from viability gap funding (VGF), said Shrenik Ghodawat, executive director of the group. The company is privately held and is yet to file its FY25 numbers with the Ministry of Corporate Affairs (MCA).

VGF is a subsidy provided by the Centre under the UDAN regional connectivity scheme to ensure the commercial viabil...