GMR Airports Limited
GMR Airports Limited (formerly GMR Airports Infrastructure Ltd., ticker: GMRAIRPORT) is the largest private airport operator in India, the largest in Asia, and the second-largest globally by passenger count. Incorporated in 1996, the company has built an end-to-end airports platform spanning development, construction, operations, retail, cargo, and security services.
The GMR group’s airports arm operates through GMR Airports Limited (GAL), in which France’s Groupe ADP holds a 49% strategic stake — a partnership that brings global operational expertise and financial credibility. The holding company, GMR Airports Infrastructure Ltd., retains majority control.
Core operational assets include Delhi’s Indira Gandhi International Airport (DIAL, 74% stake) — rated the best airport in Asia Pacific for 40mn+ pax category — and Hyderabad’s Rajiv Gandhi International Airport (GHIAL, 74% stake). The Mopa Greenfield Airport in Goa (100%) is a newer addition, and international assets include Mactan Cebu (Philippines) and a stake in the upcoming Heraklion airport in Crete, Greece.
Strategically, GMR’s moat lies in its long-duration concessions (Delhi: 41 years from COD; Hyderabad: 43 years), large real estate land banks (~2,510 acres across airports), and a captive non-aero revenue engine that includes duty-free retail, F&B, advertising, cargo, and ground handling.
GMR’s revenue trajectory has meaningfully accelerated since FY23, driven by recovering air traffic post-COVID and tariff revision at Delhi airport (effective FY23). The company’s EBITDA margin has expanded from ~37.8% in FY24 to ~43.8% in FY25, reflecting operating leverage kicking in.
| Metric (Consolidated, ₹ Cr) | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue from Operations | 4,120 | 5,480 | 7,590 | 9,590 | 11,413 |
| EBITDA | 780 | 1,620 | 3,180 | 3,625 | 5,000 |
| EBITDA Margin (%) | 18.9% | 29.6% | 41.9% | 37.8% | 43.8% |
| Depreciation | 950 | 1,050 | 1,120 | 1,230 | 1,602 |
| Finance Costs | 2,240 | 2,350 | 2,520 | 2,740 | 3,465 |
| Net Profit / (Loss) | (2,610) | (2,200) | (680) | 910 | (180) |
| Operating Cash Flow (₹ Cr) | 46 | (25) | 132 | 7 | 413 |
| Revenue Growth (YoY) | — | 33% | 39% | 26% | 19% |
Q3 FY26 results underline the strong revenue ramp: ₹3,994 Cr revenue (+50.5% YoY) with OPM expanding to 43%+. The profit decline vs Q3 FY25 is primarily due to lower other income and a one-time effect — underlying operating trajectory is positive. Management is targeting AAA-rated balance sheet as net debt stabilizes, enabling future dividend distributions.
| Quarter | Revenue (₹ Cr) | EBITDA (₹ Cr) | OPM % | Net Profit (₹ Cr) |
|---|---|---|---|---|
| Q3 FY25 | 2,653 | 992 | 37% | 267 |
| Q4 FY25 | 2,863 | 1,009 | 35% | — |
| Q1 FY26 | 3,205 | 1,165 | 36% | — |
| Q2 FY26 | 3,670 | 1,447 | 39% | (37) |
| Q3 FY26 | 3,994 | 1,701 | 43% | 122 |
We conduct a 10-year DCF on GMR’s consolidated free cash flows, using a WACC of 12% and a terminal growth rate of 5%, reflecting India’s long-term aviation GDP premium. FCF estimates are anchored on EBITDA ramp from ₹5,000 Cr (FY25) toward ₹10,500+ Cr by FY35, offset by significant capex at Bhogapuram, Crete and expansion at DIAL/GHIAL.
The DCF is inherently sensitive to capex assumptions and interest rate trajectory. At ₹88–95, the stock trades at a ~20–25% discount to our base-case intrinsic value. Given the high financial leverage (net debt ~₹30,000+ Cr) and long concession durations, EV/EBITDA is a more reliable cross-check — peers trade at 18–22x; GMR at ~25x on FY26E is a slight premium, justified by India’s superior traffic growth outlook.
Given GMR’s high-debt, long-gestation profile, position sizing discipline is critical. We recommend staggered accumulation across three zones:
For investors holding the stock, the following price ranges should guide partial or full exit decisions:
GMR sits at the intersection of two powerful macro tailwinds: India’s booming aviation market and the global shift toward privatised airport infrastructure. The company’s future earnings potential rests on four levers:
- Aero Revenue Ramp: GHIAL tariff revision (moratorium expires FY35; FY35 base ₹303/pax domestic, ₹606/pax international) will unlock significant aero income. DIAL continues to handle 80mn+ pax annually.
- Non-Aero Revenue Scale: Duty-free retail launched at Delhi from July 2025. Advertising, F&B, ground handling, and cargo are fast-growing, high-margin verticals that GMR is investing in aggressively.
- New Airport Completions: Bhogapuram (Visakhapatnam, 100% stake, 4mn pax Phase 1) and New Heraklion Airport (Crete, 21.6%) are key near-term catalysts. Nagpur operations (100%) commenced in FY26.
- Real Estate Monetization: ~2,510 acres of land at Delhi, Hyderabad, and Goa airports is an under-appreciated asset. Commercial development can generate capital-light, high-IRR returns over the next decade.
| Metric | FY25A | FY26E | FY27E | FY28E |
|---|---|---|---|---|
| Revenue (₹ Cr) | 11,413 | 14,800 | 17,500 | 20,200 |
| EBITDA (₹ Cr) | 5,000 | 6,800 | 8,300 | 9,800 |
| EBITDA Margin (%) | 43.8% | 46% | 47.4% | 48.5% |
| PAT (₹ Cr) | (180) | 200 | 800 | 1,800 |
| Revenue CAGR (3-Yr) | ~21% CAGR (FY25–FY28E) | |||
| Company | Country | Mkt Cap (Cr/Bn) | EV/EBITDA | Revenue Growth | EBITDA Margin | Rating |
|---|---|---|---|---|---|---|
| GMR Airports Ltd | India | ₹96,300 Cr | ~25x FY26E | 19% FY25 | 43.8% | Accumulate |
| Adani Airports (via AAHL) | India | Unlisted | ~22–26x | ~18–20% | ~40% | N/A |
| Groupe ADP (Partner) | France | €16 Bn | ~18x | ~12% | ~38% | Buy |
| Fraport AG | Germany | €4.2 Bn | ~14x | ~10% | ~36% | Hold |
| Macquarie AirFinance | Global | — | ~16x | — | ~42% | N/A |
GMR commands a premium EV/EBITDA vs. developed-market peers — justified by India’s superior traffic growth runway (8–10% CAGR vs. 2–4% in Europe). The discount vs. intrinsic value (~20%) reflects residual debt concerns, which are gradually resolving.
