GMR Airports Shares Poised to Re-Test ₹100 Mark After Strong Q4 and FY26 Outlook
Jefferies maintains a 'Buy' rating on GMR Airports shares, citing robust Q4 performance and a promising FY26 outlook. The brokerage has raised its price target to ₹100, driven by multiple tailwinds including consistent air traffic growth, rising travel retail revenues, and real estate monetisation opportunities.
Gmr AirportsEbitdaStock MarketAir Traffic GrowthReal Estate MonetisationReal Estate NewsMay 26, 2025
GMR Airports reported a significant EBITDA beat in Q4, with EBITDA rising 24% year-on-year to ₹1,010 crore, surpassing the estimated ₹940 crore. This growth was driven by a 10% increase in passenger traffic, a 13% surge in non-aeronautical revenue, and higher land monetisation income at Delhi International Airport (DIAL), partly due to one-off gains.
For the fiscal year 2025 (FY25), EBITDA grew by 27% year-on-year, and the company is poised for even stronger growth in FY26, with an expected acceleration of over 45%. Key drivers for this growth include the implementation of new tariffs at DIAL, full consolidation of Delhi Duty-Free operations, and continued expansion in non-aero revenues.
The Airports Economic Regulatory Authority (AERA) has recently issued the final tariff order for Control Period 4 (CP4) at DIAL, effective April 16, 2025. These new tariffs are expected to enhance revenue visibility and drive strong profitability for both DIAL and GMR’s consolidated operations. Jefferies anticipates that DIAL will turn profitable in FY26.
In terms of financials, the management of GMR Airports has projected that gross debt may increase by ₹2,400 crore in FY26. This includes ₹1,700 crore for the Bhogapuram Airport capital expenditure (capex) and ₹600-700 crore at the standalone GAL level to cover the Nagpur concession, Bhogapuram equity contribution, and Delhi Duty-Free Services (DDFS) security payment. However, the net debt increase is expected to be offset by improved internal accruals from the higher aero tariffs.
The Bhogapuram Airport project is on track to be completed before December 2026. Starting Q2 of FY26, GMR Airports (GAL) will manage duty-free operations at both Delhi and Hyderabad airports. Additionally, once the concession agreement with Celebi ends, GAL will also take over cargo operations at DIAL.
Jefferies identifies several tailwinds for GMR Airports, including consistent air traffic growth, rising travel retail revenues, upward revision in aero tariffs, and opportunities for real estate monetisation. Reflecting the 100% consolidation of DDFS, the brokerage has raised its FY26 EBITDA estimates by 7-9%.
Out of the four analysts covering GMR Airports, three have a 'Buy' recommendation, while one has a 'Sell' rating. Shares of GMR Airports Ltd. are trading 0.30% higher on Monday at ₹87.12, and the stock has climbed 11% so far in 2025.
Frequently Asked Questions
What is the new price target for GMR Airports shares according to Jefferies?
Jefferies has raised its price target for GMR Airports shares to ₹100, up from ₹92, indicating a potential upside of 15% from the stock’s last closing price.
What factors contributed to GMR Airports' strong Q4 performance?
GMR Airports' strong Q4 performance was driven by a 10% increase in passenger traffic, a 13% surge in non-aeronautical revenue, and higher land monetisation income at DIAL, partly due to one-off gains.
What are the key drivers for GMR Airports' projected growth in FY26?
Key drivers for GMR Airports' projected growth in FY26 include the implementation of new tariffs at DIAL, full consolidation of Delhi Duty-Free operations, and continued expansion in non-aero revenues.
What is the expected impact of the new tariffs issued by AERA for CP4 at DIAL?
The new tariffs issued by AERA for CP4 at DIAL are expected to enhance revenue visibility and drive strong profitability for both DIAL and GMR’s consolidated operations, with DIAL anticipated to turn profitable in FY26.
What is the current trading price of GMR Airports shares and how has the stock performed in 2025?
Shares of GMR Airports Ltd. are trading at ₹87.12, and the stock has climbed 11% so far in 2025.
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