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Informist, Friday, Nov. 14, 2025

 

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--GMR Airports: Fundamentals of air travel remain strong and intact 
--CONTEXT: Comments by GMR Airports' mgmt in post-earnings analyst concall 
--GMR Airports: Should see pick-up in passenger traffic in winter schedule 
--GMR Airports: Non-aero revenues strong for co across airports in Jul-Sept 
--GMR Airports: Aim for least 15% YoY growth in non-aero revenues 
--GMR Airports: Cargo City leasing revenue will be shared with Delhi Airport 
--GMR Airports: To spend around INR 20 bln more capex on Bhogapuram airport

 

By Shakshi Jain and Gopika Balasubramanium 

 

MUMBAI – GMR Airports Ltd. expects to spend a further INR 20 billion towards capital expenditure on the airport under construction at Bhogapuram in Visakhapatnam, Andhra Pradesh, a top company official said in a conference call with analysts Friday morning. About 87.5% of the contruction work was completed as of Sept. 30, according to the company's presentation to investors.

 

"There is no major capex happening in the whole group other than the two projects which are live, which is one is Bhogapuram...it should go live over the next 12 months. Other than that, the other capex bit which is happening is in Crete (Greece), for that we have a minority share and there no further contribution of our investment into Crete (airport). So, that will get completed over the next two years," the management said. Acording to the investor presentation, construction work for the airport at Crete in Greece is progressing as per schedule and about 60% of the target was achieved as of Sept. 30. 

 

The airport operator's net debt increased 19% on year and 4% sequentially in the September quarter. As of Sept. 30, its net debt stood at INR 340 billion.  

 

In the first six months of 2025-26 (Apr-Mar), the company incurred a capex of INR 18 billion, according to the management.

 

In the September quarter, the company's consolidated net loss narrowed to INR 370.9 million from a net loss of INR 2.80 billion in the corresponding quarter a year ago. Its revenue for the quarter jumped 47% on year to INR 36.70 billion. GMR Airports saw a strong growth in non-aeronautical revenues across its airports during the September quarter, the company management said. The company aims for at least 15% year-on-year growth in non-aero revenues, through a combination of growth in spending per customer as well as rise in traffic, the management added.

 

In the September quarter, the company's non-aero revenue rose 8% on year at Delhi airport, 38% at Hyderabad airport, and 19% at Goa airport. The company's non-aero income per passsenger grew 14% to INR 395 in the three-months ended Sept. 30.

 

Non-aero revenues or spends refer to the money passengers spend on services and goods within an airport such as shopping, dining, and parking, among others. They are not directly related to flying or aircraft operations.

 

On the Cargo City in Delhi, the management said it will include both development and leasing. "...I think we are expecting good, healthy EBITDA margin on these development and the lease rentals. It could be in excess of about 70% or so."

 

The leasing rentals will be shared with its subsidiary Delhi International Airport Ltd., the operating company of Delhi airport. In the September quarter, GMR Airports received a letter of intent to award from Delhi International Airport to develop the Cargo City at the Indira Gandhi International Airport. 

 

On the decline in passenger traffic at Delhi airport during the September quarter, the company said it was due to temporary disruptions in flight operations caused by changed airspace conditions amid geopolitical events and upgrade of Runway 10/28. The management expects a pick-up in passenger traffic in the winter schedule.

 

Overall, the management said fundamentals of air travel remain strong and intact. At 1212 IST, shares of the company traded 0.2% higher on the National Stock Exchange at INR 95.68.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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