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Informist, Friday, Apr. 10, 2026

MUMBAI – The recently announced reduction in some airport charges in India for domestic flights may have a limited impact on revenue earned by airports, S&P Global Ratings said in a report Friday. The Airports Economic Regulatory Authority of India had Tuesday ordered major airports in the country to lower landing and parking charges by 25% for domestic flights for three months.

GMR Airports Ltd. has a 74% stake each in Delhi International Airport Ltd. and GMR Hyderabad International Airport Ltd. The domestic landing and parking charges account for less than 25% of aeronautical revenues for Delhi International Airport Ltd. and GMR Hyderabad International Airport Ltd., as both the airports have diversified revenue streams, with 45-55% derived from non-aeronautical sources, the ratings agency said.

"The revenue impact resulting from this order will be subjected to a true-up mechanism during the next control period for tariffs. This allows the two India airports (Delhi Airport and Hyderabad Airport) we rate to recover the lost revenue, along with an applicable interest component, over the subsequent five-year control period," it said.

The Delhi International Airport's aeronautical revenue rose 173% on year in the December quarter and non-aeronautical revenue rose 11.5%, according to GMR Airports' investor presentation for the December quarter. Its Hyderabad airport's aeronautical revenue rose 5.6% on year and non-aeronautical revenue rose 23.7% on year in the December quarter.

S&P Global Ratings has a positive rating outlook on both the airports for the next six months as it expects a potential improvement in the regulatory framework for timely and predictable tariff resets for Indian airports. The agency's base case assumes the war in West Asia will peak and the effective closure of the Strait of Hormuz will ease in April, with some disruptions likely to persist for a few months. "However, a prolonged conflict could materially dent passenger traffic in fiscal 2027 and delay expected improvements in the two airports' credit profile," it said.

For the December quarter, GMR Airports reported consolidated net profit of INR 1.22 billion on revenue of INR 39.94 billion. Friday, shares of the company closed 0.8% higher at INR 95.25 on the National Stock Exchange.  End

Reported by Ashutosh Pati

Edited by Akul Nishant Akhoury

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