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Informist, Tuesday, May 26, 2026

By Anand JC

NEW DELHI – The revenue growth of GMR Airports Ltd. for the March quarter is expected to be boosted by the consolidation of its non-aero business, according to analysts' projections. Growth in passenger traffic across its airports for the quarter was muted due to weaker international traffic amid the war in West Asia.

The airport operator is expected to report a consolidated net profit for the March quarter, having reported a loss of INR 2.38 billion in the year-ago quarter, according to estimates from three brokerages. The highest net profit estimate is INR 3.66 billion by JM Financial Institutional Securities Pvt. Ltd. while the lowest profit estimate is INR 469 million by Kotak Securities Ltd.

Its consolidated revenue for the March quarter is expected to rise 39-47% on year, according to estimates from three brokerages. The highest top-line estimate is INR 41.90 billion by Elara Securities (India) Pvt. Ltd. and the lowest INR 39.75 billion by Kotak Securities.

"Despite a brief 2–3 day disruption in March due to West Asia flight cancellations, traffic trends remain resilient with gradual normalisation," Elara Securities said. "While exposure to West Asia routes led to some transient softness, overall performance remains stable with focus on cashflow strengthening," it added.

GMR Airports generates revenue from aeronautical services such as landing and parking charges as well as user development fees. It also derives income from non-aeronautical activities, including lease rentals from duty-free stores and retail outlets, food and beverage concessions, and cargo and logistics services. Its asset portfolio includes airports in New Delhi, Hyderabad, Mopa in Goa, Nagpur, Bidar, Bhogapuram in Visakhapatnam, Medan in Indonesia, and Crete in Greece.

GMR Airports recorded a passenger traffic of 31.80 million in the March quarter, up almost a per cent on year. Domestic passenger traffic grew 1.6% on year to 24.10 million while international traffic fell 1.3% to 7.70 million for the quarter. Explaining the disparity between the muted growth in passenger traffic and rapid surge in revenue growth, Kotak said: "The divergence is on account of growth in other revenues beyond the top-3 assets (~25% impact), aero yield for Delhi (10% impact) and higher growth in non-aero per pax (3% impact)."

The company's consolidated earnings before interest, tax, depreciation, and amortisation estimates range between INR 15.10 billion by Elara Securities and INR 17.32 billion by JM Financial. The company had reported EBITDA margin of 51% in the year-ago quarter and 55% in the December quarter.

The company in the analyst call for the December quarter had said that it expects EBITDA margin to be around 55% in the March quarter as well. "In Q4 this year-end we may maintain more or less same but next year onwards absolutely it will certainly go up because of the increase in the traffic and we are also controlling certain incentives and other expenses," the company had said.

GMR Airports will declare its March quarter financials on Wednesday.

Tuesday, shares of GMR Airports ended at INR 96.23 on the National Stock Exchange, down almost 1% from the previous close. The stock is largely unchanged since the company reported its December quarter results on Feb. 12. 

Of the four research recommendations on GMR Airports available with Informist, three have 'buy' recommendation on the stock and one has a 'hold' call. The average target price for ‘buy' recommendations on the stock is INR 125. 

Following are the Jan-Mar earnings estimates for GMR from three brokerages in descending order of the estimate of net profit in INR billion:

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Edited by Akul Nishant Akhoury

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