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Informist, Thursday, May 28, 2026

 

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--GMR Airports: Will optimise non-aero revenue in present environment 
--CONTEXT: Comments by GMR Airports mgmt at post-earnings analyst call 
--GMR Airports: FY27 capex mainly focused on Bhogapuram, around INR 7-8 bln 
--GMR Airports: Expect operating environment to improve in 2nd half of FY27 
--GMR Airports:Nagpur airport will start contributing to co's fincls from Q2 
--GMR Airports:FY27 debt to rise to Bhogapuram, Nagpur airports invest levels

 

By Anand JC and Shruti Nair

 

NEW DELHI/MUMBAI – GMR Airports Ltd. Thursday said it expects the operating environment to improve from the second half of 2026-27 (Apr-Mar) given that airspace closures and the war in West Asia have already impacted the first half. "Even if we were to achieve a settlement between the US and Iran today, it will take at least a few months for things to normalise. So that is our understanding on the outlook," the company's management told analysts in a post-earnings conference call.

 

"The global aviation landscape is currently weathering a complex storm. And as a major international airport operator, we remain watchful of the broader macroeconomic and industry dynamics," the company said. "Ongoing geopolitical conflicts have driven a dramatic spike in jet fuel prices, with aviation turbine fuel now consuming 55-60% of our airline partners' operating expenses," the company added.
 

Airlines have been forced to rationalise their capacity, including temporary suspensions of international routes in the summer season. Passenger traffic has been impacted by a rise in airfares, fuelled by surcharges imposed on fuel, the company noted.

 

Traffic handled by the company across its network of airports grew only 1% on year to 31.7 million passengers in the March quarter. "We are navigating the next two quarters with strict discipline, aggressively optimising our non-aeronautical revenue streams and working closely with airlines to maximise asset utilisation," the company said.

 

The company disclosed its March quarter financials late Wednesday. It reported consolidated net profit of INR 3.02 billion for the quarter under review, compared with a net loss of INR 2.38 billion in the year-ago quarter. Its revenue grew 38% on year to INR 39.38 billion.

 

FY27 PLANS

GMR Airports' asset portfolio includes airports in New Delhi, Hyderabad, Mopa in Goa, Nagpur, Bidar, Bhogapuram in Visakhapatnam, Medan in Indonesia, and Crete in Greece. 

 

As of March, work at Bhogapuram airport has been completed around 99%. The company expects the airport to begin operations in the September quarter, compared with the original expectations of starting operations in December. The company intends to spend around INR 7 billion-INR 8 billion as capital expenditure towards this airport in FY27. GMR Airports had incurred around INR 18 billion as capex across its businesses in FY26.

 

The company's debt increased around 8% on year to INR 340 billion as of Mar. 31. The company expects its overall capital expenditure in FY27 to rise only to the extent of its investments in Bhogapuram and Nagpur airports. GMR Airports may incur capex of around INR 2 billion towards the Nagpur airport. As such, the company expects its net debt to rise by INR 10 billion in the ongoing financial year.

 

Nagpur airport, which is a brownfield project, will start contributing to the company's financials in the September quarter. Put together, the Nagpur and Bhogapuram airports are expected to handle around 5 million passengers in FY27, the company said.

 

Wednesday, shares of the company closed 1.7% higher at INR 97.84 on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

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