GMR Airports (GMRINFRA) Q1 25/26 earnings summary

Executive summary

• Air travel demand remains robust and accessible, with a 40% drop in real flying costs over the past decade and passenger traffic at operated airports reaching 30.1 million in Q1FY26, up 4% year-over-year, despite temporary disruptions at Delhi Airport.

• Non-aero and adjacency businesses, including cargo, duty free, and F&B, showed strong growth, with significant expansion and new contracts.

• Major ESG achievements include improved ratings, LEED Platinum certification for Hyderabad, and Level 5 carbon accreditation for Delhi and Hyderabad airports.

• The company is well-positioned to benefit from sustained traffic growth, increased connectivity, and infrastructure demand, supported by investments in capacity, digitization, and passenger experience.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26 and an enabling resolution for issuance of INR 6,000 crore non-convertible bonds for refinancing.

Financial highlights

• Q1 FY2026 consolidated gross income reached INR 33.2 billion, up 32% year-over-year, with EBITDA up 26% to INR 12.8 billion and margin stable at 51%.

• Loss from continuing operations narrowed to INR 1.4 billion from INR 3.4 billion year-over-year; consolidated net loss for Q1 FY26 was INR 137.11 crore, compared to INR 337.57 crore in Q1 FY25.

• Delhi Airport: Total income up 37% year-over-year to INR 17.7 billion; EBITDA up 62% year-over-year to INR 6.3 billion, highest in four years.

• Hyderabad Airport: Total income up 8% year-over-year to INR 6.2 billion; EBITDA up 8% to INR 3.9 billion, highest on record.

• Net debt increased to INR 329 billion as of June 30, 2025, up INR 14 billion sequentially, mainly due to project investments and consolidation of new subsidiaries.

Outlook and guidance

• Long-term fundamentals for Indian air travel remain strong, with the sector expected to continue its growth trajectory and focus on margin expansion, cost rationalization, and optimizing cost of debt.

• Delhi Airport is expected to turn profitable in Q2 FY2026 as revised tariffs take full effect.

• Accelerate progress in greenfield projects at Crete and Bhogapuram; Nagpur Airport takeover expected in Q2FY26.

• Management expects revenue and margins to improve in subsequent years post receipt of tariff orders for DIAL and GHIAL.

• MRO and cargo businesses are on a robust growth path, supported by new contracts and increasing aircraft in the country.