GMR Airports (GMRINFRA) Q2 2026 earnings summary

Executive summary

• Air travel demand in India remains robust, making it the fifth-largest aviation market globally, with strong growth in both domestic and international segments.

• Q2 FY26 saw significant operational and financial momentum, including new routes, expanded duty-free operations, and infrastructure upgrades at major airports.

• Q2FY26 marked the first positive PBT in over three years, with a net profit of INR 351 million versus a loss of INR 4.3 billion in Q2FY25.

• Passenger traffic at operated airports declined 3.5% YoY to 27.8 million, mainly due to temporary disruptions at Delhi Airport.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with multiple board changes and unqualified auditor review reports.

Financial highlights

• Total income for Q2 FY26 was INR 37.5 billion, up 45% year-on-year, driven by revised tariffs, new duty-free and cargo operations, and Hyderabad Airport growth.

• EBITDA grew 59% year-on-year to INR 15.3 billion, with EBITDA margin improving to 53% despite a notional forex loss of INR 0.6 billion.

• Net profit after tax for Q2 FY26 was INR 351 million, reversing a loss of INR 4.3 billion in Q2 last year; six-month net loss was INR 1.0 billion.

• Consolidated net debt (excluding FCCBs) stood at INR 340 billion as of September 30, 2025, up INR 11.8 billion sequentially, mainly due to refinancing and project capex.

• Basic and diluted EPS for Q2 FY26: ₹(0.04); six-month EPS: ₹(0.29).

Outlook and guidance

• Q3 is expected to be seasonally strong with full operations at upgraded terminals and resumed routes.

• Non-aero revenue growth targets remain at 14-15% year-on-year, with current quarter performance exceeding benchmarks due to full outlet openings and increased spend per passenger.

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

• Accelerated progress in greenfield projects at Crete and Bhogapuram, with Bhogapuram 87.5% complete and Crete at 60%.

• Incentive programs at Goa Airport are temporary and not expected to continue beyond the current fiscal year.