GMR Airports (GMRINFRA) Q3 25/26 earnings summary

Executive summary

• Q3 FY2026 delivered record financial and operational performance, with consolidated gross income rising 49% YoY to INR 40.8 billion and EBITDA up 65% YoY to INR 17.9 billion, reversing a prior year loss.

• Passenger traffic at operated airports reached 31.9 million in Q3 FY2026, with international growth outpacing domestic and major airports posting EBITDA margins above 50%.

• Non-Aero and adjacency businesses showed robust revenue and EBITDA growth, supporting overall profitability and sustainable expansion.

• GAL achieved its first positive and highest profit since the merger, reflecting successful platform transformation.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

Financial highlights

• Q3 FY2026 gross income: INR 40.8 billion (▲49% YoY), EBITDA: INR 17.9 billion (▲65% YoY), reported PAT (excluding exceptional items): INR 3.6 billion, reversing a loss in Q3 FY2025.

• Hyderabad Airport declared an interim dividend of INR 7.5 per share, totaling INR 2.1 billion for GAL's stake.

• Consolidated net debt (excluding FCCBs) stood at INR 345 billion, up INR 5 billion sequentially.

• Standalone revenue from operations for the quarter: ₹1,238.68 crore (up from ₹945.10 crore YoY); consolidated revenue: ₹3,994.03 crore (up from ₹2,653.24 crore YoY).

• Standalone EBITDA for the quarter: ₹359.41 crore (up from ₹241.36 crore YoY); consolidated EBITDA: ₹1,789.28 crore (up from ₹1,086.69 crore YoY).

Outlook and guidance

• Non-Aero business expected to sustain 15%+ growth annually, with further upside as new areas open.

• Net debt anticipated to peak in FY2026 and begin declining from FY2027 as Bhogapuram completes.

• Dividend distribution likely to commence when net debt/EBITDA reaches 3–3.5x, potentially from FY2028.

• Management expects further improvement in revenue and margins post receipt of tariff orders for DIAL and GHIAL.

• Focus on margin expansion, cost rationalization, and optimizing debt cost.