GMR Airports (GMRINFRA) Q4 25/26 earnings summary

Executive summary

• Delivered resilient financial and operational results, achieving record consolidated EBITDA of INR 62bn for FY26, up 47% YoY, and first positive PAT in over a decade at INR 4.7bn, despite a challenging global aviation environment marked by geopolitical conflicts, fuel price volatility, and airspace closures impacting capacity and passenger traffic.

• Passenger traffic at operated airports reached 121.6mn in FY26, up 0.9% YoY, with Indian airports handling 27% of national traffic.

• Major operational milestones included new duty-free launches, cargo terminal commissioning, and significant progress in airport expansion and real estate projects.

• Multiple awards for service quality, sustainability, and operational excellence at Delhi, Hyderabad, and Goa airports.

• Audit reports for both standalone and consolidated results carried unmodified opinions, indicating clean audits.

Financial highlights

• FY26 consolidated gross income rose 40% YoY to INR 152bn; Q4FY26 gross income was INR 40.4bn, up 36% YoY.

• FY26 EBITDA margin at 52%; Q4FY26 EBITDA margin at 50%.

• Q4 PAT was INR 4 billion versus a loss of INR 2.5 billion in Q4 FY25; FY26 PAT was positive at INR 472 crore, first time in over a decade.

• Net debt stood at INR 340bn as of March 2026, down INR 4.7bn sequentially; net debt to EBITDA at 5.5x, targeted to fall below 4x in 18–24 months.

• Non-aero income per passenger surged 62% YoY to INR 600 in FY26.

Outlook and guidance

• Management expects traffic growth of 5%-7% for FY27, with new airports (Bhogapuram, Nagpur) adding around 5 million passengers.

• Non-aero platform businesses projected to grow at a CAGR of 15%-18% year-over-year.

• First half of FY27 expected to remain soft due to ongoing geopolitical issues, with recovery anticipated in the second half.

• Focus on margin expansion, cost optimization, and strengthening non-aero adjacencies.

• Management expects further improvement in revenue and margins in subsequent years, supported by recent tariff orders and operational expansions.