India’s airport infrastructure sector has been witnessing robust growth, backed by rising passenger traffic, new project developments, and strong non-aero revenue generation. With government focus on capacity expansion and private sector participation, the sector is expected to benefit from sustained long-term demand.
GMR Airports Infrastructure Ltd. (GIL), with a market capitalization of Rs. 92,053 crore, is a leading private airport operator with global operations. The stock is currently trading at Rs. 87.18, delivering a six-month return of 21.40 percent, reflecting strong investor confidence in its growth trajectory.
About the Company
Formed in 1996, GMR Airports is one of the world’s largest private airport platforms engaged in building and operating sustainable airports. Operating under the GMR AERO brand, the company provides integrated aviation solutions across aero services, retail, and real estate. It is the largest private airport operator in Asia and the second-largest globally, consistently earning recognition from Airports Council International (ACI) and Skytrax.
The company manages some of the most critical hubs in India, including Delhi, Hyderabad, Goa, Bidar, and the upcoming Bhogapuram airport, while also holding a presence in Southeast Asia through projects in Medan, Cebu, and Crete.
Financial Performance – Q1FY26
Quarter-on-Quarter (QoQ) Performance, GMR posted revenue of Rs. 3,205 crore in Q1FY26, up 11.9 percent from Rs. 2,863 crore in the previous quarter. Operating profit stood at Rs. 1,165 crore, registering a 15.4 percent rise from Rs. 1,009 crore. Loss before tax narrowed to Rs. 65 crore from Rs. 196 crore in Q4FY25, while net loss also reduced to Rs. 137 crore against Rs. 253 crore sequentially.
Year-on-Year (YoY) Performance, Compared to Q1FY25, revenue surged 33.5 percent from Rs. 2,402 crore to Rs. 3,205 , while operating profit increased 30 percent from Rs. 896 crore to Rs. 1,165 crore.
The company’s loss before tax narrowed significantly from Rs. 300 crore last year to Rs. 65 crore in Q1FY26. Net loss too reduced from Rs. 338 crore in the year-ago period to Rs. 137 crore this quarter.
Q1FY26 Revenue Proformance– Composition
In Q1FY26, GMR Airports reported consolidated revenue of Rs. 3,205.2 crore, with Delhi International Airport (DIAL) contributing the largest share at Rs. 1,743.1 crore, followed by Hyderabad’s GHIAL at Rs. 594.2 crore.
The Goa Mopa airport added Rs. 95.8 crore, while Hyderabad Cargo and MRO operations generated Rs. 246.6 crore. Duty-free and hotel operations at Hyderabad brought in Rs. 136.1 crore, car parking at Delhi accounted for Rs. 73 crore, and F&B across Hyderabad and Goa added Rs. 31.7 crore. GAL standalone revenues stood at Rs. 478 crore. After accounting for eliminations of Rs. 193.1 crore, the consolidated total stood at Rs. 3,205.2 crore.
This shows DIAL as the principal contributor, followed by GHIAL and GAL standalone, with Hyderabad cargo/MRO and duty-free/hotel adding meaningful support; eliminations net off inter-company items to arrive at the consolidated figure.
Operational Highlights
During the quarter, GMR Hyderabad International Airport (GHIAL) declared its second dividend of Rs. 2.5 per share, aggregating to Rs. 950 million. This took total FY25 dividends to Rs. 10 per share, or Rs. 3.8 billion.
At Delhi, GMR was granted the concession to operate and manage the existing cargo terminal after the termination of the earlier operator. Duty-free operations were fully taken over in July 2025, which is expected to further improve financials from Q2 onwards. At Hyderabad, 25 new F&B outlets were operationalized under GMR Hospitality, while duty-free operations will transition in Q2.
Large-scale commercial projects are also underway. DIAL has partnered with Hilton Hotels to develop luxury hotels under Waldorf (150 rooms) and Hilton (350 rooms) brands. Construction is in progress for 1 million sq.ft. of office space, a 0.6 million sq.ft. luxury hotel, and multiple third-party projects covering 12 million sq ft.
GHIAL signed an operator agreement with IHCL for a 170-room Taj Vivanta hotel. Other projects include the GMR Interchange retail development and an MRO facility for Safran, which is nearing completion. Goa’s Mopa Airport saw third-party hotel projects totaling 0.75 million sq.ft. under progress.
The company also strengthened its industrial logistics portfolio with the acquisition of the remaining 70 percent in ESR GMR Logistics Park Pvt. Ltd. Bhogapuram Airport reported 80 percent overall progress with airside works at 95 percent, terminal at 72 percent, and ATC tower at 87 percent.
Traffic and Passenger Growth
GMR-operated airports handled b .1 million passengers in Q1FY26, up 4 percent YoY. Domestic traffic rose 3 percent, while international traffic grew 5 percent. The company’s Indian airports handled 27 percent of India’s total passenger traffic, with Delhi alone contributing 18.2 percent.
Hyderabad Airport achieved a record, crossing 8 million passengers in a quarter for the first time, while Delhi’s numbers were impacted by airspace disruptions and runway upgradation. Aircraft traffic stood flat sequentially at 189,500 but rose 6 percent YoY.
Non-Aero Revenue Performance
Delhi Airport’s non-aero revenue rose 14 percent YoY to Rs. 8.8 billion, supported by retail, cargo, and F&B, though advertisement revenue dipped 7 percent. Hyderabad’s non-aero revenue expanded 17 percent YoY to Rs. 1.7 billion, driven by retail and F&B growth. Goa Airport reported non-aero revenue growth of 23.6 percent YoY.
Aero Yield Per Pax improved sharply to Rs. 399, marking a 50 percent increase year-on-year and 53 percent growth quarter-on-quarter. Non-aero Income Per Pax rose to Rs. 376, higher by 10 percent year-on-year and 4 percent sequentially.
Segment and Subsidiary Highlights
Delhi International Airport Ltd. (DIAL): Total income rose 37 percent YoY to Rs. 17.7 billion, with EBITDA up 61.8 percent at Rs. 6.3 billion and margins at 63 percent. Aero revenues surged 127 percent, driven by tariff revision from April 2025. Despite a 1.2 percent dip in traffic, the airport achieved record quarterly EBITDA. Covers 79 domestic and 69 international destinations.
Hyderabad Airport (GHIAL): Revenue increased 8.5 percent YoY to Rs. 6.2 billion, while EBITDA grew 8 percent to Rs. 3.9 billion, maintaining margins at 65 percent. Passenger traffic jumped 17.1 percent YoY to 8.1 million.
GHIAL also secured a three-year MRO contract from Akasa Air and launched India’s first cargo loyalty program. Covers 71 domestic and 25 international destinations.
Goa (Mopa) Airport: Revenue rose 8.2 percent YoY to Rs. 1.02 billion, though EBITDA fell 41.6 percent to Rs. 232 million due to revenue-share impact, pulling margins down to 30 percent. Passenger traffic increased 7.3 percent to 1.2 million, with the airport capturing 43 percent of Goa’s traffic share. Covers 19 domestic destinations and 6 international destinations.
International Operations
Medan Airport in Indonesia handled 1.76 million passengers in Q1FY26, rising 3.2 percent YoY, with gross income up 9.1 percent YoY to Rs. 1.3 billion and EBITDA up 38 percent at Rs. 298 million. Crete Airport in Greece is progressing on schedule with 54 percent of construction complete and remains debt-free. Cebu Airport in the Philippines, where GMR is a technical services provider, reported 2.9 million passengers, up 2 percent YoY.
Balance Sheet and Debt
Gross income for Q1FY26 climbed 32 percent YoY to Rs. 33.2 billion, while EBITDA grew 26 percent to Rs. 12.8 billion. Net debt reduced 17 percent YoY to Rs. 329 billion, although it rose 4 percent sequentially due to bond issuance, project funding, and consolidation of EGLPPL debt. Gross debt increased by Rs. 10.1 billion QoQ, while net debt rose by Rs. 14 billion.
Is Adani Airports a threat to GMR Airports?
GMR Airports and Adani Airport Holdings present contrasting strengths across scale, traffic, and financials. On passenger volumes, GMR handled 30.1 million passengers in Q1FY26, marking a 4 percent year-on-year growth and accounting for 27 percent of India’s total traffic.
Adani, in comparison, reported 23.4 million passengers in Q1FY26, a 3 percent increase over the previous year. In terms of air traffic movements, GMR registered 189,500 movements during the quarter, while Adani recorded 153,600, reflecting a 1 percent year-on-year rise.
Financially, GMR reported revenue of Rs. 3,205 crore in Q1FY26, a 33.5 percent year-on-year increase, with EBITDA of Rs. 1,280 crore, up 26 percent year-on-year. Adani posted revenue of Rs. 2,715 crore in Q1FY25, reflecting a 25 percent year-on-year growth, and delivered EBITDA of Rs. 1,094 crore in Q1FY26, a sharper 61 percent increase.
Investor Takeaway
GMR Airports continues to demonstrate steady operational growth across its portfolio with rising passenger numbers, stronger aero yields, and robust non-aero revenues. Key projects in Delhi, Hyderabad, Goa, and Bhogapuram are progressing well, while international assets in Indonesia, Greece, and the Philippines add global diversification. Although the company remains loss-making at the net level, narrowing losses and strong EBITDA expansion highlight improving fundamentals.
While Adani is emerging as a formidable competitor, GMR’s diversified portfolio, global presence, and long-term project pipeline give it a structural edge. Together, both players are reshaping India’s airport sector and positioning it for sustained global relevance.
Written By Manan Gangwar
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