Synopsis: GMR Airports Ltd shares are in focus as Jefferies maintained a Buy rating with a ₹125 target, implying ~25% upside. Traffic at Indira Gandhi International Airport rebounded strongly, led by domestic growth, recovering international demand, and rising transfer passengers, supporting improved revenues and a positive long-term growth outlook.
The shares of a Large-cap company that specialises in the design, development, operation, and management of international and regional airports are in focus following the brokerage firm Jefferies target coverage, which sees 28 percent upside potential.
With a market capitalization of Rs. 1,08,335.09 crores in the day’s trade, the shares of GMR Airports Ltd rose by 2.8 percent, reaching a high of Rs. 103.25 per share compared to its previous closing price of Rs. 100.35 per share.
What Happened
GMR Airports Ltd, engaged in the design, development, operation, and management of international and regional airports is in the spotlight as a global brokerage firm. Jefferies maintains a Buy target price of Rs. 125, implying about 25 percent upside from the previous close price.
Reason for the Target
Delhi Airport Traffic Rebounds Strongly After Two Slow Months
GMR Airports has seen a sharp turnaround in passenger growth at Delhi Airport, with traffic rising 14% year-on-year in May 2026 after remaining flat over the previous two months. The recovery signals improving travel demand and strengthens confidence in the airport’s growth trajectory, supporting expectations of higher revenue and operating leverage.
Domestic Travel Demand Emerges as Key Growth Engine
Domestic passenger traffic surged 18% year-on-year, significantly outperforming overall airport growth. The strong momentum reflects robust demand for air travel across India and highlights Delhi Airport’s strategic position in the country’s aviation network. Sustained domestic expansion can drive higher passenger volumes, commercial revenues, and long-term earnings growth.
International Traffic Returns to Positive Growth Territory
After a period of moderation, international passenger traffic has resumed growth, providing an additional boost to overall airport performance. Improving international connectivity and rising outbound and inbound travel demand are helping Delhi Airport strengthen its position among leading aviation gateways, creating a favorable outlook for future traffic expansion.
Transfer Traffic Surge Reinforces Delhi’s Hub Status
Transfer passengers accounted for 27% of total traffic, up from 23% a month earlier and 20% a year ago. The sharp increase demonstrates Delhi Airport’s growing role as a transit hub. Higher transfer traffic typically improves network efficiency, airline attractiveness, and passenger retention, supporting sustainable volume growth.
Jefferies Sees Connectivity-Led Growth Supporting Upside
Jefferies maintains a Buy rating with a target price of Rs. 125, citing Delhi Airport’s strengthening hub position in North India. Expanding domestic and international connectivity is attracting more passengers and transfer traffic.
Financials
The company’s revenue rose by 37.54 percent from Rs. 2,863 crores in March 2025 to Rs. 3,938 crores in March 2026. Meanwhile, Net loss from Rs. 253 crores turned to a profit of Rs. 400 crores in the same period.
GMR Airports is positioned as a leading global airports platform with integrated, end-to-end capabilities across the airport value chain, spanning operations, development, and associated services. It is the second-largest private airport operator globally (based on CY2025 passenger traffic) and the largest in India, reflecting its scale and strategic presence across key aviation hubs.
The platform has a strong operational and development footprint across multiple airports, including Delhi (DIAL), Hyderabad (GHIAL), Goa (Mopa), Medan, and Cebu, with additional assets in various stages of development.
In FY26, its network represents a significant share of India’s passenger traffic (~27.3%), with a total operational capacity of ~197 million passengers and an additional ~25 million under development, supporting long-term growth potential.
With a cumulative passenger base of ~1342 million handled across its gateway airports and a land bank of ~2,510 acres, GMR Airports also has substantial real estate development upside alongside aviation operations. Backed by long concession periods and a scalable infrastructure pipeline, the platform is well-positioned to capitalize on strong air traffic growth trends while expanding its “airport plus” ecosystem globally.
GMR Airports appears to be entering a stronger growth phase, led by a clear rebound in traffic at Delhi Airport. After a brief slowdown, passenger volumes have picked up again with 14% year-on-year growth in May 2026, driven mainly by robust domestic travel demand and a return to positive international traffic. The sharp rise in transfer passengers further strengthens Delhi’s position as a growing aviation hub, which typically supports higher operational efficiency and revenue per passenger.
Brokerage firm Jefferies remains optimistic, maintaining a Buy rating with a target of Rs. 125, implying meaningful upside from current levels. The overall view is that improving connectivity, rising domestic demand, and strengthening hub status could support sustained earnings growth for GMR Airports, suggesting the stock may be entering a renewed phase of momentum if traffic trends continue.
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