GMR Airports
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
GMR Airports is currently navigating a challenging environment characterized by subdued traffic growth, particularly at its Hyderabad asset, while strategically focusing on non-aero revenue expansion and the ramp-up of new airport projects like Bhogapuram and Nagpur. Management's emphasis on optimizing non-aeronautical revenue streams, projected to grow 15-16% YoY, is crucial for offsetting potential traffic volatility. Despite achieving profitability, the outlook remains cautious due to regulatory uncertainties surrounding the Hyderabad tariff order and competitive pressures from new airport developments. Vista's forecast reflects moderating revenue growth and stable margins, supported by the company's long-term growth potential in the aviation sector. The anticipated tariff determination for Hyderabad in Q3 FY27 could serve as a catalyst for improved cash flow visibility. However, geopolitical disruptions and rising operational costs pose significant headwinds. Over the next 12-24 months, GMR Airports must navigate these challenges while capitalizing on its strategic priorities to enhance its competitive position and financial performance
Why We Like This Stock
- Focus on non-aero revenue streams projected to grow 15-16% YoY, enhancing overall profitability
- Strategic ramp-up of new airport assets like Bhogapuram and Nagpur expected to drive traffic growth in FY27
- Regulatory support and potential favorable tariff outcomes could improve cash flow visibility
Things To Watch Out For
- Subdued traffic growth, particularly at the Hyderabad asset, poses risks to revenue expectations
- Geopolitical disruptions and rising operational costs may hinder near-term earnings recovery
- Regulatory uncertainties regarding the Hyderabad tariff order could impact financial performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,755 | 10,414 | 14,807 | 14,990 | 17,519 |
| Profit Before Tax (Cr.) | -746 | -1,233 | 694 | 1,981 | 1,998 |
| PBT Margin | -8.5% | -11.8% | 468.7% | 13.2% | 11.4% |
| Net Profit (Cr.) | -857 | -1,345 | 559 | 1,605 | 971 |
| Earnings Per Share | -0.6 | -0.9 | 0.2 | 0.9 | 0.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BofA | ▲ Buy | 122 | 29-May-2026 |
| Citigroup | ► Add | 105 | 29-May-2026 |
| Elara Capital | ▲ Buy | 132 | 14-Aug-2026 |
| ICICI Securities | ► Hold | 99 | 14-Aug-2026 |
| Jeffries | ▲ Buy | 125 | 13-Aug-2026 |
| Kotak Securities | ▲ Buy | 118 | 16-Jun-2026 |
| Macguire | ▲ Outperform | 125 | 13-Aug-2026 |
Company Overview
Show Company Profile
GMR Airports Limited development, maintenance, and operation of airports in India. It is also involved in operation of international airports on build, own, operate, and transfer basis. In addition, the company engages in construction business, including engineering, procurement, and construction contracting activities; and provides security services, as well as engages in maintenance, repairing, and overhauling of aircrafts. The company was formerly known as GMR Airports Infrastructure Limited and changed its name to GMR Airports Limited in September 2024. GMR Airports Limited was incorporated in 1996 and is based in New Delhi, India.