GMR Airports
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
GMR Airports Limited is navigating a complex macroeconomic landscape, with management emphasizing a strategic focus on expanding its airport network and enhancing non-aeronautical revenue streams. The commissioning of new assets, such as the Bhogapuram International Airport, is expected to drive future growth, despite current challenges including geopolitical tensions and regulatory shifts affecting tariff structures. Vista's financial outlook reflects moderated revenue growth expectations, with stable margins anticipated as the company capitalizes on its diversified portfolio. The recent regulatory changes, particularly regarding the Hyderabad airport tariff, present both risks and opportunities for yield improvement. Over the next 12-24 months, GMR Airports aims to optimize its asset utilization and reduce net debt, positioning itself for long-term growth in India's expanding aviation sector. However, potential headwinds include subdued passenger traffic growth and competitive pressures from new airport developments. Overall, GMR Airports is poised for gradual recovery, supported by disciplined capital allocation and a focus on operational efficiency
Why We Like This Stock
- Strategic commissioning of new airports like Bhogapuram is expected to enhance capacity and revenue
- Focus on non-aeronautical revenue streams is likely to reduce reliance on regulated aero revenues
- Management's commitment to operational efficiency and financial prudence supports long-term growth potential
Things To Watch Out For
- Geopolitical tensions and regulatory changes pose risks to traffic growth and tariff structures
- Subdued passenger traffic growth in the near term may impact revenue expectations
- Increased competition from new airport developments could pressure market share and margins
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,755 | 10,414 | 14,807 | 15,028 | 17,099 |
| Profit Before Tax (Cr.) | -746 | -1,233 | 694 | 967 | 1,247 |
| PBT Margin | -8.5% | -11.8% | 4.7% | 6.4% | 7.3% |
| Net Profit (Cr.) | -857 | -1,345 | 559 | 783 | 606 |
| Earnings Per Share | -0.6 | -0.9 | 0.2 | 0.4 | 0.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Macguire | ▲ Outperform | 120 | 22-Sep-2026 |
| Jeffries | ▲ Buy | 135 | 21-Sep-2026 |
| JMFinancials | ▲ Buy | 115 | 17-Sep-2026 |
| Emkay Global | ▲ Buy | 120 | 08-Sep-2026 |
| Kotak Securities | ▲ Buy | 121 | 02-Sep-2026 |
| ICICI Securities | ► Hold | 99 | 27-Aug-2026 |
| Elara Capital | ▲ Buy | 132 | 14-Aug-2026 |
| BofA | ▲ Buy | 122 | 29-May-2026 |
| Citigroup | ► Add | 105 | 29-May-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.