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 geopolitical disruptions and elevated jet fuel prices, which have led to a downward revision in near-term earnings expectations. Management's focus on tariff hikes and the expansion of high-margin non-aeronautical revenue streams, such as duty-free and real estate, is crucial for maintaining earnings resilience amidst moderating passenger growth. The company is also strategically reducing capital expenditures to facilitate a gradual deleveraging process, targeting a net debt/EBITDA ratio of 4.0-4.5x. Vista's financial outlook reflects these developments, projecting stable margins and a cautious revenue growth trajectory, supported by the operationalization of new airports and regulatory support. However, the current valuation indicates a turnaround phase, with an expected downside of approximately 30%. Over the next 12-24 months, key opportunities include the ramp-up of the Bhogapuram and Nagpur airports and favorable tariff determinations, while headwinds consist of geopolitical uncertainties, competitive pricing pressures, and potential slowdowns in passenger traffic. Overall, GMR Airports' long-term growth prospects remain intact, driven by India's expanding aviation sector and infrastructure momentum
Why We Like This Stock
- Management's focus on tariff hikes and non-aeronautical revenue expansion is expected to bolster earnings resilience
- The operationalization of new airports is projected to contribute to traffic growth and improved cash flow visibility
- Regulatory support, including favorable tariff determinations, is anticipated to enhance revenue potential
Things To Watch Out For
- Geopolitical disruptions and elevated jet fuel prices are expected to negatively impact near-term earnings and passenger growth
- Competitive pricing pressures may constrain margin expansion despite stable overall margins
- Weak cash conversion relative to the asset base poses risks to financial stability and operational flexibility
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,755 | 10,414 | 14,807 | 14,990 | 17,554 |
| Profit Before Tax (Cr.) | -746 | -1,233 | 694 | 1,863 | 1,873 |
| PBT Margin | -8.5% | -11.8% | 468.7% | 12.4% | 10.7% |
| Net Profit (Cr.) | -857 | -1,345 | 559 | 1,509 | 910 |
| 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 | 93 | 29-May-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.