Detailed Narrative
Q3 FY26 Financial Performance Overview
GMR Airports Limited reported a robust Q3 FY26, with total income surging 49% year-on-year to INR 40.8 billion. EBITDA also saw significant growth, increasing 65% year-on-year to INR 17.9 billion, leading to improved EBITDA margins of 55% for the quarter. Notably, the company achieved a positive PAT of INR 3.6 billion (excluding exceptional item📎s), a substantial turnaround from a INR 2.1 billion loss in Q3FY25. Hyderabad Airport contributed to shareholder returns by declaring an interim dividend of INR 7.5 per share.
Operational Highlights and Traffic Growth
GAL's operated airports collectively handled 31.9 million passengers in Q3FY26, marking a 2.5% year-on-year increase despite a challenging environment. Delhi Airport maintained its position as a primary global gateway, recording 20.8 million passengers and a 41% year-on-year rise in total income to INR 20.2 billion, primarily driven by a 173% increase in aero revenues due to revised tariffs. Hyderabad Airport's total income grew 8% year-on-year to INR 6.6 billion, with strong non-aero revenue growth of 24%. Mopa Airport also achieved a record 1.5 million passengers for the quarter.
Non-Aero Business and Adjacency Development
The company is actively scaling its non-aero and adjacency businesses, which are contributing significantly to growth. Duty-free operations at both Delhi and Hyderabad airports achieved their highest monthly sales in December 2025. Hyderabad's duty-free is undergoing a significant expansion, increasing its departure store area from 350 to 1,200 square meters. The Delhi Cargo Terminal also recorded its highest ever monthly cargo tonnage. Management targets a long-term non-aero growth rate of 15% plus.
Capital Allocation and Debt Management
Consolidated net debt (excluding FCCBs) stood at INR 345 billion, an increase of INR 5 billion from Q2FY26, with specific increases at Bhogapuram (INR 1.8 billion) and GMR Cargo Logistics (INR 1.1 billion). However, the company successfully refinanced INR 21 billion of Hyderabad Airport's existing dollar-denominated debt through NCDs at a 7.6% coupon, resulting in over 150 basis points savings in interest cost. The overall interest cost for the quarter was lower than Q2FY26, and management expects debt to peak this fiscal year and begin to decline in FY27.
Future Expansion Plans and Project Progress
Construction at Bhogapuram Airport is 95.8% complete as of December 2025, with operationalization targeted for Q2FY27, ahead of the original schedule. Crete Airport has reached 65% physical progress. A major expansion for Hyderabad Airport, estimated to cost INR 12,000-13,000 crores over four years, is planned to commence from FY28, including a new runway, terminal, and cross taxiways. The build-to-suit MRO facility for Safran at Hyderabad was completed and inaugurated.
Strategic Outlook and Shareholder Value
GMR Airports is transforming into a diversified, future-ready, and profitable infrastructure platform. The company expects its EBITDA to grow significantly from a base of INR 18 billion. Management reiterated its commitment to profitability for FY26 and beyond, with a medium-term strategy to distribute dividends once the net debt to EBITDA multiple reaches 3 to 3.5x. The company is also developing a strategy for real estate monetization across its three live airports, expecting to guide on this in the next three to six months.