GMR Airports Limited — Q3 FY26 earnings call

Call held 14 Feb 2026

Management summary

GMR Airports reported a strong Q3 FY26 with significant revenue and EBITDA growth, driven by tariff revisions and non-aero contributions. PAT turned positive excluding exceptional items, and Hyderabad Airport declared a dividend. While net debt saw a slight increase, interest costs were lower, and management outlined plans for future debt reduction and major capex for Hyderabad expansion starting FY28.

Highlights

  • Total income of INR 40.8 billion, up 49% year-on-year.

  • EBITDA grew 65% year-on-year to INR 17.9 billion, with EBITDA margins improving to 55%.

  • Reported PAT (excluding exceptional items) was INR 3.6 billion versus INR 2.1 billion loss in Q3FY25.

  • Hyderabad Airport declared an interim dividend of INR 7.5 per share, translating to INR 2.1 billion for GAL's 74% stake.

  • GAL operated airports traffic rose 2.5% year-on-year to 31.9 million passengers.

  • Delhi Airport's total income rose 41% year-on-year to INR 20.2 billion, with EBITDA increasing 89% year-on-year to INR 8.2 billion.

  • Hyderabad Airport's non-aero revenues were particularly strong, up 24% year-on-year.

Concerns

  • Consolidated net debt (excluding FCCBs) increased by INR 5 billion versus Q2FY26 to INR 345 billion.

  • Mopa Airport reported a total income of INR 1,061 million, down 15% year-on-year, with aero revenues declining 16% year-on-year.

  • Traffic growth has been benign for the last 9 months due to aircraft issues and the Air India crash.

  • An exceptional liability of INR 113 crores was recorded related to the termination of the Celebi contract at Delhi International Limited.

Key financials

  1. Total Income 40,800 Mn +49%YoY
  2. EBITDA 17,900 Mn +65%YoY
  3. EBITDA Margin 55%
  4. PAT (excl. exceptional) 3,600 Mn
  5. Consolidated Net Debt (excl. FCCBs) 3,45,000 Mn
  6. Total Passengers 31.9 Mn +2.5%YoY

What they filed

Q1 FY27: revenue up 156.7%, net profit up 132.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue282 271 508 478 945 +235%1,239 +357%1,581 +211%1,227 +157%
EBITDA114 121 358 109 239 +110%343 +183%675 +89%386 +254%
Net profit-63 -49 68 -178 -133 −111%50 +202%403 +493%58 +133%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Total Income
27,861 Mn Total
  • Delhi Airport 20,200 Mn 72.5%
  • Hyderabad Airport 6,600 Mn 23.7%
  • Mopa Airport (Goa) 1,061 Mn 3.8%

Capital allocation

high confidence
  • Capex Capex disclosed
    • Bhogapuram Airport construction
    • Crete Airport construction
    • Hyderabad MRO facility for Safran
    • Delhi Cargo City development ₹7,500 Mn
    • Hyderabad Airport expansion (future) ₹1,20,000 Mn
    Construction of multiple airport land development projects is underway at all airports, details of which are available in the results presentation. At Hyderabad, the build-to-suit MRO facility of about half a million square feet for Safran was completed and inaugurated by the honourable Prime Minister Shri Narendra Modi. GMR Cargo and Logistics Limited, a wholly owned subsidiary of GAL availed rupee term loan facility of INR7.5 billion to enable it to meet a part of its estimated project cost towards developing the Cargo City in Delhi International Airport. As far as Hyderabad is concerned you are absolutely right that we have applied to the regulator for an expansion but the expenditure is likely to start kicking only FY28 onwards towards later FY28. The master planning is going on, the EPC contractor has to be onboarded which will take time almost a year or so. So the actual expenditure will start kicking in only FY28. It will be around INR12,000 to INR13,000 crores which will be spent over a period of 4 years. This is basically we're contemplating to go for a new terminal, because Hyderabad itself is already reaching 34 million passengers which is the current terminal capacity. But we will try to sweat it for 1 or 2 more years, then we'll start the expansion. The maximum capex is expected to be around INR12,000 to INR13,000 crores which includes a new runway, new terminal and cross taxiways and everything.
  • Debt Net ₹3,45,000 Mn
    • Refinance Hyderabad Airport raised INR 21 billion via non-convertible debentures (NCDs) at 7.6% coupon to refinance existing dollar-denominated debt, saving over 150 bps in interest cost. ₹21,000 Mn
    Consolidated net debt excluding FCCBs of INR27.7 billion which are deep in the money and shall convert into equity on its due date stood at INR345 billion increasing by INR5 billion versus Q2FY26. Net debt at Bhogapuram increased by INR1.8 billion. Net debt at GMR Cargo Logistics Limited, the entity developing the Cargo City in Delhi increased by INR1.1 billion. GMR Logistics Parks Private Limited, Hyderabad Airport's wholly owned subsidiary also refinanced its existing debt resulting in increase of about INR1.5 billion in net debt. More importantly, despite debt slightly increasing, our interest cost for the quarter is lower versus Q2FY26, a trend which we had been communicating as our ratings continue to improve which enables us to refinance debt at lower costs.
  • Dividend ₹7.5/share (interim)
    I'm happy to share that Hyderabad Airport has again declared an interim dividend of INR7.5 per share at the recently concluded board meeting. This translates into INR2.1 billion for GAL's 74% stake.

Guidance & targets

Traffic Volume

  • Asia Pacific Traffic Growth Traffic Volume · 2026 · High confidence 7.3%
    IATA projects traffic growth of 7.3% year-on-year and within Asia Pacific, China, India, and Vietnam will be the key growth markets.

    — Saurabh Chawla

Fleet Expansion

  • Aircraft Deliveries to Indian Customers Fleet Expansion · 2026 · High confidence Two planes a month
    Boeing estimates that aircraft deliveries to its Indian customers including Air India Group and Akasa Air will average two planes a month in 2026.

    — Saurabh Chawla

Capacity

  • IndiGo International Capacity Share Capacity · FY30 · High confidence 40%

    From 28% today

    IndiGo aims to increase international capacity to 40% of its total capacity by FY30 from current 28%.

    — Saurabh Chawla

Operationalization

  • Bhogapuram Airport Operationalization Operationalization · Q2FY27 · High confidence Q2FY27

    Previously Dec'26 → Q2FY27

    we aim to operationalize the airport in Q2FY27, much ahead of our original target of Dec'26.

    — Saurabh Chawla

Revenue Growth

  • Non-Aero Business Growth Revenue Growth · long-term · Medium confidence 15% plus
    For us as we have been communicating in the past, a more sustainable growth if we look at all our non-aero businesses to grow say in and around 15% a kind of thing which we are targeting.

    — Rajesh Arora

Profitability

  • EBITDA Base Profitability · quarterly base · High confidence INR 18 billion
    Yes, so Karthik, you're absolutely right on your comments over here. You can assume the INR1,800 crores of EBITDA base or exit as a base and we expect the EBITDA to grow at a much better momentum.

    — Saurabh Chawla

  • GAL Profitability Profitability · end of this year and going forward · High confidence Profitable
    Last but not the least we had guided the markets that GAL will be profitable in FY26 and we are profitable, we will continue to be profitable for the end of this year and going forward.

    — Saurabh Chawla

  • Goa Airport EBITDA Margin Profitability · next year onwards · High confidence Improve
    Yes, in Q4 this year-end we may maintain more or less same but next year onwards absolutely it will certainly go up because of the increase in the traffic and we are also controlling certain incentives and other expenses.

    — GRK Babu

Debt Management

  • Net Debt to EBITDA Multiple for Dividends Debt Management · High confidence 3 to 3.5x
    a number of a multiple of 3 to 3.5 is reasonable to look at. We are a capital-intensive business and there could be opportunities of new airports coming on board, but if in the current portfolio the way we look at it between 3 to 3.5 net debt multiple, the trigger to start upstreaming dividends will surely begin.

    — Saurabh Chawla

Capex

  • Hyderabad Expansion Start Capex · FY28 · High confidence FY28 onwards
    As far as Hyderabad is concerned you are absolutely right that we have applied to the regulator for an expansion but the expenditure is likely to start kicking only FY28 onwards towards later FY28.

    — GRK Babu

  • Hyderabad Expansion Cost Capex · over 4 years · High confidence INR 12,000-13,000 crores
    It will be around INR12,000 to INR13,000 crores which will be spent over a period of 4 years.

    — GRK Babu

Shareholder Returns

  • GAL Dividend Distribution Shareholder Returns · medium term · High confidence On track
    So our strategy of medium term of GAL starting to distribute dividends is also on track.

    — Saurabh Chawla

Yield

  • Delhi Airport Aero Yield per Pax Yield · High confidence INR 375
    So going forward you should consider the tariff provided by the regulator INR364 but you can at the most assume INR375 as the yield per pax.

    — GRK Babu

Asset Monetization

  • Self-development Projects Monetization Asset Monetization · next 12 to 18 months · High confidence None
    No, at this stage, these projects are still under development and at least for the next 12 to 18 months, we are not looking at any monetization of these self-development projects.

    — Saurabh Chawla

Privatization

  • Airport Privatization Process (National Monetization Plan) Privatization · Q1 FY27 · Medium confidence Kick in
    So, Nidhi as you would have also seen in newspaper recently, this 11 airports a combination of 5 plus 6, the privatization process is likely to kick in and if we go by the latest reports, they are likely to start the process in the first quarter of coming financial year.

    — Rajesh Arora

Market context

  • Global Passenger Traffic Traffic Volume · 2026 · High confidence Exceed 10.2 billion
    ACI World expects global passenger traffic to exceed 10.2 billion in 2026.

    — Saurabh Chawla

  • Airline Net Profit (Global) Profitability · 2026 · High confidence US$41 billion
    IATA projects airlines will deliver about US$41 billion of net profit in 2026 on record load factors of 83.8%

    — Saurabh Chawla

What to watch in Q4 FY26

Bhogapuram Airport Operationalization

Q2FY27
Current 95.8% physical progress as of Dec'25
Target Operational in Q2FY27

Why it matters

Successful operationalization will add a new revenue-generating asset and contribute to overall growth.

Work on new airport construction is steadily progressing. At Bhogapuram, 95.8% of physical progress has been achieved as of Dec25 and we aim to operationalize the airport in Q2FY27, much ahead of our original target of Dec'26.

Risks & concerns

  • Traffic momentum disruption due to external events

    medium

    Multiple events (aircraft issues, Air India crash) have tried to disrupt air travel momentum, impacting traffic growth for the last 9 months.

    Management acknowledged

  • Geopolitical and environmental issues impacting growth

    medium

    EBITDA growth projections are contingent on environmental and geopolitical issues remaining abated.

    Management acknowledged

  • Increase in consolidated net debt

    medium

    Consolidated net debt (excluding FCCBs) increased by INR 5 billion versus Q2FY26 to INR 345 billion, though interest costs were lower.

    Management acknowledged

  • Exceptional liability from contract termination

    low

    INR 113 crores exceptional liability related to the termination of the Celebi contract at Delhi International Limited, which is a non-cash item.

    Management acknowledged

Q&A highlights

8 direct
Hyderabad Non-Aero Growth & Delhi Prospects Direct
So now with the stores opening up, more area is available, like F&B, we've also talked about that. So with all that, what you see is the is the growth in the current quarter and the current nine months of period. So that has been the underlying reason for a good significant growth in non-aero in Hyderabad. Delhi, T1 was opened last year and even within T1 all the stores are now also becoming operational. Some of our stores underwent a re-concessioning so again the result of that will start seeing it in the coming quarters. For us as we have been communicating in the past, a more sustainable growth if we look at all our non-aero businesses to grow say in and around 15% a kind of thing which we are targeting.

Clarifies drivers of non-aero revenue growth in key airports and provides a long-term growth target for this segment.

Asked by Aditya Mongia

Delhi Revenue Share Dip Direct
Hi Aditya, it's basically as you know in case of Delhi, we have certain exclusions which are to be done and during this quarter, we have done certain exclusions which are permitted under the OMDA that is the reason why the revenue share has come down. This is as per the OMDA provisions. So Aditya from your modelling perspective you should assume what the headline number of revenue share is. There could be some slight ups and downs that may happen because of inclusions or exclusions under the OMDA but from purely from a modelling perspective you just continue with the 46% headline number.

Explains a specific accounting adjustment impacting Delhi's revenue share and provides guidance for analyst modeling.

Asked by Aditya Mongia

Debt Trajectory and Peak Direct
You're absolutely correct, Aditya. Debt as I think in the last quarterly call also I said that during this fiscal year, debt will peak as Bhogapuram reaches its a finality from a construction perspective and in FY27 we will see, you know debt to start come off.

Confirms the expected peak of debt in the current fiscal year and the subsequent decline, providing clarity on future financial leverage.

Asked by Aditya Mongia

Net Debt to EBITDA for Dividends Direct
So theoretically speaking Aditya, a number of a multiple of 3 to 3.5 is reasonable to look at. We are a capital-intensive business and there could be opportunities of new airports coming on board, but if in the current portfolio the way we look at it between 3 to 3.5 net debt multiple, the trigger to start upstreaming dividends will surely begin.

Provides a key financial target (net debt to EBITDA ratio) that will trigger dividend distribution to shareholders.

Asked by Aditya Mongia

Traffic Growth & Aircraft Supply Constraints Direct
See, currently the traffic has been a little flattened due to the aircraft issue and also the Air India crash and all other issues. But it has started showing the good improvement from December onwards. So next year, we are expecting the total deliveries as per the discussion we had with the airlines - so Air India will be taking about almost 20 to 30 aircrafts and IndiGo will be about 30 to 40 aircrafts and Akasa also will get about 10 to 12 aircrafts. So there will be a net increase even after grounding of certain aircrafts maybe around 50 aircrafts in the next year. So that will certainly improve the traffic going forward and the signs of improvement has already come in the month of January, we have seen a substantial growth in the traffic.

Explains the reasons for recent benign traffic growth and provides specific airline delivery numbers that are expected to boost future traffic.

Asked by Mohit Kumar

Asset Monetization (Real Estate) Direct
No, at this stage, these projects are still under development and at least for the next 12 to 18 months, we are not looking at any monetization of these self-development projects. As you are aware, you get the best value when the rents have actually stabilized, so that will be more of a phenomena maybe 18 to 24 months down the road.

Clarifies the timeline and strategy for real estate asset monetization, indicating no immediate plans for the next 12-18 months.

Asked by Nathan Gee

Bhogapuram Depreciation & Interest Impact Direct
Yes, you're absolutely right for the next financial year it will be for eight to nine months operations. So to that extent interest as well as depreciation will come into picture. If you take the average about 4% depreciation on the assets of about INR4,000 crores, about INR160 crores per annum then 3/4 is about INR120 crores can be the depreciation and on interest cost, currently INR3,200 crores is the debt on which 9% for nine months you can calculate.

Provides specific estimates for the incremental depreciation and interest expenses that will kick in once Bhogapuram Airport becomes operational.

Asked by Kaseedit

Hyderabad Expansion Capex Direct
It will be around INR12,000 to INR13,000 crores which will be spent over a period of 4 years. This is basically we're contemplating to go for a new terminal, because Hyderabad itself is already reaching 34 million passengers which is the current terminal capacity. But we will try to sweat it for 1 or 2 more years, then we'll start the expansion. The maximum capex is expected to be around INR12,000 to INR13,000 crores which includes a new runway, new terminal and cross taxiways and everything.

Details the significant future capex plan for Hyderabad Airport, including its estimated cost, timeline, and components.

Asked by Priyankar

3 min read 6 chapters

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 items), 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.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Services earnings calls