GMR Airports Q1 FY27: Growth Holds Up, Even as Traffic Stays Uneven

GMR Airports Limited opened FY27 with a quarter that showed why the company keeps positioning itself as more than an airport operator. On the surface, passenger traffic growth was modest and uneven across airports. But the financial performance stayed firm, supported by higher aeronautical yields and a larger contribution from non-aero businesses.

For Q1 FY27, consolidated gross income rose to INR 4,084.5 crore, up 23% year on year. EBITDA increased 22% to INR 1,567.7 crore, with an EBITDA margin of 50%. Profit after tax came in at INR 148.0 crore versus a loss of INR 137.1 crore in Q1 FY26. Management highlighted that reported quarterly PAT has remained positive for the fourth consecutive quarter.

The quarter also marked a portfolio milestone. The company took over operations of Nagpur Airport on 25 June 2026, and Bhogapuram International Airport was inaugurated on 1 August 2026. Management said Bhogapuram is scheduled to start commercial operations on 17 August 2026, and scheduled passenger traffic from the existing Visakhapatnam Airport will transition there.

Traffic: Delhi strong, Hyderabad weak, management expects a 2H recovery

Passenger traffic across GAL operated airports excluding Cebu reached 30.5 million in Q1 FY27, up 1.0% year on year but down 4% quarter on quarter. Delhi Airport handled 20.4 million passengers, up 6.9% year on year. Hyderabad Airport handled 7.1 million passengers, down 12.1% year on year. Mopa (Goa) handled 1.2 million passengers, down 5.6% year on year. Medan traffic was 1.8 million, up 2.4% year on year.

Management attributed Hyderabad’s decline to West Asian geopolitical instability, rising airfares, and route rationalisation by airlines. They also stated that traffic softness is expected in the first half of FY27, with recovery only in the second half. For Hyderabad specifically, management indicated FY27 passenger traffic could remain broadly flat versus FY26, around 30.5 to 31 million.

Despite this backdrop, the company said the share of India’s international passengers handled by GAL operated Indian airports was the highest quarterly share in the last four years, even with international demand affected by geopolitical disruptions.

Financial performance: yield and non-aero support profitability

Two operating metrics stood out in management commentary.

Combined aeronautical yield per passenger for Delhi, Hyderabad and Goa was INR 445 in Q1 FY27, up 12% year on year and up 3% quarter on quarter. Non-aero income per passenger was INR 691, up 8% quarter on quarter. The company clarified that the non-aero IPP metric includes non-aero businesses adjusted for revenue share and the airport non-aero revenues, but excludes MRO and the Hyderabad hotel.

In Q1 FY27, consolidated revenue from operations was INR 3,964.0 crore. Other income was INR 120.5 crore, bringing gross income to INR 4,084.5 crore.

Consolidated summary

Asset-wise: Delhi steady profitability, Hyderabad stable EBITDA, Goa still loss-making

Delhi Airport (standalone) reported Q1 FY27 gross income of INR 2,068.0 crore and net income of INR 1,146.1 crore. EBITDA was INR 703.4 crore with a 61% EBITDA margin. PAT was INR 70.2 crore, marking the fifth consecutive quarter of positive PAT according to the presentation.

Hyderabad Airport (standalone) reported Q1 FY27 gross income of INR 626.7 crore, with EBITDA of INR 390.2 crore and a 65% EBITDA margin. PAT was INR 84.7 crore.

Mopa (Goa) (standalone) reported Q1 FY27 gross income of INR 126.3 crore and EBITDA of INR 40.4 crore. However, it remained loss-making at the PAT level with a Q1 FY27 PAT loss of INR 73.8 crore, reflecting the high interest and depreciation burden.

Non-aero and adjacency businesses: duty free, cargo, MRO, and retail expand the platform

A key part of the company’s narrative is that earnings growth is increasingly being driven by non-aero and adjacency businesses. In the concall, management stated that more than 50% of the quarter’s income came from non-aero businesses.

Duty free was a highlight. Delhi duty free reported Q1 FY27 revenue of INR 580 crore, stable versus Q4 FY26 despite softness in international traffic. Hyderabad duty free reported Q1 FY27 revenue of INR 110 crore, also stable versus Q4 FY26. Management said both airports achieved their highest monthly spend per passenger in June 2026. Hyderabad’s departures store has been expanded from 400 square metres to 1,300 square metres, aimed at enabling new categories and products. For Delhi, management said duty free space expansion of 400 to 500 square metres on the arrivals side is planned by end of calendar year.

Cargo and MRO also featured in the quarter’s updates. At Goa, an on-site packhouse is being established on the cargo land parcel to support incremental perishable exports. At Hyderabad, the MRO subsidiary GMR Aero Technic signed a license agreement with Honeywell Aerospace for maintenance, repair and overhaul of seven Honeywell aerospace LRUs installed on LEAP engines used in Airbus A320neo and Boeing 737 MAX aircraft.

The presentation also provided a proforma composition of Q1 FY27 revenue from operations, showing the role of both airports and platform businesses.

Real estate and airport land development: monetisation roadmap takes shape

Airport land development and monetisation is increasingly being positioned as a third leg of the story, alongside regulated aeronautical returns and consumer-facing non-aero revenues.

At Delhi, construction is underway on Aerocity One, a self-development commercial office building with about 1 million sq ft built-up area. The presentation guided for expected handover in Q3 FY27, with pre-leasing discussions underway. In the concall, management said construction hard and soft costs are budgeted at INR 450 crore, and total costs could be around INR 500 crore. They also said monetisation in FY28 is a reasonable expectation.

In Hyderabad, the company is building GMR Interchange, its first retail project, with about 0.77 million sq ft built-up area and about 0.58 million sq ft leasable area. It also highlighted SEZ leasing activity, including handover of a build-to-suit industrial facility to Fran Technology Group and a lease agreement signed with XDLinx Space Labs.

In Mopa (Goa), sub-license agreements were signed for a retail interchange development, a MICE hotel, and a K-12 day school on 2.5 acres in the Education District of Goa Aerocity. Third-party hotel projects covering about 0.62 million sq ft and 900 plus keys are under construction or approvals.

Bhogapuram has a hotel under the Vivanta brand in the final stages of construction.

Balance sheet, capex, and cost of debt: stability now, refinancing focus ahead

As of 30 June 2026, consolidated net debt was INR 34,000 crore, unchanged quarter on quarter. The net debt break-up included Delhi at INR 14,100 crore, Hyderabad at INR 6,900 crore, Goa at INR 2,500 crore, Bhogapuram at INR 3,200 crore, GAL standalone at INR 6,500 crore, and others at INR 900 crore. The company noted that FCCBs of INR 2,890 crore held by Groupe ADP are not considered in debt reporting, and on the concall management said FCCBs are deep in the money with a strike price of INR 43.40.

Management also discussed standalone gross debt at about INR 7,400 crore, and guided that for modelling it can be assumed to remain around this level unless new opportunities arise. The average cost of debt was stated at 11% to 11.5%, with plans to refinance about INR 1,500 crore once the make-whole period ends, targeting an overall cost of debt below 10% over the next 12 months.

On capex, management guided operational and maintenance capex of about INR 1,500 to 1,600 crore across Delhi and Hyderabad in FY27, and Nagpur refurbishment capex of about INR 250 to 300 crore. Including real estate capex, management suggested a total FY27 capex figure of around INR 2,000 crore.

Regulatory and operating environment: tariff decisions remain a key swing factor

The company’s earnings are still meaningfully influenced by regulatory tariff orders. GHIAL’s multi-year tariff proposal for CP-4 (1 April 2026 to 31 March 2031) is under review by AERA. For Bhogapuram, the MYTP for CP-1 including pre-control period from 1 July 2026 to 31 March 2032 is under review, and AERA has issued an ad-hoc tariff effective from the commercial date of operation.

In the concall, management discussed a potential shift in AERA’s framework where aero charge recovery could be linked to capex completion and asset put-to-use. They indicated that such an approach could create tariff spikes, and stated they have asked the regulator to continue with the current methodology, while awaiting AERA’s response.

Takeaways

GMR Airports delivered another quarter of strong income and EBITDA growth, even as passenger traffic remained soft in parts of the portfolio. Delhi continues to anchor the platform with steady profitability, while Hyderabad’s weakness is currently the main operational drag.

The company’s strategy is increasingly visible in numbers. Aeronautical yields have moved up, non-aero income per passenger is improving sequentially, and the adjacency platform is scaling through duty free, cargo, MRO and real estate development. The next set of milestones will be the stabilisation of Bhogapuram and Nagpur operations, progress on tariff outcomes, and execution on real estate monetisation starting with Delhi Aerocity One in FY28.