At a Glance
GMR runs India’s busiest airports, from Delhi to Hyderabad to Goa. But behind the swanky terminals lie brutal financial turbulence — ₹3,500+ Cr in FY25 losses, negative reserves, and debt tall enough to need ATC clearance. Is it an infra play or a black hole with gates?
1. 🚨 TL;DR
- Revenue (FY21 → FY25): ₹3,566 Cr → ₹10,414 Cr ✅ (CAGR ~30%)
- Net Profit: Still flying in red skies — ₹(-817 Cr) in FY25
- Operating Margin: 36% in FY25 ✅
- Book Value: Negative ₹2.37 ❌
- Debt: ₹38,218 Cr and still climbing
- Fair Value Range: ₹60 – ₹70 (being generous)
- Verdict: Great airports. Terrible finances. Investor patience tested at immigration.
2. 🛫 Business Model: Footfalls Fund Fantasy
GMR operates, builds, and manages airports. Its empire includes:
- Indira Gandhi International (Delhi)
- Rajiv Gandhi International (Hyderabad)
- New Goa Airport (Mopa)
- Crete (Greece) + Philippines projects in pipeline
Revenue streams:
- Aero (landing, navigation, etc.)
- Non-Aero (retail, duty-free, real estate)
- Cargo & Services
They control 27% of India’s passenger traffic. Unfortunately, that doesn’t convert into profits.
3. 📉 Financials: More Passengers, Less Profits
Revenue:
- FY21: ₹3,566 Cr
- FY22: ₹4,601 Cr
- FY23: ₹6,674 Cr
- FY24: ₹8,755 Cr
- FY25: ₹10,414 Cr ✅
Strong recovery post-COVID, led by travel rebound and non-aero ops.
Net Profit:
- FY21: ₹(-3,428 Cr)
- FY22: ₹(-1,131 Cr)
- FY23: ₹(-840 Cr)
- FY24: ₹(-828 Cr)
- FY25: ₹(-817 Cr) ❌
Zero signs of breaking even. That’s five years of continuous losses — this isn’t turbulence, it’s structural.
OPM:
- FY23: 26%
- FY24: 34%
- FY25: 36% ✅
Great margins. But evaporated by interest, depreciation, and non-stop expansion.
4. 🧮 Key Ratios & Balance Sheet Pain
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| OPM (%) | 26% | 34% | 36% |
| Net Profit | ₹(-840 Cr) | ₹(-828 Cr) | ₹(-817 Cr) |
| Debt | ₹32,157 Cr | ₹35,905 Cr | ₹38,218 Cr |
| Interest Cost | ₹2,338 Cr | ₹2,929 Cr | ₹3,705 Cr |
| ROCE | 4% | 6% | 7% |
| EPS | ₹(-0.30) | ₹(-0.93) | ₹(-0.37) |
| Reserves | ₹(-1,396 Cr) | ₹(-2,768 Cr) | ₹(-3,559 Cr) ❌ |
| Book Value/Share | Negative | Negative | ₹(-2.37) |
Borrowing more to fund capex while burning losses = classic infra trap.
5. ✈️ Operating Performance: Full Flights, Empty Wallet
Passenger Traffic (FY25):
- Domestic up, International stabilizing
- New Goa airport growing fast
- Duty-free and retail driving non-aero boost
But none of this fixes the fact that 35% of revenue goes into finance and depreciation.
6. 🏦 Ownership Pattern
| Shareholder | Stake (Mar 2025) |
|---|---|
| Promoter | 66.24% |
| FII | 15.09% |
| DII | 4.13% |
| Public | 14.55% |
FII stake halved over last year (from 28% to 15%) — the smart money left the terminal.
7. 💸 Valuation: Terminal Stock?
CMP: ₹80.6
FY25 EPS: ₹(-0.37)
EV/EBITDA: High teens, not cheap
Debt: ₹38,000+ Cr
No dividend, No buybacks, No profits.
Infrastructure can be valued on EBITDA or passenger capacity, but here even optimism hits a speed bump.
Fair Value Range (EV-based):
- EV/EBITDA normalised (₹3,700 Cr EBITDA): 12–14x
- Net Debt: ₹38,000 Cr
- EV = ₹44,400 Cr → Implied equity = ~₹6,000 – ₹7,000 Cr
- On 1,056 Cr shares → ₹60 – ₹70 range
🧠 Final Verdict: India’s Most Beautiful Airport Operator… Bleeding ₹800 Cr a Year
✅ Great assets
✅ Monopolistic operations
✅ Strong demand tailwinds
But:
❌ Heavy debt
❌ Negative net worth
❌ Profit still missing after 15 years of operations
Until interest costs fall or monetization kicks in, GMR is just a VIP lounge for long-term bagholders.
✍️ Written by Prashant | 📅 19 June 2025
🏷️ Tags
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