Author: Prashant Marathe
Date: 23 May 2025
📌 At a Glance
GMR Airports Ltd posted a ₹252.66 Cr Q4 loss, and ₹816.9 Cr consolidated loss for the full year FY25, even though revenue jumped 19% YoY to ₹10,414 Cr.
Yet the market cap stands at ₹92,264 Cr, with a CMP of ₹87 and investors still boarding like it’s a discount Indigo flight.
🧾 FY25 Financial Snapshot (Consolidated)
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue from Operations | ₹10,414 Cr | ₹8,754 Cr | 🔼 +19% |
| Other Income | ₹422 Cr | ₹452 Cr | 🔽 -6.6% |
| Total Income | ₹10,836 Cr | ₹9,207 Cr | 🔼 +17.7% |
| EBITDA | ₹2,110 Cr | ₹1,920 Cr | 🔼 +9.9% |
| Net Loss | ₹817 Cr | ₹829 Cr | 🔽 Slightly Improved |
| EPS | ₹(0.23) | ₹(0.16) | 🔽 |
📈 Stock Overview (As on 23 May 2025)
| Metric | Value |
|---|---|
| CMP | ₹87 |
| Market Cap | ₹92,264 Cr |
| Free Float MCap | ₹31,279 Cr |
| Volume Traded | 65.22 Lakhs |
| Turnover | ₹56.97 Cr |
| Deliverable Ratio | 63.64% |
| Face Value | ₹1 |
👨💼 Key Management
| Name | Role |
|---|---|
| Grandhi Kiran Kumar | MD & CEO |
| Auditors | Walker Chandiok & Co LLP (Joint Auditor) |
🕵️ Auditor’s Report
- ✅ Opinion: Unmodified
- ⚠️ Emphasis of Matter:
- Legal battle with AAI over Annual Fee waivers for Delhi Airport. GMR won in High Court, AAI appealed.
- Significant FCCB conversion: $25M converted into 1.11 billion shares. ₹106.91 Cr interest waived.
💣 Balance Sheet Pressure
| Metric | Value |
|---|---|
| Net Worth | ₹(1,788.82 Cr) |
| Debt to Equity | Negative |
| Interest Coverage Ratio (ICR) | 0.012x |
| Debt Service Coverage Ratio | 0.01x |
| Total Borrowings (approx.) | ₹27,000+ Cr |
🧠 EduInvesting Take
GMR is an infra dream flying on debt, dilution, and Delhi Duty Free.
- 40%+ EBITDA margins sound great, until you realise most is eaten by finance cost.
- Equity has been diluted, but net worth is still deeply negative.
- Yes, they run airports. But unless footfalls turn into cash flows, this is a jet with no fuel.
With ₹87 CMP, investors are pricing in a massive turnaround, legal wins, monetisation, and maybe divine intervention.
🔮 Forward Value Estimation
Assume:
- PAT = ₹1,000 Cr (hypothetical)
- PE = 20
➡️ FV = ₹20,000 Cr
➡️ FV/share = ₹18.94 (post dilution)
Current CMP = ₹87. That’s 4.6x this optimistic FV.
🚨 Risk Flags
- Equity dilution from FCCBs
- Debt overload and near-zero DSCR/ICR
- Legal uncertainties
- High capex and low RoCE
- Auditors highlighted material cases but signed off clean
Verdict:
If you like infra, there are better airports to land in. GMR’s valuation is flying higher than its earnings ever will — unless the miracle runway gets built.
Tags: GMR Airports, FY25 Results, Infra Stocks India, EduInvesting, Debt Stocks, FCCB Conversion, Airport Stocks, NSE Loss-Making Companies, High Risk High Valuation
