At a Glance
GMR Airports Ltd (GMRAIRPORT) just dropped its Q1 FY26 results, and the numbers are a mix of turbulence and tailwinds. Revenue skyrocketed 33% YoY to ₹3,205 Cr, EBITDA soared to a record ₹1,165 Cr, but net loss still came in at ₹137 Cr – because interest costs (₹949 Cr) are eating the margins like free lounge snacks. The stock trades at ₹90 with a market cap of ₹95,263 Cr, but with a negative book value, investors need to fasten their seat belts.
Introduction
GMR Airports is basically that one airline passenger who’s in business class but still checking for free Wi-Fi – fancy, but broke. With stakes in Delhi, Hyderabad, Goa airports and multiple international projects, it’s the largest private airport operator in Asia. Passenger traffic is booming, tariff orders are kicking in, but the debt burden is enough to make even the bravest pilot sweat.
Business Model (WTF Do They Even Do?)
GMR earns money from:
- Aero revenues – landing, parking, and passenger service fees
- Non-aero revenues – retail, duty-free, food courts (yes, those ₹500 sandwiches)
- Cargo & ancillary – handling freight
- Other segments – power and SEZ development (because why not?)
The problem? It’s capital-intensive and debt-ridden. Airports are cash cows, but only after a decade of feeding them gold-plated hay.
Financials Overview
- Revenue: ₹3,205 Cr (+33% YoY)
- EBITDA: ₹1,165 Cr (+16% QoQ)
- Net Profit: Loss ₹137 Cr (narrowed from ₹253 Cr loss in Q4 FY25)
- Interest Expense: ₹949 Cr (ouch)
Commentary: Passenger traffic up, losses narrowing, but debt and interest remain the turbulence in this flight.
Valuation
- CMP: ₹90
- P/E: N/A (loss-making)
- Book Value: ₹-2.37 (negative!)
- ROCE: 6.9%
- ROE: Negative
Fair Value Range: ₹70 – ₹100. At current prices, the stock is already factoring in a turnaround story.
What’s Cooking – News, Triggers, Drama
- Tariff order for Delhi Airport boosting revenue per passenger.
- ₹6,000 Cr bonds issuance approved – more fuel for expansion (and debt).
- Strategic acquisitions in the pipeline.
- Credit upgrades post record EBITDA.
- Risk: Litigation around DIAL & GHIAL could be a surprise storm.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Total Assets | 48,757 |
| Total Liabilities | 48,757 |
| Net Worth | -2,503 |
| Borrowings | 38,218 |
Remarks: Negative net worth – basically, equity holders are flying economy while debt holders sit in first class.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 2,199 | 3,880 | 3,443 |
| Investing | -2,310 | -5,792 | -3,673 |
| Financing | 1,731 | 467 | -1,010 |
Remarks: Operations generate cash, but investments and debt repayments burn it faster than duty-free whisky sales.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | Negative |
| ROCE | 6.9% |
| P/E | N/A |
| PAT Margin | -4% |
| D/E | 7.6 |
Remarks: Highly leveraged – this is not sexy debt, this is “call the banker” debt.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 6,674 | 8,755 | 10,414 |
| Operating Profit | 1,727 | 2,972 | 3,766 |
| Net Profit | -840 | -828 | -817 |
Remarks: Losses are persistent, but narrowing slowly.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| GMR Airports | 11,217 | -936 | N/A |
| Dreamfolks Serv. | 1,292 | 65 | 11.5 |
Remarks: Dreamfolks is profitable and trades cheap, while GMR is betting on future passenger growth.
Miscellaneous – Shareholding, Promoters
- Promoter: 66.2%
- FIIs: 15.7%
- DIIs: 4.4%
- Public: 13.6%
Comment: High promoter stake signals control, but debt risk remains.
EduInvesting Verdict™
Past Performance
GMR has been a loss-making entity for years but holds strategic airport assets that are irreplaceable. Passenger traffic growth and tariff hikes are helping, but interest costs keep it grounded.
SWOT Analysis
- Strengths: Largest private airport operator, strong traffic growth, strategic assets.
- Weaknesses: Negative net worth, high debt, recurring losses.
- Opportunities: Rising air travel, new projects, non-aero revenue expansion.
- Threats: Litigation, regulatory risks, interest rate hikes.
Final Word
GMR Airports is like a dream vacation – expensive upfront, payoff only later. Q1 FY26 showed strong revenue growth but losses still haunt. Investors need patience, a strong stomach, and maybe a free airport lounge pass while waiting for profitability.
Written by EduInvesting Team | 29 July 2025SEO Tags: GMR Airports, Aviation Stocks, Q1 FY26 Results, Airport Operator
