GMR Airports Limited , a key player in the Indian aviation infrastructure sector, has taken a significant step to support the development of Cargo City at Delhi International Airport. The company has provided a Sponsor Support Undertaking (SSU) and pledged 51% of its shares in its wholly-owned subsidiary, GMR Cargo and Logistics Limited (GCLL), to secure a ₹750 crore term loan from Axis Bank.

Project Financing and Support Details

The loan facility, availed by GCLL, is aimed at partially funding the estimated project cost for developing the Cargo City at Delhi International Airport. The support provided by GMR Airports Limited includes:

1. Subordination of existing and future loans to GCLL
2. Commitment to infuse additional funds in case of cost overruns in Phase 1 of the project
3. Pledge to replenish the Debt Service Reserve Account (DSRA) if GCLL fails to do so

The SSU will remain valid throughout the construction period of Phase 1 plus one year of operations, unless otherwise agreed between GMR Airports and Axis Bank.

Security Arrangement

To secure the loan facility, GMR Airports has provided:

• A Sponsor Support Undertaking (SSU)
• Pledge or Non-Disposal Undertaking (NDU) or a mix of both on 51% of GCLL shares

Project Background

GCLL signed a concession agreement with Delhi International Airport Limited (DIAL) on September 26, 2025, for the development, maintenance, and operation of the Cargo City in Delhi.

Financial Snapshot

While the immediate impact of this transaction on GMR Airports Limited is reported to be minimal, it's worth looking at the company's recent financial position:

The company's balance sheet shows a strong investment position, with investments accounting for a significant portion of its total assets. Despite a slight decrease in total assets, GMR Airports has maintained a stable equity position and reduced its current liabilities.

This strategic move by GMR Airports Limited underscores its commitment to expanding India's aviation infrastructure. The development of Cargo City at Delhi International Airport is expected to enhance the airport's cargo handling capabilities, potentially boosting trade and logistics in the region.

GMR Airports , a leading airport operator, has reported a total passenger traffic of approximately 68 million across its portfolio in the year-to-date (YTD) FY2026, showcasing a mixed performance across its various airports.

Key Highlights

• Overall Performance: GMR Airports served about 68 million passengers YTD FY26 across all its airports, with a slight overall growth year-over-year (YoY).
• Domestic vs. International Traffic: Domestic traffic saw a marginal decline of 0.4% YoY, while international traffic grew by 2.5% YoY.
• Delhi Airport: Handled 43.18 million passengers, down 3.5% YoY.
• Hyderabad Airport: Achieved record performance with 17.99 million passengers, up 10.1% YoY.

Airport-wise Performance

Infrastructure Upgrades

GMR Airports has completed significant infrastructure upgrades, positioning itself for improved operational efficiency and traffic recovery:

Delhi Airport

• Reopened the enhanced Runway 10/28 on September 16, 2025.
• Operationalized the upgraded Terminal 2 in October 2025.

Hyderabad Airport

• Recorded highest-ever passenger traffic and aircraft movements in YTD FY26.
• Both domestic and international passenger numbers reached record levels.

Mopa (Goa) Airport

• Showed strong growth with a 28.1% increase in October 2025 compared to the previous year.

Market Outlook

The overall traffic for GMR Airports (excluding Cebu) showed a positive trajectory with a 2.8% increase in October 2025 compared to the same month last year. The company expects this trend to continue, supported by the recent infrastructure enhancements.

GMR Airports' diverse portfolio demonstrates resilience in the face of market fluctuations, with some airports offsetting the challenges faced by others. The strong performance of Hyderabad Airport and the growth at Mopa (Goa) Airport are particularly noteworthy, indicating potential areas of strength for the company.

Investors and market watchers may want to monitor how these infrastructure upgrades and varying growth rates across different airports impact GMR Airports' overall performance in the coming quarters.