GMR Airports Reports Significant Improvement in Q2 Performance with Reduced Losses and Strong Revenue Growth

GMR Airports Limited (GAL), one of the largest private airport operators globally, has reported a robust financial performance for the second quarter, demonstrating significant growth and improved profitability.

Key Financial Highlights

Total Revenue: Increased by 47% year-over-year to 36.70 billion rupees from 24.95 billion rupees
EBITDA: Grew by 56% to 15.00 billion rupees
Net Loss: Reduced to 371.00 million rupees, a substantial improvement from the 2.80 billion rupees loss in the same period last year
EBITDA Margin: Expanded to 41.72% from 38.54%

Operational Performance

GAL-owned airports handled 27.8 million passengers in the quarter, with Delhi Airport processing 17.6 million and Hyderabad Airport handling 7.3 million passengers. The company's airports collectively managed 27% of India's total passenger traffic in the first half of the fiscal year.

Segment-wise Performance

Delhi Airport (DIAL)

Revenue increased by 34% year-over-year to 18.49 billion rupees
EBITDA surged by 69.4% to 6.75 billion rupees
Reported a profit of 740.00 million rupees, compared to a loss of 3.79 billion rupees in the same quarter of the previous year

Hyderabad Airport (GHIAL)

Revenue grew by 16.9% year-over-year to 6.74 billion rupees
EBITDA increased by 16.5% to 4.30 billion rupees
Net profit more than doubled to 1.00 billion rupees

Goa Airport

Revenue decreased by 14.5% year-over-year to 840.00 million rupees
EBITDA declined to 120.00 million rupees from 410.00 million rupees in the same quarter of the previous year

Strategic Developments

Duty-Free Operations: GAL commenced duty-free operations at Delhi Airport on July 28 and at Hyderabad Airport on September 10.
Delhi Cargo City Concession: The company secured a concession to finance, design, develop, operate, manage, and maintain the Cargo City at Delhi's Indira Gandhi International Airport.
Refinancing Activities: GAL raised 59.00 billion rupees through Non-Convertible Bonds to refinance existing debt, optimizing its financial structure.
Infrastructure Upgrades: Delhi Airport reopened its upgraded runway 10/28 for regular operations, now capable of handling CAT III flights.

Outlook

GMR Airports Limited's quarterly results reflect a strong recovery in the aviation sector and the company's strategic initiatives. The significant improvement in financial performance, particularly the substantial reduction in net loss and strong revenue growth, indicates a positive trajectory for the company.

The expansion of duty-free operations and the new cargo concession at Delhi Airport are expected to drive further growth in non-aeronautical revenues. Additionally, the company's focus on infrastructure upgrades and operational efficiency should help maintain its competitive edge in the rapidly growing Indian aviation market.

As air travel continues to rebound, GAL's diversified portfolio of airports and its strategic positioning in key markets place it well to capitalize on the sector's growth potential.

Table: Key Financial Metrics (Current Quarter vs Previous Year Quarter)

Metric	Current Quarter	Previous Year Quarter	YoY Change
Total Revenue	36,700.00	24,950.00	+47.00%
EBITDA	15,000.00	9,615.00	+56.00%
Net Loss	371.00	2,800.00	-86.75%
EBITDA Margin	41.72%	38.54%	+318 bps

With its strong financial performance and strategic initiatives, GMR Airports Limited demonstrates resilience and growth potential in the dynamic aviation sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.17%	-3.40%	+8.30%	+22.71%	+22.85%	+296.38%

GMR Airports has announced a significant development for its subsidiary, GMR Hyderabad International Airport Limited (GHIAL). The Airports Economic Regulatory Authority of India (AERA) has approved GHIAL's request to maintain consistent aeronautical charges for the Rajiv Gandhi International Airport in Hyderabad throughout the fiscal year 2025-26.

Tariff Consistency Approval

AERA issued an amendment on October 31, 2025, allowing GHIAL to collect aeronautical charges at the same rates for the entire FY2025-26. This decision extends the rates that were previously applicable from April 1, 2025, to December 31, 2025, through the final quarter of the fiscal year (January 1, 2026, to March 31, 2026).

Background and Implications

The original tariff determination order, issued by AERA in August 2021, had set slightly lower rates for the final quarter of FY2025-26 compared to the preceding quarters. This new amendment ensures consistency in the following charges throughout the fiscal year:

Landing charges
Parking charges
User Development Fees (UDF)

Regulatory Transparency

As part of its commitment to transparency, GMR Airports has made the relevant AERA orders publicly accessible:

The amendment order dated October 31, 2025, is available at: https://aera.gov.in/uploads/airports/17619812247569.pdf
The original tariff determination order dated August 31, 2021, can be found at: aera.gov.in/uploads/airports/16466584108771.pdf (relevant pages: 297 to 300)

This regulatory update demonstrates the ongoing dialogue between airport operators and regulatory authorities in managing aeronautical charges, which play a crucial role in airport economics and passenger costs.

The consistency in tariff rates throughout FY2025-26 may provide more stability for both the airport operator and airlines in their financial planning and operations at Rajiv Gandhi International Airport, Hyderabad.