GMR Airports delivered a strong performance in the fourth quarter of FY26, with revenue and earnings rising sharply on the back of higher airport tariffs, resilient non-aeronautical income and improving operational efficiency.
Group revenue increased 37.5% year-on-year, supported primarily by the implementation of revised tariffs at Delhi Airport and continued growth in non-aeronautical businesses. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 43.1%, outpacing revenue growth as operating costs expanded at a slower pace. The company also returned to profitability after reporting a loss in the corresponding period last year, aided by a one-off tax benefit and gains from a joint-venture claim. Management indicated that recent pressure on EBITDA margins appears temporary.
Delhi Airport remained the key growth driver. Revenue at the airport rose 23%, while aeronautical revenue surged 178% during the quarter and 161% for the full year following the tariff revision. The increase helped lift EBITDA by 42%, with margins approaching 65%. Passenger traffic growth and the conversion of Pier C to international operations also improved the passenger mix, increasing the share of higher-yield international travellers.
At Hyderabad Airport, revenue grew 5%, led by a 13.9% rise in non-aeronautical income. However, passenger traffic declined 7.4% after an airline reduced services, limiting EBITDA growth to 2%. Management described the slowdown as cyclical and highlighted the expected tariff order in the third quarter of FY27 as a major catalyst.
Mopa Airport saw revenue decline 5% after management deliberately reduced charges to attract additional airlines and expand market share. The strategy contributed to record passenger traffic growth of 21.3% and a 28.2% increase in non-aeronautical revenue. Aeronautical revenue per passenger climbed 67%, while non-aeronautical income surpassed that of Hyderabad Airport.
Looking ahead, management expects passenger traffic at existing airports to grow 5-7% in FY27. New capacity from Bhogapuram and Nagpur airports is expected to add around five million passengers. The company is targeting 15-16% organic growth in non-aeronautical revenue and expects leverage to improve, with net debt-to-EBITDA projected to fall below four times within the next 18 to 24 months.
