GMR Airports shares jumped 6% to touch an intraday high of ₹104.14 on Friday, May 29, as the firm swung into profitability. According to reports from The Economic Times, the stock was trading at ₹102.81 apiece on the National Stock Exchange at 10:30 AM, representing a 5.08% gain. The shares have gained 6.5% over a month but have slipped 5% in the past six months. The company maintains a market capitalisation of ₹1.08 lakh crore. However, the broader market correction has not spared the stock, with shares declining about 8% so far in 2026 due to growing investor caution over near-term traffic trends. The stock is currently trading 1.2% higher at ₹98.2 apiece on the NSE.
The airport operator posted a profit of ₹400.49 crore in Q4 FY26, a significant turnaround from the loss of ₹252.66 crore recorded in the same period last year. As reported by PTI, the company achieved full-year profitability of ₹472 crore for FY26, marking the first positive PAT in over a decade. Total income for Q4 FY26 climbed to ₹4,042.90 crore from ₹2,976.76 crore in the year-ago period. For the full financial year, total income jumped to ₹15,200.75 crore from ₹10,835.89 crore in the previous year. According to ICICI Securities, revenue and EBITDA grew by 44% and 43% YoY to ₹3,900 crore and ₹1,400 crore respectively in Q4 FY26, while PAT stood at ₹300 crore versus losses YoY. The company's performance was aided by tariff hike at Delhi airport and higher contribution from non-aero business.
According to the company's investor presentation, GMR-owned airports handled 31.7 million passengers in the March quarter and a record 121.6 million passengers in FY26. Delhi airport alone handled 21.2 million passengers and 78.7 million passengers in the March quarter and full fiscal year, respectively. The company's Indian airports handled 27% of total Indian passenger traffic in FY26, with domestic traffic at 26% and international traffic at 34%. International passengers comprised 24% of total passengers handled by GAL-operated Indian airports in both the March quarter and FY26. As noted by ICICI Securities, FY26 has been eventful for GMR Airports, as one-off events resulted in subdued pax growth of 1% across core airports, though the company reported its first full-year of profit in over a decade. The company highlighted that FY26 passenger traffic remained resilient, reflecting robust demand and operational adaptability amid challenging conditions including evolving airspace conditions, isolated aviation incidents, temporary airline schedule adjustments, planned runway upgradation at Delhi Airport, and global geopolitical developments.
Jefferies analysts noted that Q4 EBITDA came in slightly below estimates at ₹1,480 crore versus their expectation of ₹1,530 crore, though it recorded strong 47% YoY growth. As reported by The Economic Times, they highlighted that the quarterly performance was impacted by weakness in international traffic and higher expenses at Hyderabad Airport. Citi analysts said the profit came in 18% lower than consensus estimates, noting that the reported net profit included one-offs such as a ₹100 crore claim received by Crete Airport and a ₹120 crore reversal of tax liability at Hyderabad. ICICI Securities maintains a 'Hold' rating with a target price of ₹93, implying a ~5% downside from the current market price of ₹98, citing expensive valuation concerns despite the improving earnings trajectory and strong asset monetisation potential. The brokerage expects traffic recovery from H2 FY27 and anticipates that commissioning of Bhogapuram in Q2 FY27 and the addition of Nagpur airport could support medium-term growth. After a period marked by geopolitical tensions, airspace disruptions and volatile fuel prices, GMR Airports is pinning its hopes on recovery in passenger traffic from the second half of FY27, with analysts remaining hopeful of the airport operator's medium-term prospects despite the full impact of the West Asia crisis yet to reflect in earnings and stock price.
According to ICICI Securities, the brokerage expects traffic recovery from H2 FY27 and anticipates that commissioning of Bhogapuram in Q2 FY27 and the addition of Nagpur airport could support medium-term growth. Key monitorable factors over the next 12-18 months include traffic recovery at Delhi and Hyderabad airports, tariff order for Hyderabad airport, order of SC on Delhi concession agreement, and order on HRAB for Delhi airport. The company's financial position shows net debt stood at ₹34,000 crore as of March 2026, compared to ₹34,500 crore in December 2025, with EBITDA rising 60% annually to ₹6,000 crore for FY26 despite modest 1% growth in passenger traffic. Earlier this year, the private airport operator was seen as a relatively defensive bets within the aviation ecosystem because of its steady annuity-like revenue streams, though the broader market correction has not spared the stock despite its long-term growth outlook remaining intact.
