Emkay Global has initiated coverage on GMR Airports with a Buy rating and target price of ₹120, implying 25% upside from the current price of ₹96. According to reports from The Economic Times, the brokerage sees scope for further value creation as GMR expands into higher-margin businesses beyond its core regulated aviation revenues. GMR Airports is India's largest private airport operator by passenger traffic, with a 27.3% market share in FY26 and a portfolio comprising nine airport assets, including six in India.
GMR Airports reported robust financial results for the June quarter of FY27, with consolidated total income rising 23% year-on-year to ₹4,085 crore compared with ₹3,321 crore in the same period last year. As reported by The Economic Times, EBITDA increased 22% to ₹1,568 crore, while profit after tax stood at ₹148 crore, marking the company's fourth consecutive quarter of profitability. This strong performance demonstrates the company's ability to generate consistent earnings across its diversified airport portfolio.
The company's non-aeronautical and adjacent businesses accounted for 67% of GMR Airports' revenue in FY26, with adjacency revenue jumping 127% in FY26 and contributing about 25% of total revenue. According to The Economic Times, these businesses include duty-free retail, food and beverages, cargo, advertising, parking and airport-linked commercial developments. Emkay expects the segment to register a 14% compound annual growth rate between FY26 and FY29 as the company scales operations across its airport portfolio. GMR is shifting from a landlord and concession-based model towards directly owning and operating more of these businesses, having consolidated duty-free operations at Delhi and Hyderabad airports and cargo operations at Delhi under its standalone airport platform.
Emkay expects GMR Airports' consolidated revenue to grow at a CAGR of 13.7% to nearly ₹21,800 crore by FY29. According to the brokerage's projections reported by The Economic Times, EBITDA and operating cash flow are projected to increase at CAGRs of 16.5% and 17.9%, respectively, to about ₹9,100 crore and ₹8,000 crore. The company's EBITDA margin is expected to improve from 38.9% in FY26 to 41.8% by FY29. Stronger earnings and operating cash flows are expected to help GMR reduce its net debt-to-EBITDA ratio from 6.7 times in FY26 to 4.9 times by FY29, even as absolute debt remains elevated.
The company has received development rights over about 3,003 acres across its Indian airports, of which 552 acres have been monetised, leaving approximately 2,451 acres available for future development. As reported by The Economic Times, the monetised land generated lease income of around ₹980 crore in FY26, largely from Delhi Airport. GMR is now moving beyond land leasing toward self-developing commercial properties, representing an important source of recurring income and asset value. This strategic shift toward self-development is expected to enhance the company's recurring revenue streams and long-term asset value.
