Target: ₹123
CMP: ₹95.11
GMR Airports, recognized as India’s largest private airport operator with a 27 percent market share of passenger traffic, is projected to achieve a compound annual growth rate (CAGR) of 9 percent in passenger traffic from FY25 to FY28. This growth is expected to outpace the national average of 5 percent, supported by an increase in overall traffic and a stronger international passenger mix. The company anticipates a significant rise in passenger throughput, particularly driven by the performance of Delhi International Airport Limited (DIAL) and GMR Hyderabad International Airport Limited (GHIAL), with a notable increase in international traffic.
The diversification strategy is expected to strengthen through growth in the aviation sector, fueled by tariff hikes and capacity expansions, alongside a reset in non-aeronautical revenues. The partnership with Groupe ADP is projected to enhance retail operations, including duty-free sales, maintenance, repair, and overhaul (MRO) services, as well as cargo services. Furthermore, land monetization initiatives are anticipated to provide multi-year annuity revenue streams. The involvement of ADP at the strategic board level is likely to improve the company’s fundraising capabilities, execution efficiency, and competitiveness in bidding processes.
The next phase of growth, focusing on non-aeronautical and commercial property ventures, is set to transform GMR Airports from a utility model into a consumption-driven play. FY26 is expected to be a pivotal year, as profit after tax (PAT) turns positive, deleveraging begins following the peaking of capital expenditures, and credit ratings improve.
GMR Airports is initiating coverage with a “Buy” rating and a sum-of-the-parts target price of ₹123. Currently, the stock trades below its three-year average EV/EBITDA multiple of 26 times, offering an attractive entry point into India’s only publicly listed pure-play airport operator. However, potential risks include high levels of debt and competition from new market entrants.
Published on November 4, 2025
