Target: ₹140
CMP: ₹99.89
Q3FY26 marked a structural earnings inflection for GMR Airports, driven by tariff-led aero yield expansion at Delhi (DIAL) and steady scaling of non-aero adjacency businesses, resulting in strong margin expansion leading to strong adjusted earnings beat. With Bhogapuram nearing commissioning and major capex behind, leverage is likely to peak in FY26 and net/EBITDA set to moderate from FY27, as EBITDA scales up. Sustained aero realisation, improving non-aero monetisation, and disciplined capital allocation are likely to support cash generation and balance sheet deleveraging in the medium term.
GMR Airports is nearing the end of its capex cycle, with net debt at about ₹34,500 crore (ex-FCCB) likely peaking in FY26 and moderating from FY27 as EBITDA scales. Bhogapuram (96 per cent complete) is slated for Q2FY27 commissioning. With limited near-term capex and Hyderabad’s expansion (₹12,000-13,000 crore) from FY28, the company is transitioning towards a cash-generation and deleveraging phase.
We shift valuation from an airport asset valuation approach to business segment-wise SOTP framework, assigning differentiated EV/EBITDA multiples on FY28E to aero and non-aero segment. We value land-bank at each airport on per acre basis (incremental value of ₹17/share). We expect FY25-28E EBITDA CAGR of 29 per cent. We reiterate Buy with a higher TP of ₹140 from ₹123 earlier.
Published on February 17, 2026