GMR Airports (GMRINFRA) Q2 2026 earnings summary

Executive summary

• Air travel demand in India remains robust, making it the fifth-largest aviation market globally, with strong growth in both domestic and international segments.

• Q2 FY26 saw significant operational and financial momentum, including new routes, expanded duty-free operations, and infrastructure upgrades at major airports.

• Q2FY26 marked the first positive PBT in over three years, with a net profit of INR 351 million, reversing a loss of INR 4.3 billion in Q2 last year.

• Passenger traffic at operated airports (excluding Cebu) fell 3.5% year-on-year to 27.8 million due to temporary disruptions, mainly at Delhi Airport.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with auditor review reports issuing unqualified conclusions.

Financial highlights

• Total income for Q2 FY26 was INR 37.5 billion, up 45% year-on-year, with EBITDA growing 59% to INR 15.3 billion and margin improving to 53%.

• Profit from continuing operations was INR 351 million, with a net profit after tax for Q2 FY26 of ₹35.06 crore; six-month net loss was ₹(102.05) crore.

• Passenger traffic at GAL-operated airports declined 3.5% YoY in Q2FY26 to 27.8 million.

• Net debt increased by INR 11.8 billion quarter-on-quarter to INR 340 billion, mainly due to refinancing and project capex.

• Duty-free spend per passenger at Delhi increased to INR 1,046 and at Hyderabad to INR 777 for H1 FY26.

Outlook and guidance

• Q3 is expected to be strong due to seasonal factors and resumption of full operations at upgraded facilities.

• Non-aero revenue growth target is set at a minimum of 15% year-on-year, with current quarter exceeding this benchmark.

• Hyderabad Airport expansion (INR 14,000 crore) is planned, with master planning underway and expected to commence in 2027.

• Management expects revenue and margins to improve in subsequent years post receipt of tariff orders for DIAL and GHIAL.

• Focus on cost rationalization, margin expansion, and optimizing cost of debt.