This article first appeared on GuruFocus .
Release Date: May 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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GMR Airports Ltd ( BOM:532754 ) reported a 36% year-on-year increase in total income for Q4 fiscal 2026, reaching INR40.4 billion.
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EBITDA for the quarter grew 38% year-on-year to INR15.5 billion, with a record high of INR61.5 billion for the full fiscal year, up 47% year-on-year.
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The company achieved a positive net profit of INR4.72 crores for fiscal 2026, marking the first positive result in over a decade.
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Non-aeronautical revenue streams contributed significantly, with more than 50% of total income coming from these sources.
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GMR Airports Ltd ( BOM:532754 ) successfully reduced its consolidated net debt by INR4.7 billion compared to the previous quarter.
Negative Points
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The global aviation landscape remains challenging due to geopolitical conflicts, leading to increased jet fuel prices and airspace closures.
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Temporary international route suspensions and fuel surcharges have caused a slowdown in immediate passenger traffic.
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Mopa Airport reported a decline in total income by 5% year-on-year for Q4 and 7.7% for the full fiscal year 2026.
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Hyderabad Airport experienced a softening in traffic and EBITDA growth, resulting in some margin compression.
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The company anticipates an increase in net debt due to final payments for Bhogapuram and Nagpur airports, totaling around 1,000 crores.
Q & A Highlights
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Q: Can you explain the sharp improvement in the share of profit from investments accounted for using the equity method? A: The increase is primarily due to claims received by the Crete Airport from the government of Greece, amounting to EUR 62 million. After taxes, GMR Airports' share of this profit is approximately INR 100 crore. (Respondent: Unidentified_4)
Q: Why is there a negative tax item in Hyderabad Airport's financials? A: The negative tax item is due to the transition to a new tax regime, reducing the tax bracket from 35% to 25.17%. This led to a reversal of deferred tax liabilities, amounting to about INR 120 crore. (Respondent: Unidentified_4)
Q: What is the expected CapEx for FY27 across your various businesses? A: The CapEx for FY27 will primarily be for Bhogapuram, estimated at INR 700 to 800 crore. For FY26, the CapEx was around INR 1800 crore across various businesses. (Respondent: Unidentified_4)
Q: Are there any signs of flights being moved to the new Noida Delhi airport, particularly cargo flights? A: We do not expect airlines to switch from Delhi to Noida. The new airport will generate its own demand, similar to our experience in Goa. However, there might be some cargo impact due to the industrial nature of the region. (Respondent: Unidentified_2)
Q: What is the outlook for Hyderabad's domestic traffic, considering the current softening? A: We expect improvement in the second half of the fiscal year. The first half is impacted by airspace closures and geopolitical conflicts. We anticipate better conditions from September onwards. (Respondent: Unidentified_2)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
