GMR AIRPORTS

“Our debt has peaked and we maintain our outlook for free cash generation at our two largest airports and the listed entity in the medium term.”

“FY27 will see a handover of DIAL's first self-development commercial building at Delhi Aerocity, where pre-leasing discussions are already underway.”

“And the completion of the project is stated for end of FY27 i.e Q4 FY27.”

“The exact size in terms of rooms, etcetera, is still being finalized. The development is scheduled to start in January of 2027.”

“Total income at Delhi Airport rose 13% YoY to INR20.8 billion in Q2. Aero revenues rose 5% YoY and non-aero revenues increased 20% YoY.”

“EBITDA for Q2 was up 12% YoY to INR7.6 billion and was up 12% for H1FY27 to INR14.6 billion.”

“The airport has reported profit for INR1.2 billion for Q2FY27, the sixth consecutive quarter of positive PAT.”

“Aero yield per pax and non-aero IPP for Q2FY27 were highest in five years.”

“At Hyderabad, total income for Q2 was INR6.3 billion, down 6% YoY, as aero revenues fell 8% YoY on lower traffic.”

“On the operational front, traffic at GAL-operated airports rose 1% YoY in Q2FY27, reaching 28 million passengers.”

“For H1FY27 as well, traffic was up 1% YoY to 58.4 million passengers, despite the traffic for India as a whole seeing a decline of 3%.”

“While passenger traffic growth remained soft, as we had been alluding since May of 2026, reflecting short-term industry challenges, our conviction in the long-term outlook for Indian aviation remains unchanged.”

“And we see a much better momentum in the international traffic with more international airlines, especially European airlines, asking for more slots at Delhi Airport.”

“So, Delhi has a predominant position in the international side and those rates on the international side, the demand is very inelastic.”

“If you were to actually exclude the Vizag consolidation, then you will see a pretty decent growth on the EBITDA numbers also. So you have to take that into account. Second also is Goa. So both Vizag and Goa have had some downward impact on the EBITDA numbers.”

“Delhi-Hyderabad EBITDA, in fact, if you look at margins have also expanded in Q2 this year.”

“No, in case of Delhi, the YPP 365 which the regulator has given has gone up more than 440 mainly because of we have introduced in case of parking the dynamic pricing.”

“So maybe another one year the run rate may be there. But after that it will be flat down, it will go back to the normal rate.”

“In case of Hyderabad Airport, basically the transfer PAX has been assumed at a higher level, but the transfer PAX has come down, whereas the PAX number has been maintained, which has helped us improve the yield per PAX in case of Hyderabad also.”

“Consolidated net debt, which excludes the FCCBs of INR29.1 billion, which are deep in money, remain unchanged versus the last quarter as well as versus the Q2 of FY26 at INR340 billion.”

“Like we have been guiding, net debt has peaked with the completion of the Vizag or Bhogapuram Airport.”

“Consol level, the interest expenses have gone up mainly because of the capitalization of the Vizag Airport which has started operation on 17th August.”

“So primarily, Prateek, as the debt comes off as we have said, debt has peaked now and as the principal amounts start to getting paid and the debt comes off, the interest number will start to wear down. We are not taking any fresh debt for any major expansion at any airport right now.”

“The next two quarters will reflect the full interest of the Vizag Airport. Thereafter, it will stabilize.”

“GMR Hospitality Limited, a 70% subsidiary of GAL which operates the F&B business, won the concession for operating the F&B outlets at Delhi airport terminal three.”

“This was earlier being operated by a JV where GAL's stake was 40%. GAL consolidated financials will start reflecting this from Q3.”

“In cargo, GMR Cargo and Logistics Limited entered into a licensing agreement with FedEx for the operation of Express Cargo Terminal at Cargo City in Delhi Airport,”

“Aditya, I think one-off item is the INR3,500 crores DIAL has raised on 29th September, whereas the entire amount has been used for repayment of USD522 million on 26th October.”

“Also, TDSAT, the appellate tribunal, issued a favourable judgment on all issues pertaining to Delhi Airport CP4 tariff order issued by AERA, which were appealed against by us,”

“So now they made it very clear three months' time they have given, but AERA has already filed an appeal before the Supreme Court.”

“Most likely it will be the next fiscal year.”

“The hearings have happened before the Supreme Court, and I think we are expecting in the next three months it should reach the finality.”

“For Vizag Airport, AERA has issued a consultation paper pertaining to tariff order for the first control period.”

“Momentum in total income continued with Q2 at INR41.9 billion up 12% YoY. EBITDA for the quarter grew 2% YoY to INR15.7 billion.”

“PAT for the quarter came in at INR654 million versus INR351 million in Q2FY26.”

“Combined aero yield per pax, or YPP, in Q2 FY27 was INR497 for Delhi, Hyderabad, Mopa, Vizag, and Nagpur. Non-aero income for pax or IPP was INR772,”

“while Hyderabad Airport signed an MOU with Brussels Airport to strengthen the air cargo connectivity between Hyderabad and Europe.”

“GAL, the master concessionaire, also started operationalizing non-aero concessions at Vizag Airport.”