GMR Airports Limited (GAL): Comprehensive Stock Analysis Report | Scrolls
- Editor
- Sep 11
- 2 min read
by KarNivesh | 11 September, 2025
Overview of GMR Airports Limited (GAL)
GMR Airports Limited (GAL), Asia’s largest private airport operator and the world’s second-largest, holds a strong strategic position in the global aviation sector. The company currently trades at ₹87.13 per share with a market capitalization of about ₹92,000 crores. It operates Delhi, Hyderabad, Goa (Mopa), and Kualanamu (Indonesia) airports while also providing technical services in the Philippines and developing greenfield projects in Andhra Pradesh (Bhogapuram) and Greece (Crete).
Business Model and Operations
GAL’s revenue model is diversified. Aeronautical services contribute 26% through fees like landing and takeoff charges, while non-aeronautical services such as retail, duty-free shops, parking, and cargo handling contribute 57%. The remaining 16% comes from real estate development, consultancy, and management contracts. This strong focus on non-aeronautical revenues helps offset regulatory dependencies on tariff-driven aeronautical income.
Delhi Airport, the busiest in India, has emerged as a global transit hub with a 244% surge in international transfers between FY2023 and FY2025. Hyderabad and Goa airports also demonstrated robust growth, while international operations in Indonesia and the Philippines add to GAL’s global footprint. In FY2025, the company served more than 120 million passengers.
Financial Performance
From FY2021 to FY2025, revenue rose from ₹3,566 crores to ₹10,414 crores, a CAGR of nearly 30%. EBITDA also improved significantly, from ₹905 crores in FY2021 to ₹3,775 crores in FY2025, reflecting strong operational leverage. Despite this, GAL posted a net loss of ₹817 crores in FY2025, though losses have narrowed from ₹3,428 crores in FY2021. Operating margins have stabilized at 36%.
The company carries a heavy debt burden of ₹38,218 crores in FY2025, up from ₹35,905 crores in FY2024. Interest expenses rose 26.5% to ₹3,705 crores, keeping profitability under pressure. To address this, GAL approved a ₹6,000 crore bond issuance to refinance obligations, including a ₹5,000 crore repayment due in November 2026.
Expansion Pipeline and Future Prospects
GAL has an ambitious expansion plan worth ₹52,716 crores, with Delhi Airport’s ₹25,000 crore expansion being the largest. Hyderabad Airport is undergoing a ₹14,000 crore capacity expansion, Bhogapuram Airport involves a ₹2,800 crore investment, while projects in Greece and Saudi Arabia expand GAL’s international reach. The company expects to turn profitable by FY2027, projecting revenues of ₹18,800 crores and net profits of ₹1,650 crores by FY2028.
Risks and Challenges
Key risks include the high debt burden, heavy dependence on regulatory tariff approvals, and forex exposure due to USD-denominated borrowings. Traffic volatility and competition from players like Adani Airports also pose challenges. Negative book value and weak interest coverage (EBITDA barely covering interest costs) highlight financial fragility.
Conclusion
GMR Airports Limited represents a growth-driven yet high-risk investment opportunity. Its leadership in the Indian aviation sector, diversified revenue streams, and massive expansion pipeline offer strong future potential. However, persistent losses, mounting debt, and regulatory risks weigh heavily on short-term performance. Success hinges on execution of expansion projects, debt refinancing, and achieving profitability by FY2027.
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