ICICI Securities Maintains "Hold" Rating, Targets GMR Airports at Rs 93

GMR Airports Reports First Full-Year Profit in Over a Decade

GMR Airports (GMR) has had a significant year in FY26, marked by one-off events that led to subdued passenger growth of 1% across its core airports. Despite this, the company has reported its first full-year profit in over a decade, with the boost coming from a tariff hike at Delhi airport and a higher contribution from non-aero business.

In its latest financials, GMR reported revenue and EBITDA growth of 44% and 43% year-over-year (YoY) to INR 39 billion and INR 14 billion in Q4FY26, respectively. Additionally, the company's profit after tax (PAT) stood at INR 3 billion, marking a significant shift from losses in the previous year.

Looking ahead, ICICI Securities expects traffic recovery from H2FY27, which is expected to be supported by the commissioning of Bhogapuram in Q2FY27 and the addition of Nagpur airport. Over the next 12-18 months, key monitorable events for GMR include traffic recovery at Delhi and Hyderabad airports, the tariff order for Hyderabad airport, the order of the Supreme Court on Delhi concession agreement, and the order on the Hyderabad Rajiv Gandhi International Airport (HRAB) for Delhi airport.

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Given the current valuation, ICICI Securities maintains a HOLD recommendation for GMR Airports with an unchanged target price of INR 93.