GMR Airports Q4 FY26 Results (NSE: GMRAIRPORT)
Signal: Loss reversed
The read
Consolidated operations delivered a strong profit turnaround in Q4FY26, with revenue growing 37.5% YoY to ₹3,938 Cr and OPM expanding 200bps to 37%. PAT swung from a loss of ₹253 Cr to profit of ₹400 Cr, driven by operating leverage from higher traffic and tariff hikes. This marks the fourth consecutive quarter of YoY margin expansion (Q1FY26 was flat, subsequent quarters expanded). The result solidifies the recovery post-pandemic and the benefit of favourable regulatory outcomes on tariffs. Key risks remain the ongoing litigation with AAI and AERA (as noted in the auditor's emphasis of matter).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,938 Cr | 37.5% | -1.4% |
| Net profit | ₹400 Cr | N/A (turnaround from loss) | |
| EPS | ₹0.29 | N/A (turnaround) | |
| EBIT margin | 37% |
P&L walk
Revenue grew 37.5% YoY to ₹3,938 Cr with OPM expanding 200bps to 37% on higher traffic and tariff realisation. EBITDA margin expansion combined with finance cost control and lower depreciation led to a swing from PAT loss of ₹253 Cr to profit of ₹400 Cr.
Key positives
- Revenue growth accelerated to 37.5% YoY, the fastest in recent quarters.
- OPM expanded 200bps YoY to 37%, reflecting operational leverage.
- PAT turned positive at ₹400 Cr vs loss of ₹253 Cr in same quarter last year.
- Strong traffic recovery and tariff realisation driving non-aero revenue.
Key concerns
- Sequential OPM declined 600bps from Q3FY26's 43%, indicating potential seasonality or cost pressures.
- Heavy dependence on subsidiary performance (DIAL, GHIAL) and outcome of litigations.
- Standalone parent has negligible revenue, so group risk is concentrated in subsidiary operations.
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