GMR Airports Ltd has significantly outperformed Adani Airports Holdings Ltd in revenue growth for FY26, driven by new tariffs for international passengers at Delhi airport. This development has further solidified GMR's position as a leading private airport operator in India.
In FY26, GMR Airports reported a remarkable 40% increase in revenue, totaling ₹15,200 crore, compared to Adani Airports' 28% growth, which brought its revenue to ₹13,081 crore. This disparity highlights the differing strategies employed by the two companies in expanding and monetizing their airport operations.
Factors Behind GMR's Growth
The surge in GMR's revenue can be attributed largely to revised tariffs at Delhi airport, which introduced differentiated user development fees for international passengers across various travel classes. This tariff adjustment led to a 178% increase in aeronautical revenues at Delhi airport, while revenues from Hyderabad and Goa remained flat or declined.
Delhi International Airport has become a crucial asset for GMR, accounting for 50% of its total business. The remaining revenue comes from Hyderabad, Goa, and other income sources.
Profitability and Passenger Traffic
GMR Airports also returned to profitability, reporting a profit before tax of ₹472 crore after a loss of ₹816.9 crore in FY25. In contrast, Adani Airports achieved a profit of ₹1,427 crore, recovering from a minimal loss the previous year.
Passenger traffic growth was modest for both operators, with GMR Airports handling 114.6 million passengers in FY26, a slight 1% increase, while Adani Airports managed 95.3 million, also up 1%. Overall, India's passenger traffic reached 420.9 million in FY26.
Future Prospects
Looking ahead, GMR Airports anticipates a 5-6% increase in passenger traffic, bolstered by the upcoming openings of two new airports at Bhogapuram and Nagpur. The Bhogapuram airport is expected to commence operations in Q2 FY27, alongside the takeover of Nagpur airport operations.
Investment in capital expenditures for these projects, along with ongoing developments in Delhi, is estimated at around ₹1,400 crore for the current fiscal year.
Market Insights
Despite the positive outlook, analysts caution that the first quarter may be challenging due to geopolitical tensions affecting airline operations. However, growth is expected to rebound in the latter half of the year as new airports come online.
Market analysts note that GMR's strategy differs from Adani's, particularly in asset profiles and the lifecycle stages of their airports. GMR's investments in expansions indicate a long-term growth strategy that may impact earnings recovery timelines.
