GMR Airports hits 9-month high, regains ₹1 trillion market cap. Do you own?

GMR Airports stock outlook: CareEdge Ratings projects a robust 9% CAGR in air passenger traffic over FY25- FY27, with international traffic growth expected to outpace domestic growth.

GMR Airports share price today

 

Shares of GMR Airports hit a nine-month high of ₹95.38, gaining 2 per cent on the BSE in Thursday's intra-day trade in an otherwise subdued market. The stock price of GMR Group Company was quoting higher for the fourth straight day, surging 5 per cent during the period. It was trading at its highest level since September 2024.

 

In the past one month, GMR Airports has outperformed the market by surging 15 per cent, as compared to 1.1 per cent rise in the BSE Sensex. The stock had hit a 52-week high of ₹103.70 on July 31, 2024.

 

A sharp rally in the stock price has seen GMR Airports regain market capitalisation of ₹1 trillion today. At 10:06 AM: with ₹100,511 crore (₹1.0 trillion) market capitalisation GMR Airports was trading 1.4 per cent higher at ₹95.19. In comparison, the BSE Sensex was down 0.11 per cent at 82,547.  FOLLOW STOCK MARKET LIVE UPDATES TODAY 

CARE Ratings - rating rationale

 

On June 26, 2025, CARE Ratings upgraded its ratings from 'CARE BBB+; Stable/CARE (Triple B Plus); Outlook: Stable/Care A2’ to 'CARE A; Outlook: Stable / CARE A1’ for the long-term / short-term bank facilities already availed by the GMR Airports.

 

The upgrade in ratings assigned to debt instruments and bank facilities of GMR Airports factors in full and final settlement of liabilities of GMR Rajahmundry Energy leading to elimination of potential risk related any future recourse to GMR Airports. 

 

The rating revision also factors in expected expansion of profit before interest, lease rentals, depreciation, and tax (PBILDT) with slated takeover of duty-free concessions of Delhi International Airport (DIAL) and GMR Hyderabad International Airport (GHIAL) likely from July 2025 and August 2025 onwards, respectively, and significant dividend inflow from GHIAL in line with dividend received in FY25. This is expected to improve interest coverage ratio of GMR Airports significantly compared to below unity interest coverage in the past, CARE Ratings said in its rating rationale.

 

GMR Airports derives healthy financial flexibility being a listed holding company of two major operating Indian airports, DIAL and GHIAL. Both airports are among busiest airports in India.

 

Ratings continue to factor favourable outlook of air passenger traffic in India, GMR Airports’ strategic partnership with Aeroports De Paris (Groupe ADP), and demonstrated track record of funds raised in the past several years to meet refinancing and/or capital expenditure (capex) requirements, the rating agency said.  ALSO READ | Angel One share price rises 2% on posting Q1 results; Buy, sell or hold?

Favourable outlook for airports business

 

CareEdge Ratings projects a robust 9 per cent compounded annual growth rate (CAGR) in air passenger traffic over FY25- FY27, with international traffic growth expected to outpace domestic growth. This surge is driven by strong air travel demand and additional capacity creation by both airports and airlines. By FY27, passenger traffic is anticipated to reach ~485 million, reflecting the sector’s strong recovery and growth trajectory. However, the sector is exposed to inherent regulatory risk with respect to timely release of tariff orders from regulators.

 

With a substantial hike in aeronautical revenue from April 2025 onwards, increasing non-aero revenue and absence of major debt-funded capex, leverage of DIAL is expected to improve substantially marked by estimated net external debt/PBILDT of below 6x in FY26 from ~9x in FY25. GHIAL’s performance has steadily improved due to benefit of complete capex leading to increase in number of passengers and aero revenue, the rating agency said.