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Fundamental View

GMR Airports Ltd., (GMR),

incorporated in 1996, is a leading global airport platform company engaged in the design, construction, and operation of sustainable airports. Under its GMR AERO brand, the company offers integrated aviation solutions spanning retail, aeronautical services, and airport-led real estate development. With a strong footprint in India and Southeast Asia, GMR operates key airports including Delhi, Hyderabad, Goa, Bidar, and Medan, and also provides technical services to Mactan Cebu International Airport in the Philippines.

* Topline surged 49% YoY to  Rs.4,083cr in Q3FY26, driven by a sharp increase in regulated aeronautical charges at Delhi Airport, record passenger traffic of 31.9mn, and strong growth in nonaero segments (retail and Food & Beverages). • EBITDA increased 65%YoY in Q3FY26, with margins expanding by 300 bps and is at 55%, supported by strong revenue growth and effective cost control.

* PAT came in at  Rs.174cr in Q3FY26, declining 14% YoY due to one-time costs of ~ Rs.183cr towards concession termination and labour provisions. Excluding these exceptional items, core profitability improved significantly.

* Net debt stood broadly stable at ~ Rs.34,500cr (vs.  Rs.34,000cr in Q2FY26), with refinancing initiatives aiding in lowering interest costs. As GMR enters a relatively lower capex phase from FY27—amid the near completion of the Bhogapuram airport and with the Hyderabad expansion planned from FY28—operating cash flows are expected to strengthen, paving the way for gradual deleveraging over the medium term.

* As per market consensus, GMR is currently trading at a 1year EV/EBITDA of 19.6x (which is below its 3 year Avg EV/EBITDA of 20x). GMR is positioned for strong growth ahead, supported by rising travel demand, expanded capacity, and regulatory tailwinds such as rate hikes and the inclusion of non-aero revenue in airport tariff structure, which enhance earnings visibility.

Technical View

• After an extended consolidation phase, GMR Airports has witnessed a trendline breakout on the daily chart, supported by buying interest near the 200-DMA zone. The price action indicates accumulation at lower levels, suggesting a potential shift toward a bullish bias.

• Momentum indicators are gradually improving, with the RSI trending higher toward the 55–60 zone, reflecting strengthening momentum. Additionally, MACD is showing early signs of a bullish crossover, indicating a possible transition from a corrective phase to a positive trend.

• The stock is attempting to reclaim key moving averages, including the 50-DMA and 200-DMA cluster, which is crucial for trend reversal. Sustained trading above these levels would confirm strength and attract further institutional participation.

• Consider initiating long positions in the ?90–?96 range, with a stoploss placed at Rs.79. On the upside, the stock has the potential to move toward Rs.118–Rs.119, offering a favourable risk–reward setup aligned with improving technical structure

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