GMR Airports Infrastructure Ltd Management Discussions

Forward-looking Statements

This document contains certain forward-looking statements based on the currently held beliefs and assumptions of the management of GMR Airports Limited (formerly known as GMR Airports Infrastructure Limited) (“GAL”), which are expressed in good faith, and in its opinion and judgment, are fairly reasonable. For this purpose, forward- looking statements mean statements, remarks or forecasts that address activities, events, conditions or developments that the Company expects or anticipates could occur in the future. Because of the inherent risks and uncertainties in the social and economic scenarios, the actual events, results or performance can differ materially and substantially from those indicated by these statements. GAL disclaims any obligation to update these forward-looking statements to reflect future events or developments.

Introduction

FY 2024-25 was a transformational year for GAL. With the Merger process and the major expansions across Delhi, Hyderabad and Goa airports completed, GAL stands ready to capitalise on Indian aviation sector growth. During the year, in line with its strategy, the Company has further strengthened the Airport Platform by expanding its portfolio of airport adjacency businesses by further winning various concessions to operate consumer facing nonaeronautical businesses including F&B, duty free, retail etc. The impact of this will become visible from next financial year onwards, as GAL adds more revenue streams leading to a major expansion in topline and profitability. As we move ahead, GAL will increasingly become a more consumer-oriented business on the foundation of an infrastructure business.

The world appears to be in a state of transition with a number of trends emerging or sharpening.

The international system continued to shift towards a multipolar world with increased competition and rivalry among major powers like the United States (“US”), China, and Russia. The US-China rivalry remained a central theme, impacting trade policies and technological competition, particularly in semiconductors and Artificial Intelligence (“AI”). Technological advancements, particularly in AI, became a key area of competition and concern regarding national security, regulation, and ethical implications. The US and China continued their dual race to innovate and regulate AI, potentially accelerating the formation of distinct technology blocs. International institutions like the UN Security Council and the WTO faced challenges due to power rivalries, protectionism, and diverging national interests.

As a consequence, Governments prioritised economic security and diversified supply chains, leading to increased protectionist measures and regional trade blocs. Climate Change and Energy Security issues remained high on the global agenda, with nations competing for dominance in green energy technologies and critical mineral resources. The increasing reliance on digital

infrastructure has made cybersecurity a critical geopolitical concern, with potential for state-sponsored attacks and disruptions.

Countries from the Global South like India, Brazil, South Africa, and Indonesia played increasingly influential roles in shaping the agendas of multilateral institutions and advocating for inclusive development and equitable technology access. Indias position as a bridge between developed and developing nations was particularly evident. India is increasingly asserting its role in the Indo-Pacific region, forging closer ties with the US and its allies while navigating its relationship with Russia.

In summary, the past year witnessed a turbulent geopolitical landscape marked by ongoing conflicts and escalating tensions, alongside a significant realignment of global power dynamics driven by super-power competition, economic nationalism, and rapid technological advancements. This complex environment poses both challenges and opportunities for global cooperation and stability in the coming years.

As a result, the Macro-economic outlook remains rather uncertain as the geopolitical developments play out and the global repercussions of ongoing Trade and Tariff disputes are still unfolding. Amid these uncertainties, India has been performing relatively well with stable inflation, good GDP growth performance and increasing financial discipline. In fact, during the year India surpassed Japan to become the 4^th largest economy in the world.

Economic overview Global economic scenario

2023 was a challenging year for global growth. Growth was impacted by high inflation, high interest rates across most countries and regional conflicts. Still, there were some bright pockets of growth, due to which global growth remained resilient and grew by ~3.3% during 2023.

As we entered 2024, things looked up with inflation levels normalizing across major economies. This gave central banks the confidence to cut interest rates to support growth.

As such, following an unprecedented series of shocks in the preceding years, global growth was stable yet underwhelming through 2024 with total growth being at around 3.3% and inflation levels coming down from 6.8% in 2023 to 5.8%.

The US economy in 2024, was supported by exceptional domestic demand and initial rate cuts by the Federal Reserve. US recorded a GDP growth of 2.8% in 2024, up from 2.5% in 2023.

In the Euro area, domestic demand exhibited tepid growth as the economies digested the impact of energy prices due to Russia - Ukraine conflict and ECB supported growth by slashing interest rates from a high of 4.5% in May 2024 to 2.4% in May 2025. As a result, Euro area GDP grew at 0.9% in 2024 as compared to 0.4% in 2023.

China continues to face weakness in real estate sector and depressed domestic demand resulting from a weakened consumer confidence. In addition, rising trade tensions with US have also adversely affected Chinese economy. In 2024, Chinas GDP grew by 5%, down from 5.2% in 2023.

Way forward

Since early 2025, the economic landscape has changed dramatically as governments around the world reoriented policy priorities. A series of new tariff measures by the US and countermeasures by its trading partners have been announced and implemented, potentially being a major negative shock to growth. The unpredictability with which these measures have been unfolding also has a negative impact on economic activity and the outlook. The swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a significant impact on global economic activity.

In addition to these trade and policy moves, the geopolitical developments in Europe and the Middle East can potentially impact supply chains and adversely impact both growth and inflation in the near to medium term.

Global growth is projected to drop to 2.8% in 2025 and 3% in 2026?down from 3.3% for both years in the January 2025 International Monetory Fund (“IMF”) Update, corresponding to a cumulative downgrade of 0.8% point, and much below the historical (2000-19) average of 3.7%.

Post the recent developments, IMF has reduced its forecast for growth in the US to 1.8%, a pace that is 0.9% point lower relative

to its own projection in January, on account of greater policy uncertainty, trade tensions, and softer demand momentum, whereas growth in the Euro area at 0.8% is expected to slow by 0.2% point. In emerging market and developing economies, growth is expected to slow down to 3.7% in 2025 and 3.9% in 2026, with significant downgrades for countries affected most by recent trade measures, such as China.

As per IMF, global headline inflation is expected to decline at a pace that is slightly slower than what was expected in January, reaching 4.3% in 2025 and 3.6% in 2026, with notable upward revisions for advanced economies and slight downward revisions for emerging market and developing economies in 2025.

Given the uncertainty in the geopolitical and macroeconomic environment, continuing trade wars could further reduce near- and long-term growth. Divergent and rapidly shifting policy stances or deteriorating sentiment could trigger sharp adjustments in foreign exchange rates and capital flows, especially for economies already facing debt distress. The resilience shown by many large emerging market economies may be tested as servicing high debt levels becomes more challenging in unfavourable global financial conditions.

As such, the world economy stands at a precarious moment. Heightened Trade tensions, along with policy uncertainty, have significantly weakened the global economic outlook. US tariff policies are likely to strain global supply chains, drive up production costs, delay critical investment decisions, and enhance financial market volatility.

However, recent history has taught us that despite various challenges, global economy tends to perform better than expected. This is mainly because countries are increasingly responding to these challenges with agility and pragmatism. We live in an increasingly multi-polar world characterized by economic nationalism, where countries will change military and economic alliances when the situation calls for such a change. Even amid many geopolitical fractures, new alliances and partnerships are emerging. Trading partners may change, but global trade should continue to grow.

Indian economic scenario

While global economic and geo-political uncertainties have threatened to de-rail global growth, India has remained a positive factor in contributing to the global growth outlook.

India continues to be the fastest growing major economy in the world. During the year, India overtook Japan to become the 4^th largest economy in the world. With its economic growth trajectory, India is expected to become 3^rd largest economy by 2030. According to RBI, Indias GDP growth in 2024-2025 was recorded at 6.5% and same level of growth is projected for 20252026, maintaining its position as a major driver of global GDP growth. Such growth has been made possible by strong domestic demand, substantial infrastructure development initiatives, rural consumption coming back and supportive government policy measures.

At the start of FY 2025-26, CPI inflation eased to a 6-year low in April 2025 at 3.16% and WPI reached a 13-month low at 0.85% in April 2025 as prices of crude oil fell and food inflation tapered off. This gave RBI confidence to cut repo rate to accelerate GDP growth. RBI has reduced repo rates from 6.5% to 5.5% during the past 12 months. In addition, to shore-up liquidity position, RBI has committed to reduce CRR (cash reserve ratio) by 100 basis points bringing it down to 3% in four tranches starting September 2025. By cutting both the repo and CRR in tandem, the central bank has sent a strong signal that it is ready to inject liquidity and revive demand aggressively, while keeping a close eye on inflation numbers.

While the economic growth has remained stable, Indian rupee has been lately experiencing some pressure due to US tariff risks and wild swings in crude oil prices. Indian Rupee depreciated by ~2.4% against USD during FY 2025 after falling by 1.5% in FY 2024. Indian currency depreciated significantly against EURO by ~3.2% in FY 2025 vs ~ 1.3% in FY 2024. Subsequently, Indian Rupee has depreciated further vis-a-vis Euro by ~8.5% reaching a conversion rate of 1 EURO = ~ 100. However, risk of further depreciation is mitigated to some extent due to Indias rising forex reserves. By June 2025, Indias forex reserves crossed USD 700 Bn, up from ~USD 620 Bn in April 2024. This does give RBI some manoeuvring space to protect against any drastic depreciation in Rupee.

With stable GDP growth driven by increased economic activity, Indias GST collections have continued to rise. GST collection in FY 2024-25 stood at 22 Tn, up 9.4% YoY. April 2025 saw the highest-ever GST collection at 2.36 Tn. Other economic indicators have also performed well. Indias index of industrial production continues to exhibit good month on month growth rates. Both India services and manufacturing PMI has also been inching upwards during the year. Such indicators give confidence that economic activity in India will continue to expand.

Indian government has also made a visible effort to rein in fiscal deficit, which had significantly increased during the pandemic, as government had increased its social and other infrastructure spending.

On the geo-political front, situation heated up as India responded to a terrorist attack in Jammu & Kashmir in April 2025, leading to a 4-day confrontation with Pakistan in May 2025. The conflict escalated quickly, but eventually a cease-fire was reached. While the conflict cemented Indias military prowess and no-tolerance policy towards terrorism, it has resulted in closure of Pakistan airspace for Indian commercial aircrafts.

Amid other geo-political conflicts and increasing political fragmentation, India has followed its philosophy of Vasudhaiva Kutumbakam (The world is one family) to navigate through geopolitical pressures and obligations with sufficient success while maintaining strategic autonomy.

I

Way forward

I In the Union Budget for FY 2025-26, the Indian Government has , lowered its fiscal deficit target to 4.4% of GDP for FY 2026. This I reduction is supported by increasing GST collections, significant I surplus transfer from the central bank to government as dividends , and robust economic performance. A reduced fiscal deficit is t anticipated to boost foreign investor confidence and enhance Indias chances for a sovereign rating upgrade.

India has emerged as the 4^th largest major economy in world.

> This has been enabled by accelerated pace of economic reforms ; over the last few years in the domains of fiscal, digital and physical infrastructure. Initiatives like Unified Payments Interface (UPI), creation of National Investment and Infrastructure Fund (NIIF), National Single Window System (NSWS), MSME trade enablement i and marketing, Production Linked Incentive (PLI) and many more I are improving ease and cost of doing business, and positioning

India for higher and sustainable growth. In addition, Indias vibrant I start-up ecosystem with more than 161,000 DPIIT recognised i start-ups and 100+ unicorns are spearheading innovation and I fostering opportunities across sectors and becoming catalysts for Indias economic growth.

On the global front, India is improving its competitiveness by , establishing bilateral ties with partnering nations. In this direction, i India and the UK finalized a landmark free trade agreement (FTA)

> which will build strategic partnership between both nations and ; catalyse trade and investments in both economies. Currently i bilateral trade between both the nations is about USD 60 Bn, i which is projected to double by 2030. Indias trade deal with US I is also expected during FY 2026. Additionally, India is also in t conversation with major partners like EU, and ASEAN countries

and exploring new agreements with Africa, Latin America, and l Middle East as well, aimed at strengthening bilateral and regional trade partnerships.

Infrastructure Initiatives

The Indian Government has outlined a vision of Viksit Bharat (India as a developed nation) by 2047 and has announced a number of initiatives in this direction. The Government has particularly stepped-up infrastructure spending outlay. In FY 2025-26, budget allocation towards infrastructure sector was at USD 129 Bn, which is approximately 3.1% of GDP, building on the previous years USD 121 Bn.

To increase private sector participation in infrastructure projects, Ministries have been guided to develop a three-year pipeline of projects to be implemented in PPP (Public Private Partnership) mode. State Governments are also being encouraged to follow the same path. Additionally for capital expenditure and to incentivize infrastructure reforms, an outlay of USD 17.6 Bn is allocated for states in the form of 50-year interest free loans. This capital outlay aims to advance logistic ecosystems, focus on industrial development and encourage public private partnership models in the country.

In addition to above, various initiatives have been taken for focussed growth in strategic areas. A “National Manufacturing Mission” has been taken up to cover small, medium and large industries for furthering the “Make in India” initiative. This mission will lay emphasis on five key areas - ease and cost of doing business, future ready work force, dynamic MSME sector, availability of technology and good quality products. A Maritime development fund has been created to provide long-term funding support to maritime industry. A national framework for Global Capability Centres (GCCs) was developed to encourage more MNCs to establish GCCs in India. The Government is also focussed on increasing trade volumes. In this direction, Bharat Trade Net has been set up as a unified platform for trade related documentation and financing solutions to encourage international trade.

Recognizing the role of consumption in economic growth, during the year the Government made radical changes to the direct tax regime. The government significantly lowered tax rates in the new tax regime translating to a net zero tax for income up to 12 lakhs annually. This major reduction is expected to increase discretionary spending of the growing Indian middle class income group and thus lead to greater urban consumption.

Impact on sectors in which GAL operates

The civil aviation industry in India is the worlds 3^rd largest (after US and China) and has been one of the fastest growing markets. In the post-pandemic period, Indian air traffic made an impressive recovery and crossed pre-COVID traffic levels much earlier than other major countries.

The aviation sector plays a significant role in economic development of a country. It offers global connections, which are crucial in advancing international business and trade. Further, it supports travel and tourism industry. It not only transports passengers, but also air cargo, which boosts trade of high value and perishable products. The government recognizses this and has thus taken various steps to boost growth of the sector.

Throughout the last decade, Government has been continuously working on UDAN (Ude Desh Ka Aam Nagrik) scheme, which focuses on increasing regional connectivity with Tier 2 and Tier 3 cities. Till date, 625 UDAN routes have been operationalized connecting 90 airports across India and the scheme has enabled affordable regional air travel to ~14.9 Mn passengers. More than 40 Bn has been disbursed in the form of viability gap funding to promote air connectivity to remote areas.

Thanks to UDAN and other aviation sector initiatives taken up by the government, total number of operational airports in India have risen from 74 in 2015 to 162 in 2025, and the target is to add another 50 airports by 2030.

Also, a majority of States and Union Territories have slashed VAT on Aviation Turbine Fuel (ATF) to around 1-4% which will significantly contribute towards bringing down the cost of travel. This move is expected to provide further boost to air travel penetration in India.

In addition to promoting air travel, Indian government plans to promote India as a Global MRO hub. To achieve the same, Integrated Goods and Service Tax (IGST) was reduced to a uniform 5% from earlier range of 5%-28% on aircraft engine and body parts in union budget FY 2025. This move is expected to enhance competitiveness of Indian MRO players. Further, government has allowed 100% foreign direct investment in the sector with an aim to attract global MRO companies. The new policy also offers certainty and transparency in land allotments in AAI airports for setting up of MRO facilities and incentives for establishing global best practices in India. In addition to above government initiatives, massive expansion in Indias commercial aircraft fleet size should also support the growth of MRO sector in India.

Various other policy initiatives taken up by the government will have an indirect impact on growth of aviation sector in India. For example, steep direct tax rate cuts introduced in the last budget are expected to increase discretionary spending of taxpayers. Tourism industry will significantly benefit from this as spending on travel and allied services is expected to increase significantly. Apart from this, the government is also planning to develop top 50-tourist destinations with the support of State governments. Government has also increased focus to grow medical tourism in India by collaborating with private institutions and easing visa norms. These initiatives will enable unlocking of domestic and international travel potential and thereby contributing to growth of Indian aviation sector.

Indias Airport Sector Outlook and Future Plan

All India passenger traffic witnessed V-shaped recovery post Covid. Total Traffic surpassed pre Covid levels in FY 2024 and continues to grow at a steady pace. In FY 2025, total traffic grew by 9.5%. This surge in traffic was driven by strong demand for air travel and both Airports and airlines increasing capacities in recent years. Domestic air traffic grew by 9.1% in the previous fiscal year and as per ICRA, it is expected to grow steadily by 6-8% in the current fiscal year. International air traffic regained the prepandemic levels in FY 2024 and is expected to further grow by 711% in the current fiscal year, growing faster than domestic traffic supported by induction of more wide-bodied aircrafts in airlines fleets with planned deliveries in FY 2026.

However, it may be noted that while long term future of Indias aviation sector seems very bright, there are few short to medium term challenges which may impact this growth. Airlines have been struggling with aircraft issues both on account of grounding of aircraft because of engine issues (primarily Pratt & Whitney) as well as delayed supplies of new aircraft against orders by both Boeing and Airbus. The grounding of aircraft on account of the Pratt & Whitney engines was a major factor, which resulted in significant aircraft capacity not being available to meet demand. High passenger demand amid constrained fleet availability has led to airlines operating at very high load factors. This supply side constraint along with high aviation fuel pricing is resulting in high air fares. As such, in order to accommodate the growing traffic demand, addition of new aircrafts to airline fleets will be a critical factor.

This situation is however expected to be mitigated in due course as major airlines including Air India and Indigo have started receiving supplies against the large orders placed for both narrow and wide body aircrafts. Due to such investment initiatives by airlines, Indias fleet size is expected to increase substantially, which augurs well for the long-term growth of the sector.

Another major issue which the industry faced was the availability of pilots and cabin crew. This led to the cancellation of several flights and delays and such issues impacted the capacity availability adding to customer grievances.

As such, despite these challenges Indian aviation market has demonstrated strong resilience, and its growth is a testimony to the Indias emerging potential in the sector. Further, as the above- mentioned challenges are addressed, and the environment becomes more favourable, the Indian aviation sector is expected to only grow at a faster pace.

GAL plays an important role in this growth story. GAL operated airports during FY 2024-25, handled a total of 120.6 mn passengers (including passengers handled at Delhi, Hyderabad, Goa and Medan airports). In India, our airports handled 113.4 mn passengers during FY 2024-25, with a 25.8% market share of all India domestic traffic and 34.6% of all India international traffic. Our Indian portfolio of airport assets including Delhi, Hyderabad, Goa and Bhogapuram airports are expected to make a major contribution in the growth of the aviation sector.

Company overview Key developments at GAL

For the last few years, GMR has taken various strategic initiatives to simplify its corporate structure, manage corporate debt, and build a platform that is ready to capitalise on the aviation market growth in India. GALs future growth is expected to be fuelled by a mix of organic, inorganic and airport platform growth strategies.

Company initiatives

During the year, your company has taken up various initiatives to make itself ready for the next leg of growth. Some of these initiatives are mentioned below:

1. Completion of Merger of erstwhile GMR Airports Limited (GAL) with GMR Airports Limited (formerly GMR Airports Infrastructure Limited (GIL)

With an objective to enhance shareholder value by simplifying the corporate structure and bringing public shareholders closer to the airport assets, GMR had announced approval by its Board of Scheme of Merger of GAL with GIL in March 2023. This merger was concluded as of July 2024 and the merged entity was renamed from GIL (GMR Airports Infrastructure Limited) to GAL (GMR Airports Limited).

2. Portfolio expansion and Consolidation

Adding new airports to the existing portfolio is a major growth driver for GAL. During the year, some significant developments happened in this area.

Nagpur Airport - After a long legal battle, Honble Supreme Court in October 2024 confirmed the finality of Nagpur Airport concession rights in favour of GAL. Consequently, GMR Nagpur International Airport Limited ("GNIAL”), a wholly owned subsidiary of the Company signed a concession agreement with MIHAN India Limited in October 2024 to upgrade, develop and operate Nagpurs Dr. Babasaheb Ambedkar International Airport. GNIAL is expected to take over operations in Q2 FY 2026, post completion of conditions precedents by GNIAL and MIHAN. The airport handled 2.9 Mn passengers in FY 2025.

Construction at the Bhogapuram Airport project being developed by GMR Visakhapatnam International Airport Limited ("GVIAL”) continues in full swing, with physical progress far ahead of plan. By March 2025, ~69% of physical progress was achieved. National Infrastructure Investment Fund (NIIF) had earlier committed 675 crore in the form of CCDs issued by GVIAL, towards development of the project, out of which 395 crore was already received till March 2025. While the project was originally scheduled to be commissioned by December 2026, the project is currently on track to commission significantly earlier.

Construction at the Crete Airport, in Heraklion, Greece being undertaken by GMR Airports in partnership with Terna S.A., a Greek infrastructure company, is also progressing well. EPC works are in progress simultaneously at various project sites and by March 2025, ~48% of physical progress was achieved. The project is slated for commissioning by February 2027.

The acquisition of additional stakes in DIAL and GHIAL is in line with the Companys objective of consolidating its presence in core assets of the Group and signifies the importance of Delhi and Hyderabad airports in the overall Group portfolio.

GAL on March 07, 2025, completed acquisition of additional 10% equity shareholding of Delhi International Airport Limited ("DIAL”) held by Fraport AG Frankfurt airport services worldwide ("Fraport”). The acquisition was completed at a consideration of USD 126 Mn. Post-acquisition, the Companys shareholding in DIAL now stands increased from 64% to 74%. Airport Authority of India holds the balance 26% stake.

As you will recall, GAL in January 2024 completed acquisition of the minority 11% equity stake held by MAHB (Malaysia Airports Holding Berhad) in GMR Hyderabad International Airport Limited ("GHIAL”). The acquisition was completed at a consideration of USD 100 Mn. Accordingly, GAL stake increased to 74% from earlier 63% after the completion of this transaction. Government of Telangana (GoT) and the Airports Authority of India (AAI) hold 13% each in the equity stake of GHIAL.

On the International front, the sale of remaining stake in GMCAC (GMR Megawide Cebu Airport Corporation), operator of Cebu Airport, Philippines to Aboitiz Infra Capital was completed in October 2024. GMCAC was a joint venture between GMR Airports International BV (GAIBV), a stepdown subsidiary of GAL and Megawide Construction Corporation (MCC). GMR Airports will however continue to provide technical services to the airport until December, 2026.

3. Organic expansion

As the Indian aviation sector continues to grow at a tremendous pace, the Companys Indian portfolio of airport assets is expected to handle a major portion of the growing passenger traffic. To accommodate this growth, GMR Airports has been working pro-actively to expand passengerhandling capacity of its existing assets.

Capacity expansion at Delhi Airport was started in 2019 to accommodate the traffic growth. The expansion work was carried out as per the Master Plan 2016 and included expansion of Terminal 1, a 4^th runway and cross taxiway among other components. The airports expanded capacity was fully commissioned in October 2024. With this phase of expansion complete, DIAL now stands among elite global aviation hubs with a 100 MPPA terminal capacity.

Hyderabad Airport also in 2021 embarked on a phase of expansion to increase its terminal capacity to 34 Mn passengers from 12 Mn. The expanded capacity was successfully commissioned in Q2 FY 2025.

Similarly, expansion at Manohar International Airport, Goa was completed during FY 2025 and increased its terminal capacity from 4.4 Mn to 7.7 Mn.

With above mentioned expansions at the operating airports, GMR Airports is now ready to capture medium term traffic growth, while also providing superior passenger experience.

In a related development, post completion of the expansion, GHIAL, on January 24, 2025 has declared a dividend of 7.5/share, aggregating to 280 crore. This is a material development, as with capital expenditure having been completed, and the healthy cash flow generation on account of the strong growth that the airport is experiencing, along with the higher tariffs in place, the expectation is that dividend upstreaming will continue to be robust in the coming years.

4. Strengthening the Airport Platform - Adjacency businesses

As part of the stated strategy, the Company has been working towards capturing a greater part of the airport value chain by tapping into opportunities in airport adjacent businesses like cargo, duty free, car park, Food & Beverage (F&B), services businesses etc. This year was a landmark in this area, as the Company has made significant strides on this front.

Among the major ones, GAL won concession rights for Duty free business at DIAL and GHIAL and has started operations at DIAL effective July 28, 2025 and is expected to takeover operations at GHIAL in Q2 of FY 2026. These businesses will help to drive and position GAL as a consumer-focused business leveraging the backbone of the airport infrastructure. Recently, GAL has also taken over the concession of the existing Cargo Terminal at DIAL, post termination of existing concession of the cargo operator by Government of India ("GOI”).

As we go ahead, GAL will continue to scout and evaluate multiple such opportunities at not only GMR Airports, but also at other airports in its focus geographies as well. This will help in increasing operating level cash flows at GAL and build a stronger consumer Brand.

5. Regulatory developments

Several positive advancements were made in the regulatory front. Tariff Order for DIAL for Control Period (CP) 4 (April 2024 to March 2029) was published by AERA, which has come into effect from April 16, 2025. AERA approved Yield per pax of 360 per passenger for DIAL from the earlier level of 145 per passenger.

GHIAL has also submitted Multi Year Tariff Proposal (MYTP) for its CP4 (April 2026 to March 2031) in June 2026 for revision of tariffs which will be finalized by AERA as per process. Similarly, since COD of Bhogapuram Airport is expected by Q2 FY 2027, GVIAL has also in July 2025 submitted MYTP for its CP1 with AERA.

DIAL had filed appeals with Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against the AERAs tariff order for CP2 and CP 3. TDSAT has pronounced the final order w.r.t the aforesaid appeals in July 2023. TDSAT has allowed certain claims of DIAL and disallowed certain others. The claims allowed by TDSAT has potential upsides. Federation of Indian Airlines (FIA) and AERA have filed an appeal before the Honble Supreme Court against the TDSAT order. The same has been accepted and matter is being heard at the he Honble Supreme Court (SC).

In a recent development, TDSAT vide its judgement dated July 01, 2025 has quashed and set aside AERAs calculation of Hypothetical Regulated Asset Base (HRAB) during tariff determination of CP1 and directed it to recalculate the HRAB value afresh as on April 01,2009 keeping in mind the values of the tariff components as provided in the State Support Agreement entered between GOI through Ministry of Civil Aviation and DIAL. This order is subject to appeal before the SC.

Similarly, GHIAL had also filed an appeal with TDSAT against CP 3 tariff order issued by AERA. TDSAT has allowed certain claims of GHIAL and disallowed certain others. AERA filed an appeal in SC against the TDSAT order. The matter is being heard at the SC.

DIAL and GHIAL will have potential upsides on receiving favourable orders from the SC.

6. Airport Land Development

As part of GALs strategy, ALD business is moving up the real estate value chain with an aim to create greater value from the precious city side land banks at GMR Airports. While in the early years, the ALD strategy was primarily leasing of land, over the past few years, the ALD strategy has materially evolved, with focus on value added activities including leasing Built-to-suit space (primarily for industrial clients) and doing self-development in commercial and hospitality segments. Further, in select cases of leasing land to key

customers, the Company has taken the opportunity to also do EPC for the construction of their facilities in the Aerocities. The Company has been building skill set and capability to drive this strategy over the past few years and has strong depth to deliver these services to its customers. Accordingly, during the last couple of years, various initiatives have been taken up in line with this strategy.

Going forward, GMR Airports intends to accelerate construction of key investment projects viz. Office Project under Self Development and Terminal Hotel at Delhi, Interchange (Retail), Office Tower 3, Industrial Built-To-Suit, student housing and a second Hotel at Hyderabad.

At Delhi Aerocity, there has been significant progress at the commercial and retail assets being developed by the Bharti Real Estate. A large part of the commercial office space will be available for leasing within FY 2026. A large retail mall is also at an advance stage of construction. With these developments, Delhi Aerocity will take its place amongst the largest Global Business Districts in the world.

At the newer assets including Goa and Bhogapuram, various hotel and mixed-use development plot monetization were effectuated during the year.

7. Financing initiatives

GAL has been continuously working towards improving its liquidity position to be ready for future expansion and growth, while at the same time rationalizing cost of debt. In line with this objective, during FY 2024 GAL refinanced 5,000 crore debt resulting in a substantial lowering of interest cost. During FY 2025, GAL further raised 1,500 crore in tranches of 1,100 crore and 400 crore in the form of Non-Convertible Bonds ("NCBs”) with a tenure of 3 years in February 2025 and April 2025 respectively. The fund raise was mainly used towards acquisition of Fraport stake of 10% in DIAL and equity investment in various other projects.

Taking the rationalisation of cost of debt further, GAL refinanced its existing debt facility of 5,000 crore with a fresh debt facility of 5,900 crore. This issuance was issued in 2 tranches, Tranche 1 of 1,500 crore is issued at the cost of 10.50% and tranche 2 of 4,400 crore is issued at the cost of 10.75%. This has reduced the cost of borrowing from 14.70% to 10.80% leading to savings of around 395 bps.

GVIAL availed a sub-ordinate Debt Facility to an extent of 350 crore to meet means of finance for project construction.

Further, with the increase in the GAL Platform adjacency portfolio, these businesses will also contribute significantly to the cashflows at GAL (Standalone) and help improve credit ratings and reduce the cost of corporate debt.

Over the past year, credit ratings at all the major assets have improved significantly as evident from the following table.

Company	Previous Rating		Date		Recent Rating		Date
GAL Long-term / Short-term bank facilities	CARE BBB+; Stable / CARE A2		March 27, 2025		CARE A; Stable / CARE A1		June 26, 2025
GAL Non-Convertible Bonds	CARE BBB+; Stable		March 27, 2025		CARE A; Stable		June 26, 2025
Company		Previous Rating		Date		Recent Rating		Date
DIAL Long term rating		CRISIL AA-/Stable (Upgraded from CRISIL A+/Positive)		January 28, 2023		Crisil AA-/ Stable (Reaffirmed)		January 24, 2025
GHIAL Long term rating		CRISIL AA+/Stable (Upgraded from CRISIL AA/Positive)		February 09, 2024		Crisil AA+/Stable (Reaffirmed)		April 29, 2025

8. Awards and accolades

Your Company continues to strive for operational excellence, being at forefront in adopting industry best practices and setting higher benchmarks in sustainability, innovation and passenger experience in the aviation industry. GAL was the sole Indian airport developer to be named one of the “Worlds Most Trusted Companies” in Newsweeks 2024 survey achieving the 5^th place globally in the Transport, Logistics & Packaging Category.

GMR Airports had initiated ratings under Skytrax only a few years ago and has three of its airports in the top 100, and has made rapid improvements every year. The rankings are as below:

Delhi International Airport improved its Global Skytrax airport ranking to 32 from 36 in FY 2024; Hyderabad Airport improved its global ranking to 56 from 59 in FY 2024, while Goa Airport at Mopa improved its global ranking from 92 to 80 in FY 2025.

Delhi International Airport also secured the best airport award in the “over 40 MPPA” category in Asia Pacific region for the seventh consecutive year and was ranked as 9^th busiest airport by ACI in 2024, up from 10^th in 2023. Similarly, Hyderabad Airport secured the best airport award in the “15 to 25 MPPA” category in Asia Pacific region for the third consecutive year. Manohar International Airport in Goa secured two notable distinctions viz. best Airport in the under 5 MPPA category and cleanest airport in India and South Asia.

9. Sustainability & CSR

GALs sustainability strategy is focused on creating longterm value through responsible, resilient, and sustainable aviation infrastructure. GAL also remains committed to a path to Net Zero.

Underscoring this unwavering commitment, a remarkable milestone was achieved during the year. Both DIAL and GHIAL received Level 5 accreditation in Airport Council Internationals (ACI) Airport Carbon Accreditation (ACA) Programme. DIAL stands out as the largest airport in the world (by passenger traffic) to achieve ACI Level 5

accreditation.

With strategic focus on enhanced disclosures and targeted ESG actions, GAL has achieved a significant improvement in its ESG ratings. GALs S&P Corporate Sustainability Assessment (CSA) score improved by 12 points to 53, placing it considerably above the industry average score of 32 and in the top 16 percentile in the transportation and transportation infrastructure industry category. On Sustainalytics, GALs ESG Risk Rating was categorized as Low Risk, an upgrade from Medium Risk previously, with GAL featuring in the top 20 airports out of 81 airports assessed globally. These advancements in ratings stem from GALs comprehensive and continuous focus on prioritizing ESG through climate action, sustainable infrastructure, community impact, employee wellbeing and safety, and highest standards of ethical conduct.

10. Digitalisation

The Company acknowledges the significance of innovation and digital transformation in driving operational excellence, enhancing stakeholder value and shaping a future-ready organisation.

GAL is navigating this transformation with agility, focus and vision. Aligned with its business priorities, GAL has implemented several impactful digital initiatives aimed at elevating passenger experience, streamlining operations, enhancing revenue, improving profitability and modernizing internal processes.

In this direction, a notable accomplishment during the year has been the operationalisation of the next-generation Airport Predictive Operation Centre (APOC). This integrated operations management system leverages advanced AI-driven predictive and prescriptive analytics to optimise airport operations, improve turnaround times and enhance coordination and data sharing among key stakeholders, including airlines, ground handlers, and government agencies.

Further, penetration of the DigiYatra ecosystem continues to grow across various GMR Airports.

Indian portfolio of Airports

1. Indira Gandhi International Airport ("Delhi International Airport"/"IGIA") operated by DIAL

Focus Areas for FY 2025-26

IGIA related highlights for FY 2024-25 are covered as part of the Boards Report.

IGIA achieved a historic milestone by recording its highest- ever annual passenger traffic, surpassing the previous record of 73.7 Mn set in FY 2023-24. Looking ahead to FY 2025-26, DIAL anticipates continued robust growth in both passenger and cargo traffic. With conclusion of the Phase 3A project,

IGIA now has a total capacity exceeding 100 Mn passengers per annum, which will enable the airport to service growing passenger traffic.

DIAL continues to collaborate with stakeholders, including airlines, to position IGIA as a premier international hub for both passengers and cargo. In line with this vision, DIAL is launching initiatives to support hub operations and enable airlines to leverage IGIA as a central node in their global networks. In FY 2025-26, DIAL will focus on optimising capacity to accommodate increased international traffic and strengthening partnerships with international carriers to promote long-haul connectivity and attract dedicated freighter operations into Delhi.

To further boost international capacity, DIAL is converting Pier C at Terminal 3 from domestic to international operations. Concurrently, Terminal 2 is being upgraded with new passenger boarding bridges and enhanced amenities to improve the overall passenger experience. Further, 10/ 28 runways Instrument Landing System (ILS) is being updated to CAT III B standards, which will allow safe landings of flights even in severe fogs. It will enhance operational efficiency and safety during inclement weather. DIAL is also working closely with stakeholders to enhance airside throughput, ensuring the airport remains well-equipped to meet future demand.

DIAL remains committed to delivering an exceptional passenger experience at IGIA. Throughout FY 2024-25, it pursued strategic collaborations across the aviation ecosystem. A landmark achievement was IGIA becoming the first in India to implement the Government of Indias Fast Track Immigration - Trusted Traveller Programme (FTI-TTP), reinforcing its focus on innovation and operational excellence. DigiYatra ecosystem continued to expand, benefiting over 11 Mn passengers with a seamless, touchless travel experience.

Sustainability remains a core pillar of DIALs strategy. Delhi International Airport has had a long track record on sustainability initiatives which has culminated in it becoming the first airport in Asia-Pacific region to attain Level 5 certification under ACIs Airport Carbon Accreditation program. ACI Level 5 certification represents the highest level of achievement, signifying an airports commitment to achieving net-zero carbon emissions. This involves a substantial reduction in direct and indirect emissions (Scope 1 & 2) and a commitment to net-zero Scope 3 emissions by 2050 or sooner. The newly developed Terminal 1 exemplifies this commitment, combining state-of-the-art infrastructure with eco-conscious design, and has achieved LEED Platinum Pre-certification, while Terminal 3 holds LEED certification. DIAL has transitioned its fleet to electric vehicles (EVs), with 95% of DIAL-operated four-wheeler vehicles being electric.

Tariff at Delhi International Airport

DIAL had submitted its Multi Year Tariff Proposal for fourth control period (April 01, 2024 to March 31, 2029) on May 29, 2024. AERA (Airport Economic Regulatory Authority), post submission undertook a rigorous analysis and stakeholder consultation process. AERA then issued Consultation Paper on January 31, 2025, followed by the

final tariff order on March 28, 2025. As per the tariff order, DIAL has received ~ 150% increase in yield over the existing rates of BAC+ 10%.

DIAL Appeals on Tariff Orders

DIAL had also filed appeals against some of AERAs decision with respect to second and third control period orders with Telecom Disputes Settlement and Appellate Tribunal ("TDSAT”). On July 21, 2023, TDSAT issued a final order in which it has allowed certain claims of DIAL and disallowed certain others. Subsequently, AERA had filed an appeal before the Honble Supreme Court on October 19, 2023 against the above TDSAT judgment. A positive outcome in the Supreme Court may have a positive impact on the tariff as and when this is incorporated into the tariff mechanism by AERA. While these issues relate to past control periods, any favourable order, if and when implemented, will be trued up for the time value of money in line with AERA Act.

Further, DIAL had previously invoked arbitration against Airport Authority of India seeking certain reliefs as eligible to it on account of the occurrence of Force Majeure event under OMDA during the Covid-19 period. The Arbitral Tribunal has passed the Award on January 06, 2024 stating:

I. the amount of MAF paid by DIAL to AAI for the period March 2020 to December 2020 was ordered to be refunded along with interest and DIAL also being excused from making payment of MAF from January, 2021 till February, 2022.

II. There shall be extension of the term of OMDA for 1 year and 11 months i.e., the period excused under force majeure.

However, the award has been challenged, and an appeal in this regard is under hearing in the Honble High Court of Delhi.

2. Rajiv Gandhi International Airport ("Hyderabad International Airport"/"RGIA") operated by GHIAL

Focus Areas for FY 2025-26

RGIA related highlights for FY 2024-25 is covered as part of the Boards Report.

GHIAL was able to begin operations of its newly expanded terminal with a capacity of 34 Mn passengers and experienced remarkable passenger traffic growth in FY 2025, with total passenger footfall reaching 29.48 Mn, representing a strong 18% YoY increase from 25.04 Mn during FY 2024. This growth trajectory demonstrates the airports expanding role as a significant aviation hub in the region.

Further, International traffic growth rate at RGIA has been better than the domestic traffic growth rate. This has been facilitated by additional of new international destinations. For example, a strong flow of passengers has been noticed to many destinations in US owing to a strong diaspora of Telugu speaking people in the US. Thus, the Airport is working with various airlines and stakeholders to increase and expand connectivity with North America and Europe.

By March 2025, GHIAL was connected to 72 domestic and 24 international destinations, up from 67 domestic and 20 international in the previous year.

In addition to the strong air traffic growth, cargo volume handled at RGIA also witnessed a tremendous YoY growth, as several airlines continue to expand their freighter operations at the Airport. To complement this growth, airports cargo infrastructure is undergoing significant expansion. Cargo Terminal 1 is being expanded to include a new Domestic Terminal, an International Courier/Express Terminal, and a dedicated terminal for perishable goods. Simultaneously, the construction of Cargo Terminal 2 is progressing, with Phase I expected to become operational in October 2025, significantly increasing handling capacity. With these capex initiatives, RGIAs cargo handling capacity shall increase from the current 150,000 MT to 300,000 MT, with cargo terminal 1 capacity of 250,000 MT and the new cargo terminal 2 capacity of 50,000 MT.

Passenger experience continues to be the cornerstone of operations at RGIA. The airport has achieved various recent milestones that reflect its unwavering commitment to excellence.

In a significant leap forward, Hyderabad International Airport was ranked 56^th globally at the Skytrax World Airport Awards. This was an improvement over the previous year Rank 59. This recognition underscores the teams dedication to delivering world-class service and operational excellence. Hyderabad Airport also received the Best Airport Staff in India & South Asia 2025 Award from Skytrax, reaffirming the exceptional quality and professionalism of the team. This accolade is a motivation to further elevate service standards and maintain leadership in passenger satisfaction.

Hyderabad Airports pioneering efforts in digital transformation have earned global acclaim, with top honours at the Airport Excellence Awards during the Saudi Airport Exhibition 2024. These innovations are reshaping the passenger journey and setting new benchmarks in airport technology and efficiency.

Adding to the list of accolades, the airport was named the winner of the Prestigious ACI Worlds ASQ Best Airport Award 2024, a testament to its consistent performance and focus on customer experience. The team remains committed to sustaining the airports ACI ASQ score of 5.00, which has been proudly maintained over the years.

Further advancing its customer experience initiatives, Hyderabad International Airport has successfully achieved Level 3 of ACIs Airport Customer Experience Accreditation. This progression reflects strategic focus on enhancing every touchpoint of the passenger journey.

Hyderabad International Airport has implemented various ESG initiatives and is currently certified at level 5 under ACIs Airport Carbon Accreditation program. GHIALs expanded passenger terminal received LEED Platinum certification according to the LEED v4 Building Design and Construction: New Construction and Major Renovations rating system. The airport was recognized for Excellence in Water Conservation & Climate Change Mitigation at the 6^th ASSOCHAM (Southern Region) CSR and Sustainability Awards 2025. The terminal has completed a full conversion to LED lighting.

Tariff at Hyderabad International Airport

GHIAL is currently operating in the 3^rd Tariff Control Period. AERA had earlier issued tariff order no 12/ 2021-22 for the third control period (April 01, 2021 to March 31, 2026) on August 31, 2021.

Further, GHIAL has submitted Multi Year Tariff Proposal (MYTP) for its 4^th Control Period (April 2026 to March 2031) in June 2026 for setting of tariffs which will be finalized by AERA as per process.

GHIAL Appeals on Tariff Orders

In respect to GHIALs appeal regarding tariff order issued by AERA for second and third control period, TDSAT has pronounced the judgement on February 14, 2024. TDSAT in its order has allowed certain claims of Hyderabad International Airport and has disallowed certain others.

AERA and Federation of Indian Airline (FIA) has filed an appeal before the Honble Supreme Court ("SC”) against the said TDSAT judgement. A positive outcome in the Honble SC may have a positive impact on the tariff as and when this is incorporated into the tariff mechanism by AERA. While these issues relate to past control periods, any favourable order, if and when implemented, will be trued up for the time value of money in line with AERA Act.

3. Manohar International Airport ("Goa Airport at Mopa"/ "MIA") operated by GGIAL

Focus Areas for FY 2025-26

MIA related highlights for FY 2024-25 are covered as part of the Boards Report.

Post successful commissioning, the airport commenced Domestic Operations on January 05, 2023 and International Operations on July 21, 2023. During FY 2025, MIA handled

4.3 Mn Domestic Traffic & 0.35 Mn International traffic, totalling to ~4.7 Mn, which is more than 5% higher over FY 2024.

Since the commissioning of the airport, it has been an endeavour to connect more destinations, both domestic and international. During peak season of FY 2025, MIA was connected to 19 Domestic Destinations and 10 International Destination.

Despite very recent operations, MIA has consistently scored >4.9 in ASQ rating, featuring among the top 10 airports in the 2-5 MPPA category. MIA has also improved the Skytrax global airport ranking from 92 to 80 during the year. Skytrax has also categorised MIA as the Best airport in the under 5 Mn PAX category and the cleanest airport in India and South Asia.

In compliance to Concession Agreement and considering demands from airlines and high passenger footfall, MIA has expanded its passenger handling capacity from 4.4 to 7.7 MPPA capacity. Further, during the year, a dedicated 6-lane expressway (NH 166S) connecting the airport to the NH-66 was inaugurated. The expressway provides a seamless transition for passengers and cargo to and from the airport, providing dual connectivity to the Airport.

Going forward, considering the strong demand and high load factor in Goa coupled with steady delivery of aircraft, it

is expected the Goa system traffic to grow in double digit during FY 2026.

The Regional Connectivity Scheme (UDAN) continues to be a major driver of growth, connecting smaller cities and regions to the aviation grid. Three new airlines, Shankh Air, Air Kerala, and Alhind Air, are slated to begin operations in 2025, offering a variety of service types and focusing on regional connectivity. The entry of new airlines and the capacity expansion of existing ones are expected to create more supply, thus providing headroom for traffic growth.

MIA remains dedicated to providing a world-class travel experience for all passengers. With recent improvements in infrastructure, operational efficiency, and a focus on safety and cultural celebration, it will continue to focus on providing best-in-class services to passengers and generating maximum value to its shareholders.

Tariff at Goa Airport at Mopa:

First Control Period Order: AERA issued tariff order no. 27/ 2023-24 for the first control period (April 01, 2023 to March 31,2028) on December 07, 2023 for the Goa Airport at Mopa. AERA determined YPP for CP-1 at ~ 668/ Pax. In the order, AERA has approved aeronautical tariff which includes UDF for both embarking and dis-embarking passengers. The order was made effective from January 01, 2024.

GGIAL Appeals on Tariff Orders

Based on the Companys evaluation of the above-mentioned Tariff Order, the Company filed an appeal on certain matters before the Telecom Disputes Settlement Appellate Tribunal (TDSAT) on February 21, 2024, which is currently pending for adjudication.

4. GMR Visakhapatnam International Airport ("Bhogapuram Airport") operated by GVIAL

Focus Areas for FY 2025-26

The concession agreement for Bhogapuram International Airport (new Visakhapatnam Airport) was signed in June 2020. The foundation stone for the project was laid by the Honble Chief Minister of Andhra Pradesh in May 2023. Financial closure of the project was achieved in December, 2023. With execution of these financing agreements, GVIAL had tied up the necessary debt to fund this project. The overall project cost is estimated at 4,727 crore.

Subsequently, EPC works have been taken up by the selected bidder, L&T with construction beginning in December 2023. The project has been progressing exceptionally well, with around 80% physical progress having been achieved by June 2025, well ahead of the original schedule. Runway construction is almost completed, and terminal works are progressing rapidly. Calibration Flight has also recently been conducted in June 2025 to test technical aspects of the navigational aid equipment supplied by AAI.

The project is now on an expedited path towards operational readiness:

• ORAT (Operational Readiness and Airport Transfer) Trials: GVIAL is prioritizing the completion of these crucial trials before the commencement of commercial operations. ORAT involves comprehensive testing of all airport systems and procedures to ensure seamless operations upon commissioning.

• Commercial Operation Date (COD): Given the current level of physical progress, the airport is targeted to commence commercial operations well ahead of the original schedule of December 2026.

International Portfolio of Airports

1. Kualanamu International Airport ("KNO"), Medan

As outlined earlier, GAL had entered a strategic partnership with Angkasa Pura II to operate, maintain and develop Kualanamu International Airport (KNO), Medan, Indonesia for 25 years. The JV entity between GMR Airports (49%) and Angkasa Pura II (51%) took over the commercial operations on July 7, 2022. Subsequently, PT Angkasa Pura I (AP I) and PT Angkasa Pura II (AP II) went through a merger to form PT Angkasa Pura Indonesia. This merger created a unified airport operator for Indonesia, managing 37 airports.

Medan Airport has shown strong momentum in 2024. International traffic reached a record 2.26 Mn passengers, driven by new and resumed routes including Jetstar Asia to Singapore and Saudias return with Citilink to Jeddah and Medina. Domestic connectivity also expanded with new routes and increased frequencies, including Pelita Airs double daily service to Jakarta. Overall traffic reached 7.1 Mn passengers, or 88% of pre-pandemic levels, with a significant milestone of 17,000 transit passengers between international and domestic segments.

It may be noted, that while international traffic at KNO continues to grow, domestic traffic has been experiencing systemic weakness. Indonesias domestic aviation sector is currently experiencing operational challenges, with a notable number of aircrafts grounded due to maintenance-related issues across major carriers. The Garuda Group and Lion Group, which together command approximately 95% of the domestic market, have both been affected.

The airport also delivered substantial gains in nonaeronautical performance, onboarding global duty-free, F&B, and retail partners through a competitive process, many entering Medan for the first time. Improved commercial terms and governance contributed to a 51% increase in nonaero revenue compared to 2019, with per-passenger revenue up 55%.

Operational enhancements-such as e-gates, upgraded security, and refurbished washrooms-boosted service quality, and subsequently, KNO won the Best Airport award in the 5-15 Mn passenger category from Injourney Airports, Indonesia.

Looking ahead, the planned Immediate Capacity Augmentation (ICA) will transform the terminal experience with a refreshed design, enhanced passenger flow, and expanded commercial areas to drive further revenue growth. A number of initiatives have been taken up to restore traffic to pre-covid levels and also develop KNO as an alternate hub to Jakarta. The teams are actively working with airlines and regulators to unlock new routes in Southeast Asia, the Middle East, and India, while positioning Medan as Indonesias Umrah hub. Two new international routes and

two new airlines for FY 2026 - Thai Air Asia to Phuket from June 2025 and Etihad to Abu Dhabi from October 2025 have already been secured. On the domestic front, the team is collaborating with the Ministry of Transportation and Angkasa Pura Indonesia to revitalize connectivity. In addition, the team is also partnering with the Ministry of Tourism and regional consulates to increase inbound traffic and will be working with a new cargo partner to tap into Medans significant cargo potential.

2. Crete International Airport

The consortium of GMR Airports and TERNA had obtained the concession for the design, construction, financing, operation, maintenance of the new International Airport of Heraklion at Crete in Greece on February 6, 2020. The concession period is 35 years including the design and construction phase.

The passenger traffic at existing Crete Airport reached 9.4 Mn for CY2024, which is 10% higher than the CY2023 traffic, demonstrating a strong growth in leisure traffic.

The overall construction progress of the airport as of March 2025 is approximately 48%, with significant progress for major components. On the Airside, base course paving works are completed, and asphalt paving is in progress. At the terminal building, ongoing works include block works, partitions, MEPF, HVAC, Elevators, Escalators, Facade and BHS system installations. At the control tower, vertical Structural concreting works are completed, and slab works are in progress.

The EPC contractor had requested an extension of the construction timeline by 24 months due to changes in design suggested by State Advisors and COVID-related delays. Accordingly, the state has approved the extension of COD to February 06, 2027, and has also agreed to fund an additional EPC claim of Euro 104.9 Mn. There is however no change in the equity or debt required to complete the project, as this increase on account of EPC claim will be funded by a state grant to that extent.

In a major development, the Commercial Joint Venture (CJV) was approved by General Assembly of Airport company in August 2024. It comprises a 60% stake held by GMR and 40% by Terna. The CJV shall have exclusive rights to nonaero revenue business of the airport. The CJV entity has been incorporated as GMR TERNA Commercial S.A. in June 2025. Various commercial activities including finalising business models for commercial businesses, partner onboarding, and real estate master planning will be aligned with the project COD.

3. Mactan-Cebu International Airport ("MCIA")

GMR Airports is currently serving as a Technical Service Provider to MCIA. The Airport demonstrated a strong passenger growth in CY 2024, with total passenger traffic of

11.3 Mn, comprising 8.5 Mn domestic passengers and 2.8 Mn international passengers, representing a ~13% growth in traffic compared to CY 2023.

MCIA became the first airport in the Philippines to win the ACI ASQ Award in 2024 for the Best Airport in 5-15 MPPA Asia Pacific category. Terminal 2 of MCIA achieved a 4-star

Skytrax rating. MCIA focuses on sustainable airport operations and has achieved Airport Carbon Accreditation and ACI Green Airport Recognition. Further, MCIA operationalised Bridge-Mounted Equipment to lower the airports carbon footprint.

Divestment update

The final tranche of the share transfer regarding the GMRs equity interest in GMCAC was completed in October 2024. The Company will continue to serve as the Technical Services Provider to ACAC (formerly GMCAC) until December 2026.

MCIA - Outlook CY2025

The Philippines is forecasted to grow faster than other SEA economies, with forecasted FY 2025 GDP growth of 5-6%. This strong economic growth demonstrates a positive outlook for robust domestic traffic growth in CY 2025. This domestic traffic growth continued in CY 2025, reaching 106% pre-pandemic levels as of YTD May, 2025.

Similarly, International Traffic growth at MCIA is expected to be aided by a substantial inflow of tourists from SEA countries such as South Korea, Japan, Singapore, & Taiwan. Further, MCIA has added new international routes to Vietnam, and is set to begin new routes to Australia and Malaysia, thereby increasing the number of high-spending international passengers. Moreover, government-driven initiatives such as e-Visas & Visa free entry for Indian tourists are expected to bring in traffic from key markets in SEA and new growth markets such as India and Australia.

GMR Airports Limited - Airport Adjacency business

While GMR Airports has made above mentioned major strides towards both organic and inorganic expansion in terms of passenger handling capacity in geographies both within and outside India, a very critical part of GALs future growth strategy is the non-aero adjacencies business.

Non-aeronautical businesses including Duty-Free, Retail, Food & Beverage (F&B), Cargo, Car park etc. have become increasing major contributors to the airport assets topline. The revenues earned by airports is on account of revenue shared by these stores as per respective concession agreements. At DIAL, approximately 60% of revenues from operations are contributed by revenue shares from such non-aeronautical businesses.

Further, as India grows economically, and with growing discretionary income of our domestic travellers, sales per passenger at these various retail, duty-free and F&B stores is expected to grow. Also, the proportion of passenger spending at such stores is also increasing. Being cognizant of this phenomenon, GAL has built strong expertise across such airport related domains over the past more than 20 years and thus positioned itself to capture growth opportunities in these airport adjacency businesses.

Building on this expertise, GAL identified key strategic business segments to grow in adjacencies business, including Duty-Free, Retail, Food & Beverage (F&B), Cargo, Car park, Operations & Maintenance (O&M) services and EPC / PMC business. While GALs initial priority is to target opportunities within the GMR portfolio, medium to long term, intention is to also evaluate opportunities in these segments across various geographies. The

Company has created a richly experienced team to drive this vision for airport adjacencies. In this process, GAL has also created a joint venture company - GMR Hospitality Limited with Travel Food Services (TFS) to capture F&B concession opportunities at various airports.

Moving in this direction, GAL has been actively pursuing NonAero Master Concession opportunities. Under a typical Master Concession contract, various non-Aero services are bundled together including duty free & retail, car park, advertising, F&B and lounges. There has been a noticeable shift at various airports towards the master concession model due to its benefits both to the Airport and the concessionaires. GAL intends to leverage this opportunity.

GAL has had a lot of success working on this model at RGIA. In addition, GAL has been recently awarded the non-aero concession including Duty Free, F&B, Car Park & Ground Transportation, Advertisement, Lounge, Retail, Forex, and other Services at Bhogapuram Airport. GAL also won the concession to run the duty-free stores at Delhi International Airport and also the concession to operate Cargo terminal at Delhi International Airport.

With these additions, we have become a very strong Airport Platform business. Going forward, the Company shall continue to evaluate multiple such opportunities across the focus geographies.

Airport Land Development (ALD)

The other critical area for strategic focus at GAL is Airport Land Development (ALD). While during the past few years, the Company concentrated on airport land monetization via leasing of land, during FY 2023 to FY 2025, various self-development initiatives including office spaces, terminal hotel, retail spaces etc. have been taken up. As part of GALs strategy, ALD business is moving up the real estate value chain with an aim to create greater value from the precious city side land banks at GMR Airports. This will help GMR Airports in maximising the monetisation potential of its airport land parcels and contribute

towards improving the quality and turnaround times for ALDs development projects as it continues to expand the portfolio of projects.

Going forward, GMR Airports intends to accelerate construction of key investment projects viz. Office Project under Self Development and Terminal Hotel at Delhi, Interchange (Retail), Office Tower 3, Industrial BTS, student housing & second Hotel at Hyderabad. Further, all the above projects as well as other third-party projects of Bharti Realty & DB Realty will be monitored for on-time completion within allocated budget.

At newer assets like Goa, GMR Airports continues to build on the momentum of land monetisation deals primarily for hospitality and retail in line with the leisure nature of the destination.

Given the Groups increased focus on technology and digitization initiatives, ALD proposes to adopt AI and Technology in its projects through Smart city interventions in infrastructure development and technology-based Asset Management platform to measure Performance of Investment Projects.

GMR Airports will continue to focus on creating independent financing capabilities and creation of multi-airport asset platforms viz. for office spaces, hospitality and retail, which is expected to take shape by the end of FY 2026.

Growth Outlook - New Opportunities

While GMR Airports sees a long runway of growth on its existing assets which have long concession periods still left, GAL has strategized to capitalise on external opportunities as part of its business development efforts to enter new markets. With the combined expertise and reach of GMR and Groupe ADP, GAL is strategically positioned to expand its airport business both internationally and domestically.

In India, GMR will actively pursue opportunities for new airport concessions, as and when they come up. According to the national monetisation plan, the government plans to privatize 25 airports in four phases. The Company is keenly focused on the upcoming privatisation of 11 regional AAI airports. Further, the Company is keenly looking at other major airport opportunities at Chennai, Kolkata, and Pune. Overall, the Company is seeing significant opportunities coming up in the domestic market in short to medium term and stand ready to capitalise on the same.

In addition to airport concessions, GAL is actively scouting for asset light O&M opportunities along with opportunities in airport adjacencies. In line with this strategy, the Company submitted O&M Bid for new Terminal 2 at Kuwait Airport in June 2024. However, the process was annulled by the Authority. The Company also successfully qualified for the RFP process for Abha Airport, Saudi Arabia. GMR Airports was among the only 4 consortiums, who were pre-qualified for the next stage. The Company is also looking to explore how it can expand its portfolio of adjacency businesses across non-GMR Airports, in India and overseas.

Focus on Innovation and Digitalization

GAL continues to place innovation and digital transformation at the core of its strategic agenda, acknowledging their significance in driving operational excellence, enhancing stakeholder value and shaping a future-ready organization. In an ever-evolving

socio-economic landscape where technology is disrupting traditional paradigms and artificial intelligence is augmenting human capabilities, GAL is navigating this transformation with agility, focus and vision. Aligned with its business priorities, GAL has implemented several impactful digital initiatives aimed at elevating passenger experience, streamlining operations, enhancing revenue and modernising internal processes.

A notable accomplishment during the year has been the operationalisation of the next-generation Airport Predictive Operation Centre (APOC). This integrated operations management system leverages advanced AI-driven predictive and prescriptive analytics to optimize airport operations, improve turnaround times and enhance coordination and data sharing among key stakeholders, including airlines, ground handlers, and government agencies.

To further bolster airside operations, GAL developed and deployed UTAM (Unified Total Airside Management), a state-of- the-art in-house solution powered by AI, ML, IoT and radar technologies. This intelligent system integrates real-time data from multiple sources across the airport, enabling operators to monitor aircraft movements, ground service equipment and vehicle activity with unmatched precision.

On the passenger experience front, GAL introduced Virtual Information Displays and a 360? Navigation Map that offer realtime flight updates, wayfinding and terminal navigation - especially valuable for first-time and transfer passengers. The continuous rollout of Digi Yatra services, self-baggage drops, and biometric kiosks are facilitating contactless, seamless and autonomous travel experiences. GAL is also enhancing its digital platform to provide passengers with seamless access to airport services, including facility information, an online marketplace, loyalty program and a feedback channel. In a pioneering effort to drive industry-wide digital transformation, GAL formed a Digital Aviation Consortium in collaboration with a leading Indian airline. This consortium is designed to jointly explore and deploy next- generation technologies across the aviation ecosystem, driving efficiency, elevating customer experience, and advancing sustainability.

Internally, GAL is undertaking a significant upgrade of its core enterprise systems, to support real-time data access, intelligent automation and integrated AI-driven decision-making. Concurrently, the organisation is investing in Contract Lifecycle Management (CLM) platform to streamline and strengthen end- to-end contract governance, ensuring transparency and compliance. Recognising that digital transformation is as much about people and mindset as it is about technology, GAL launched a Digital Upskilling Program for its leadership - a curated high-impact learning initiative designed to augment digital capabilities and enhance strategic foresight among the Companys senior leaders.

A proactive approach to cybersecurity remains a foundational aspect of GALs strategic posture and operational focus. The operationalisation of a 24x7 Integrated Cyber Defence Centre (ICDC) has significantly strengthened the Companys cyber posture enabling real-time threat monitoring, rapid response and coordinated risk mitigation. During a recent geopolitical crisis, the company activated a dedicated Cyber Warfare Center and invoked its Cyber Crisis Management Plan, successfully mitigating sophisticated threats. Additionally, GAL is upgrading its traditional manpower-based security services with technology-driven

solutions powered by intelligent surveillance, automation and data insights.

GMR Innovex, the Groups dedicated innovation vertical, continues to drive breakthrough technology adoption across the enterprise. By engaging with startups, academic institutions and ecosystem partners, Innovex fosters experimentation and cocreation in emerging technologies such as AI/ML, blockchain, AR/VR, human-machine interaction and robotics. Notable initiative has been the deployment of an IoT-based Telematics solution for airside vehicles - enhancing safety, tracking, and operational performance.

Through these multifaceted efforts, GAL is not only modernizing its operations but also shaping the future of aviation by embedding innovation and digitalisation in every aspect of its business.

Environmental, Social and Governance (ESG) Focus Vision

In line with the Climate Resilience Policy, the GMR Group is committed to aligning its climate mitigation efforts with national and global ambitions of limiting global warming rise to 1.50⁰ C as per the Paris Agreement. GMR Group is committed to addressing climate change problems through effective mitigation and adoption strategies based on an understanding of vulnerabilities, risks, and uncertainties for the business. Through the Climate Resilience Policy, GMR Group aims to:

1) reduce the organizations carbon footprint.

2) set and achieve net zero carbon emission targets with a program.

3) encourage and provide impetus to natural resource conservation, green infrastructure development, energy efficiency & energy conservation, renewable energy use, green transportations, operational efficiency, sustainable procurements, and use of Biofuels & Sustainable Aviation Fuels.

4) encourage our value chain partners/stakeholders to adopt green initiatives and practices on climate actions.

5) asses and address climate change risk and opportunities periodically.

6) encourage effective communication on climate risks and opportunities through capacity building and awareness.

Integrating ESG into the Business

GMR Airports Limited (GAL) remains committed to integrating Environmental, Social, and Governance (ESG) principles into its operations. Through a robust, policy-driven approach, GAL ensures that sustainability is deeply embedded in its business practices across all aspects, including environmental stewardship, safety, and community well-being. The Company adheres to globally recognised frameworks and standards, including ISO 14001 for Environmental Management, ISO 45001 for Occupational Health and Safety, and ISO 50001 for Energy Management, ensuring that its operations are conducted with responsibility and transparency. During the year, GAL focused on intensifying efforts to minimise its environmental footprint with emphasis on greenhouse gas (GHG) emission reduction, water efficiency, and promoting circular economy practices.

Further, GAL is continuing to enhance transparency and accountability by publicly reporting its sustainability and ESG performance. The Company shares its progress through its Sustainability Report and aligns its disclosures with SEBIs Business Responsibility and Sustainability Reporting (BRSR) framework, ensuring stakeholders have clear insight into its ongoing efforts and achievements.

In FY 2025, GAL achieved a significant leap in its ESG performance, underscoring its commitment to sustainability and responsible governance. The Companys S&P Corporate Sustainability Assessment (CSA) score saw a remarkable improvement, rising from 41 to 53, a clear testament to its strengthened sustainability practices and operational excellence. This advancement positions GAL as an emerging leader in the sector, consistently enhancing its environmental, social, and governance credentials. Recently, Sustainalytics upgraded GALs ESG risk profile from Medium Risk to Low Risk, reflecting the Companys robust governance frameworks and strategic initiatives. This dual recognition from both S&P and Sustainalytics highlights GALs unwavering dedication to enhancing its ESG performance and solidifies its standing as an industry frontrunner in sustainable development.

Strategic Leadership and Commitment to Net Zero

GAL remains committed to a path to Net Zero and has been making significant progress in this regard. Central to this effort is the switch to clean energy with DIAL and GHIAL completing a full year of operations on 100% clean electricity. Additionally, both airports have ISO 50001-certified energy management systems, driving energy efficiency.

A remarkable milestone that truly sets GAL apart in the global aviation landscape is the achievement of both DIAL and GHIAL receiving Level 5 accreditation in Airport Council Internationals (ACI) Airport Carbon Accreditation (ACA) Programme. GAL is now the largest airport group in the world (by passenger traffic) comprising airports that have earned this prestigious highest- level accreditation, a recognition reserved for only the most sustainable and climate-conscious airports globally. DIAL stands out as the largest airport in the world (by passenger traffic) to achieve ACI Level 5 accreditation. This extraordinary accomplishment underscores GALs leadership and unwavering commitment to sustainability in the aviation sector. These achievements have been realised only because sustainability has been at the core of the GMR Group DNA and has been factored into the Business from inception itself. The current ACA Level 5 ratings have been achieved only because the journey began more than a decade ago and is testimony to the vision of the Group Leadership.

Furthering its commitment, GAL is tackling Scope 3 emissions through pioneering projects such as the Eastern Cross Taxiway, Ground Service Tunnel, Bridge Mounted Equipment, TaxiBots, and offering low carbon public connectivity to passengers - all designed to enhance operational efficiency while cutting emissions. The Company is also accelerating its green transportation initiatives, transitioning its fleet to electric vehicles (EVs) and fostering collaborations with stakeholders to expand EV adoption across the ecosystem. Complementing these efforts, GAL is investing in carbon sinks through tree plantation initiatives, which both sequester carbon and enhance biodiversity.

Through these varied initiatives, GAL is not only advancing

towards Net Zero but also leading the sector by demonstrating a path for the sector in sustainable aviation.

Environmental Stewardship and Resource Efficiency

GALs commitment to environmental stewardship and resource efficiency goes beyond compliance, with the Company adopting a proactive approach to enhance long-term resilience, biodiversity, and resource optimization.

GMR Airports have implemented Integrated Solid Waste Management (ISWM) facilities and are working toward becoming “Zero Waste to Landfill” and “Single-Use Plastic Free” airports. DIALs Material Recovery Facility and biogas unit are prime examples of GMR Groups commitment to waste management, with GHIAL also expanding its material recovery and composting efforts. Further, the Group continues its efforts in biodiversity conservation, with GGIAL planting 53,000 indigenous saplings using the Miyawaki method, during FY 2025.

The Group has successfully implemented Zero Liquid Discharge (ZLD) concept across all its airports, ensuring a closed-loop water management system. By investing in advanced water and wastewater treatment infrastructure, GMR Airports maximises water reuse, minimising environmental impact and reinforcing its commitment to resource conservation. Additionally, the successful green building certifications achieved by DIAL (LEED Gold and IGBC Platinum for Terminal 3, and Platinum PreCertification for Terminal 1) and GHIAL (LEED Platinum Certification for Terminal Expansion) reflect the Groups ongoing commitment to environmental sustainability.

Social Responsibility and Inclusive Development

GALs commitment to social responsibility is integral to its sustainability agenda. The Company continues to implement comprehensive programs through GMR Varalakshmi Foundation, focused on improving education, healthcare, livelihoods, and community development. These programs have reached millions of individuals across communities till date, with a particular focus on addressing local needs through participatory approaches. In FY 2025, these Corporate Social Responsibility (CSR) efforts of the Company made a significant impact, positively benefiting over 1 lakh lives, with more than 95% of these beneficiaries coming from vulnerable and marginalised communities. This underscores GALs commitment to driving inclusive growth and social development in the communities where it operates.

Employee well-being remains a top priority, with GAL continuously promoting a work culture that values mental health, diversity, and safety. In FY 2025, the Company took significant steps to enhance employee engagement, training, and development programs, ensuring that its workforce is equipped to meet the challenges of a rapidly evolving sector.

Governance Excellence and ESG Oversight

Effective governance is critical to GALs long-term sustainability. The Companys ESG governance framework, led by the ESG Committee at the Board level, ensures that sustainability principles are embedded into the organisations decision-making processes. GAL remains committed to adhering to regulatory requirements, including compliance with SEBIs BRSR framework.

In addition, GAL emphasizes ethical business conduct through mandatory employee training, robust anti-corruption measures,

and a transparent grievance redressal mechanism. The Company also prioritises cybersecurity and data protection, ensuring its digital operations are secure and resilient.

Charting a Sustainable Future

GALs sustainability strategy is focused on creating long-term value through responsible, resilient, and sustainable aviation infrastructure. By advancing towards its Net Zero goals, promoting circular economy practices, and implementing robust governance frameworks, GAL continues to position itself as a leader in the global aviation space. The Company remains committed to delivering positive social, environmental, and economic outcomes, contributing to national and global sustainable development goals.

As GAL scales further, it continues to drive meaningful change and make a lasting impact on the communities and stakeholders it serves. Through continuous innovation, collaboration, and a steadfast focus on sustainability, GAL is shaping a resilient and prosperous future and fulfilling its vision of building "an institution in perpetuity”.

Discussion and analysis of financial conditions and operational performance

The consolidated financial position as at March 31, 2025 and performance of the Company and its subsidiaries, joint ventures and associates during the financial year ended on that date are discussed hereunder:

1. NON-CURRENT ASSETS

1.1 Property Plant and Equipment (PPE)

PPE has decreased from 27,235.93 crore as at March 31,

2024 to 26,755.74 crore as at March 31, 2025 primarily due to depreciation charge for the year offset by capitalisation of CWIP to PPE in Delhi International Airport Limited (DIAL), GMR Hyderabad International Airport Limited (GHIAL) and GMR Goa International Airport Limited (GGIAL).

1.2 Right of use asset

Right of use asset has decreased from 614.08 crore as at March 31, 2024 to 573.44 crore as at March 31, 2025 primarily due to amortisation during the year.

1.3 Capital work-in-progress

Capital work-in-progress has increased from 1,669.84 crore as at March 31, 2024 to 3,801.94 crore as at March 31,

2025 primarily on account of ongoing construction in GMR Visakhapatnam International Airport Limited (GVIAL).

1.4 Other Intangible Assets

Other Intangible Assets have increased from 450.09 crore as at March 31, 2024 to 451.75 crore as at March 31, 2025 primarily on account of additions of Cargo assets and capitalised software offset by amortisation during the year.

1.5 Investments accounted for using equity method

Investments accounted for using equity method have decreased from 1,415.02 crore as at March 31, 2024 to 1,345.08 crore as at March 31, 2025 primarily due to dividend received from joint venture offset by share of profits from Joint Ventures / Associates during the year.

1.6 Loans

Loans and advances have increased from 2,317.05 crore as at March 31, 2024 to 2,559.88 crore as at March 31, 2025 mainly due to loans given to Group companies and reclassification of loans from current to non-current as per terms of loans.

1.7 Other financial assets

Other financial assets have increased from 2,811.16 crore as at March 31, 2024 to 3,104.57 crore as at March 31, 2025 mainly due to increase in carrying value of derivative instruments due to Mark to Market valuation.

1.8 Other non-current assets

Other non-current assets have increased from 2,656.09 crore as at March 31, 2024 to 2,846.86 crore as at March 31, 2025 primarily on account of increase in lease equalisation receivables and offset by decrease in capital advances and balances with Government authorities.

1.9 Deferred Tax Assets (net)

Decrease in deferred tax assets (net) from 699.05 crore as at March 31, 2024 to 600.26 crore as at March 31, 2025 is due to deferred tax charge in consolidated profit and loss on account of timing difference and gain on cash flow hedge reserve.

2. CURRENT ASSETS

2.1 Financial assets - Investments

Investments have decreased from 2,817.49 crore as at March 31, 2024 to 2,659.94 crore as at March 31, 2025 due to utilisation of surplus funds for repayment of liabilities.

2.2 Financial assets - Trade receivables

Trade receivables have increased from 481.66 crore as at March 31, 2024 to 530.94 crore as at March 31, 2025 in normal course of business.

2.3 Financial assets - Cash and cash equivalents

Cash and cash equivalents have decreased from 1,794.86 crore as at March 31,2024 to 555.66 crore as at March 31, 2025 mainly due to repayment of borrowings and other liabilities.

2.4 Financial assets - Bank balances other than cash and cash equivalents

Bank balances other than cash and cash equivalents decreased from 1,030.73 crore as at March 31, 2024 to 388.26 crore as at March 31, 2025 primarily due to repayment of borrowings and other liabilities.

2.5 Loans

Loans and advances have decreased from 313.93 crore as at March 31, 2024 to 117.62 crore as at March 31, 2025 mainly due to reclassification of loan from current to non current as per terms of the loans.

2.6 Other financial assets

Other financial assets have increased from 689.21 crore as at March 31, 2024 to 1,145.77 crore as at March 31, 2025 primarily due to increase in carrying value of derivative instruments due to Mark to Market valuation and interest accrued.

2.7 Other current assets

Other current assets have decreased from 281.73 crore as at March 31, 2024 to 275.19 crore as at March 31, 2025 primarily due to decrease in other advances/ receivables in the normal course of business.

2.8 Assets held for sale

Assets held for sale have decreased from 501.96 crore as at March 31, 2024 to 12.79 crore as at March 31, 2025 primarily due to disposal of investment in GMCAC (Aboitiz GMR Megawide Cebu Airport Corporation).

3. EQUITY

Equity share capital has increased from 603.59 crore as at March 31,2024 to 1,055.90 crore as at March 31, 2025 on account of issue of equity shares upon merger and conversion of FCCBs into equity.

Other equity has decreased from (2,767.75) crore as at March 31, 2024 to (3,559.32) crore as at March 31, 2025 primarily due to total comprehensive loss for the year of 805.91 crore and acquisition of additional stake in subsidiaries. Non-controlling interest has decreased from 1,294.50 crore to 714.60 crore on account of share of minority interest loss in subsidiaries.

4. NON-CURRENT LIABILITIES

4.1 Non-Current Borrowings

Non-current borrowings have decreased from 34,332.68 crore as at March 31, 2024 to 33,724.01 crore as at March 31, 2025, primarily due to repayment of borrowing in GHIAL, re-classification of borrowing from non-current to current as per repayment terms and conversion of FCCBs into equity offset by increase in borrowings of GVIAL.

4.2 Lease Liabilities

Lease liabilities have decreased from 549.36 crore as at March 31, 2024 to 512.40 crore as at March 31, 2025 mainly due to reclassification of liability from non-current to current as per repayment terms.

4.3 Other Financial Liabilities

Other financial liabilities have increased from 3,493.91 crore as at March 31, 2024 to 3,847.64 crore as at March 31, 2025 mainly due to increase in interest accurued but not due and concession fee and annual fees payable offset by decrease in advance consideration received against investment.

4.4 Provisions

There is no significant movement in the provisions.

4.5 Deferred tax liabilities (net)

There is no significant movement in the deferred tax liabilities (net).

4.6 Other non-current Liabilities

Other non-current liabilities have decreased from 3,374.86 crore as at March 31, 2024 to 3,355.90 crore as at March 31, 2025 primarily due to decrease in deferred / unearned revenue on security deposit from customer in the normal course of business.

5. CURRENT LIABILITIES

5.1 Current Borrowings

Borrowings have increased from 951.99 crore as at March 31, 2024 to 3,909.70 crore as at March 31, 2025 primarily due to increase in current maturities of non current borrowings as per repayment terms and current borrowings in form of letter of credit in GVIAL, and working capital in DIAL.

5.2 Trade Payables

Trade payables have decreased from 1,085.31 crore as at March 31, 2024 to 1,005.43 crore as at March 31, 2025 in the normal course of business.

5.3 Other current financial liabilities

Other current financial liabilities have decreased from 3,192.34 crore as at March 31, 2024 to 2,348.39 crore as at March 31, 2025. The decrease is mainly due to payment of accrued interest on borrowings and capital creditors.

5.4 Provisions

Provisions have increased from 256.41 crore as at March 31, 2024 to 280.06 crore as at March 31, 2025 in the normal course of business.

5.5 Other current liabilities

Other current liabilities have increased from 844.92 crore as at March 31, 2024 to 1,242.42 crore as at March 31, 2025 mainly due to increase in statutory dues payable, advance received and deferred/ unearned revenue from customers.

Overview of our results of operations

The following table sets forth information with respect to our revenues, expenditures and profits (loss) on a consolidated basis:

( in crore)

Particulars For the year ended

	March 31, 2025	March 31, 2024
Continuing operations
Income
Revenue from operations	10,414.24	8,754.56
Other income	421.65	452.40
Total Income	10,835.89	9,206.96

( in crore)

		( in crore)
Particulars	March 31, 2025^ March 31, 2024
Expenses
Revenue share paid / payable to concessionaire grantors	2,634.78	2,346.57
Operating and other administrative expenditure	4,013.53	3,442.19
Total expenses	6,648.31	5,788.76
Earnings before finance cost, tax, depreciation and amortization expenses (EBITDA)	4,187.58	3,418.20
Depreciation and amortization expenses	1,910.43	1,465.92
Finance costs	3,704.67	2,928.78
Loss before share of profit of investments accounted for using equity method, exceptional items and tax from continuing operations	(1,427.52)	(976.50)
Share of profit of investments accounted for using equity method	184.82	225.16
Loss before exceptional items and tax from continuing operations	(1,242.70)	(751.34)
Exceptional items - gain	607.39	115.08
Loss before tax from continuing operations	(635.31)	(636.26)
Tax expenses	181.59	192.63
Loss after tax from continuing operations (i)	(816.90)	(828.89)
Discontinued operations
Profit before tax expenses from discontinued operations	-	1.49
Tax expenses	-	0.10
Profit after tax from discontinued operations (ii)	-	1.39
Total loss after tax for the year (A) (i+ii)	(816.90)	(827.50)
Other comprehensive income for the year, net of tax (B)	10.99	(169.13)
Total comprehensive income for the year, net of tax (A+B)	(805.91)	(996.63)
Sales/Operating Income The break-up of the Sales/Operating Income are as follows:

 

Particulars		For the year ended
	March 31, 2025		March 31, 2024
	Amount ( in Crore)	% of Revenue from operations	Amount ( in Crore)	% of Revenue from operations
Revenue from Operations:
Aeronautical	2,988.26	28.69%	2,467.62	28.19%
Non-aeronautical	5,586.70	53.64%	4,736.10	54.10%
Other operating income	1,439.89	13.83%	1,206.44	13.78%
Revenue from EPC and sale of materials	115.29	1.11%	74.79	0.85%
Income from security and other services	284.10	2.73%	269.61	3.08%
Total Revenue from operations	10,414.24	100.00%	8,754.56	100.00%

Operating income from aeronautical sources

Income from aeronautical sources principally consisting of landing and parking charges, passenger service fees and User Development Fees (UDF).

Operating income from aeronautical services increased by 21.10% from 2,467.62 crore in FY 2023-24 to 2,988.26 crore in FY 2024-25 mainly due to increase in air traffic and business.

Operating income from non-aeronautical sources

Income from non-aeronautical sources principally consists of income from rentals, trade concessionaires, ground handling and cargo handling.

Operating income from non-aeronautical services increased by 17.96% from 4,736.10 crore in FY 2023-24 to 5,586.70 crore in FY 2024-25 mainly due to increase in air traffic and business.

Other operating incomes

Other operating income includes rentals received in connection with commercial property development on land that is part of the airport projects, management services income and investment income.

Other operating income increased by 19.35% from 1,206.44 crore in FY 2023-24 to 1,439.89 crore in FY 2024-25 mainly due to increase in commercial property development income for new

contracts entered during the year, management service income and investment income.

Operating income from construction revenues and sale of materials

Income from construction revenues and sale of materials is derived from the execution of engineering, procurement and construction works in connection with projects under implementation.

Construction revenue and sale of material has increased by 54.14% from 74.79 crore in FY 2023-24 to 115.29 crore in FY 2024-25 in normal course of business.

Operating income from security and other services Income from security and other services has increased by 5.38% from 269.61 crore in FY 2023-24 to 284.10 crore in FY 202425 due to increase in business of security services rendered by Raxa Securities Services Limited (RSSL).

Expenditure

Revenue share paid/ payable to concessionaire grantors

The revenue share paid/payable to various concessionaires has increased from 2,346.57 crore in FY 2023-24 to 2,634.78 crore in FY 2024-25 primarily due to increase in air traffic and business. Cost of material consumed

The cost of material consumed has increased from 94.41 crore in FY 2023-24 to 163.53 crore in FY 2024-25 in normal course of business.

Purchase of stock in trade

The purchase of traded goods has increased from 113.48 crore in FY 2023-24 to 164.26 crore in FY 2024-25 primarily due to higher purchases during the year.

Employee benefits expenses

The employee benefit expenses have increased from 1,242.16 crore in FY 2023-24 to 1,485.90 crore in FY 2024-25 mainly due to annual increment to employees, increase in head count and capitalisation of project in DIAL, GHIAL and GGIAL which resulted in charge of employee benefits expenses to statement of profit and loss.

Other expenses

Other expenses include rates and taxes, utilities expenses, manpower hire charges, technical consultancy fee, cost of variation works, insurance, airport operator fee, lease rentals, repairs and maintenance to plant and machinery/ building,

travelling and conveyance, legal and other professional charges, provision for advances, losses on sale of fixed assets and investments, communication, loss on foreign exchange and other miscellaneous expenses.

There is increase in other expenses in FY 2024-25 mainly due to increase in airport operator charges, utilities, repairs and maintenance, travelling and conveyance and Operating, manpower outsourcing and maintenance expenses, on account of increase in air traffic and business opportunities.

Finance costs

The finance costs have increased from 2,928.78 crore in FY 202324 to 3,704.67 crore in FY 2024-25 mainly due to capitalisation of project in DIAL, GHIAL and GGIAL which resulted in charge to statement of profit and loss.

Depreciation and amortisation expenses The depreciation and amortisation expenses have increased from 1,465.92 crore in FY 2023-24 to 1,910.43 crore in FY 2024-25 mainly due to capitalisation of project in DIAL, GHIAL and GGIAL which resulted in charge to statement of profit and loss. Exceptional items

In FY 2024-25, there is a gain of 607.39 crore on account of gain on sale of non-current investment, waiver of interest, gain on transfer of rights offset by write off towards property, plant and equipments.

In FY 2023-24, there is a gain of 115.08 crore on account of reversal of MAF provision provided for in earlier year, gain on sale of non-current investment offset by provision on property tax and deferred consideration receivables.

Tax expenses

Tax expense mainly comprises current tax expense and deferred tax expense. There is decrease in tax expense in FY 2024-25 compared to FY 2023-24 mainly due to decrease in taxable profit for few subsidiaries.

Significant changes in key financial ratios, along with detailed explanations

In compliance with the requirement of listing regulations, details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios and any changes in return on net worth of the Company (on standalone basis) including explanations therefor are given below:

Particulars	Numerator	Denominator	For the ended March 31, 2025	For the ended March 31, 2024	Variance	Reason for variance
Interest Coverage Ratio	Net profit after taxes + Non-cash operating expenses like depreciation and amortisation + finance costs + exceptional items	Interest Expenses	0.71	0.41	73.17%	Due to decrease in losses in the current year
Operating Profit Margin	Earnings before finance cost, tax, depreciation and amortisation expenses and exceptional items	Total Income	54.24%	44.04%	23.16%	Not applicable
Return on Net Worth	Profit after tax	Total equity-Fair valuation through other comprehensive income	(19.75%)	(134.39%)	85.30%	Due to decrease in losses in the current year

Also refer note 36 of the standalone financial statements for key financial ratios including reason of variances (other than above), on standalone basis.

Risk Concerns and Threats Identification, assessment, profiling, treatment and monitoring the risks

The Company, having recognised the need for a comprehensive Risk Management Framework, is in the process of reviewing and revising its existing Group ERM Policy and Framework during the year.

During the year, the Company hired an industry expert to help it review the existing ERM framework and amend and develop a new ERM Policy and Framework. This process is currently in its final phase.

The revised policy and framework takes into account best practices in Enterprise Risk Management, and amendments have been primarily focused on the following aspects:

• Establish stronger linkage between Corporate Strategy and Risk Management functions which has been designed to help the Company focus on key strategic risks.

• Detailed risk assessment will be seamlessly integrated into the Companys annual exercise of Strategy-setting and Annual Operating Plan, with stronger governance being put into place to track and report key risks across the organisation.

• For organisation to quickly adapt to disruptions while maintaining continuous business operations and safeguarding people, assets and overall brand equity, the Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP) for key assets have been integrated into the framework.

• Companys commitment to sustainability and demonstrable efforts to reduce, eradicate or mitigate the impact of its operations on the environment and community have also become more comprehensive. The Companys ESG program is rooted in materiality that has helped it organise and prioritise relevant ESG factors.

Reporting: The Leadership of all the businesses of the GMR Group regularly review their risk assessment and mitigation procedures and present to their respective Boards/ Committees. Further, a consolidated perspective is presented to the Risk Management Committee of the Board of the Company. Based on the above process, the management has taken cognisance of risks in the recent times for which appropriate plans are being made and actions being taken.

During the year (FY 2024-25), the Company has prioritised the Top Risks among other identified risks that it regards as significant for its business operations and strategies. These Top Risks have been described hereunder along with existing and proposed mitigation measures:

> Arbitration/ Litigation risks

GAL and/or its subsidiaries have individually or collectively as the circumstance may deem appropriate been referred to as the company.

The company has ongoing disputes in its businesses, which primarily relate to the interpretation of issues relating to various concession documentation or laws by respective Authorities or Grantors. There is a risk that any unfavorable outcome will adversely impact financial

performance of the company.

While many of these arbitrations have been ruled in the companys favor, the other parties including Authority (AAI) and airlines (through FIA) have challenged the orders.

• Arbitration with AAI over monthly annual fee waiver (for the COVID period). This arbitration was ruled in DIALs favor after which it has been challenged by AAI in the Honble High Court.

• Arbitrations related to previous CP tariff.

o TDSAT Order that was ruled in DIALs favor, has been challenged by AERA and FIA. Any adverse ruling by the Honble Supreme Court on DIAL CP2/ CP3 issues may impact overall value; approved principles to carry on for entire concession period.

o TDSAT Order related to GHIAL CP2/ CP3 that was ruled in GHIALs favor has also been challenged by AERA and FIA in the Honble Supreme Court.

There may be delay in resolution of matters pending with the court beyond the timeline assumed in Business Plan. This may have some impact on cash flows and potential dividend payout.

For addressing these risks:

• The company relies on its robust in-house mechanism for risk assessment of disputes and arbitrations, which provides the management with an early evaluation of the risks and likely costs of litigation.

The company work with leading counsels to support the case; and the in-house team has thorough understanding of issues. This is aided by a strong focus of top leadership on these critical issues.

o There have been positive outcomes in some arbitrations:

o MAF arbitration ruled in the companys favor.

o TDSAT has recently passed a favorable order regarding computation of HRAB pertaining to DIALs CP 1 tariff. The Ministry of Civil Aviation (MoCA) had issued direction to AERA regarding calculation of HRAB, which AERA appears to have ignored. The same became ground for petition. Any positive outcome will be an upside to the company.

o The Company has continued to proactively defend the TDSAT Tariff orders for DIAL and GHIAL, in the course of which some appeals were accepted while others rejected by TDSAT. Though the ensuing delay in a favorable outcome may affect the cashflow, implementation of order will consider time value of money, whenever implemented.

> Business Environment risks

• Supply side constraints

Delay in new aircraft delivery and grounding of existing aircrafts due to engine issues may negatively

impact traffic growth. Asia Pacific, specifically Indonesia, is currently facing operational challenges with a notable number of grounded aircrafts on account of maintenance related issues impacting fleet size, financial condition of airlines, etc. which has impacted domestic air traffic. This situation may continue for some time.

In addressing these issues, airlines in India are taking adequate measures:

o Restore grounded fleet to service by resolving issues that led to grounding.

o Receive on priority the planes that have already been ordered.

o Obtain additional aircrafts on lease to meet the growing demand.

o Prioritising stakeholder engagement and focus on expanding their fleet size, control ticket price etc.

• Airspace closure

Closure of airspace over conflict zones have impacted aviation industry adversely in terms of operating cost resulting from longer flight path and travel duration, higher airfare, suspension of flights etc. It is likely that closure may continue for longer periods

o In our assessment, airspace closure in the region is of temporary nature since it is not taken as favorable even by entities causing the airspace closure.

• Oil price surge

Increase in oil prices due to ongoing Iran-Israel conflict will adversely impact Airlines profitability and air fares, therefore negatively impacting traffic growth. The situation may aggravate, if the conflict spills over to other middle east countries.

o Oil price issues which affect air travel, historically get resolved in due course and do not leave a lasting impact on the aviation sector.

• Shortage of manpower

As airlines receive delivery of new aircrafts (India air fleet expected to increase by 100-125 aircrafts during 2026), shortage of technical staff and pilots may constrain Airlines expansion.

• Heightened scrutiny of aircraft maintenance

After Air India crash in June 2025, there has been a higher scrutiny around aircraft maintenance, age etc. which is likely to increased downtime, maintenance and related expenditure for airlines, thus bringing down per aircraft flight hours in general.

o While increased maintenance frequency, may have some impact on airlines operating cost, on the upside, it restores/ reinforces consumer confidence in safety of air travel.

• Adjacency businesses (Duty free, Retail etc.) Consumer businesses are prone to any economic

downturn, high inflation, lower spending power etc., which will adversely impact sales per passenger.

o India continues to be the best performing large economy. Inflation has come down over the last year and with fresh interest rate cuts, spending power of consumers is expected to increase.

> Geopolitical risks

The world is currently experiencing protracted armed conflicts in the Middle East/ Persian Gulf region involving Israel and Iran and several other countries.

• Traffic disruption

The 12-day war between Israel and Iran had significantly disrupted air traffic resulting in flight cancellations, extended detours, thus causing a surge in operating costs.

• Risk of high crude price

As the war continued, it was feared that the critically important sea route for global oil shipments through Strait of Hormuz would be shut after attacks on oil facilities of Iran. While the risk was very high, it did not materialise.

• Trade route disruptions

The conflict now has shown the potential of causing severe disruption to trade routes, as became evident during the peak of Houthis attacks last year on ships navigating through the Red Sea.

• Geopolitical pressure on India

While India has great dependence on Russian oil import, but it is facing pressure to not buy oil from Russia. This could potentially impact oil pricing for India.

• US tariff policies

Tariff policies and their escalation into trade wars may have adverse effect on economies. Despite prolonged negotiations, there is still no clarity when trade deal between India and US will be finalised.

Amid various geopolitical conflicts, Indian government has successfully managed to maintain cordial relations with both sides of ongoing conflicts (Ukraine-Russia, Israel-Iran).

Disruption of sea trade route may have positive impact on air cargo volumes.

India has drawn benefits from a sanctioned Russia by receiving oil at discounted price. Even if India were to reduce dependence on Russian oil, many options are available including US, Gulf oil, etc. OPEC nations plan to further increase crude oil production.

To address the impact of US tariff regime, India has already executed FTA with UK. Trade agreement with the US is expected during the year.

> Reputation/ Brand risks

While the Company maintains a high standard of operational and governance excellence, there may still be

incidents that could affect the Companys reputation/

brand:

• Operational mis-happenings

Any incidence which disturbs operations may impact reputation like - power outage, flooding, safety related incidences etc. Further, this may have impact on quality of service on account of such incidents.

• Authority neglect of obligations/ services

Non-fulfilment of obligations by authorities (airport connectivity, immigration, security, etc.) could result in poor perception of airport operations among users.

• Consumer-facing businesses

As GAL increases its footprint in consumer facing businesses like duty free, retail, F&B etc., public scrutiny around the brand will increase. Any untoward incidents, even minor in nature (around product quality, food quality etc.) may be publicised on social media platforms etc.

• Brand name misuse

There are instances of misuse of GMR brand by some unscrupulous agencies to get financial benefits and malign brand image.

To mitigate the risks to the Companys reputation/ brand name:

o The company constantly tracks all brand misuse incidences and takes swift action. A special task force to this effect has been formed.

o The company takes proactive steps in effective communication through Public Relations and Investor Relations teams. The company has set > up a best-in-class solution with social media team placed in our APOC for constant digital monitoring and providing real time resolutions of passengers concerns and quick response on social media.

o Use brand monitoring tools to track mentions of brand across various online platforms (social media, websites, etc.) to identify potential misuse.

o There is a prioritised focus of the top leadership on brand related issues.

> Technology/ Cybersecurity risks

? To date, there is no evidence of a successful cyber breach of the companys networks. While this reflects well on current security posture, it does not eliminate the risk. Cyber threats continue to evolve rapidly, and increasingly sophisticated attack methods present ongoing exposure that could impact the companys business.

? Airport operations, in particular, remain exposed to new threats and continue to face risks from geopolitical hacktivism targeting Indian airports. The companys cyber defenses have successfully repelled such attempts to date.

? In parallel, new compliance obligations around incident reporting and DPDP will have to be addressed.

The companys cybersecurity team remains alert and equipped with necessary tools and skills at all times:

o Group-wide centralised cyber security program is in place covering people, process and technologies aspects of Cyber Protect, Detect, Respond & Recover capabilities.

o AI/ML based End Point Detection implemented across all edge computing devices.

o Next Gen Web Application Firewalls are protecting all public facing websites.

o Periodic Vulnerability assessments and Penetration testing are conducted of the environment along with continuous attack surface monitoring.

o Periodic User awareness communications and trainings are conducted.

o Periodic program maturity assessment is conducted to drive continuous improvement plan.

o A 24x7 Integrated Cyber Defense Center (ICDC) is in place and the company is also ensuring alignment of third-party cybersecurity with GMR guidelines.

o Continued vigilance, system upgrades, and adherence to regulatory requirements remain essential.

ESG & Climate risks

Climate risks remain a priority concern for the company,

mainly on account of the following:

• Increased incidences of climate related risks and disruptions across the globe.

• Incidences like flooding, heat waves, typhoons may disrupt operations and may have impact on financials as well as brand/ reputation.

• Other than climate risks other environmental risks such as air pollution also tend to impact operations.

• Perception of lack in ability to address climate/ESG issues could impact ESG ratings and consequent investor/lender willingness to finance.

To address the climate-related risks and meet the Companys ESG goals, the company has adopted the following measures:

o Identifying vulnerabilities proactively, implementing adaptation measures and embracing sustainable practices.

o Improved designs - for instance adopting Green Building approach across all airports, incorporating better drainage to handle flooding and mitigate any impact.

o Working with ACI, to achieve highest levels of ACA certifications to reduce impact. Delhi and

Hyderabad airports have achieved the highest level 5 carbon accreditation rating from ACI.

o Business Continuity Plan to account for such risks and impact on operations.

o Financial impact mitigated by insurance policies.

o Climate Impact Studies are being initiated for major assets.

o Strong management focus on meeting ESG requirement and consequent improvement in ratings to address investor/lender concerns.

Other risks

Apart from these Top Risks, there are few areas of risks that the Company has identified and monitored over the past few years and now has better control over their mitigations:

> Regulatory Risks

Airport business remained exposed to regulatory changes that have impacted tariffs. While AERAs tariff determinations are trued up over the tariff period and have less impact on the long-term sustainability, they do have short term impact on profitability and liquidity.

DIALs tariff for CP4 was approved by AERA effective April 16, 2025. However, it has declined to consider the TDSAT order for DIALs tariff proposal on the ground that the matter is sub-judice under Honble Supreme Court.

GHIAL submitted Multi Year Tariff Proposal (MYTP) for CP4 (April 01, 2026 to March 31, 2031) in Q2 FY 2025.

GVIAL has to submit MYTP for CP1 in H2 FY 2025.

There is possibility that AERA may approve tariff which is lower than our expectation in all the above cases.

The recent FTA with UK may have negative impact on the sale of Duty-Free alcohol as premium alcohol may get cheaper for Indian consumers.

> Financial Risks

• Credit Risk:

Airport business continues to be exposed to credit

risks of airline customers and non-aero services

customers. Collection of receivables from distressed

airlines has continued to be at risk.

• The company has implemented processes to mitigate credit risk by obtaining Bank Guarantees, implementing cash & carry, etc. wherever necessary.

• All receivables are being closely monitored; further, financial health of major airlines has improved over the last year.

• Foreign Exchange Risk:

• The company has successfully raised foreign currency bonds for DIAL and GHIAL and while the company has taken hedges to significant extent, in the event of high volatility it may be impacted.

• Some of our businesses remained exposed to

the vagaries of exchange rate risk, as the company has some expenditure in foreign currencies for procurement of project equipment. To address this, the company is moving towards INR dominated loans at both the Holdco and subsidiaries level.

• Interest Rate risk

• Interest rates have declined globally as inflation came under control. Any significant increases may increase cost of capital for existing and new projects.

Funding cost at GAL level has been a concern in recent years.

To address the interest rate risks:

o During FY 2026, credit rating enhancement is expected at GAL and various subsidiaries. This, coupled with RBI rate cuts will bring down cost of capital significantly. Significant improvement in credit rating achieved on the back of various adjacency business concessions being executed at GAL with improvement in visibility of future cashflows.

o DIAL & GHIAL raised long tenure bond funding; insulated from higher interest.

o GAL and subsidiaries continue to take-up refinancing initiatives to bring down cost of capital.

• Liquidity risk

• In the past, GAL had been a Holdco with limited operating cash flows, which had in the past constrained its ability to raise debt at reasonable interest cost.

• Obligations for funding of new projects/ businesses - DIAL and GHIAL duty free, equity infusion for Nagpur and Bhogapuram airport capex.

• Liquidity risk at subsidiary level becomes important from perspective of Debt servicing / repayment.

• Ability of subsidiaries to upstream cash via dividends to the Holding Company will be a major consideration in mitigating this risk.

The company continues to take adequate measures to address liquidity risks:

o GAL has raised 1500 crore. via NCBs (3- year tenure) for equity stake consolidation and investment in subsidiaries etc. These funds have been financed at lower interest rates as compared to refinancing done during FY 2024.

o Significant contingent liabilities at GAL level have been extinguished with the conversion of KIA FCCBs.

o GHIAL began upstreaming some profits via declaration of dividends during FY 2025.

Creation of further such dividend streams from other subsidiaries will be important to further mitigate liquidity risk.

> Competition Risks

• Entry of new players in the business, aggressive bidding by existing players could potentially continue and may impact growth prospects of the company.

• The company is now operating in dual-airports system in both Goa and Delhi.

• Navi Mumbai airport has plans to enhance international traffic capacity which will be a direct competition for DIAL.

• More airports may come up or operate in the vicinity of the companys other airports.

• Competition in retail/ airport adjacency businesses. The company faces increasing competition in retail business from online retail services.

• Factors like UK FTA will bring down cost arbitrage which duty free enjoyed.

• Competition in Real Estate. As the companys airports induce growth in Real Estate in their vicinity, competition to the companys own Real Estate business is becoming more pronounced. Gurugram, for instance, has seen a spurt in Real Estate development which poses strong competition for Aerocity.

For addressing risks posed by competition:

o DIAL is being strategically placed to become international airport hub and will continue to focus on high yield international traffic, while domestic and other low yield traffic may spillover to Jewar airport. At Manohar International Airport, the company continues to work with airlines to increase share in system traffic.

o The companys retail businesses strategy is to differentiate ourselves vis-a-vis competition on the basis of unique product offerings and product authenticity.

o The companys strategy for Delhi Aerocity is to enhance the infrastructure and services and the unique advantage of having an international airport in close vicinity and to position ourselves as a Global Business District. This is aimed at giving the Real Estate business unique advantage over the competition.

> Operational Risks

• Risk of potential breakdowns in process effectiveness or fall in efficiency resulting from weakness in controls and/or process design, which may cause material exposure to operational failure.

• Risk to recover from disasters and business continuity due to an operational failure.

• Weather and climate incidents have increased during the past year disrupting operations significantly.

Similar incidents again may increase risk exposure.

For addressing operational risks:

o The company regularly assesses potential pitfalls, weak points, flaws in processes, etc. to avoid incidents/ accidents.

o The companys processes of Business Continuity (BCP) and Disaster Recovery (DRP) are regularly reviewed and changes are made as and when an enhancement is warranted.

Developments in Human Resources (HR) and Organization Development at GMR Group

HR is one of the key strategic partners and has contributed to the organisational development in alignment to the strategic initiatives of the Airport business.

Following are some of the Human Resource initiatives taken up in the FY 2024-25.

Organisation structuring and design

1. Significant number of Job Rotation and Role Enlargement carried out for 6 Senior Leaders across Airport Assets and Projects, thus promoting internal talent.

2. Organization redesigning GGIAL has ensured more efficient and productive organization. Optimized organization structures for GVIAL and GNIAL have also led to much leaner and agile organizations.

3. Productivity Studies completed through Kornferry for GHIAL, GADL and MRO organisations. Organisational redesign being done for DIAL and GHIAL.

Hiring & onboarding:

1. 1600+ employees on-boarded across Airport Sector, including the subsidiaries.

2. Gender Diversity at GGIAL and GHIAL moved from 21% to 26% and 14% to 19% respectively.

Other key initiatives for Human Resource Development & Engagement:

1. Business Organisation Development (BOD) exercise conducted for 25+ Airport Sector Senior Leaders and 41 second in line leaders, to chart out the path for achieving the Airport Sector Mission for 2030.

2. 16 Operations Leaders in Airport Sector mentored over a period of 18 months for Building strong leadership pipeline in Airport operations and further strengthening of technical competencies of Senior Airport Operations leaders

3. Completed the Mentoring Program through internal resources for HODs (CDO-1) in Airport Construction Sector

4. Competency dictionaries for 27 Job domains in Airports and Airport Adjacencies completed by SMEs.

5. Business Specific policies implemented for MRO, Duty Free and Hyderabad Cargo.

Internal control systems and their adequacy

The Companys internal financial control framework has been established in accordance with COSO framework to ensure adequacy of design and operating effectiveness of operational,

financial and compliance related controls. The design & operating effectiveness of the internal controls are regularly reviewed by Management Assurance Group (Internal Auditors of the Company) during audits.

The Company has put adequate policies and procedures in place, which play a pivotal role in implementation and monitoring of internal controls, which are embedded in various business processes, including IT & SAP. Management Assurance Group assesses opportunities for improvement in business processes, policies, systems and controls and provides their recommendations to strengthen Companys internal control environment.

Respective Business/Company CEOs are responsible for ensuring compliance with laid down policies and procedures. It helps the Company to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

Management Assurance Group is responsible for undertaking internal audits across the group and they are assisted by outsourced audit firms. The internal audit scope covers inter alia, all businesses and corporate functions, as per the annual audit plan reviewed and approved by the Audit Committee in the beginning of every financial year.

Audit issues identified are addressed through systemic implementation of appropriate corrective and preventive action by the respective functions. Emphasis is always placed on automation of controls within the processes to minimise deviations and exceptions.

Management Assurance Group presents in quarterly Audit Committee Meetings, key audit issues along with action taken report on pending audit issues. Group Head, Management Assurance Group provides an assurance to the Audit Committee confirming compliance to prescribed processes while carrying out audits, reporting audit observations, monitoring and implementation of the agreed action plan for closure.