Management Discussion and Analysis Report
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 ("GAL" or "the Company"), which are expressed in good faith, and in its opinion and judgment, are fair and reasonable. Forthis purpose, forward- looking statements mean statements, remarks or forecasts that address activities, events, conditions or developments that the Company expects or anticipates could occu r 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, except as required by law.
Introduction
FY 2025-26 marked a significant expansion of GMR Airports growth architecture. While the aviation industry navigated geopolitical uncertainties and significant operational disruptions, GMR strengthened its position by extending its presence beyond traditional airport operations and building multiple growth engines extending well beyond the runway. In this direction, successful integration of Cargo and Duty-Free businesses, coupled with growing non-aeronautical revenues, strengthened the Companys revenue streams. Subsequent to the close of FY 2025-26, GAL further expanded its operating portfolio with the commencement of operations at Dr. Babasaheb Ambedkar International Airport at Nagpur ("Nagpur International Airport") which enabled it to create a new engine of value creation.
FY 2025-26 was marked by a complicated operating environment for the global economy. Strategic competition among the United States, China and Russia shaped trade, technology and security policy. Trade policy remained a dominant source of uncertainty through 2025, as new tariff measures announced by the US and countermeasures by its trading partners worked their way through major shifts in global supply chains. Economic nationalism, supply chain diversification and competition for critical minerals and green energy leadership continued to redraw trade and investment patterns. Artificial Intelligence ("AI") remained a central arena of techno-strategic competition, even as debate emerged during the year on the pace and profitability of AI- driven investments
The most consequential development came late in the financial year, with the outbreak of armed conflict in the West Asia. The resulting disruption to energy flows including the closure of the Strait of Flormuz and damage to critical energy infrastructure across various countries in West Asia triggered a supply squeeze resulting in sharp rise in prices of crude oil, gas, and refined products. This altered the global inflation trajectory and introduced significant uncertainty to global growth trajectory in near to medium term. For the aviation sector, the conflict carries direct consequences through elevated fuel costs and airspace closures leading to longer and less economical route diversions.
In summary, the past year has been marked by a paradigm shift in global trade scenario, turbulent geopolitical landscape and a significant realignment of global power dynamics. Together, these factors have created a complex environment that presents both challenges like economic growth, currency depreciation, trade impact, energy security and opportunities like exploring new bilateral trade and economic partnerships, transition to green energy etc.
While major geopolitical developments continue to unfold, India has demonstrated relative resilience, supported by benign inflation, robust GDP growth, and improving financial discipline.
Economic overview
Global economic scenario
CY 2024 was a challenging year for global growth impacted by high inflation and high interest rates across major economies. As a result, global growth remained stagnant at approximately 3.3%.
CY 2025 proved more resilient than initially feared. As the world entered 2025, a series of unprecedented tariff measures were announced by the US, due to which trade paradigm across the world was disrupted. Throughout the year, uncertainty around US tariffs continued even as various countries took counter measures to balance the impact of new tariffs.
Geopolitical developments in the West Asia emerged as a significant macroeconomic headwind during the period. The conflict which started between US-Israel and Iran eventually engulfed the broad West Asia region affecting global energy trade thus driving volatility in commodity prices, increasing transportation and logistics costs, and disrupting supply chains. These factors contributed to inflationary pressures across countries and heightened uncertainty for businesses and investors, as companies operated in an environment characterised by elevated costs and increased geopolitical risk.
Despite elevated policy uncertainty, and geopolitical disturbances, global growth came in at an estimated 3.5% in 2025. This resilience reflected the increasing agility with which countries adapted to trade realignment front-loading of shipments, rerouting of supply chains and the negotiation of new bilateral arrangements. Buoyant investment linked to Artificial Intelligence, particularly in the United States, provided an additional impulse to economic growth. Trade policy uncertainty also began to ease toward the end of 2025, as a ruling of the US Supreme Court in February 2026 invalidated tariffs imposed under the International Emergency Economic Powers Act, lowering the effective tariff rate faced by trading partners, even though some measures were subsequently reintroduced under alternative legal provisions.
Performance across the major economies diverged. The United States GDP expanded by 2.1% in 2025, ending the year with stronger-than-expected momentum, supported by surging AI- related investment, fiscal impetus including tax incentives for corporate investment and monetary easing. As per IMF estimates, US growth is projected at 2.3% for 2026 and 2.2% for 2027.
In the Euro Area, domestic demand strengthened through 2025 as lower interest rates supported consumption and investment, and the economy expanded by 1.4% during 2025. The European Central Bank (ECB) cut its deposit facility rate from 3.75% in June 2024 to 2.00% in June 2025 through eight successive rate reductions. However, the escalation of the West Asia conflict in 2026, in addition to the ongoing Russia-Ukraine conflict, further fuelled energy prices and inflationary pressures, prompting the ECB to raise the rate by 25 bps to 2.25% in June 2026. Despite resilient household demand, higher energy costs, weaker business confidence and geopolitical uncertainty weighed on growth prospects, leading the IMF to revise its 2026 Euro Area GDP growth forecast to 0.9%.
Chinas economy grew by ~5.0% in 2025, with strong export performance offsetting persistently weak domestic consumption. Growth is projected to moderate to 4.6% in 2026, a modest upgrade from earlier forecasts.
source: uvit, juiy
Way forward
Entering 2026, the global economy was on an improving trajectory, and the IMF had been preparing to upgrade its projections. The outbreak of war in West Asia halted that momentum. The closing of the Strait of Hormuz and serious damage to critical energy facilities raised the prospect of a major energy crisis, with prices of oil, gas, diesel, jet fuel, fertiliser and select industrial commodities increasing sharply.
The IMF, assuming the conflict remains limited in duration and scope projects global growth to slow to 3.0% in 2026 and 3.4% in 2027, below recent projections. Crude oil, which averaged USD 67.74 per barrel in 2025, is assumed at USD 82.22 per barrel for 2026. Global headline inflation is projected at 4.7% in 2026 before resuming its decline in 2027, with pressures concentrated in emerging market and developing economies, particularly commodity importers
Risks of deviation from this outlook are decisively on the downside. A longer or broader conflict, deepening geopolitical fragmentation, a reassessment of expectations surrounding AI- driven productivity and trade tensions could significantly weaken growth and destabilise financial markets, while elevating public debt levels and eroding policy buffers, thus heightening vulnerabilities. Under the IMFs adverse scenarios, a sustained escalation in energy prices would produce materially weaker growth and higher inflation outcomes.
Nevertheless, recent history has consistently shown that the global economy is more resilient than often anticipated, with countries demonstrating remarkable agility and pragmatism in responding to emerging challenges. In an increasingly multipolar world marked by economic nationalism, evolving alliances, and shifting trade relationships, the underlying drivers of growth— global trade, investment flows, and connectivity—are expected to remain robust and continue supporting the expansion of the global economy.
Indian economic scenario
While the global economy navigated trade realignment and shocks from conflict in the Middle East, India delivered one of its strongest years of growth and remained the fastest-growing major economy in the world.
As per RBI, Indias real GDP grew by 7.7% in FY 2025-26, compared with 7.1% in FY 2024-25, with nominal GDP expanding by 8.9%. Momentum strengthened through the year, with quarterly growth peaking at 8.2% in Q2. Growth was broad-based, driven by resilient domestic consumption, sustained public capital expenditure, a recovery in private investment and buoyant services activity.
A defining feature of the year was the exceptionally benign inflation environment through the first three quarters. Headline CPI inflation declined for nine consecutive months to touch an 8-year low of 1.6% in July 2025 and eased further to historic lows around 0.25% in October 2025, aided by a prolonged correction in food prices, the longest such decline in the CPI series. The rationalisation of GST rates effective September 22, 2025 ("GST 2.0"), which directly impacted around 11.4% of the CPI basket, provided a further structural impetus to disinflation, alongside the reduction in direct tax rates effective FY 2025-26 which bolstered household disposable incomes. CPI inflation for the full year averaged approximately 2.1%.
Low inflation provided the Reserve Bank of India ("RBI") room to support growth. Having reduced the repo rate from 6.5% to 5.5% over the preceding easing cycle and having committed to a phased 100 basis point reduction in the Cash Reserve Ratio to 3%, the RBI delivered a further 25 basis point cut in December 2025, taking the repo rate to 5.25%. Reflecting this environment of ample liquidity and strong growth, gross GST collections for FY 2025-26 rose 8.3% to 22.27 Lakh Crore, with March 2026 collections crossing Rs. 2 Lakh Crore in a month for the first time during the fiscal year. Indias sovereign credit rating was upgraded by S&P Global in August 2025, reflecting sustained fiscal consolidation and macroeconomic stability, and the RBI approved a record surplus transfer of Rs. 2.86 Lakh Crore to the Government for 2025-26.
Fiscal discipline remained a source of macroeconomic credibility. The Central Government held the fiscal deficit for FY 2025-26 at 4.4% of GDP thereby fulfilling the commitment made in FY 2021- 22 to bring the fiscal deficit below 4.5% of GDP by FY 2025-26, which was achieved despite the revenue foregone from direct tax relief and GST rationalisation while sustaining public capital expenditure of approximately Rs. 11 Lakh Crore during FY 2025- 26. The Union Budget for FY 2026-27 marked a structural evolution in the fiscal framework, transitioning from fiscal-deficit targeting to a debt-anchored path: the Central Government now targets a debt-to-GDP ratio of 50% (?1%) by March 2031 and 55.6% budgeted for FY 2026-27 from 56.1% in FY 2025-26. Fiscal deficit for FY 2026-27 has been budgeted at 4.3% of GDP. A declining debt ratio is expected to progressively free up resources from interest outgo toward priority and capital expenditure reinforcing the medium-term visibility of public infrastructure.
On the geopolitical front, the year opened with heightened tensions in the neighbourhood, as India responded to the April 2025 terrorist attack in Jammu & Kashmir with a brief military confrontation with Pakistan in May 2025, followed by a ceasefire The continued closure of Pakistani airspace to Indian commercial carriers has had a major operational impact on the aviation sector, lengthening flight times and raising fuel burn on westbound international routes.
Further, Middle East conflict altered the inflation and growth calculus materially. Brent crude, which had traded in the range of USD 60-70 per barrel for much of the year, crossed USD 110 per barrel following the outbreak of hostilities. As a large net energy importer, India is directly exposed to this channel through fuel costs, the trade deficit and the currency.
The external account, however, came under visible pressure, particularly in the final quarter. The merchandise trade deficit widened to USD 333.2 Bn in FY 2025-26 from USD 283.5 Bn in the previous year, as imports grew 7.6% while exports remained broadly flat.
As a result of the above factors, Indian Rupee depreciated by over 11% against the US Dollar during FY 2025-26, the steepest annual fall since FY 2011-12, breaching Rs. 95 per USD.
Foreign Portfolio Investors (FPIs) remained net sellers for a significant part of FY 2025-26, with outflows accelerating sharply following the outbreak of the Middle East conflict in the latter part of the year. Investor sentiment was adversely impacted by the depreciation of the Indian Rupee, a widening external sector imbalance, and the relative attractiveness of technology-driven investment opportunities in the United States and other developed markets. Despite these outflows, Domestic Institutional Investors (Dlls) provided a strong counterbalance, supported by robust domestic savings flows and sustained investor confidence in Indias long-term growth prospects.
Despite these headwinds, Indias external buffers remained strong. Foreign exchange reserves stood at USD 691 Bn at the end of March 2026, an increase of approximately USD 23 Bn over the year, supported largely by valuation gains arising from higher gold prices. The robust reserve position provided an important cushion against external volatility and reinforced confidence in Indias macroeconomic stability.
India continued to deepen its trade and investment linkages through new agreements and ongoing negotiations with key economies. Indias network of trade agreements expanding to nine FTAs spanning 38 countries. The India-EFTA Trade and Economic Partnership Agreement (TEPA), which came into force on October 1, 2025, marks a landmark milestone in Indias trade relations, backed by an unprecedented USD 100 billion investment commitment from EFTA member states over 15 years and duty-free access for 99.6% of Indias exports to the bloc. The India-UK Comprehensive Economic and Trade Agreement ("CETA") was signed on July 24, 2025, providing Duty Free access for approximately 99% of Indian exports to the UK, with entry into force expected in early FY 2026-27. The India-Oman CEPA was signed in December 2025, and negotiations for the India- New Zealand FTA including an investment commitment of NZD 20 Bn were concluded in the same month. Further, a framework for an interim trade agreement with the United States was delivered in February 2026, easing the elevated tariff frictions that had prevailed through 2025. Also trade negotiations with the GCC countries were formally launched.
For the aviation sector, this widening lattice of trade agreements is structurally significant - deepertrade, investment and mobility linkages with Europe, the UK, West Asia and Oceania are expected to translate directly into long-haul passenger flows, air cargo volumes and route development at Indias gateway airports.
Way forward
India enters FY 2026-27 with strong domestic fundamentals but a more challenging external environment. In June 2026, the RBI held the repo rate at 5.25% with a neutral stance and revised its projections to reflect the post-conflict reality. GDP growth for FY 2026-27 is now projected at 6.6% (lowered from 6.9%), while CPI inflation is projected at 5.1% (raised from 4.6%), reflecting the pass-through of elevated energy and commodity prices.
Policy attention has turned to safeguarding external stability. Alongside the June 2026 policy, the RBI and the Government announced a package of measures to attract foreign capital including expansion of the Fully Accessible Route for government securities, exemption of foreign institutional investors from capital gains tax effective April 1, 2026, concessional forex swap facilities for external commercial borrowings, and support for fresh FCNR(B) deposits.
The medium-term drivers of Indias growth remain firmly intact: favourable demographics, rising discretionary incomes supported by direct and indirect tax rationalisation, a vibrant start-up ecosystem, sustained public infrastructure investment under a credible debt-anchored fiscal path, and the implementation runway of the newly concluded trade agreements. While elevated energy prices and currency pressure present near-term headwinds, still Indias relative growth premium over other major economies is expected to endure.
Infrastructure Initiatives
The Indian Government remains firmly committed to its vision of Viksit Bharat by 2047, with infrastructure creation as a central pillar. Public capital expenditure allocation, which stood at approximately Rs. 11.2 Lakh Crore in FY 2025-26 has been enhanced to Rs. 12.2 Lakh Crore for FY 2026-27 continuing an expansion from Rs. 2 lakh crore allocation during FY 2014-15. The emphasis has now shifted from headline capital expenditure allocation growth toward execution quality, private capital mobilisation and asset monetisation. Key Budget FY 2026-27 initiatives include the establishment of an Infrastructure Risk Guarantee Fund to strengthen private developers confidence against construction- phase risks, accelerated recycling of CPSE real estate assets through dedicated REITs, seven high-speed rail corridors to be developed as Rs.growth connectors, new Dedicated Freight Corridors, the operationalisation of 20 new National Waterways over five years, and the mapping of City Economic Regions complementing the National Manufacturing Missions with continued push to furtherthe Rs.Make in India agenda. The pipeline of PPP projects across Ministries, supplemented by interest-free capital expenditure loans to States, continued to widen the role of private participation in infrastructure delivery.
Impact on sectors in which GAL operates
The civil aviation industry in India remains the worlds third largest domestic aviation market, after the United States and China, and among the fastest growing globally. The aviation sector plays a significant role in the economic growth of a country, provides global connections that is crucial in advancing international business, trade and investment, and supports the travel and tourism industry carrying not only passengers but air cargo as well. Recognising this multiplier effect, the Government has continued to take wide-ranging steps to boost the growth of Indias aviation sector.
The policy environment for civil aviation strengthened meaningfully during the year, with the Union Budget FY 2026-27 articulating perhaps the most airport-relevant policy agenda in recent years.
Under the National Monetisation Pipeline, the Government signalled its intent to expand the number of airports under public- private partnership from 14 to 25 over the next two years a substantial enlargement of the addressable opportunity for experienced private airport operators such as GAL.
The Union Cabinet approved the Modified UDAN scheme with a total outlay of Rs. 28,840 Crore over the period FY 2026-27 to FY 2035-36, targeting connectivity to 120 new destinations and 4 Crore additional passengers, including a dedicated capital outlay of Rs. 12,159 Crore to develop 100 airports from existing unserved airstrips. Since inception, UDAN has operationalised 657 routes connecting 93 airports and has enabled affordable regional air travel to approximately 1.5 Crore passengers. Indias operational airport count has risen from 74 in 2014 to 165 by June 2025.
The Government is committed to progressively bring Aviation Turbine Fuel under the GST framework, alongside incentivising States to further rationalise VAT on ATF. Given that fuel constitutes the largest cost element for airlines, this reform once implemented would structurally improve airline economics and stimulate air travel penetration. The reform momentum on fuel taxation continued at the State level as well, with majority of States and Union Territories having already reduced VAT on ATF to the 1-4% range.
In support of the Government of Indias vision to establish the country as a global MRO hub, recent policy measures have further strengthened the industrys growth prospects. Building on the uniform 5% IGST regime for aircraft parts and 100% FDI under the automatic route, the Union Budget exempted basic customs duty on components used in the manufacture of civilian aircrafts and on raw materials imported for MRO activities. Supported by these enabling policy interventions, a rapidly expanding aircraft fleet, and increasing localization of maintenance requirements, the Indian MRO industry is expected to sustain its strong growth trajectory over the coming years.
Complementary initiatives like the direct tax relief effective FY 2025-26, GST 2.0 rate rationalisation, the development of the top 50 tourist destinations with the support of State Governments, sharpened focus on medical tourism through collaboration with private institutions, eased visa norms, and continued growth of the DigiYatra ecosystem continue to unlock domestic and international travel potential and support discretionary spending on travel over the medium term.
Indias Airport Sector Outlook and Future Plan/ Indian Aviation Sector: Policy Tailwinds, Traffic Trends and Outlook
After two years of strong post-pandemic expansion, FY 2025-26 was a year of consolidation for Indian air traffic, one in which the sector absorbed an unusual confluence of exogenous shocks while preserving its structural growth trajectory.
Total passenger traffic at Indian airports for FY 2025-26 stood at 420 Mn growing 2% over previous year, comprising domestic traffic of 339.4 Mn (+1.4%) and international traffic of 80.6 Mn (+4.3%)
The deceleration in domestic traffic growth against ~9% growth in FY 2024-25 reflected a series of discrete, largely temporary disruptions rather than any weakening of underlying demand: closure of Pakistani airspace to Indian carriers from May 2025, which lengthened westbound routings and constrained effective capacity; precautionary fleet inspections in the aftermath of the tragic aircraft accident at Ahmedabad in June 2025, which temporarily affected capacity deployment and passenger sentiment; implementation of revised flight duty time limitation (FDTL) norms for pilots, which contributed to operational disruptions and flight cancellations during the winter schedule; continued grounding of aircraft on account of Pratt 8t Whitney engine issues and delayed aircraft deliveries from Boeing and Airbus; and, in the closing weeks of the year, the outbreak of conflict in the Middle East, which triggered a sharp escalation in ATF prices, route diversions and selective cancellations on international sectors.
Notably, international traffic proved resilient through the year, supported by the induction of wide-body aircraft and the expansion of non-stop long-haul services by Indian carriers at major Indian airports, as West Asia aviation hubs experienced disruptions.
Air cargo also sustained healthy momentum, with total freight handled at domestic airports at 3.96 MMT growing 6.2% during the year.
Plowever, the above set of disruptions has taken a toll on airlines financial health. The Indian aviation industry is estimated to have reported a net loss of Rs. 320-340 Bn in FY 2025-26, compared with an estimated loss of approximately Rs. 55 Bn in FY 2024-25 This sharp widening reflects the combined impact of foreign exchange losses arising from the depreciation of the Rs. against the USD, elevated ATF prices following the rise in crude oil prices amid the West Asia conflict towards the end of FY 2026, moderation in passenger traffic growth, and operational disruptions including flight cancellations and passenger refunds. The onset of hostilities in West Asia since end-February 2026 is expected to keep air passenger traffic growth subdued in FY 2026- 27. Additionally, increased costs from continued Rs. depreciation against the USD, high ATF prices and an anticipated rise in lease rentals on the back of sustained aircraft deliveries are projected to result in a net loss of Rs. 360-380 Bn in FY 2026-27, as these cost escalations may not be adequately passed on through fare hikes
Looking ahead, ICRA projects domestic traffic growth of 6-8% and international growth of 8-10% for FY 2026-27, although these estimates carry a downward bias should the West Asia conflict persist, given its bearing on fuel costs, fares and routings. The structural investment case for Indian aviation remains intact as air travel penetration continues to improve with expanding middle income segment of population and domestic carriers expand their fleet size and connectivity. For well-capitalised major airport platforms with newly expanded capacity, the medium-term demand outlook remains firmly positive.
Company overview
GAL plays a central role in this growth story. Despite industrywide traffic moderation caused by airspace closures, fleet constraints and geopolitical developments, GAL-operated airports handled a record 121.6 Mn passengers in FY 2025-26 (including passengers handled at Delhi, Flyderabad, Goa and Medan airports), a growth of 0.9% over the previous year. In India, the Company airports handled 114.6 Mn passengers during FY 2025- 26 representing approximately 27% of all-India passenger traffic, consisting of 25.6% of domestic and 33.9% of international passengers. GMR Airports handled 1.33 MMT (+4%) of cargo in FY 2025-26, representing 34% of all India Cargo volumes, demonstrating the resilience of GALs gateway assets even in a challenging year for the sector.
This operating resilience, combined with revised tariffs at Delhi International Airport and the ramp-up of the non-aeronautical adjacency businesses, translated into a step-change in financial performance as, consolidated total income rose 40% to Rs. 15,201 Crore, EBITDA rose 47% to a record Rs. 6,150 Crore and the Company reported a consolidated profit aftertax of Rs.472 Crore.
Company initiatives
We recognize that Airports are no longer merely transit hubs; they are interconnected ecosystems of mobility, commerce, logistics and customer experience. In line with the vision of becoming an integrated airport platform, GMR is building multiple growth engines that extend well beyond the runway, transforming its airports into gateways for sustainable value creation.
Thus, during FY 2025-26, GAL, in addition to focussing on ensuring smooth operations across existing assets and adding new airports to its operating portfolio, also scaled its adjacency business platform. Some of the key initiatives undertaken during the year are set out below:
1. Portfolio expansion
Nagpur Airport: Following the signing of the concession agreement between GMR Nagpur International Airport Limited ("GNIAL"), a wholly owned subsidiary of GAL, and MIHAN India Limited in October 2024, GNIAL completed the operational takeover of Dr. Babasaheb Ambedkar International Airport, Nagpur on June 25, 2026.
Bhogapuram Airport: Construction of the greenfield international airport at Bhogapuram being developed by GMR Visakhapatnam International Airport Limited ("GVIAL") progressed substantially ahead of the original schedule, achieving 99.73% physical progress by June 30, 2026 and the validation flight successfully completed. During the year, Bhogapuram was declared a Rs.Major Airport by AERA. The airport is expected to be operational in August 2026.
Crete Airport: Construction of the new international airport at Fleraklion, Crete, being undertaken in partnership with Terna S.A., achieved approximately 74% overall progress by June 2026. The project is fully funded, principally through the State Grant (already received) and the Airport Modernisation & Development Tax and remains debt-free. During the year, GMR Airports Greece Single Member S.A., a wholly owned step-down subsidiary, subscribed to a 60% stake in GMR Terna Commercial S.A., Athens, incorporated to undertake the non-aeronautical businesses at the Airport.
2. Organic growth — capacity utilisation and asset performance
Delhi International Airport handled 78.7 Mn during FY 2025- 26, marginally lower than the previous year due to temporary airspace-related disruptions and the planned upgradation of Runway 10/28. Connectivity strengthened to an all-time high of 162 destinations, comprising 87 domestic and 75 international destinations. Key infrastructure milestones include, the recommissioning of CAT Ill-capable Runway 10/ 28, inauguration of the upgraded Terminal 2 and ongoing conversion of Pier C at Terminal 3 into an international pier. These initiatives increased Terminal 3s annual international capacity by 50% to 32 Mn passengers and improved wide body stand availability for international operations by approximately 40%.
Flyderabad International Airport recorded its highest-ever annual traffic of 30.5 Mn passengers (up 3.4%) its first year above the 30 Mn mark. GHIAL commissioned Cargo Terminal 2 at Flyderabad International Airport, adding initial handling capacity of approximately 50,000 MT per annum, with dedicated expansion areas to scale capacity to 100,000 MTPA. The terminal includes a fully temperature-controlled pharma zone designed to handle pharmaceutical and perishable cargo.
The Manohar International Airport at Mopa, Goa ("MIA"/ "Goa Airport at Mopa") continued its ramp-up, with passenger traffic growing 15% to 5.4 Mn capturing approximately 47% of Goa system traffic.
Medan Airport handled 7.03 Mn passengers in 2025, broadly in line with 2024. International traffic rose to 2.39 Mn passengers.
With expanded capacity across core assets and phased growth planning underway, GAL is well positioned to capture medium-term demand.
3. Strengthening the Airport Platform — Adjacency businesses
FY 2025-26 marked the transition of the adjacency strategy from concession wins to operating reality. Having secured concession rights across duty free, cargo and other consumer-facing businesses in the previous year, the Company operationalised these businesses during the year, and their contribution to consolidated revenues and cash flows became visible for the first time validating the strategy of capturing a greater share of the airport value chain.
GAL commenced duty free operations at Delhi International Airport from July 28, 2025, and at Hyderabad International Airport from September 10,2025. The concession to operate, maintain and manage the existing cargo terminal 1 at Delhi Airport, was granted to GAL in May 2025 on the terms of the erstwhile concession following its termination, to ensure business continuity. Subsequently in March 2026, GAL was formally awarded the concession to upgrade, modernise, finance, operate, manage and maintain Cargo Terminal 1 at Delhi International Airport after emerging as the selected bidder.
In a major expansion of the cargo vertical, GAL emerged as the Selected Bidder in August 2025 for the Cargo City at Delhi International Airport — the development of state-of- the-art cargo and logistics facilities over 50.5 acres. A wholly owned special purpose vehicle, GMR Cargo and Logistics Limited ("GCLL"), was incorporated to undertake the project and other cargo and logistics opportunities.
Going forward, GAL will continue to scout and evaluate adjacency opportunities not only at GMR Airports but at other airports in its focus geographies, building operating- level cash flows at GAL and a stronger consumer brand on the backbone of its airport infrastructure.
4. Regulatory developments
The year saw various developments on regulatory front.
The Tariff Order for DIALS Control Period 4 (April 2024 to March 2029), which came into effect from April 16, 2025, with an approved yield per passenger of Rs. 360 (from Rs. 145 earlier), completed its first full year of implementation.
GHIALs Multi Year Tariff Proposal for Control Period 4 (April 2026 to March 2031), submitted in June 2025, remained under review by AERA at the year end, with the tariff order awaited. During the year, AERA also amended the tariff order for GHIALs Control Period 3, permitting GHIAL to collect aeronautical charges for the final quarter of CP3 (January to March 2026) at the same rates as applicable from April to December 2025, in place of the lower rates originally determined for that quarter ensuring tariff continuity, through the close of the control period.
GVIALs Mu Iti-Year Tariff Proposal (MYTP) for Control Period 1, including the pre-control period from July 2026 to March 2032, was submitted in July 2025 ahead of Bhogapurams commissioning and remains under review by AERA. Further, AERA vide order dated July 27, 2026, allowed GVIAL to levy and collect the tariff for Aeronautical Services on ad-hoc basis w.e.f. the COD until the determination of the regular aeronautical tariff for the first control period.
5. Airport Land Development
The Airport Land Development business continued to progress up the real estate value chain, with GALs strategy evolving from plain land leasing to Build-to-Suit development and self-development across various asset types including hospitality, healthcare, retail, office and mixed-use commercial ecosystems. At Delhi Aerocity, construction advanced on Aerocity One, the Companys first self-developed commercial office project, along with progress on the Built-to-Suit luxury hotel aimed at serving premium and transfer traffic. The development pipeline at Aerocity was fu rther strengthened through partnerships with Hilton for Waldorf Astoria and Hilton-branded hotels, and with AIG Hospitals for a 500+ bed healthcare facility. Commercial and retail assets being developed by Bharti Real Estate at Delhi Aerocity also progressed during the year, further strengthening the districts positioning as a large integrated business destination.
At Hyderabad, the ALD portfolio deepened across retail, warehousing, industrial and hospitality segments, including progress on GMR Interchange. Key Built-to-Suit and industrial developments advanced, while hospitality was strengthened through an operator agreement with IHCL for a 170-key Taj Vivanta hotel.
At Goa, third-party hotel projects aggregating over 900 keys progressed across various stages of construction and approvals, alongside the next phase of mixed-use land monetisation. At Bhogapuram, IHCL was identified as operator for a 165-key Vivanta hotel, with key commercial contracts progressing in line with airport commissioning.
During the year, GMR Aerocity, New Delhi also achieved Indian Green Building Councils (IGBC) Green City Platinum Rating, reflecting the strength of its sustainable master planning and design standards. Overall, the ALD business is emerging as an important long-term value creation platform, supporting GALs vision of transforming airport land banks into integrated airport-led business districts.
6. Financing initiatives
GALs capital allocation priorities remain focused on funding committed growth projects, scaling adjacency businesses and maintaining flexibility for future airport opportunities. During the year, GAL continued to strengthen its balance sheet, extend debt maturities and reduce the cost of capital across the platform, an agenda materially assisted this year by the step-change in operating cash flows with the Company reporting record consolidated EBITDA and positive consolidated PAT.
Dividend upstreaming from operating assets continued as anticipated. During the year, the Board of GHIAL declared an interim dividend of Rs. 7.5 per share for FY 2025-26, aggregating Rs. 283.5 Crore, on January 29, 2026.
GHIAL in January 2026 raised Rs. 2,100 crore through 15-year Non-Convertible Debentures at a coupon of 7.60% per annum, deploying the proceeds to refinance US Dollar- denominated debt. The transaction among the longest-tenor issuances in the Indian airport sector is expected to deliver interest cost savings more than 150 basis points, while also eliminating currency risk on the refinanced borrowing.
In a similar tenor-extension exercise, DIAL raised Rs. 1,000 crore through 15-year Non-Convertible Debentures at a coupon of 8.75% per annum in September 2025, refinancing debt bearing a coupon of 9.98% — a saving of over 120 basis points.
At the corporate level, GAL refinanced its legacy debt during the year. In August 2025, the Company raised Rs. 5,900 Crore through listed, unsecured, rated Non-Convertible Bonds in two tranches; Tranche 1 of Rs. 1,500 Crore (18-month tenure) and Tranche 2 of Rs. 4,400 Crore (36-month tenure) each carrying a cash coupon of 5.00% per annum with redemption premia of 5.225% and 5.425% per annum respectively, structured to optimise cash flows during the tenure. The proceeds were deployed to refinance the Companys Rs. 5,000 Crore Non-Convertible Bonds issued pursuant to the Scheme of Merger which were voluntarily redeemed in full in August 2025, well ahead of their November 2026 maturity.
Over the year, credit ratings across the Groups major entities improved significantly, as summarised below:
Entity/Instrument |
Previous rating |
Rating during FY 2025-26 |
GAL — Non-Convertible Bonds (Rs. 6,500 Crore) |
CARE BBB+; Stable |
CARE A; Stable (June 26, 2025) |
GAL — Long-term/Short-term bank facilities |
CARE BBB+; Stable/CARE A2 |
CARE A; Stable/CARE A1 (June 26, 2025; further 500 crore assigned December 20, 2025) |
GAL — Non-Convertible Bonds (Rs. 6,000 Crore) |
— (new rating) |
Crisil A+/Stable (assigned July 25, 2025; reaffirmed February 12, 2026) |
DIAL — debt instruments |
IND AA-; Stable |
IND AA; Stable (July 2025) |
GHIAL — Non-Convertible Debentures |
Crisil AA+; Stable |
Crisil AA+; Positive outlook (January 2026) |
7. Awards and accolades
The Company continued to set benchmarks in operational excellence, sustainability and passenger experience, with FY 2025-26 was a year of strong external recognition across the Groups airport portfolio.
All our major airports continue to improve their position as per Skytrax World Airport rankings with DIAL at 28th is the highest ranked Indian airport.
8. Sustainability & CSR
GALs sustainability strategy remains focused on creating long-term value through responsible, resilient and sustainable aviation infrastructure, with a stated commitment to Net Zero.
Both DIAL and GHIAL continued to hold Level 5 accreditation — the highest level — under ACIs Airport Carbon Accreditation programme, with Delhi remaining the largest airport in the world (by passenger traffic) to have achieved this distinction. During the year, Delhi International Airport achieved the IGBC Net Zero Waste to Landfill Platinum Certification across all three terminals — a first in India — and GMR Aerocity, New Delhi received IGBCs Green City Platinum Rating. Delhi International Airport also became the first Indian airport to deploy anti-smog fogger systems at scale, with 120 units inaugurated across key areas.
9. Digitalisation
Innovation and digitalisation continued to be central to GALs strategy, enabling smarter, safer and more efficient airport operations while enhancing passenger experience and business resilience
During the year, GAL accelerated its digital transformation across airport operations, passenger services, enterprise platforms, safety, cybersecurity and innovation
A key milestone was the roll-out of the indigenously developed Unified Total Airside Management (UTAM) platform, which integrates AI, machine learning, IoT, radar and real-time operational data to improve airside visibility, coordination, safety and throughput.
GAL continued to strengthen cybersecurity governance and resilience as digital platforms become increasingly central to airport operations.
These initiatives reinforce GALs position as a technology- led airport platform, driving efficiency, safety, passenger experience and sustainable long-term value creation across the aviation ecosystem.
Indian portfolio of Airports
1. Indira Gandhi International Airport ("Delhi International Airport"/ "IGIA") operated by DIAL
Focus Areas for FY 2025-26
In FY 2025-26, DIALS primary focus remained anchored on fourthemes: sustaining operational resilience amid external disruption; enhancing terminal and airside capacity through optimisation-led interventions; deepening hub, transfer and international connectivity; and improving financial quality through tariff implementation and non-aero premiumisation. These priorities were pursued in parallel with continued emphasis on passenger experience, digital transformation, safety and sustainability.
During the year, IGIA handled 78.7 Mn passengers, 487.8 thousand air traffic movements. Although passenger traffic was marginally lowerthan FY 2024-25, the airport sustained near-record traffic despite geopolitical and airline-specific disruptions. Cargo operations delivered a robust performance during the year, with total throughput rising to 1.148 Million Metric Tonnes. This comprised 408.6 thousand metric tonnes of domestic cargo and 739.8 thousand metric tonnes of international cargo, underscoring the airports strengthening position as a key trade and logistics gateway. Financial performance improved materially: DIAL reported total income of Rs. 7,653 Crore, EBITDA of Rs. 2,882 Crore and PAT of Rs. 477 Crore for FY 2025- 26, compared with a loss in the previous year. Aero revenues strengthened sharply following implementation of the AERA tariff order for the fourth control period, while non-aero revenues continued to scale on the back of premium retail, food and beverage and lounge formats.
The year also saw a major reconfiguration of the airports operating footprint. Terminal 2 was refurbished and reopened in October 2025, enabling airline reallocations across terminals. Pier C at Terminal 3 was converted for international operations, increasing international capacity at Terminal 3 by approximately 10 million passengers per annum and taking the airports realigned annual terminal capacity to 105 million passengers. In parallel, airside capacity was enhanced from 1,522 to 1,700 ATMs per day, improving the airports ability to accommodate future traffic growth within the existing runway and apron framework
Connectivity remains a central strategic pillar to drive passenger growth. IGIA expanded to 162 destinations in FY 2025-26, adding 13 new routes during the year. These include international destinations such as Manila, Krabi, Shanghai, Guangzhou, Manchester, Narita and Athens, as well as domestic routes such as Navi Mumbai, Purnia, Rewa, Jorhat, Tiruchirappalli and Hisar. The resumption of India- China connectivity also supported international network recovery. DIAL further reinforced Delhis position as a hub airport after Delhi was selected as the first implementation hub under the Governments Hub-and-Spoke initiative
Transfer traffic gained strategic importance through the year, with total transfer traffic across all combinations accounting for nearly 25% of passenger throughput from 24% last year. The airport deployed dedicated transfer infrastructure and passenger process changes, including international-contact gates, transfer areas, Digi Yatra biometric e-gates and segregated passenger corridors, which together strengthened the economics and attractiveness of Delhi as a transit gateway.
On the passenger experience front, DIAL continued to invest in differentiated, passenger-first initiatives. Family@DEL created a dedicated journey for families and group travellers. Delhi Airport also expanded its Virtual Information Desk and 360-degree virtual map capabilities, launched a website revamp with multilingual functionality and WCAG 2.1 AA accessibility compliance, and scaled premium offerings through the launch of Encalm Xenia Lounge and Air India Maharaja Lounge. APOC Phase 2, Unified Total Airside Management ("UTAM") enhancements, analytics capability built on Azure Databricks and GenAI-based use cases further strengthened decision support, operational control and passenger process management.
Brand and reputation indicators also remained strong. Delhi Airport was named Best Airport in India and South Asia by Skytrax for the 8th consecutive year and improved its global ranking to 28th in the 2026 Skytrax World Airport Awards, while remaining the only Indian airport in the Top 30 globally. It also won the 2025 ASQ Customer Experience Award for the Best Airport at Departures in Asia-Pacific for airports handling over 40 Mn passengers and was recognised as Sustainability Champion and the Best Airport of the Year at Wings India 2026.
Sustainability continued to be embedded in DIALS strategy. Delhi International Airport maintained 100% renewable electricity operations and continued to hold ACI Level 5 Airport Carbon Accreditation, reflecting net zero carbon emissions for Scope 1 and 2. The airport also advanced green mobility, waste management, water stewardship and resilient infrastructure measures. Its environmental credentials remained a key component of the airports brand proposition and long-term operating strategy
Tariff at Delhi International Airport
AERA has issued tariff order for Fourth Control Period (1st April 2024 to March 31, 2029) for DIAL on March 28, 2025. As per the tariff order, DIAL has received -150% increase in yield over the existing rates of Base Airport Charges ("BAC) + 10% effective from April 16, 2025 to March 31,2029 unless amended
DIAL Appeals
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 favourable outcome for DIAL may positively impact tariffs as and when incorporated by AERA. While these issues relate to past control periods, any favourable order, if implemented, will be trued up for the time value of money in line with the AERA Act.
DIAL had invoked arbitration against Airports Authority of India ("AAP) 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 passed the Award on January 06, 2024 stating: the amount of Monthly Annual Fee ("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. There shall be extension of the term of Operation, Management and Development Agreement ("OMDA") for 1 year and 11 months i.e., the period excused under force majeure. The Flonble High Court of Delhi vide its judgment dated March 07, 2025 has upheld the Arbitral Award and dismissed the petition of AAI. AAI has furtherfiled an appeal against order dated March 07, 2025, with Divisional Bench of Flonble Delhi High Court.
Further, DIAL has also filed an appeal with TDSAT against CP 4 tariff order.
Looking ahead, DIALS priorities remain aligned with the airports next phase of growth: consolidating hub traffic, further monetizing premium non-aeronautical opportunities, expanding operating capacity through master-plan-led interventions, deepening digital and analytics capabilities, sustaining regulatory engagement and maintaining service leadership while reinforcing safety and environmental stewardship. In a sector characterised by short-term volatility but compelling long-term structural demand, DIAL remains positioned as a leading beneficiary of Indias aviation growth story.
2. Rajiv Gandhi International Airport ("Hyderabad International Airport"/"RGIA") operated by GHIAL
Focus Areas for FY 2025-26
During FY 2025-26, GHIAL achieved another significant milestone with the airport handling its highest-ever passenger traffic of 30.48 Mn passengers, registering a growth of 3.4% over the previous year. International traffic continued to outperform domestic growth, increasing 8.2% over the previous year to 5.46 Mn passengers, while domestic traffic reached 25.02 Mn passengers, growing by 2.4% year- on-year. This sustained growth, despite domestic and international events, reinforces Hyderabad Airports position as one of Indias leading aviation gateways and a key hub for South and Central India.
The Airport continued to strengthen its domestic and international connectivity during the year. As of March 2026, RGIA was connected to 74 domestic and 26 international destinations, compared to 72 domestic and 24 international destinations in the previous year. New domestic destinations added during the year included Navi Mumbai and Purnia, while new international destinations included Hanoi, Addis Ababa and Amsterdam. The Airport also welcomed three new international airline partners - Vietnam Airlines, Ethiopian Airlines and KLM Royal Dutch Airlines. Going forward, the Airport will continue to work closely with airlines and stakeholders to further expand connectivity across Europe, Africa, Southeast Asia and the Middle East, supporting Hyderabads growing role as a global aviation hub.
Cargo continues to be a strategic growth pillar for GHIAL. During FY 2025-26, the Airport handled 1,93,850 MT of cargo, recording a growth of 6% year-on-year. International and domestic cargo volumes registered growth of 6% and 7% respectively, while import cargo volumes increased by 17%. Cargo Terminal 2 was completed and inaugurated in Q4 FY 2025-26, while the Cargo Terminal 1 expansion comprising a Domestic Cargo Terminal, International Courier/Express Terminal and dedicated Perishables Terminal is progressing rapidly and is targeted for completion during FY27. Upon completion of CT1 expansion initiatives, RGIAs cargo handling capacity will increase to approximately 3,00,000 MT per annum. During FY 27, the Airport will focus on expanding freighter connectivity, strengthening Hyderabads position as a regional cargo hub, enhancing transshipment opportunities, and driving growth in high- value cargo segments such as pharmaceuticals, electronics, aerospace, perishables and e-commerce.
GHIAL will continue to focus on capacity enhancement to support future traffic growth. Following the expansion of terminal capacity to 34 MPPA, the Airport is evaluating measures to increase capacity towards 37-40 MPPA through targeted operational and infrastructure improvements. Simultaneously, GHIAL is preparing a long-term Airport Master Plan to support future expansion requirements. During FY 2025-26, the Airport also secured DGCA approval for the CAT III upgrade of Runway 09R, strengthening low- visibility operations and operational resilience
Digital transformation remains a key strategic priority for GHIAL. During FY 2025-26, the Airport strengthened its AI- enabled Airport Predictive Operations Centre (APOC) to enhance operational efficiency, resource utilisation and passenger experience through predictive analytics and realtime operational management. During FY27, focus will be on expanding APOC capabilities, implementing further phases of the Integrated B2B Mobile Platform, strengthening stakeholder collaboration, and extension of Digi Yatra to international passengers, in line with the planned government rollout
Passenger experience remains a cornerstone of GHIALs strategy. During FY 2025-26, the Airport operationalised four new travellators, introduced low-height buggies in the terminal, expanded digital passenger assistance platforms, and strengthened accessibility and passenger insight initiatives. During FY27, GHIAL will focus on completing the remaining travellators, introducing themed boarding gate seating, business-class check-in channels, neuro-sensory rooms, additional virtual information kiosks, and global signage standards. These initiatives will further strengthen passenger satisfaction, brand equity and global recognition.
The Airports non-aeronautical business remains an important contributor to revenue growth and passenger experience. During FY 2025-26, GHIAL expanded its retail and F&B portfolio, launched the HOI loyalty programme, and strengthened its premium offerings through the Luxury Zone featuring globally recognised brands. During FY27, the Airport will continue to focus on enhancing premium retail, customer engagement and loyalty initiatives, while maximizing non-aeronautical revenue opportunities and enriching the passenger journey.
Hyderabad International Airport continued to receive significant recognition during FY 2025-26, improving its Skytrax Worlds Top 100 Airports ranking from 56th to 43[d position while retaining its Skytrax 4-Star Rating. The Airport was also recognised as Best Airport Staff in India South Asia 2026, 2nd Best Regional Airport in India & South Asia 2026, and the 3,d Best Airport in India South Asia 2026, reinforcing its commitment to service excellence and operational leadership.
Hyderabad Airport further strengthened its position as a global leader in passenger experience by being recognised as the Worlds Best Airport at Arrivals (25-30 MPPA category) under the ACI ASQ Awards 2025. The Airport also achieved ACI Customer Experience Accreditation Level 4 and ACI Accessibility Accreditation Level 2, reflecting its continued focus on service excellence, accessibility and customercentric operations.
The Airport also received significant recognition for its sustainability, cargo and innovation initiatives. It was recognised as the Fastest Growing Metro Airport, Fastest Growing Cargo Airport, Pharma Airport of the Year (India), and Innovative Airport of the Year - India, reinforcing its leadership across cargo, sustainability and innovation.
Sustainability remains a key pillar of GHIALs long-term growth strategy. The Airport achieved the highest Level 5 certification under the ACI Airport Carbon Accreditation programme, while the expanded passenger terminal received LEED Platinum certification. GHIAL has fully transitioned to 100% renewable electricity and continues to drive sustainability through EV infrastructure, energy efficiency, water stewardship and carbon reduction initiatives. During FY 27, the Airport will further advance its ESG agenda through green energy adoption, sustainable infrastructure development and environmental stewardship measures, reinforcing its position as a leading sustainable airport
Tariff at Hyderabad International Airport
GHIAL is in the process of updating its tariff under the Fourth Control Period ("CP4) tariff determination process through AERA. During FY 2025 26, the Airport submitted its Multi- Year Tariff Proposal (MYTP) for the Fourth Control Period covering April 2026 to March 2031. Subsequently, AERA issued the Consultation Paper for CP4, and stakeholder consultations have been undertaken as part of the regulatory process. The tariff order is currently under finalisation by AERA. GHIAL continues to actively engage with the regulator and stakeholders to support a timely conclusion of the tariff determination process, providing long-term regulatory certainty and supporting the Airports future growth and investment plans.
GHIAL Appeals
In respect of GHIALs appeal against tariff orders related to the Second and Third Control Periods, the judgment issued by TDSAT on February 14, 2024 allowed certain claims while disallowing others. Appeals filed by AERA and the Federation of Indian Airlines (FIA) against the TDSAT order are currently pending before the Honble Supreme Court. Any favourable outcome and subsequent implementation by AERA may have a positive impact on the Airports future tariff framework through the applicable true-up mechanism in accordance with the provisions of the AERA Act.
3. Manohar International Airport ("Goa Airport at Mopa"/ "MIA") operated by GGIAL
Focus Areas for FY 2025-26
As you would recall, post successful commissioning, the airport commenced Domestic Operations on January 05, 2023 and International Operations on July 21, 2023. During FY 26, MIA handled 5.0 Mn Domestic Traffic & 0.4 Mn International traffic, totalling to ~5.4 Mn, which is more than 15.7% higher over FY 25.
Since the commissioning of the airport, it has been our endeavourto connect more destinations, both domestic and international. During peak season of FY 26, we were connected to 24 Domestic Destinations and 14 International Destinations.
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. We have also improved our Skytrax global airport ranking from 80 to 64 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 8t South Asia.
Going forward, considering the Middle East crisis, coupled with slow delivery of aircraft, we expect the Goa system traffic to soften during FY 2027 as well which showed a decline of ~4% in 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 soon, 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. In FY 2026, MIA was connected to 5 such destinations as compared to 2 in FY 2025.
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. MIA will continue to focus on providing best-in-class services to passengers and generating maximum value to the 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 December07,2023 for GGIAL. 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.
GMR Goa International Airport Limited ("GGIAL") appeals
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. TDSAT in September 2025 passed judgment upholding our contentions in its appeal against AERAs Tariff Order No. 27/2023-24, quashing and setting aside various appealed matters including the reduction of project management consultancy expenses, the determination of aeronautical and non-aeronautical revenues and taxes thereof, finalisation of the tariff rate card and the treatment of license fees with requisite directions issued to AERA. AERA has filed a petition in Honble SCI against TDSATs order, which is pending hearing.
4. GMR Visakhapatnam International Airport ("Bhogapuram International Airport") operated by GVIAL
Focus Areas for FY 2025-26
The Concession Agreement for Bhogapuram International Airport (Alluri Sitarama Raju International the 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, and financial closure was achieved in December 2023.
The EPC works were awarded to Larsen 8t Toubro (L8tT), with construction commencing in December 2023. The project has demonstrated exceptional progress, achieving over 99.7% physical completion by June 2026, significantly ahead of the original schedule.
During FY 2025-26, several key milestones were achieved, including successful calibration and validation of critical Air Navigation Services (ANS) equipment, completion of major civil works, and commencement of extensive systems integration and operational preparedness activities. Most of the approvals have been received as required to commence commercial operations.
The airport has been developed with a strong emphasis on sustainability and future readiness. Key environmental features include a 5 MW captive solar power plant, energy- efficient building systems, smart building management systems, rainwater harvesting facilities, water recycling and reuse systems, sustainable landscaping, deployment of electric vehicles in airport operations. These initiatives reinforce GVIALs commitment to developing environmentally responsible infrastructure by reducing carbon footprints.
With construction substantially completed, regulatory approvals secured and operational readiness activities successfully concluded, the project entered the final phase of airport commissioning and commencement of commercial operations. The airport was inaugurated by the Honble Prime Minister Shri Narendra Modi on August 01, 2026. The airport is scheduled to start operations from August 2026. Once operational, the existing operations of Visakhapatnam Airport will be transitioned to the Bhogapuram Airport.
Bhogapuram International Airport, the gateway to north coastal Andhra Pradesh, is expected to contribute significantly to the socioeconomic growth of the region. The focus during the coming year will be on ensuring safe, seamless and efficient airport operations while delivering superior passenger experience and establishing operational stability across all airport functions.
GVIAL is actively engaging with domestic and international airlines to establish a robust route network from commencement of operations. Efforts are underway to secure connectivity to key domestic hubs and strategically important international destinations, making Visakhapatnam Economic Region more accessible to the world.
Planning and development activities for airport-linked commercial, hospitality, logistics and aviation-support infrastructure will continue to be a major focus area to create airport ecosystems fostering accelerated economic growth and well-being.
It is believed that Bhogapuram International Airport will represent a transformational milestone for Andhra Pradesh, enhancing connectivity, attracting investments, promoting tourism and supporting the states long-term economic development agenda.
International Portfolio of Airports
1. Kualanamu International Airport ("KNO"), Medan
As outlined earlier, the Company had entered into 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 07, 2022. Subsequently, PT Angkasa Pura I (API) and PT Angkasa Pura II (APII) went through a merger to form PT Angkasa Pura Indonesia. This merger created a unified airport operator for Indonesia, managing 37 airports.
Medan Airport recorded a strong recovery in international traffic during CY 2025, reaching a record 2.4 Mn international passengers growing 6% over the previous year, driven by the launch of new services by Thai AirAsia to Phuket and Etihad Airways to Abu Dhabi, together with increased frequencies on the Kuala Lumpur and Penang routes. Domestic connectivity also improved through the introduction of services to Mandailing Natal and increased frequencies on key routes, including Jakarta, Batam, and Takengon. While Medan Airports international business continues to grow strongly, domestic traffic remains affected by broader structural challenges in Indonesias aviation sector. The industrys recovery continues to be constrained by persistent supply-side limitations, particularly the shortage of available aircraft, which has restricted capacity growth across the region.
Overall, the airport handled 7.03 Mn passengers in 2025, broadly in line with 2024.
The airport delivered strong growth in its non-aeronautical business by onboarding globally recognised Duty Free, food and beverage, and retail partners through a competitive selection process, introducing several new brands to the Medan market. Improved commercial terms and strengthened governance further enhanced performance, resulting in a 69% increase in non-aeronautical revenue compared with 2019, while non-aeronautical revenue per passenger increased by 93%.
Operational improvements continued to enhance both passenger experience and efficiency. These included operational reconfiguration to optimise passenger flows, the introduction of immigration e-Gates and digital arrival processing to streamline immigration and customs clearance, and targeted upgrades to key airside infrastructure
Looking ahead, the airport is pursuing a number of strategic initiatives to drive traffic growth and further strengthen Kualanamus position as an alternative hub to Jakarta. We continue to work closely with airlines and government stakeholders to develop new routes across Southeast Asia, the Middle East, and India, while positioning Medan as Indonesias Umrah hub. On the domestic front, collaboration with the Ministry of Transportation and Angkasa Pura Indonesia remains focused on revitalising domestic connectivity. In parallel, partnerships with the Ministry of Tourism and regional consulates aim to stimulate inbound travel, while engagement with a new cargo partner is expected to unlock Medans significant air cargo potential.
Indonesias economy remains resilient, supported by strong domestic consumption. The economy grew 5.61% year-on- year in the first quarter of 2026. In 2025, Indonesian rupiah depreciated by 7% vs US Dollar, reflecting global market dynamics; however, the IDR appreciated 1.75% vs Rs. Fiscal discipline and steady investment continue to support the countrys positive outlook.
In 2025, air travel demand in Indonesia continued to recover in spite of challenges faced including high operating costs, aviation fuel and foreign-currency expenses, fleet availability constraint. Long-term growth prospects though remain robust supported by Indonesias large population and increasing connectivity needs.
2. Crete International Airport
The consortium of the Company and TERNA had obtained the concession for the design, construction, financing, operation and maintenance of the new international airport at Heraklion, Crete, Greece, on February 06, 2020. The concession period is 35 years including the design and construction phase.
The overall construction progress of the airport as of March 2026 is approximately 70%, with significant progress for major components.
Continuing with GMRs vision of developing airports as interconnected ecosystems of mobility, commerce, logistics and customer experience, that is an ecosystem that extends far beyond the runway, Commercial Joint Venture (CJV) was incorporated as GMR Terna Commercial S.A. in June 2025, with GMR holding a 60% stake and Terna the remaining 40%. The CJV holds exclusive rights to the airports non- aeronautical revenue businesses. Various commercial activities including finalising business models for the commercial businesses, partner onboarding and real estate master planning will be aligned with the projects Commercial Operations Date (COD).
The Greek economy sustained its growth momentum in CY 2025, with real GDP expanding by 2.1% for the third consecutive year well above the EU average of around 1% driven by robust investment, private consumption and net exports. Greek airports achieved an all-time high traffic, handling 83.3 Mn passengers in CY 2025, up 4.9% year-on- year, with Athens International Airport alone crossing 34 Mn passengers (up 6.7%). The passenger traffic at existing Heraklion Airport reached 10 Mn for CY 2025, which is 7.6% higher than the CY2024 traffic, demonstrating strong growth in leisure traffic.
3. Mactan-Cebu International Airport ("MCIA")
We currently serve as the Technical Service Provider to Mactan-Cebu International Airport (MCIA) until December 2026. In CY 2025, MCIA recorded total passenger traffic of 11.6 Mn, comprising 8.6 Mn domestic passengers and 3.0 Mn international passengers, representing approximately 3% growth compared with CY 2024.
MCIA continued to strengthen its position as one of the leading airports in the region through multiple recognitions in CY 2025. It became the first airport in the Philippines to win the ACIASQ Award for two consecutive years, 2024 and 2025, under the "Best Airport" category for 5-15 MPPA in Asia-Pacific, reflecting its strong focus on customer experience. MCIA also received the Skytrax "Most Improved Airport" Award in 2025 and was recognised as Best Airport in Asia at the Travel Trade Excellence Awards by TDM Travel Media
GMR remains committed to driving operational excellence at Cebu Airport in accordance with the requirements of the Technical Services Agreement. This includes continued focus on strengthening safety standards, improving on-time performance, and achieving the minimum performance standards as prescribed by the Grantor.
The Philippines is expected to remain one of the most resilient economies in Southeast Asia, with forecast CY 2026 GDP growth of around 4-5%, though growth expectations have moderated.
MCIA is expected to maintain positive traffic momentum in CY 2026, supported by continued domestic growth, higher airline frequencies, and network expansion by key carriers i.e. Cebu Pacific and Philippines Airlines. International traffic is expected to improve further with addition of new routes in Q4 2025 to Malaysia, Vietnam, Australia, Macau, and Guam by Jetstar, Firefly, Vietnam Airlines, and AirAsia. However, due to geopolitical risks linked to the West Asia conflict and fuel price volatility, we expect some pressure on seat capacity and ticket prices impacting passenger load factors as airlines focus on cost control. MCIAs growth strategy remains focused on strengthening core markets such as Korea and Japan, while pursuing strategic growth from India, China, Australia and Southeast Asia.
GMR Airports Limited - Airport Adjacency business
Airports are no longer merely transit hubs; they are interconnected ecosystems of mobility, commerce, logistics and customer experience. Building on this vision of growth that extends far beyond the runway, the Company continues to expand its passenger-handling capacity through both organic and inorganic growth across India and international markets. It is equally focused on leveraging this growing airport network to scale its portfolio of airport adjacency businesses asset-light, non- aeronautical ventures that form a key pillar of the Companys long-term growth strategy and value-creation agenda.
GALs airport-adjacency business portfolio comprises Duty Free, Retail, Food & Beverage (F8tB), Cargo and Car Parking. Additionally, GALs services portfolio includes Operations & Maintenance (08tM) and EPC/PMC services.
Beyond generating direct revenues for the Company, these businesses also enhance the commercial performance of the underlying airport assets. Under the respective concession agreements, the airports earn revenue through revenue-sharing arrangements with these businesses. At IGIA, Delhi, non- aeronautical businesses contribute the majority of operating revenue, underscoring their critical role in enhancing airport value and driving returns for GAL.
Indias sustained economic growth and rising discretionary spendings are expected to drive higher sales across airport Retail, Duty Free and Food & Beverage (F&B) outlets. At the same time, the proportion of passengers engaging with these offerings continues to increase, supported by evolving consumer preferences and a growing inclination towards premium experiences.
Such structural trends coupled with the Companys deep operational expertise accumulated across the Airport value chain over more than two decades positions the Company to capitalise on the long-term growth potential of these businesses while creating sustainable value for all stakeholders.
Going forward, the Company intends to expand its adjacency business portfolio across other airports in India and abroad within its focus geographies over the medium to long term.
In this direction, the Company continues to actively pursue Non- Aero 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. This has been a noticeable shift, where various airports are moving towards a master concession model due to its benefits both to the Airport and the concessionaires.
GALs successful execution of the Master Concession model at Hyderabad International Airport, underscores the Companys capabilities in managing integrated non-aeronautical businesses and positions it well to pursue similar opportunities across other airports.
In addition, the Company has secured the long-term concession at Visakhapatnam Airport (GVIAL) to operate and manage a comprehensive portfolio of non-aeronautical businesses, including Duty Free, Food & Beverage (F&B), Retail, Car Parking, Advertising, Foreign Exchange (Forex) and allied services. The airport is expected to commence operations in August 2026.
Further at Crete Airport, Commercial Joint Venture (CJV) was incorporated as GMR Terna Commercial S.A. in June 2025, with GMR holding a 60% stake and Terna the remaining 40%. The CJV holds exclusive rights to the airports non-aeronautical revenue businesses.
Going forward, the Company will continue to evaluate opportunities to expand its portfolio of airport-adjacency businesses, both across GAL-operated airports and at other airports within its focus geographies.
This strategy is expected to further strengthen the Companys operating cash flows, diversify its revenue streams and reinforce GALs position as a leading provider of airport services and consumer-facing offerings.
Airport Land Development (ALD)
Airport Land Development (ALD) continues to be a key strategic growth pillar for GAL. Over the past few years, the business has successfully evolved from a predominantly land leasing model to a value-driven real estate development platform focused on maximizing the potential of the Companys city-side airport land banks.
As part of this strategic transformation, ALD has expanded its capabilities across self-development and value-added development models, including commercial office developments, hospitality, retail, industrial Built-to-Suit (BTS) facilities, and other mixed-use assets. The Company has strengthened its development, project management, and asset management capabilities to successfully execute this strategy and deliver high- quality developments to customers and stakeholders.
Further, in select land leasing transactions with strategic customers, the Company has expanded its role by undertaking EPC services for the development of customer facilities within its Aero cities. This integrated development approach enables the Company to create additional value, strengthen customer relationships, and ensure timely delivery of high-quality infrastructure.
Going forward, the Company will accelerate the execution of its key investment projects, including the Office Project under Self- Development, Terminal Hotel, Hospital and Hospitality Project under Part Self-Development at Delhi, as well as the Interchange (Retail), Office Towers 3 & 4, Student Housing, a Second Hotel under Self-Development, and Industrial Built-to-Suit developments at Hyderabad.
At Delhi Aerocity, the continued development of commercial and retail assets by Bharti Realty is expected to further strengthen the destinations position as one of Indias premier business and hospitality districts. With the commissioning of the first phase (approximately 2.9 Mn sq ft of Gross Leasable Area) of office developments, progress on the second phase, and the advanced construction of a large-format retail mall, Delhi Aerocity is well positioned to emerge as one of the worlds leading integrated business districts. In addition, a large conferencing facility, supported by additional hotel room capacity within the Hospitality District, is expected to be completed during the year, further enhancing Aerocitys position as a premier destination for business, conventions, hospitality, and tourism.
Aerocity Hyderabad continued to build out its integrated ecosystem spanning commercial offices, retail, hospitality, logistics, industrial developments and a multi-product SEZ, while steadily increasing the share of self and joint-development projects. In Industrial & Logistics, the company handed over the Safran engine MRO facility, inaugurated by the Honble Prime Minister, while the new industrial leases took the Logistics Park to 100% occupancy. Construction also commenced on a 175- key Vivanta by Taj hotel to anchor the emerging mixed-use hotel and commercial district. In Retail, the Interchange destination project crossed 46% pre-leasing on the strength of leading brand LOIs. Collectively, these transactions enabled GHIALs real estate entities to generate healthy cash flows while reinforcing global investor and occupier confidence in Aerocity Hyderabad as a preferred business destination.
At the emerging airport cities of Goa and Bhogapuram, the Company will continue to build on the strong momentum in land monetisation through hospitality, retail, and mixed-use developments, leveraging the long-term growth potential of these destinations
In parallel, the Company will continue to closely monitor both self-development and third-party development projects to ensure timely execution, effective cost management, and adherence to the highest quality standards.
GMR Aerocity, New Delhi also achieved IGBCs Green City Platinum Rating, reflecting the strength of its sustainable master planning and design standards.
Technology and digital transformation will remain integral to ALDs long term growth strategy. The Company will continue to leverage emerging technology, including Artificial Intelligence
(AI), smart city solutions, digital infrastructure, and technology- enabled asset management platforms to enhance project delivery, operational efficiency, customer experience, and lifecycle asset performance.
Looking ahead, GAL will continue to strengthen its independent capabilities i.e. financing, development and asset management to enhance capital efficiency, unlock long-term value, and support the sustainable growth of the ALD business in the years ahead.
Maintenance, Repair & Overhaul (MRO) Business
GMR Air Cargo and Aerospace Engineering Limited (GACAEL), a subsidiary of the Company, was established in 2008 and is situated at the GMR Aerospace and Industrial Park, located at the Hyderabad International Airport. It is Indias largest third- party MRO service provider. Spanning across 25 acres, GACAEL features four hangars, which include a wide-body hangar and an exclusive paint hangar. The facility can accommodate nine (9) narrow-body aircraft simultaneously. There are also plans in progress to enhance the capacity & capabilities through the addition of two more hangars.
GACAEL offers comprehensive maintenance services, including base maintenance for narrow-body aircraft like Boeing 737, Airbus A320, ATR 42/72 8t Q400. GACAEL also offers specialised airframe maintenance services at its base at Hyderabad such as heavy maintenance check, entry-into-service, end-of-lease checks, structural repairs, component repairs, and aircraft full livery painting. The facility is approved by 33 global regulators, including DGCA, DGAQA, EASA, FAA and others.
The customers include airlines 8t lessors from Middle East to Far East and Europe, Africa and CIS countries, in addition to India. GACAEL provides in line maintenance services in 12 airports in India and 1 in Nepal, serving a total of 50+ customers/airlines.
In addition to the MRO business, GACAEL set up a Centre of Excellence for the aerospace industry in technical collaboration with Airbus, producing industry-ready engineers and technicians. The GMR School of Aviation (GSA), a strategic Business Unit of GACAEL, approved by both DGCA and EASA, offers Aircraft Maintenance Engineering licenses, Ancillary training and Aircraft Type Training programs.
During the Financial Year 2025-26, the MRO division (GMR Aero Technic) of GACAEL achieved total revenue of Rs. 676.9 Crore with a Year-on-Year growth of 26%.
The outlook for GACAEL remains positive, supported by continued growth in the Indian aviation sector, increasing aircraft fleet inductions by domestic and international airlines and the Government of Indias sustained focus on promoting the country as a global Maintenance, Repair and Overhaul (MRO) hub. All these factors and increasing acceptance of India as a competitive maintenance destination are expected to drive strong demand across Base Maintenance, Line Maintenance, Component MRO and aviation training segments.
With current infrastructure near full utilisation, the Company will focus on the proposed hangar expansion Programme. In addition, the Company remains focused strengthening long-term customer relationships and increasing its share of international business. GACAEL will also continue to focus on expanding service offerings and enhancing technical capabilities through strategic partnerships with global aerospace organizations and OEMs. Defence MRO will be a key strategic growth area for the Company. Building on its engagement with Boeing for the P-81 Programme, GACAEL will continue pursuing opportunities across military aviation platforms and strenghening collaboration with Defense OEMs and government stakeholders. Further, the Company will continue to focus on digitalization, automation and data-driven decision-making through deployment of advanced technologies and Al-enabled solutions aimed at improving efficiency, responsiveness and competitiveness.
With a strong foundation, established customer relationships, growing technical capabilities and ongoing expansion initiatives, GACAEL is well positioned to capitalize on emerging opportunities and deliver sustainable long-term growth.
Growth Outlook - New Opportunities
While GMR Airports has a long runway for growth across its existing Airport portfolio, supported by long residual concession tenures, with the combined expertise and reach of GMR Group and Groupe ADP, GAL is strategically positioned to expand its airport business both internationally and domestically as part of its business development strategy.
India remains a key growth market for GMR Group, with significant opportunities expected from the ongoing airport privatisation program. In line with the Government of Indias National Monetisation Pipeline (NMP), the planned privatisation of airports is expected to create significant avenues for private sector participation over the coming years.
The Company is actively evaluating upcoming concession opportunities, including the proposed privatisation of 11 regional AAI airports and potential new airport development in major cities such as Chennai, Kolkata, and Pune
Alongside Airport concessions, GAL is also actively pursuing asset- light Operations 8t Maintenance (08iM) opportunities in focus geographies including Central and South East Asia, the Middle East and Africa.
Focus on Innovation and Digitalisation
Innovation and digitalisation remain central to GALs long-term strategy, driving operational excellence, superior passenger experience, stronger safety, and sustainable business growth. As technology continues to reshape the aviation ecosystem, GAL is harnessing digital technologies, data engineering, process automation, and artificial intelligence (AI) to build smarter, safer, more efficient, and future-ready airports.
During the year, GAL accelerated its digital transformation journey through several strategic initiatives spanning airport operations, passenger services, enterprise platforms, safety, cybersecurity, and innovation.
A key milestone was the roll-out of GALs indigenously developed Unified Total Airside Management (UTAM) platform. Combining AI, machine learning, IoT, radar, and real-time operational data, UTAM provides an integrated view of aircraft, vehicles, and ground support equipment across the airside, enabling greater operational visibility, improved coordination, enhanced safety, and throughput.
GAL continues to redefine the passenger experience through digital first, contactless, and personalised services. The ongoing expansion of Digi Yatra, self-service check-in and baggage facilities, biometric processing, Al-powered virtual assistants, multilingual digital passenger guidance, and paperless immigration processes is making airport journeys more seamless, intuitive, and convenient. 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. Hyderabad International Airports Al-powered Rs.Meet GIA (GMR Interactive Assistant) the virtual assistant and Delhi International Airports multilingual Rs.Your Terminal Companion initiative exemplify GALs commitment to enhancing passenger navigation and accessibility and delivering a differentiated customer experience through digital innovation.
GAL is also strengthening operational resilience through advanced digital capabilities. In collaboration with the Ministry of Science & Technology, Delhi Airport commissioned SKYCAST, Indias first integrated aviation weather intelligence and nowcasting platform, providing real-time meteorological intelligence to support safer flight operations, improved runway management, and enhanced operational preparedness during adverse weather conditions. In parallel, GAL has initiated the implementation of a digital safety management system to standardise safety processes, enhance analytics, strengthen governance and regulatory compliance across all airports.
Beyond passenger operations, GAL is accelerating digital transformation across its cargo, maintenance repair and overhaul, commercial, and smart airport initiatives. Investments in intelligent traffic management, smart mobility, connected airport infrastructure, and IoT-enabled solutions are laying the foundation for next-generation smart airports that leverage realtime data to improve operational efficiency, sustainability, and customer experience.
Internally, GAL continues to modernise its enterprise technology landscape through the implementation of next-generation digital platforms that enable real-time data access, intelligent automation and Al-driven decision-making. A key milestone in this journey is the implementation of SAP S/4HANA, which will serve as the integrated digital core for the Companys finance, procurement and operational processes streamlining workflows, enhancing data-driven insights and providing a scalable foundation for future growth. During the year, the organisation also implemented a contract lifecycle management platform to streamline and strengthen end-to-end contract governance, ensuring transparency and compliance.
Recognising that successful digital transformation is driven as much by people as by technology, GAL has launched structured digital and AI capability-building programmes to strengthen digital competencies, accelerate technology adoption, and embeded a culture of innovation and continuous learning across the organisation.
Cybersecurity remains a strategic priority underpinning GALs digital transformation journey. The operationalisation of 24x7 integrated cyber defence centre, together with enhanced cyber monitoring, threat intelligence, incident response capabilities, and cyber resilience frameworks, has significantly strengthened the Companys security posture. During a recent geopolitical crisis, the Company activated its dedicated cyber warfare centre and invoked its cyber crisis management plan, successfully mitigating sophisticated threats with zero disruption to operations. The designation of Delhi and Hyderabad Airports as national critical information infrastructure further reinforces the Companys commitment to safeguarding critical digital assets. In parallel, GAL is transforming conventional manpower-based security through intelligent surveillance, automation, and data-driven security solutions.
Innovation continues to be driven through GMR Innovex, the groups dedicated innovation platform, which collaborates with startups, academia, technology partners, and industry ecosystems to identify, incubate, and scale high-impact digital solutions. Focus areas include artificial intelligence, machine learning, IoT, robotics, immersive technologies, intelligent automation, and advanced analytics. During the year, several innovative solutions and Al-led operational use cases were piloted and deployed to improve safety, productivity, and operational performance.
Through these initiatives, GAL continues to embed innovation and digitalisation across every aspect of its business, reinforcing its position as a technology-led airport operator while creating long-term sustainable value for passengers, airline partners, employees, shareholders, and the broader aviation ecosystem.
Environmental, Social and Governance (ESG) Focus Integrating ESG into Business
At the Company, Environmental, Social and Governance (ESG) principles remain fundamental to the strategy for creating longterm value. Sustainability is integrated across the lifecycle of the airport assets from design and construction to operations and stakeholder engagement enabling the Company to build resilient infrastructure, deliver superior passenger experiences and generate sustainable returns for stakeholders. GALs approach is underpinned by globally recognised management systems and international best practices, including ISO 14001 (Environmental Management), ISO 45001 (Occupational Health & Safety), ISO 50001 (Energy Management), ISO 14064 (Greenhouse Gas Accounting) and other internationally accepted standards that reinforce robust governance, operational excellence and responsible business practices.
During FY 2026, the Company continued to strengthen ESG as a strategic business enabler by advancing climate action, improving resource efficiency, embedding sustainability into infrastructure development, enhancing accessibility and digital innovation and further strengthening governance and transparency. These initiatives reinforce the commitment to building future-ready airports while supporting Indias transition towards sustainable aviation.
Strengthening Climate Leadership
Climate action remains central to GALs long-term strategy Building on the achievements in renewable energy and carbon management, the airports continued to demonstrate industry leadership in sustainable airport operations.
During the year, Delhi International Airport, managed by DIAL, achieved a landmark milestone by becoming Indias first waterpositive airport, under the NITI Aayog~CII framework by replenishing more water than it consumes.
Both Delhi and Hyderabad International Airports continued to operate on 100% clean electricity, while Goa Airport at Mopa sourced power from its captive solar facility. Collectively, these initiatives have significantly reduced operational emissions while strengthening energy security. The long term decarbonisation strategy continues to focus on reducing value chain emissions through pioneering initiatives such as the Eastern Cross Taxiway at Delhi International Airport, the Ground Service Equipment Tunnel at Hyderabad International Airport and Taxi Bot operations, which reduce aircraft taxiing emissions, fuel consumption and operational inefficiencies. In parallel, the Company continues transitioning its owned vehicle fleet towards electric mobility while promoting cleaner passenger connectivity through metro rail integration and electric transportation.
Promoting Sustainability & Circularity across Airports
During FY 2026, Integrated Passenger Terminal at Hyderabad International Airport, managed by GHIAL, earned the prestigious LEED Platinum Certification, recognising its energy-efficient design, resource optimisation and smart building technologies. In addition, the upcoming Bhogapuram International Airport received USGBC LEED Platinum Pre-certification, demonstrating the commitment to embedding sustainability from the earliest stages of infrastructure development.
The reopening of Delhi International Airports modernised Terminal 2 further exemplified this philosophy by integrating passenger-centric design, enhanced accessibility features, self- service technologies and operational efficiencies within a future- ready airport infrastructure.
Across the airport network, integrated solid waste management facilities, material recovery infrastructure, biogas generation systems and Zero Liquid Discharge facilities continue to improve resource efficiency while supporting the ambition of creating Zero Waste to Landfill and Single-Use Plastic Free airports.
Delhi International Airport became the first and only airport in India to receive the IGBC Net Zero Waste to Landfill Platinum Certification for all terminals, reflecting the continued focus on circular economy principles and responsible waste management.
Environmental innovation also accelerated during FY 2026 Hyderabad International Airport launched Indias first Mobile Air Quality Monitoring System, enabling real-time monitoring of ambient air quality, noise and meteorological parameters through dynamic, location-specific assessments. Delhi International Airport further strengthened its environmental stewardship through the implementation of dust control initiative with the Government, deploying 120 anti-smog mist spray systems across key operational areas to improve local air quality.
Creating Inclusive, Accessible and Digitally Enabled Airports
During the year, Hyderabad International Airport received ACI Accessibility Accreditation - Level 1, recognising its commitment towards accessible infrastructure, passenger assistance services, staff capability building and organisational commitment to inclusivity. Complementing these efforts, Delhi International Airport upgraded its website to comply with Web Content Accessibility Guidelines (WCAG 2.1 Level AA), ensuring improved digital accessibility for all users.
The Company also leveraged digital innovation to enhance passenger convenience. Delhi International Airport introduced the E-Arrival Card facility, digitising arrival formalities for international passengers, while Hyderabad International Airport launched GIA, an Al-powered WhatsApp chatbot providing realtime passenger assistance, airport navigation and travel information. These initiatives demonstrate how digital transformation is enhancing both operational efficiency and customer experience across the airports.
Strengthening Social Impact and Human Capital
GAL continues to create shared value by investing in employees, communities and future talent.
The Company maintained its focus on employee wellbeing through comprehensive health and wellness programmes, occupational health and safety systems, sports and recreational facilities, mental wellbeing initiatives and continuous capability development, supported by ISO 45001 certified management systems. Human rights continue to be embedded within the Code of Business Conduct and Ethics, reinforcing the commitment to fair employment practices, diversity, inclusion and zero tolerance towards discrimination and forced labour.
Through GMR Varalakshmi Foundation, GMR continued to create meaningful social impact across education, healthcare, livelihoods and womens empowerment. During FY 2026, the Foundation supported over 14,000 students, provided healthcare and nutrition support to more than 1.05 lakh beneficiaries, delivered vocational training to nearly 9,000 individuals, and directly supported women through dedicated empowerment initiatives, with 95% of beneficiaries belonging to vulnerable and underserved communities. New initiatives such as Tinker on Wheels, cloud computing training, sanitation programmes and aviation skilling further strengthened community development efforts around the operating locations.
Corporate Social Responsibility
GMR Varalakshmi Foundation (GMRVF) is the Corporate Social Responsibility arm of the GMR Group. The Group has been undertaking CSR activities on a significant scale since 1991. GMRVF supports the companies under the Group in implementing their CSR mandates. GMRVFs purpose is to work in the fields of Education, Health and Empowerment such that its activities directly benefit mainly the communities in the immediate neighbourhood of the Groups projects. Currently, GMRVF is working with selected communities in about 20 locations in India. The locations are spread across different states namely Andhra Pradesh, Delhi, Gujarat, Karnataka, Goa and Telangana.
During the year 2025-26, GMRVF implemented the CSR activities in the areas of Education, Health and Livelihoods in all its project areas.
Significant achievements of GMRVF in the year FY 2025-26 are as below.
• Received the Rotary National CSR Award in Community and Skill Development for Southern Region at Bangalore, recognizing youth skilling efforts across Andhra Pradesh, Telangana, and Karnataka
• Awarded the Runner-Up Trophy in the 6th ASSOCHAM Southern Region CSR and Sustainability Awards under the category of Rs.Excellence in Supporting School Education for its education initiatives at Hyderabad
• NIRED (Nagavali Institute of Rural Entrepreneurship Development), Rajam secured 200 out of 200 marks and achieved Rs.AA Grade for the 13th consecutive year in the annual grading exercise conducted by MoRD
• About 9000 youth were provided skill training in the skill training centers including preparing the youth for international placements in Japan and Germany for identified courses
• Tinker on Wheels (ToW) - a mobile AI-STEM lab for Robotics, AI, 3D Printing, Electronics & Entrepreneurship - launched in Delhi
• Initiated Light House Initiative at Rajam for improving sanitation facilities in partnership with India Sanitation Coalition
Governance, Transparency and ESG Leadership
Strong governance remains the foundation of GALs ESG framework. Sustainability considerations continue to be integrated into enterprise risk management, strategic decisionmaking, capital allocation and business operations through Board oversight, dedicated governance mechanisms and internationally aligned management systems.
During FY 2026, GAL significantly strengthened its standing among global ESG investors. The Companys S&P Corporate Sustainability Assessment (CSA) score improved from 53 to 64, while its MSCI ESG Rating improved from Rs.BB to Rs.A, representing a two-notch upgrade. GAL is also a constituent of the FTSE4Good Index Series, reflecting continued enhancement in ESG disclosures, governance practices and sustainability performance. Sustainalytics continued to classify GAL as a Low ESG Risk company, reinforcing the strength of its governance frameworks and risk management systems. The Sustainability Report continues to be prepared in alignment with the GRI Universal Standards and externally assured under ISAE 3000 by Grant Thornton, an independent agency, further strengthening transparency and stakeholder confidence.
The Companys commitment to operational excellence and sustainability also received widespread external recognition during the year. Delhi International Airport was honoured as Rs.Best Airport of the Year and Rs.Sustainability Champion at Wings India, while Delhi and Hyderabad International Airports received prestigious Airport Service Quality (ASQ) awards recognising excellence in passenger experience. Hyderabad International Airport, Goa Airport at Mopa and Bhogapuram International Airport were also recognised with the Business Excellence Maturity Gold Award at the CII Excellence Summit, reflecting sustained progress in operational excellence and organisational capability.
Way Forward
As the aviation sector continues its transition towards a lower- carbon and more resilient future, the Company remains committed to integrating sustainability into every aspect of its business. The focus will remain on accelerating decarbonisation, strengthening climate resilience, enhancing circular economy practices, advancing inclusive passenger experiences through technology and accessibility, and maintaining the highest standards of governance and transparency. By embedding ESG into the growth strategy, the Company aims to create long-term value for stakeholders while reinforcing its position as one of the worlds leading sustainable airport operators.
Discussion and analysis of financial conditions and operational performance
The consolidated financial position as at March 31, 2026 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 increased from Rs. 26,755.74 Crore as at March 31,
2025 to Rs. 26,876.42 Crore as at March 31, 2026 primarily due to capitalisation of CWIP to PPE in Delhi International Airport Limited (DIAL) and GMR Hyderabad International Airport Limited (GHIAL) offset by depreciation charge for the year.
1.2 Right of use asset
Right of use asset has increased from Rs. 573.44 Crore as at March 31, 2025 to Rs. 1,084.68 Crore as at March 31, 2026 primarily due to addition in Right of Use asset mainly in the Company and GMR Visakhapatnam International Airport Limited (GVIAL) offset by depreciation during the year.
1.3 Capital work-in-progress (CWIP)
Capital work-in-progress has increased from Rs. 3,801.94 Crore as at March 31, 2025 to Rs. 5,433.29 Crore as at March 31,
2026 primarily on account of ongoing construction in GVIAL.
1.4 Other Intangible Assets
Other Intangible Assets have increased from Rs. 451.75 Crore as at March 31, 2025 to Rs. 462.87 Crore as at March 31, 2026 primarily on account of additions of capitalised software offset by amortization during the year.
1.5 Investments accounted for using equity method
Investments accounted for using equity method have increased from Rs. 1,345.08 Crore as at March 31, 2025 to Rs. 1,430.22 Crore as at March 31, 2026 primarily due to share of profits offset by dividend received from Joint Ventures/Associates during the year.
1.6 Loans
Loans and advances have decreased from Rs. 2,559.88 Crore as at March 31, 2025 to Rs. 1,991.89 Crore as at March 31, 2026 mainly due to reclassification of loans from non-current to current as per terms of loans offset by net loan given to Group companies.
1.7 Other financial assets
Other financial assets have decreased from Rs. 3,104.57 Crore as at March 31, 2025 to Rs. 3,027.45 Crore as at March 31,
2026 mainly due to decrease 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 Rs. 2,846.86 Crore as at March 31, 2025 to Rs. 3,048.46 Crore as at March 31, 2026 primarily on account of increase in lease equalization receivables and offset by decrease in capital advances mainly in GVIAL.
1.9 Deferred Tax Assets (net)
Increase in deferred tax assets (net) from Rs. 600.26 Crore as at March 31,2025 to Rs. 622.70 Crore as at March 31, 2026 is due to deferred tax credit in consolidated profit and loss on account of timing difference
2. CURRENT ASSETS
2.1 Inventories
Inventories have increased from Rs. 162.23 Crore as at March 31, 2025 to Rs. 540.18 Crore as at March 31, 2026 due to commencement of Delhi duty free operations by GAL.
2.2 Financial assets - Investments
Investments have increased from Rs. 2,659.94 Crore as at March 31, 2025 to Rs. 4,290.82 Crore as at March 31, 2026 due to investment in Mutual Funds and Commercial Papers.
2.3 Financial assets - Trade receivables
Trade receivables have increased from Rs. 530.94 Crore as at March 31, 2025 to Rs. 596.28 Crore as at March 31, 2026 in normal course of business.
2.4 Financial assets - Cash and cash equivalents
Cash and cash equivalents have increased from Rs. 555.66 Crore as at March 31, 2025 to Rs. 610.24 Crore as at March 31, 2026 mainly due to cash generated from operations.
2.5 Financial assets - Bank balances other than cash and cash equivalents
There is no significant movement in bank balances other than cash and cash equivalents.
2.6 Loans
Loans and advances have increased from Rs. 117.62 Crore as at March 31, 2025 to Rs. 704.46 Crore as at March 31, 2026 mainly due to reclassification of loan from non-current to current as per terms of the loans.
2.7 Other financial assets
Other financial assets have increased from Rs. 1,145.77 Crore as at March 31, 2025 to Rs. 2,261.84 Crore as at March 31, 2026 primarily due to increase in carrying value of derivative instruments due to mark to market valuation and non trade receivables.
2.8 Other current assets
Other current assets have increased from Rs. 275.19 Crore as at March 31, 2025 to Rs. 406.10 Crore as at March 31, 2026 primarily due to increase in other advances/ receivables in the normal course of business.
2.9 Assets held for sale
Assets held for sale have decreased from Rs. 12.79 Crore as at March 31, 2025 to Rs. Nil as at March 31, 2026 primarily due to disposal of investment in Delhi Aviation Services Private Limited (Joint Venture).
3. EQUITY
Equity share capital remains the same at Rs. 1,055.90 Crore.
Other equity as at March 31, 2026 is (Rs. 3,535.66) Crore and as at March 31, 2025 (Rs. 3,559.32) Crore change is primarily due to profit for the year of Rs. 175.49 Crore offset by total comprehensive loss for the year of Rs. 151.83 Crore. Noncontrolling interest has increased from Rs. 714.60 crore to Rs. 930.59 Crore on account of share of minority interest profit in subsidiaries, net off with dividend paid by GHIAL to noncontrolling interest shareholders
4. NON-CURRENT LIABILITIES
4.1 Non-Current Borrowings
Non-current borrowings have increased from Rs. 33,724.01 Crore as at March 31,2025 to Rs. 34,498.27 Crore as at March 31, 2026, primarily due to increase in borrowings of GAL and GVIAL.
4.2 Lease Liabilities
Lease liabilities have increased from Rs. 512.40 Crore as at March 31,2025 to Rs. 992.16 Crore as at March 31,2026 mainly due to increase in leases in GAL on account of duty-free operations offset by repayment of lease liabilities as per repayment terms.
4.3 Other Financial Liabilities
Other financial liabilities have increased from Rs. 3,847.64 Crore as at March 31, 2025 to Rs. 4,529.24 Crore as at March 31, 2026 mainly due to increase in interest payable, annual fees payable to AAI and liability for derivative financial instruments.
4.4 Provisions
Provisions have increased from Rs. 48.29 Crore as at March 31, 2025 to Rs. 91.77 Crore as at March 31, 2026 mainly due to increase in provision for gratuity as per new labour code.
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 Rs. 3,355.90 crore as at March 31, 2025 to Rs. 3,287.11 Crore as at March 31, 2026 primarily due to 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 Rs. 3,909.70 Crore as at March 31, 2025 to Rs. 7,697.61 Crore as at March 31, 2026 primarily due to increase in current maturities of non-current borrowings borrowing as per repayment terms.
5.2 Trade Payables
Trade payables have increased from Rs. 1,005.43 Crore as at March 31, 2025 to Rs. 1,327.68 Crore as at March 31, 2026 in the normal course of business.
5.3 Other current financial liabilities
Other current financial liabilities have decreased from Rs. 2,348.39 Crore as at March 31, 2025 to Rs. 2,035.15 Crore as at March 31, 2026. The decrease is mainly due to payment made to capital creditors.
5.4 Provisions
Provisions have increased from Rs. 280.06 Crore as at March 31, 2025 to Rs. 321.59 Crore as at March 31, 2026 mainly due to increase in provision for compensated absences as per new labour code.
5.5 Other current liabilities
Other current liabilities have decreased from Rs. 1,242.42 Crore as at March 31, 2025 to Rs. 1,219.89 Crore as at March 31, 2026 mainly due to decrease in statutory dues payable and deferred/ unearned revenue from customers offset by advance received from customers.
Overview of the results of operations
The following table sets forth information with respect to revenues, expenditures and profits/(loss) on a consolidated basis:
| (Rs. in Crore) | ||
Particulars |
March 31,2026 | March 31,2025 |
Income |
||
Revenue from operations (including other operating income) |
14,807.41 | 10,414.24 |
Other income |
393.34 | 421.65 |
Total Income |
15,200.75 | 10,835.89 |
Expenses |
||
Revenue share paid/payable to concessionaire grantors |
3,443.58 | 2,634.78 |
Operating and other administrative expenditure |
5,606.92 | 4,013.53 |
Total expenses |
9,050.50 | 6,648.31 |
Earnings before finance cost, tax, depreciation and amortization expenses (EBITDA) and exceptional items |
6,150.25 | 4,187.58 |
Depreciation and amortization expenses |
1,836.66 | 1,910.43 |
Finance costs |
3,858.53 | 3,704.67 |
Profit/(Loss) before share of profit of investments accounted for using equity method, exceptional items and tax |
455.06 | (1,427.52) |
Share of profit of investments accounted for using equity method |
239.53 | 184.82 |
Profit/(Loss) before exceptional items and tax |
694.59 | (1,242.70) |
Exceptional items (loss)/ gain (net) |
(108.50) | 607.39 |
Profit/(Loss) before tax |
586.09 | (635.31) |
Tax expenses |
113.70 | 181.59 |
Profit/(Loss) after tax (A) |
472.39 | (816.90) |
Other comprehensive (loss)/ income for the year, net of tax (B) |
(136.28) | 10.99 |
Total comprehensive income/ (loss) for the year, net of tax (A+B) |
336.11 | (805.91) |
Sales/Operating Income
The segment wise break up of the Sales/Operating Income is as follows:
Particulars |
For the year ended |
|||
March 31, 2026 |
March 31, 2025 |
|||
| Amount (Rs. in Crore) | % of Revenue from operations | Amount (Rs. in Crore) | % of Revenue from operations | |
Revenue from Operations: |
||||
Aeronautical |
4,901.95 | 33.10% | 2,988.26 | 28.69% |
Non-aeronautical |
8,052.21 | 54.38% | 5,586.70 | 53.64% |
Other operating income |
1,462.83 | 9.88% | 1,439.89 | 13.83% |
Construction revenue |
125.49 | 0.85% | 115.29 | 1.11% |
Income from security and other services |
264.93 | 1.79% | 284.10 | 2.73% |
Total Revenue from operations |
14,807.41 | 100.00% | 10,414.24 | 100.00% |
Operating income from aeronautical sources
Income from aeronautical sources principally consisting of landing and parking, passenger service fees and UDF.
Operating income from aeronautical services increased by 64.04% from Rs. 2,988.26 Crore in FY 2024-25 to Rs. 4,901.95 Crore in FY 2025-26 mainly due to revision of tariff post implementation of new tariff order in DIAL as per Airport Economic Regulatory Authority of India.
Operating income from non-aeronautical sources
Income from non-aeronautical sources principally consists of sale of traded goods in duty free, income from rentals, trade concessionaires, ground handling and cargo handling.
Operating income from non-aeronautical services increased by 44.13% from Rs. 5,586.70 Crore in FY 2024-25 to Rs. 8,052.21 Crore in FY 2025-26 mainly due to addition of business operations in Delhi Duty free and Delhi Cargo by the Company.
Other operating income
Other operating income includes rentals received in connection with commercial development on land that is part of our airport projects, management services income and investment income.
There is no significant movement in other operating income.
Operating income from construction revenues
Income from construction revenues is derived from the execution of engineering, procurement and construction works in connection with projects under implementation
Construction revenue have increased by 8.85% from Rs. 115.29 Crore in FY 2024-25 to Rs. 125.49 Crore in FY 2025-26.
Operating income from security and other services
There is no significant variance in income from security and other services.
Expenditure
Revenue share paid/ payable to concessionaire grantors
The revenue share paid/payable to various concessionaires has increased from Rs. 2,634.78 Crore in FY 2024-25 to Rs. 3,443.58 Crore in FY 2025-26 primarily due to increase in revenue on account of revision in tariff in DIAL
Cost of material consumed
The cost of material consumed has increased from Rs. 163.53 Crore in FY 2024-25 to Rs. 227.85 Crore in FY 2025-26 in normal course of business
Purchase of stock in trade
The purchase of traded goods has increased from Rs. 164.26 Crore in FY 2024-25 to Rs. 1,107.75 Crore in FY 2025-26 primarily due to addition of business operations in Delhi Duty free and Hyderabad Duty free by the Company.
Employee benefits expenses
The employee benefit costs have increased from Rs. 1,485.90 Crore in FY 2024-25 to Rs. 1,717.07 Crore in FY 2025-26 mainly due to annual increment to employees, increase in head count and due to addition of business operations in Delhi Duty free and Delhi Cargo by the Company.
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 2025-26 mainly due to increase in foreign exchange fluctuation loss, rates and taxes, legal and professional fees, repairs and maintenance, operating, manpower outsourcing and maintenance expenses and expenses of commercial property development on account of increase in business opportunities.
Exceptional items
In FY 2025-26, there is a loss of Rs. 108.50 Crore on account of reversal of security deposit discounting and straight lining impact due to cancellation of Celebi contract, additional employee benefit expense on account of new labour code and creation and reversal of provision against investment, disposal of investments and insurance claim received
In FY 2024-25, there is a gain of Rs. 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 equipment.
Tax expenses
Tax expense mainly comprises current tax expense and deferred tax expense. There is decrease in tax expense in FY 2025-26 compared to FY 2024-25 mainly due to reversal of tax provision for earlier years in GAL and reversal of deferred tax liability in GHIAL due to change in tax rate.
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 thereof are given below:
Particulars |
Numerator |
Denominator |
For the ended March 31, 2026 | For the ended March 31, 2025 | 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 |
1.17 | 0.71 | 64.79% | Due to increase in profits in the current year |
Operating Profit Margin |
Earnings before finance cost, tax, depreciation and amortisation expenses and exceptional items |
Total Income |
33.46% | 54.24% | (38.31%) | Increase in revenue is higher than increase in margins due to increase in forex loss |
Return on Net Worth |
Profit after tax |
Total equity- Fair valuation through other comprehensive income |
12.84% | (19.75%) | (165.00%) | Due to increase in profits 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 Company has developed and implemented the Enterprise Risk Management framework across all its businesses and key assets.
The revised framework takes into account the best practices in Enterprise Risk Management focusing on the following:
• Strengthen linkage between Corporate Strategy and Risk Management functions to help the Company focus on key strategic risks.
• Integrate detailed risk assessment into the Companys annual exercise of Strategy setting and Annual Operating Plan vis- a-vis its tracking and monitoring through the defined governance structure.
For organisation to quickly adapt to disruptions while maintaining continuous business operations and safeguarding people, assets and overall brand equity, seamless integration with existing Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP) have been laid out in 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, 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:
Geopolitical risks
Risks from geopolitical events that have long-term impact include: the war in West Asia may be prolonged, thus impacting traffic to and from the region; prolonged airspace closure by Pakistan has impacted the economics of air travel on certain routes; investment risk at airports located in conflict areas (Kuwait, Bahrain, Qatar, Saudi Arabia and UAE); and civil unrest in South-East/ South Asia which can impact passenger traffic to the airports.
Tariff policies and their escalation into trade wars may have an adverse effect on economies. Despite prolonged negotiations, there is still no clarity when the trade deal between India and the US will be finalized. High tariff for India will reduce its competitiveness which may impact a few sectors. The threat of US tariff/ sanctions may result in decline of cargo volume.
Given the burgeoning risks, the Company is diversifying its portfolio away from the Middle East and focusing on the West, East and China sectors including induction of long-haul flights from New Delhi to Western destinations, bypassing Middle East hubs and working on new bilateral agreements and more slots for the South East Asia sector.
Further certain following measures by the Government also support the Companys mitigation plan:
• Amid various geopolitical conflicts, the Indian government has successfully navigated with multiple stakeholders on either side; in various instances Indian carriers have been able to access airspace which may be restricted to airlines from other countries.
• Air travel between India and China has resumed.
• India historically had very low dependence on Russian oil; amid sanctions on Russia, India started receiving Russian oil at discounted prices. Going forward, even if India has to reduce dependence on Russian oil, many options are available including US, Middle East etc. Further, OPEC nations plan to further increase crude oil production.
• The government continues to mitigate US tariff policy- related risks by diversifying beyond US trade and entering into an FTA with the UK which has come into effect, while actively expanding its FTA strategy with European countries.
Arbitration/Litigation risks
Disputes that are resolved in the Companys favour by tribunals are eventually appealed against by the regulator and the resolution often gets delayed. Appeals by AERA against some of TDSATs rulings that are in GALs favour may result in an adverse outcome for GAL. A TDSAT ruling in GGIALs favour has been appealed by AERA and some airlines in the Honble Supreme Court of India.
To address these risks, the Company works with leading counsels to support its case and has a strong in-house team with understanding of the issues, along with strong focus of top leadership on these critical issues. The impact of our efforts has given favourable outcomes to GAL such as the recent takeover of operations at Nagpur International Airport after a prolonged dispute.
Regulatory risks
With the airline industry in financial distress, AERAs order for a reduction in landing and parking charges levied by airports has set the precedence for risk of regulatory intervention which impacts the airports aero revenue. Final tariff for Hyderabad International Airport and Bhogapuram International Airport is yet to be decided by AERA, and there is a risk of final tariff being lower than expected.
To address these risks:
• Plans are being implemented for expanding the non-aero revenue base: cargo, retail, F&B and real estate.
• Any revenue shortfall resulting from reduction in landing and parking charges will be trued up in the next CP, in accordance with the AERA order (2026/27).
• The Company continues to work with AERA to ensure that adequate tariff is decided for airports.
Risks in the prevailing Business environment
• Airline financial health
The airline industry is in financial distress and industry net losses are forecast to escalate to Rs. 360-380 Bn in FY 2027. This distress has been compounded by the escalation of the West Asian conflict and its consequent adverse impact on passenger traffic, ATF prices, Rs. depreciation, etc. Ongoing restructuring and fleet reduction by budget carriers has resulted in lower domestic capacity utilization at the airports.
• ATF price shock leading to high ticket prices
ATF prices have sharply increased from Rs. 80,000/ kl in January 2026 to around Rs. 1,00,000/ kl in June 2026. This has resulted in high ticket prices and consequent impact on traffic volume.
• Risks from enforcement of Flight Duty Time Limitations (FDTL)
Enforcement of FDTL has resulted both in disruption and loss of traffic, therefore resulting in reduced traffic volumes at the airports.
• Risks for Tier 2/Tier3 airports due to aircraft delivery delays
Delay in new aircraft delivery has impacted domestic air traffic. If this situation continues for some time, traffic projections and growth may be impacted.
The governments multi pronged intervention has helped prevent the distress in the sector from becoming a serious crisis:
• State governments and central government have taken initiatives for coordination in fuel price control by taking several temporary measures.
• Government provided central excise relief for ATF from mid- May 2026.
• State-level fiscal intervention (VAT reduction) in Delhi and Mumbai helped bring down ticket prices.
• Through industry platforms, the Company continues to pursue advocacy for relaxation in aviation regulations.
• Domestic airlines have huge order books; as deliveries continue gradually, the 2T/ 3T airport delays are likely to be substantially addressed. Additionally, some airlines are looking to induct leased aircraft which may ease the problems.
Foreign exchange risk
While the Company has successfully raised foreign currency bonds for DIAL and GHIAL, it may have exposure in the event of high volatility. Some of the 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 these risks:
• In FY 26, USD-debt has been refinanced into fixed-rate INR NCDs. The bonds in DIAL and GHIAL have been hedged from a forex perspective and have fixed debt service requirements.
• The Company has some natural hedge due to some of its earnings being denominated in foreign currencies (dutyfree, MRO).
Credit rating risk
The airport business continues to be exposed to credit risks of airline customers. Collection of receivables from distressed airlines has continued to be at risk, and airline counterparty credit risk (receivables, UDF collections) remains a factor given periodic financial stress among Indian carriers.
GAL previously secured various master concessions at its airports, many of which have been let as sub-concessions. This may expose it to counterparty credit risk.
To address these risks:
• Active receivables monitoring and tariff/ UDF collection mechanisms under AERA-approved frameworks reduce airline counterparty exposure.
• As the proportion of non aero services in total revenue is going up, the impact of decreased aero revenue is lessened The strategy to reduce cash flow dependency on airlines and focus on non aero revenue is showing positive outcomes.
• Most non-aero concessions have provision for MMG fee and bank guarantees to secure such incomes. Major non-aero concessions including Duty Free, Cargo etc. remain with GAL.
• An A+/Stable by CRISIL and A/Stable by CARE ratings have been reaffirmed, strengthening mitigation efforts. The first full-year consolidated positive PAT in FY 26 strengthens debt-servicing capacity and supports further rating upgrades.
Liquidity risk
DIAL is to refinance a USD 522.6 Mn bond, which is maturing in October 2026. GAL is to invest in various projects during the year including the Cargo City project, Nagpur International Airport renovation, real estate projects, etc. The Companys airports with moderate traffic like Goa, Bhogapuram and Nagpur may take some time in maturing and becoming financially self-sustainable, and in the meanwhile the Company may need to lend some financial support.
To address these risks:
• The bond is to be refinanced by securing a similar loan in INR denomination from Indian banks.
• Equity has already been funded for the Nagpur airport renovation project. Remaining projects are to be largely funded through internal accruals from management fee, dividend income etc.
• The Company is working with airlines for improving the number of ATMs at its new airports.
Interest rate risk
From the business model perspective, any significant increases in interest rates may increase cost of capital for existing and new projects.
To address these risks:
• Improvement in the Companys financial ratios and credit rating has enabled it to hold or reduce interest rates.
• GAL and subsidiaries continue to take up refinancing initiatives to bring down cost of capital.
Operational and performance risks
Risk of potential breakdowns/ deficiencies in process effectiveness or efficiency resulting from controls and/or process design weakness which may cause material exposure. There is a risk of impact to business continuity due to any operational failure, and a risk of not meeting KPIs as prescribed in the Concession Agreements/ OMDA. There may also be risks in management of large manpower deployment in businesses like cargo, which the Company has recently started.
To address these risks by building redundancy and a crisis management plan:
• The Company actively pursues alternative plans to have minimum impact in case of any operational challenge - BCP and DRP are in place and updated periodically
• Delhi and Hyderabad airports are working with an external consultant to conduct comprehensive workplace and behavioural safety assessments.
• Regular maintenance/ upgrade activities and maintenance capex are carried out regularly at the assets.
• Regular monitoring of operational KPIs is undertaken.
• Proper IR training for manpower is being conducted.
Risk of time and cost overrun in projects at Nagpur and Crete
Project implementation at Nagpur International Airport can face delays in approvals, impacting project progress and thus potentially increasing costs. Heightened inflation also adds to the risk of cost overrun due to costs of inputs going up substantially. As a result, both project cost and timelines may get adversely impacted with consequent pre-operative costs.
To minimize disruptions during project implementation, the teams engage with various stakeholders to manage delays:
• The Companys experience over the years in delivering several airports has resulted in a level of maturity in project planning and execution, as evident from the Bhogapuram project which was completed ahead of the scheduled project completion date.
• The concession for Crete airport has contract terms that provide compensation for delays not attributable to the airport operator.
Reputation/ brand risks
• Operational mishaps
Any incident which disturbs operations may impact reputation - power outage, flooding, safety related incidences, etc. Further, this may have impact on quality of service on account of such incidents.
• Authority non-fulfilment of obligations
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 publicized on social media platforms etc.
• Brand misuse
There are instances of misuse of the GMR brand (e g. trademark infringement) by some unscrupulous agencies to get financial benefits and malign brand image, which could adversely impact the GMR brand.
The Companys policies are continuously being updated to assess, check and enhance brand value:
• Operational excellence as reflected in its ASQ score, Skytrax ranking, etc.
• Full-fledged implementation of BCP and DRP protocols during crisis response.
• Strong sustainability credentials and strong governance (including ethics standards), along with CSR.
• Proactive steps are taken to communicate effectively through PR and Investor teams. A best-in-class solution with a social media team placed in the APOC provides constant digital monitoring, real time resolution of passengers concerns and quick response on social media.
• Strong focus and stringent protocols to ensure high standards for products and service quality so as to minimize negative feedback and build customer loyalty.
• Brand monitoring tools are used to track mentions of the brand across various online platforms (social media, websites, etc.) to identify potential misuse.
• The Company constantly monitors and tracks all brand misuse incidences and prompt actions are taken. A special task force has been formed to address the matter.
Risk from political interference.
Given the nature of the concession business, change in governments may occasionally have consequences on concessions, typically at an early stage. Accordingly, local politics within the countries (including India, Philippines, Indonesia, Greece) where the Company operates may impact its business. Change in governments has impacted the airports sector in the past, such as Maldives.
At Medan Airport, the Company operates through a joint venture with Angkasa Pura, a government-owned entity. Differences in decision-making processes, governance protocols, and interpretations of concession-related matters may result in delays in approvals, slower execution of key initiatives, and challenges in achieving timely alignment on strategic and operational decisions.
GAL implements its strategy of working closely with all relevant stakeholders to mitigate the impact of political risks:
• The Company partners with local players outside India to mitigate the same (e.g. partnership with Terna for Crete airport).
• As in the previous case of Maldives airport, GAL relies on the high credibility of international arbitration platforms.
• The prevailing domestic political environment in India bodes well for policy stability and regulatory consistency, which is a significant systemic mitigation of external risks for the airports business.
• For Medan airport, the Company is focusing on stakeholder management and alignment on various aspects of the concession agreement and project progress.
Competition risk from other/ regional airports
The Companys airports face competition risks from the commencement of commercial operations at: Noida International Airport (domestic); and Mumbai (post Navi Mumbai operations - international).
To strengthen DIALS premium positioning:
• Strategy to deepen partnership with airlines through longterm slot agreements.
• Strengthen the hub strategy with measures like enabling easy passenger movement across the terminals.
Risks to hub plans for DIAL airport
Delhis hub aspirations depend heavily on airlines, particularly carriers like Air India, for launching long-haul routes, increasing transit traffic, and operating an efficient hub-and-spoke network. However, the hub plan is exposed to risks arising from aircraft shortages, fleet grounding, financial stress, pilot shortages, or delays in Air Indias expansion plans, and the inability of other airlines to scale up and fill the gap.
The Company is closely monitoring the situation of airlines and is working on multiple initiatives:
• Increase international-to-international transit traffic to remove dependency on domestic carriers expansion plans.
• Possibly diversify the carrier mix to reduce dependence on Air India expansion plans.
• Focus on increasing the share of long-haul international carriers - fast track slot allocation and other incentives.
• Strategy to strengthen partnership with importers and exporters to protect and enhance cargo.
• Planning for enhancing passenger movement across the terminals will strengthen DIALS hub strategy.
Climate change risks
• Physical risks
Heavy rainfall, flooding and waterlogging pose risks to runway, apron, terminal and utility operations, while cyclones and sea-level rise increase long-term infrastructure risks primarily for coastal airports. Changing weather patterns (fog, high winds and thunderstorms) can lead to flight delays, reduced operational efficiency and increased maintenance requirements. Increasing frequency and intensity of extreme heat result in higher cooling and water demand, pavement deterioration overtime and operational disruptions.
• Transition & Regulatory risks
Evolving climate-related regulations, including Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Sustainable Aviation Fuel (SAF), and emerging disclosure requirements such as EU Corporate Sustainability Reporting Directive (CSRD) and additional requirements from investors and ESG rating agencies, may increase obligations and reporting expectations. Potential future carbon pricing, renewable energy mandates and stakeholder expectations may influence operating costs, investment decisions and access to sustainable finance.
Climate risk assessment & adaptation, operational resilience, and mitigation and decarbonisation measures being taken:
• Comprehensive airport-specific climate exposure assessments have been taken up for Delhi, Hyderabad, Goa and Bhogapuram to identify priority climate hazards and inform long-term resilience planning. This study is being conducted by NACO (Netherlands Airports Consultants).
• Climate risk considerations will be prioritized and appropriately integrated into infrastructure planning, asset management and projects to enhance resilience against projected climate impacts.
• Airports continue to strengthen flood management, water conservation, emergency preparedness and operational continuity measures to improve resilience against extreme weather events.
• Monitoring of climate risk considerations across different climate scenarios and business continuity planning are being undertaken across airside, terminal and landside operations, based on the climate risk study.
• Delhi International Airport and Hyderabad International Airport have achieved ACI Level 5 (highest level), supported by 100% renewable electricity procurement and on-site solar capacity across the portfolio. With total on-site renewable energy capacity of 22.84 MW, an additional 5 MW is expected at Bhogapuram.
• The Company has continued investments in green buildings, renewable energy, energy efficiency, water recycling and resource conservation to reduce transition risks while supporting the Groups long-term Net Zero and climate resilience objectives.
Cyber resilience risk
A major cyber incident impacting critical airport technology infrastructure could disrupt business operations, affect service delivery, compromise stakeholder trust, and result in significant financial and reputational consequences.
• Third-party dependency risk
The Groups increasing reliance on external service providers and technology partners expands the cyber threat surface, creating potential pathways for operational disruption, data compromise, and regulatory exposure
• Regulatory compliance risk
Failure to adequately safeguard personal information (DPDP rules) and business-sensitive information across the airport ecosystem may result in regulatory sanctions, litigation, financial penalties, and erosion of customer and partner confidence.
Management continues to strengthen cyber resilience to safeguard airport operations, critical infrastructure, passenger services, and stakeholder trust:
• Group-wide cybersecurity governance and risk management framework covering IT, OT, cloud, data privacy, and third- party ecosystems.
• A multi-layered cybersecurity architecture, including preventive, detective, and responsive controls, protects critical IT, OT, cloud, and digital assets from evolving cyber threats.
• A 24x7 Integrated Cyber Defense Center (ICDC) provides continuous monitoring, threat intelligence, incident response, and cyber resilience capabilities across airport operations.
• Independent security assessments, vulnerability management, red teaming, and maturity reviews are periodically conducted to identify gaps and drive continuous improvement.
• Third-party cybersecurity oversight is implemented through security assessments, contractual controls, and ongoing monitoring of critical vendors and service providers.
• Regular employee awareness programs and cyber drill exercises strengthen organizational resilience.
• Data privacy and information protection controls, including access governance, data handling standards, and compliance monitoring, are being implemented to support regulatory obligations and reduce the risk of unauthorized disclosures.
Risks from rapid changes in technology
• Risk of equipment and systems becoming outdated or incompatible with new technology mandated at airports
There is a risk of subsystems/ modules in the airport systems becoming outdated/ incompatible with new technology early in their service life. Green fuels like hydrogen fuel, SAF, etc. may bring about changes in regulations affecting the business, and new technologies impact the competitive position of many players in the airports sector.
• AI and automation adoption delays and risks
Late adoption of AI in airport operations (like AI driven checkin, baggage handling, etc.) may negatively impact efficiency at the airports.
The Company views technology disruptions as an area of opportunity and is exploring strategies to exploit the same:
• The Company is working closely with ADP on examining the feasibility of SAF (sustainable aviation fuel) and will track developments on the Hydrogen front.
• The airports have been at the forefront in adoption of new technologies with respect to airport operations - XOVIS queue management, taxi-bot etc
• Transition from AOCC to APOC in order to improve stakeholder management.
• The Company is fostering a culture of innovation through its COE/ incubation cells for various aviation- related technologies/ applications, meeting both regulatory requirements and operational efficiency
Talent retention challenges
GAL continues to face potential risk of talent moving from its assets (DIAL, GHIAL, etc.) to other organizations as close to 15 non-GMR airports have become operational since 2020. Availability of talent could be a risk as multiple airports are in need of talent. An induced gap in GALs own talent pool could become a risk as available talent could move to other airports. Many corporates have entered into the MRO business (Tata, Adani, etc.) which will create shortage of MRO talent as well.
In-house talent-nurturing programs are in place to offset the talent gap, along with retention incentives and succession planning:
• GAL has ongoing programs for skill development through dedicated in-house aviation academies (GMR Aviation Academy model) as well as initiatives like cross-team learnings.
• There are plans for strategic partnerships with DGCA- approved training institutes, as well as long-term apprenticeship pipelines with engineering colleges.
• Employees in critical positions are being incentivized with career development options.
• GAL is implementing succession plans for critical employees.
Developments in Human Resources (HR) and Organization Development at GMR Group
• HR played a strategic role in driving business growth, organisational transformation, leadership development, workforce optimisation, and integration of airport adjacency businesses across the Airport Sector.
• Strengthened capability building through competency mapping, 380+ learning programmes, 16,500+ training man- days, and structured leadership development initiatives such as GLIDE (GMR Leadership Identification & Development Excellence).
• Enhanced employee capabilities through technical, functional, behavioural, digital, and Al-enabled learning interventions covering airport operations, safety, aviation security, customer service, leadership effectiveness, and emerging business needs.
• Conducted Development Centres for 193 leaders using a comprehensive assessment framework comprising behavioural assessments, simulations, psychometric tools, and 360-degree feedback to strengthen succession planning and leadership readiness.
• Enhanced employee wellbeing and engagement through Positive Intelligence, Values, Beliefs & Culture (VBC) programmes, Inner Excellence sessions, and multiple employee engagement initiatives.
• Engaged 430+ employees through Inner Excellence sessions across Delhi, Hyderabad, Goa, International Airports (IA), and other businesses, promoting emotional fitness, resilience, and overall well-being.
• Accelerated HR digital transformation through a unified HR data platform and modernisation of payroll, attendance, leave management, and employee self-service systems.
Organisational Structuring & Design
• Implemented Airport Sector-level organisation structuresto create a more agile, efficient, and growth-oriented operating model aligned with the expanding airport portfolio.
• Reviewed DIAL and GHIAL organisation structures to enhance effectiveness and support strategic imperatives, rolled out the Strategic Management Group, and designed lean, zero-based structures for new airports such as GVIAL and GNIAL.
• Established dedicated functions for Commercial & Business Development, Cargo & Logistics, Retail, Duty Free, F&B, Car Parking, and other emerging businesses.
• Enhanced governance by strengthening Compliance, Strategic Initiatives, and Safety functions, while advancing succession planning through leadership assessments, Development Centres, and critical-role readiness planning
Hiring & Onboarding
• Strengthened talent acquisition through structured assessment processes, workforce planning, and talent mapping across airport businesses.
• Successfully onboarded 96 early-career professionals, including Management Trainees, Graduate Engineering Trainees, and Finance Trainees through structured development programmes.
• The one-year development programme provides structured onboarding, cross-functional exposure, business immersion, functional learning, and cultural integration, preparing future leaders to support organisational growth and future business requirements.
• Conducted VBC induction programmes for 500+ new employees to accelerate cultural integration and alignment with GMR values.
• Supported hiring, internal mobility, and onboarding requirements for new airports (GVIAL and GNIAL) and critical international operations across multiple geographies.
• Supported critical hiring requirements across Greece, Indonesia, and other International Airport businesses to enable business expansion and operational excellence.
Other Key Initiatives for Human Resource Development & Engagement
• Continued investment in leadership capability building through GLIDE, Catapult, Shikhar, DLX (DIAL Leadership NeXt), mentoring initiatives, and Individual Development Plans (IDPs).
• Strengthened employee engagement through Town Halls, CEO Connects, HR Connects, skip-level meetings, employee surveys, recognition programmes, and family engagement initiatives.
• Enhanced employee value proposition through improved medical coverage, insurance for retired employees, updated job architecture, market benchmarking, and a revised PLIP policy.
• Employee wellbeing initiatives included preventive healthcare programmes, wellness camps, health awareness sessions, medical support services, yoga and wellness interventions, and employee-family engagement activities
• Focused on compliance, wellbeing, and future-readiness through labour code implementation, healthcare and wellness interventions, digital learning, Al-enabled capability development, and global learning initiatives.
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 and operating effectiveness of the internal controls are regularly reviewed by Management Assurance Group ("MAG") (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. MAG 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.
MAG 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
MAG presents in quarterly Audit Committee Meeting, key audit issues along with action taken report on pending audit issues. Head MAG 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.
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