Jefferies has maintained its buy rating on GMR Airports Infrastructure Ltd with a target price of ₹108 per share after the company posted a strong Q2FY26 operating performance. Consolidated EBITDA jumped 74% year-on-year and 16% sequentially to ₹15 billion, significantly ahead of Jefferies’ ₹13 billion estimate.
The brokerage said the earnings beat came despite a 4% YoY decline in traffic, underscoring the positive impact of the new tariff structure at Delhi International Airport Ltd (DIAL). Scaling up of non-aeronautical businesses and acceleration across airport-adjacent verticals also contributed meaningfully.
Cumulative non-aero revenue rose 13% YoY, driven by 8% growth at DIAL, 38% at GHIAL, and 22% at the newer Mopa Airport. Jefferies said this demonstrates the company’s improved revenue mix and resilience in monetising commercial assets even during periods of softer passenger flow.
However, PAT was impacted by higher interest charges linked to recent debt refinancing. Jefferies expects earnings volatility in the near term but remains positive on medium-term cash flow visibility, underpinned by tariff resets, traffic normalisation, and scale-up of commercial opportunities across airports.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
