Jefferies has reiterated its ‘Buy’ rating on GMR Airports Infrastructure Limited (GMRI) with a target price of ₹92, reflecting a significant upside from the current market price of ₹75.50. The positive outlook comes after the Airport Economic Regulatory Authority (AERA) issued the final Tariff Order for the 4th control period (FY25–FY29) for Delhi International Airport (DIAL), which is operated by GMR.
According to Jefferies, the final aeronautical tariff aligns broadly with projections in AERA’s earlier consultation paper, implying a substantial ~148% increase in yield per passenger over the previous control period. This sharp increase is expected to compensate for the recently concluded capex at DIAL and substantially strengthen GMRI’s revenue profile.
Jefferies highlighted that this development significantly improves visibility on profitability, with projections showing that GMR Airports could see its EBITDA grow by 40% YoY in FY26. The company is also expected to return to profitability after many years, marking a potential inflection point in its financial trajectory.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.
