Shares of GMR Airports Ltd climbed 2.87% to ₹81.10 on Wednesday after global brokerage firm CITI initiated coverage with a ‘Buy’ rating and a target price of Rs 90. The stock reacted positively as the brokerage called it an India airport pure play, highlighting strong structural drivers and improving fundamentals.
CITI expects passenger volume growth of 8% CAGR between FY24–FY27, supporting long-term growth. It added that GMR’s airport assets, particularly in Delhi, Hyderabad, and Goa, have comparative advantages, with improving free cash flow cycles and Hybrid-Till regulatory models providing downside protection.
Importantly, the Hyderabad airport’s commercial real estate remains outside the Regulatory Asset Base (RAB), creating further value upside.
The brokerage forecasted profitability from FY26, citing:
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An estimated 8% annual traffic growth,
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A 2.4x tariff hike at Delhi Airport, and
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A 7.5% annual increase in non-aero spending per passenger.
CITI believes core earnings for FY26–FY27 will be 5-6% above Street estimates and sees the company trading at 18x EV/EBITDA by FY27E, justifying a potential re-rating toward Asia-Pacific peers.
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