GMR Airports Ltd

GMR Airports Ltd has a highly leveraged capital structure, with total liabilities of INR 50.85 billion and total equity of INR -2.16 billion, resulting in a negative debt-to-equity ratio of -16.59. Despite this, the company maintains a current ratio of 1.06, indicating a modest ability to meet short-term obligations. The company's liquidity position is assessed as medium, with net cash being negative after subtracting total debt.

Profitability metrics show mixed results. The company reported a gross profit of INR 23.38 billion, but net income was negative at INR -1.21 billion. Return on equity is positive at 5.59%, but return on assets is negative at -0.25%, indicating that the company is not generating returns sufficient to cover its asset base. These figures suggest that while the company is generating some returns on equity, it is not effectively utilizing its assets to generate profit.

The company's revenue is concentrated in India, with no disclosed international operations. The airport operations are the primary revenue driver, with no material diversification across business segments. This concentration increases exposure to domestic economic and regulatory risks.

Looking ahead, the company's growth trajectory is uncertain. Analysts have provided a mean price target of INR 119.17, with a median of INR 120.00, and a mean recommendation of 1.33 (1=strong buy, 5=strong sell). However, the company's capital expenditure of INR -45.25 billion indicates significant investment in infrastructure, which may impact short-term profitability.

Risk factors include high leverage and negative net income, which could limit the company's ability to service debt and invest in growth. The risk assessment indicates low dilution potential, but the company's negative equity position and high debt levels pose liquidity and credit risks. The company's operating cash flow of INR 3.88 billion provides some buffer, but it is insufficient to cover the capital expenditure outlay.

Recent events include the publication of the latest financial data, which highlights the company's financial challenges and investment strategy. No recent filings or transcripts have been disclosed that provide additional insight into the company's strategic direction or operational performance.

Revenue grew 30.7% CAGR over four years, reaching INR 104.1 billion in FY2025, demonstrating strong top-line expansion.

Operating income surged 52.7% year-over-year to INR 24.7 billion in FY2025, highlighting significant operational leverage.

Analysts assign a strong buy recommendation with a mean price target of INR 119.17, implying 23.4% upside.

Net losses narrowed significantly from INR 28.0 billion in FY2021 to INR 3.9 billion in FY2025, showing improving bottom-line trends.

Free cash flow remains deeply negative at INR -31.1 billion in FY2025, reflecting severe cash burn despite revenue growth.

The company carries a high credit risk flag, signaling potential difficulties in managing its substantial debt obligations.

Net margin of -4.9% sits in the bottom quartile of the cohort, indicating persistent inability to convert revenue to profit.

Long-term debt increased to INR 382.2 billion in FY2025, exacerbating financial leverage and interest burden concerns.

Revenue INR 39.94B, +50,5% YoY; Operating income +15,8% YoY.

• ▍Revenue INR 39.94B, +50,5% YoY
• ▍Operating income +15,8% YoY
• ▍Net income −54,3% YoY
• ▍Net margin 3.1%

Revenue INR 36.70B, +47,1% YoY; Operating income +121,7% YoY.

• ▍Revenue INR 36.70B, +47,1% YoY
• ▍Operating income +121,7% YoY
• ▍Net income +86,8% YoY
• ▍Net margin -1.0%

Revenue INR 28.63B, +17,0% YoY; Operating income +18,7% YoY.

• ▍Revenue INR 28.63B, +17,0% YoY
• ▍Operating income +18,7% YoY
• ▍Net income −96,4% YoY
• ▍Net margin -8.3%

Revenue INR 26.53B; Operating income INR 9.22B.

• ▍Revenue INR 26.53B
• ▍Operating income INR 9.22B
• ▍Net margin 10.1%

Revenue INR 24.95B; Operating income INR 5.01B.

• ▍Revenue INR 24.95B
• ▍Operating income INR 5.01B
• ▍Net margin -11.2%

Revenue INR 104.14B, +19,0% YoY; Operating income +52,7% YoY.

• ▍Revenue INR 104.14B, +19,0% YoY
• ▍Operating income +52,7% YoY
• ▍Net income +29,8% YoY
• ▍Free cash flow +20,0% YoY
• ▍Net margin -3.8%

Revenue INR 87.55B, +31,2% YoY; Operating income +56,8% YoY.

• ▍Revenue INR 87.55B, +31,2% YoY
• ▍Operating income +56,8% YoY
• ▍Net income −212,0% YoY
• ▍Free cash flow −4,2% YoY
• ▍Net margin -6.4%

Revenue INR 66.74B, +45,1% YoY; Operating income +15,9% YoY.

• ▍Revenue INR 66.74B, +45,1% YoY
• ▍Operating income +15,9% YoY
• ▍Net income +82,5% YoY
• ▍Free cash flow −26,8% YoY
• ▍Net margin -2.7%

Revenue INR 46.01B, +29,0% YoY; Operating income +28 199,4% YoY.

• ▍Revenue INR 46.01B, +29,0% YoY
• ▍Operating income +28 199,4% YoY
• ▍Net income +63,4% YoY
• ▍Free cash flow −53,1% YoY
• ▍Net margin -22.2%

Revenue INR 35.66B; Operating income INR 31.5M.

• ▍Revenue INR 35.66B
• ▍Operating income INR 31.5M
• ▍Net margin -78.4%