GMR Group expects double-digit air traffic growth, eyes profitability in FY26

GMR Group expects India’s air traffic to grow in double digits over the next few years, well above brokerage estimates of 7–8%.

In an exclusive interview with CNBC-TV18, Saurabh Chawla, Executive Director of Finance & Strategy at GMR Group, said the forecast from analysts is “a little conservative.” He added, “I think double-digit growth is a given,” noting that Delhi and Hyderabad airports had been operating under capacity constraints until recently but now have enough headroom to handle higher traffic, provided airlines get aircraft deliveries on time.

Delhi Airport has expanded capacity from 55 million to 100 million passengers over the past four years, making it the country’s busiest and largest airport. Hyderabad has also grown from 18 million to 34 million passengers. While traffic dipped slightly in Q1FY26 due to extended rains and geopolitical factors, Chawla said the busy season is yet to begin and upgrades such as a CAT III runway will improve winter operations.

Alongside aero operations, GMR is betting big on non-aero businesses, which include retail and other consumer-facing segments. Chawla said, “We expect that non-aero will contribute almost 75–80% of our revenues going forward.” These businesses, being less capital-intensive, generate margins of 18–20%, which is expected to boost cash flows even if overall EBITDA margins ease slightly.

The company has invested heavily in infrastructure, with around ₹14,000 crore in Delhi and ₹5,000 crore in Hyderabad. Despite the debt, Chawla pointed out that Hyderabad airport is already free-cash positive and paying dividends.

Looking ahead, he expects GMR Airport to turn profitable by FY26. With the new tariff order raising Delhi’s yield per passenger from ₹140 to about ₹360, revenues are set to see a sharp jump.

Watch accompanying video for entire conversation.