JEFFERIES ON GMR AIRPORT

GMRAIRPORT

Target price raised to 115 from 108 Strong EBITDA beat (+74% YoY) despite soft traffic, driven by tariff hikes, non-aero growth, and the scaling of adjacent businesses The company is benefiting from the new Delhi Airport (DIAL) tariffs and additional aircraft parking charges, which are boosting aero yields Robust non-aero revenue growth (+13% YoY) continues, supported by higher spend per passenger across the Delhi, Hyderabad, and Goa airports Expansion of platform businesses - including duty-free, cargo, car parks, and adjacent consumer verticals - is contributing to incremental earnings Traffic is expected to rebound in 2H as runway upgrades conclude and airline capacity is restored Jefferies has raised EBITDA estimates by 3-7% for FY26-28 due to an improved profitability outlook The upward revision in earnings estimates has increased the SOTP valuation, prompting a target price hike to 115 from 108