Mar'25 View on GMR Airports Ltd

GMR Infrastructure is mainly engaged in development, maintenance and operation of airports, generation of power, coal mining and exploration activities, development of highways, development, maintenance and operation of special economic zones, and construction business including Engineering, Procurement and Construction (EPC) contracting activities. • 56%/79% of DIAL’s revenues/EBITDA in FY24 were from select non-aero businesses with strong pricing/volume growth. • Strong volume/pricing growth prospects of growing contribution from commercial property development. • Typical air flier is willing to pay for aspects unique to the airport experience. • Majority of DIAL’s EBITDA comes from retail plays growing faster than pax growth. • Structural factors that will continue to be at play are pricing, premiumization, penetration, increased retail area and insourcing prospects. • Most non-aero businesses book royalty revenues, enhancing flow through to EBITDA. • We increase non-aero spending per pax decadal CAGR estimate by 100 bps to 5%.