GMR Airports: Can deleveraging unlock the next phase?

# GMR Airports: Can deleveraging unlock the next phase? GMR Airports Limited is expanding its airport portfolio while reducing leverage. Net debt to EBITDA improved to 5.8x by March 2026 from 11.7x a year earlier, making deleveraging an important part of the investment story. GMR's airport portfolio handled a record 121.6 million passengers in FY26. The company also added Nagpur Airport to its operating portfolio in June 2026, while Bhogapuram Airport was inaugurated in August. The interesting part is what happens alongside this expansion. GMR's net debt to EBITDA stood at 5.8x at the end of FY26, down sharply from 11.7x. Management has indicated a target of bringing leverage below 4x over the next 18-24 months. This matters because airports require large upfront investments. As passenger traffic and commercial revenues increase, the same infrastructure can generate higher EBITDA without a proportionate increase in operating costs. GMR is also developing revenue streams beyond passenger fees. Duty-free, cargo and other airport-adjacent businesses are becoming increasingly important. In FY26, revenue reached ₹15,201 crore and EBITDA ₹6,150 crore, both record levels. **My view:** The key GMR Airports story is shifting from asset expansion to improving returns from the existing portfolio while reducing leverage. If EBITDA continues growing faster than debt, the balance sheet can become a meaningful source of value creation. The risk is that airport expansion requires continued capital expenditure. I would therefore track whether new airports such as Nagpur and Bhogapuram contribute enough EBITDA to justify the additional capital invested.