GMR Airports Ltd Q4 FY26 Results Analysis: Revenue Surges 37.5%, PAT Swings to Profit

GMR Airports Ltd's Q4 FY26 numbers came in strong, with revenue of Rs. 3,938.16 Cr (+37.50% YoY) and PAT growth of +258.50% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

GMRAIRPORT delivered a strong operational turnaround: revenue grew 37.5% YoY and PAT swung to profit of Rs.400 Cr in Q4. Cash generation was robust with CFO at 10.3x PAT and positive FCF of Rs.1,554 Cr. However, forex losses, QoQ margin compression, negative net worth, and Hyderabad traffic deceleration temper the outlook. The company's deleveraging thesis is on track, supported by declining depreciation and stable finance costs, but execution on traffic growth needs to be monitored.

Key Investment Insights

Key Positives

• Consolidated revenue grew 37.5% YoY to Rs.3,938.16 Cr, driven by new duty-free and cargo operations and higher aeronautical yields.
• PAT swung to profit: Rs.400.49 Cr in Q4 FY26 vs a loss of Rs.252.66 Cr in Q4 FY25; FY26 PAT of Rs.472.39 Cr vs FY25 loss of Rs.816.90 Cr.
• Operating cash flow of Rs.4,883.53 Cr was 10.34x PAT, with free cash flow of Rs.1,554.83 Cr after capex.
• Operating leverage visible: total expenses grew 34.5% YoY vs revenue growth of 37.5%, a 290 bps benefit.
• Share of profit from JVs surged 766% QoQ to Rs.161.28 Cr, driven by seasonal strength and project milestones.
• Depreciation declined 8% YoY due to change in useful life of assets, reducing annual charge by ~Rs.150 Cr.

Risk Factors

• Forex losses surged to Rs.38.91 Cr in Q4 FY26 from Rs.2.61 Cr in Q4 FY25 (+1390% YoY), a material headwind.
• EBITDA margin contracted 546 bps QoQ to 39.34% due to Q4 seasonality and elevated forex losses.
• Net worth remains negative at Rs.(1,549.17) Cr, though improving from Rs.(1,788.82) Cr in FY25.
• Hyderabad domestic traffic growth guidance of 10-12% for FY26 is at risk, with monthly data showing declines (Feb -9.8%, Apr -15.1% YoY).
• Consolidated leverage remains high: Debt/Equity of (27.94)x, though this is distorted by negative equity.