Whalesbook
GMR Airports achieved a record 121 million passengers in fiscal year 2026, a strong full-year performance that contrasts with slower growth in the final quarter. This indicates underlying network strength despite short-term operational challenges.
Record Annual Passenger Numbers, Q4 Softness
GMR Airports Ltd. announced it surpassed 121 million passengers in fiscal year 2026, marking an all-time high for annual traffic. This milestone was driven by consistent monthly traffic exceeding 10 million passengers since October 2025. The fourth quarter of FY26, however, registered a more modest 0.9% year-on-year increase in passenger volume, reaching approximately 32 million. Within this, domestic traffic saw a marginal 1.6% rise, while international routes experienced a slight 1.3% decline. This slower Q4 momentum contrasts sharply with the Indian aviation market's projected annual growth rate of 11.72% from 2026-2034.
Operational Issues Impact Q4 Results
Several external factors constrained growth during the latter part of FY26. Geopolitical tensions in the Middle East, escalating since late February 2026, led to operational disruptions impacting flight schedules. Furthermore, essential runway upgrades at Delhi Airport, which concluded in September 2025, and the subsequent operationalization of Terminal 2 in October 2025, led to capacity limits. These events contributed to slower passenger numbers in the January-March 2026 period. Delhi airport's air traffic movements (ATMs) and cargo volumes hit record levels for the year, and Hyderabad airport also posted record performance metrics. The company's stock, however, closed up 4.54% at ₹99.24 on April 15, 2026, with a trading volume of approximately 21.55 million shares on the BSE and NSE combined.
Bhogapuram Project Nears Completion, Analyst Optimism
Looking ahead, GMR Visakhapatnam International Airport Ltd. is on track to complete its greenfield Bhogapuram Airport project by June 30, 2026. With airside works nearing 100% completion and the terminal building at approximately 98.8%, the overall project progress stood at 98.7% as of March 31, 2026. This significant infrastructure development is a key driver for future growth. Analyst sentiment remains largely positive, with a consensus rating of "Strong Buy" from seven analysts, who have set an average 12-month price target of ₹114.57, implying a potential upside of 20.70%. This forward-looking view appears to outweigh near-term traffic growth concerns.
Challenges and Risks Remain
Despite record annual traffic and optimistic analyst forecasts, significant risks remain. The Indian aviation sector is projected to lose ₹17,000–18,000 crore in FY2026, driven by rising fuel costs and a depreciating rupee, leading ICRA to issue a "negative" outlook for the industry. GMR Airports faces challenges with its financial valuation metrics, as some sources report negative or unreliable Price-to-Earnings (P/E) ratios, ranging from -501.11 to 0.00. One analysis described GMR Airports Ltd. as a "below average quality company" based on its 10-year financial track record, also noting a high promoter stake pledge risk. The projected low domestic traffic growth of just 0-3% for FY2026 highlights challenges for airlines, which can indirectly affect airport operators through lower ancillary revenues and traffic guarantees. While the stock saw a positive intraday surge, technical indicators suggest caution is still warranted, pending confirmation of bullish momentum. Comparisons with competitors like Larsen & Toubro and Rail Vikas Nigam Ltd. are difficult due to their different financial profiles and market dynamics.