GMR Airports Limited

Industrials — Airports & Air Services · NSE

₹89.50−₹0.97 (−1.07%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with both sales and profits growing well. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of GMR Airports Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

GMR Airports Limited development, maintenance, and operation of airports in India. It is also involved in operation of international airports on build, own, operate, and transfer basis.

IndustryAirports & Air Services

SectorIndustrials

Employees12,287

Annual revenue₹13,345 Cr

How does it make money?

Turns over ₹13,345 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹46 left at the operating level before interest, tax and depreciation. Each of its 12,287 employees supports ₹1.09 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin46.0%

Net margin1.3%

Revenue / employee₹1.09 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of 10.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE10.4%

Peer median ROE15.2%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 17.1% and earnings to grow about 268.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.1%

Est. earnings growth+268.2%

Analysts5

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +129% while net margin moved -143% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+129%

Margin effect-143%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

29/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

235.5x

Sector Median

88.8x

median of 3 sector peers

⚠️Against its sector it trades 165% above the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

88.8x median of 3 peers · +165%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

P/E (Trailing)

235.5x

P/B

—

EV/EBITDA

22.4x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 41.4% to 46.0% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 30% over 3 years — worth checking what it funded.
Inventory building faster than sales
Inventory is up 301% against revenue growth of 129% — stock may not be moving.
Negative shareholders' equity
Liabilities exceed assets — this is a solvency question that sits above every other consideration here.
Short-term liquidity is tight
Current ratio of 0.77 — near-term obligations exceed near-term assets.

Red Flags

6 items require attention · 3 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🔴Inventory building faster than salesFinancial
Inventory up 301% against revenue up 129% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 30% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 75% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.77 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 41.4% to 46.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 7.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 165% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 24% a year✓ 31.8% CAGR
Latest reported year was 23.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 44%✓ 46.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 7.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹1,555 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 11 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹94,503 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

235.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹0.38

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

10.4%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

23.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

144.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹1,555 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹89.5

P/E (Forward)

56.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

25.0%

Good

Healthy core-business profitability

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

0.77

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.65

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

93.7 / 97.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,832 Cr	₹7,548 Cr	₹8,974 Cr	₹13,345 Cr	+31.8%
EBITDA	₹2,413 Cr	₹3,400 Cr	₹4,049 Cr	₹6,136 Cr	+36.5%
EBITDA Margin	41.4%	45.0%	45.1%	46.0%	—
PAT (Net Profit)	-₹179 Cr	-₹559 Cr	-₹393 Cr	₹175 Cr	—
EPS	₹-0.3	₹-0.93	₹-0.43	₹0.13	—
ROCE	4.5%	5.4%	7.2%	10.4%	—
Total Debt	₹33,306 Cr	₹35,887 Cr	₹38,205 Cr	₹43,269 Cr	+9.1%
Free Cash Flow	-₹1,722 Cr	-₹644 Cr	-₹686 Cr	₹1,555 Cr	—

🟢 Revenue has grown at 31.8% a year over 3 years.

🟢 EBITDA has grown at 36.5% a year over 3 years.

🟢 EBITDA Margin has risen from 41.4% to 46.0% over 3 years (+4.6 pts).

🟢 PAT (Net Profit) has turned positive, from -₹179 Cr to ₹175 Cr.

🟢 EPS has turned positive, from ₹-0.3 to ₹0.13.

🟢 ROCE has risen from 4.5% to 10.4% over 3 years (+5.9 pts).

🔴 Total Debt has grown at 9.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1,722 Cr to ₹1,555 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹54,764 Cr

Total Liabilities

₹56,313 Cr

Total Debt

₹43,269 Cr

Cash & Equivalents

₹610 Cr

Operating Cash Flow

₹4,884 Cr

Capex

-₹3,329 Cr

Shareholding (proxy)

Institutional Holding

15.6%

Insider Holding

69.8%

Corporate Actions

Next Earnings

12 Nov 2026

Ex-Dividend Date

09 Sept 2014

Analyst Consensus

Recommendations

8 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹119.22

+33.2% vs CMP

Target Range

₹99 – ₹135

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

3 mixed3 general

GMR Airports (NSEI:GMRAIRPORT) Stock Forecast & Analyst Predictions

Simply Wall Street, 06 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

GMR Airports H1FY27 traffic hits record 58.2 million on Delhi growth

scanx.trade, 16 Oct

Market Trading Guide: GMR Airports among 2 stock recommendations for Friday

The Economic Times, 20 Aug

GMR Airports Shares Decline 2.06% Today

Moneycontrol.com, 13 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

GMR Airports Share: What’s Behind Its First Profit in Over a Decade? By Trade Brains

Investing.com India, 29 May

GMR Airports gains 6% after Q4 turnaround; JM Fin keeps buy for 17% upside

Business Standard, 29 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak6/20

🔴Financial HealthStretched1/20

🟢GrowthStrong13/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding4.5/15

🔴RiskHigh0.5/10

Avoid until solvency is resolved

GMR Airports Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 24% a year31.8% CAGR
✓EBITDA margin holds above 44%46.0%
✗Debt / EBITDA falls below 3x7.1x
✗Interest cover stays above 3x1.2x
✓Free cash flow remains positive₹1,555 Cr