GMR Airports Plans Rs 40–60 Billion Debt Refinance

25 Jul 2025 CW Team

The final structure of the GMR transaction is still being finalised. GMR Airports and Morgan Stanley have not responded to requests for comment.

As of 31 March 2025, standalone net debt at the parent entity level (excluding its airport subsidiaries) stood at approximately Rs 57 billion, while consolidated net debt, including borrowings from the Delhi, Hyderabad, and Goa airport operations, totalled around Rs 315 billion.

Sources indicate that strong growth in passenger traffic, tariff revisions, expanding non-aero revenues (from retail, F&B, parking, advertising), and recent credit upgrades have strengthened the group’s position to secure new loans at more favourable rates.

In its Q4 FY25 earnings call, the company noted that GMR Airports closed the financial year with revenue of Rs 12 billion and EBITDA of Rs 6 billion, with both figures expected to rise significantly in FY26 due to the addition of duty-free operations at Delhi and Hyderabad airports.

Passenger traffic rose 9 per cent year-on-year to 120.5 million in FY25, with domestic and international volumes growing by 9 per cent and 11 per cent, respectively, in the final quarter.

Non-aero revenue across Delhi, Hyderabad, and Goa airports grew by 13 per cent in Q4 and for the full fiscal year. GMR aims to transition into a consumer-facing business backed by a utility-like model.

Credit ratings have improved across the group’s airport assets:

IGI Airport (Delhi): Upgraded by S&P to BB from BB-
Hyderabad Airport: Upgraded by Fitch to BB+ and Moody’s from Ba2 to Ba1

Management expects further improvement in financials in FY26 to lead to better credit ratings and lower borrowing costs.

Meanwhile, consolidated interest and finance costs surged by 26.5 per cent to Rs 37.05 billion, while EBITDA grew 22.5 per cent to Rs 41.88 billion. The company recorded a consolidated loss of Rs 8.17 billion, marginally better than the Rs 8.29 billion loss the previous year.

Beyond India, GMR operates Medan Airport in Indonesia, is building new airports in Bhogapuram, Andhra Pradesh, and Crete, Greece, and continues to expand its global footprint.

GMR Airports Ltd, operator of Delhi, Hyderabad and Goa airports, is planning to raise between Rs 40 billion and Rs 60 billion to refinance existing high-cost loans, according to sources. The company is working with investment bank Morgan Stanley to secure fresh debt and is likely to tap mutual funds for a large portion of the funding—similar to the recent structure used by the Jubilant Group, which raised Rs 56.5 billion through non-convertible debentures (NCDs) for a major acquisition.The final structure of the GMR transaction is still being finalised. GMR Airports and Morgan Stanley have not responded to requests for comment.As of 31 March 2025, standalone net debt at the parent entity level (excluding its airport subsidiaries) stood at approximately Rs 57 billion, while consolidated net debt, including borrowings from the Delhi, Hyderabad, and Goa airport operations, totalled around Rs 315 billion.Sources indicate that strong growth in passenger traffic, tariff revisions, expanding non-aero revenues (from retail, F&B, parking, advertising), and recent credit upgrades have strengthened the group’s position to secure new loans at more favourable rates.In its Q4 FY25 earnings call, the company noted that GMR Airports closed the financial year with revenue of Rs 12 billion and EBITDA of Rs 6 billion, with both figures expected to rise significantly in FY26 due to the addition of duty-free operations at Delhi and Hyderabad airports.Passenger traffic rose 9 per cent year-on-year to 120.5 million in FY25, with domestic and international volumes growing by 9 per cent and 11 per cent, respectively, in the final quarter.Non-aero revenue across Delhi, Hyderabad, and Goa airports grew by 13 per cent in Q4 and for the full fiscal year. GMR aims to transition into a consumer-facing business backed by a utility-like model.Credit ratings have improved across the group’s airport assets:IGI Airport (Delhi): Upgraded by S&P to BB from BB-Hyderabad Airport: Upgraded by Fitch to BB+ and Moody’s from Ba2 to Ba1Management expects further improvement in financials in FY26 to lead to better credit ratings and lower borrowing costs.Meanwhile, consolidated interest and finance costs surged by 26.5 per cent to Rs 37.05 billion, while EBITDA grew 22.5 per cent to Rs 41.88 billion. The company recorded a consolidated loss of Rs 8.17 billion, marginally better than the Rs 8.29 billion loss the previous year.Beyond India, GMR operates Medan Airport in Indonesia, is building new airports in Bhogapuram, Andhra Pradesh, and Crete, Greece, and continues to expand its global footprint.

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