Passenger growth, credit upgrades, and new duty-free operations position GMR for favourable debt market entry
GMR Airports Ltd, the operator of Delhi, Hyderabad, and Goa airports, is working with Morgan Stanley to raise between ₹4,000 crore and ₹6,000 crore in fresh debt. The move aims to refinance its high-cost existing loans as the company seeks better terms amid rising passenger traffic and improved credit ratings.
The standalone net debt of GMR Airports at the listed company level stood at around ₹5,700 crore as of March 31, 2025. In comparison, consolidated net debt, including Delhi and Hyderabad airports, stood at a much larger ₹31,500 crore.
Sources said the group may tap Indian mutual funds, similar to the recent strategy adopted by the Bhartia family of the Jubilant Group, who raised ₹5,650 crore via non-convertible debentures (NCDs) for their Coca-Cola stake purchase.
Morgan Stanley, which advised Jubilant, is also structuring the GMR deal, though the final contours remain under discussion.
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Financial Performance & Credit Ratings
In FY25, GMR reported a consolidated loss of ₹817 crore, marginally narrower than the ₹829 crore loss in FY24. Despite the loss, consolidated EBITDA rose 22.5% YoY to ₹4,188 crore, reflecting growth in operational efficiency. However, interest and finance costs surged 26.5% YoY to ₹3,705 crore, intensifying the need for lower-cost refinancing.
Passenger traffic jumped 9% YoY to 120.5 million, with domestic growth at 9% and international at 11% in Q4FY25. Non-aero revenue—led by retail, F&B, parking, and advertising—also increased 13% YoY, reinforcing the company’s transition toward consumer-driven airport ecosystems.
Recent credit upgrades bolster GMR’s position in the debt market:
S&P: IGI Airport upgraded to BB from BB-
Fitch: Upgraded IGI Airport to BB+
Moody’s: Upgraded Hyderabad Airport to Ba1 from Ba2
The company plans to begin operating duty-free concessions at IGI Delhi from July 25 and at Hyderabad Airport in Q2FY26. These will significantly lift FY26 revenues, as per management commentary.
Trading Focus & Sectoral Implications
The fundraise and operational tailwinds are expected to improve GMR’s credit profile and reduce finance costs in FY26. With capex-heavy airport players like GMR depending heavily on debt, this refinancing—if successful—can unlock value and reduce risk premiums across the sector.
Mutual fund exposure to infrastructure NCDs is also set to rise, offering investors medium-term yield plays backed by operational assets. Watch for similar moves from players like Adani Airports or IRB Infra, should rates soften further.
Stocks to Watch
GMR Airports Infra (GMRINFRA): Bullish bias above ₹83; breakout possible if refinancing terms impress
Mutual Fund Infra Bonds/NCDs: Category funds may increase allocation to airport-linked bonds
Adani Ports, IRB Infra: Monitor for sector-wide rating upgrades or refinancing actions
