Jefferies lifts GMR Airports target to Rs 135 on FY27 traffic recovery outlook
Jefferies reiterated a Buy on GMR Airports, citing expected FY27 traffic recovery, non-aeronautical revenue growth and new Nagpur and Bhogapuram airports. It set a Rs 135 target, implying 30% upside, while flagging West Asia disruptions as a near-term risk.
Read the source at Financial Express · BrandWagonNewer report on GMR Airports Infrastructure · AERA has approved Hyderabad airport aeronautical tariffs for FY27-FY31, while GMR advances duty-free, Aerocity and new-airport commercial…Read the newer report
Demand data
| GMR Airports target price: | Rs 135, raised from Rs 125 |
|---|---|
| GMR Airports Q1 EBITDA: | Rs 1,450 crore, up 11% YoY |
| GMR Airports passenger growth: | 1% |
| GMR Airports non-aeronautical revenue growth: | 12% |
What it says about consumers
GMR Airports’ FY27 traffic recovery thesis hinges on restoring passenger volumes while scaling higher-margin non-aeronautical revenue amid West Asia disruption risk.
The counter-case
The Rs 135 target relies on a FY27 traffic recovery that may already be partly reflected in expectations and could be delayed by weak airline capacity growth, elevated fares, geopolitical disruption to international routes, or softer discretionary travel. New airports can add long-term optionality but also bring commissioning, ramp-up, capex and competitive-risk exposure; non-aeronautical revenue may not scale as projected if retail, advertising and real-estate monetisation lag passenger growth. Higher interest costs, leverage, tariff-regulatory outcomes and dilution or funding needs could limit equity upside even if traffic improves.