Mumbai : Global investment bank Jefferies has maintained a positive long-term view on GMR Airports Infrastructure and assigned a Buy rating to the stock, setting a target price of ₹135. Based on the stock’s closing price of ₹98.48 on the BSE on September 21, the target implies an upside of around 37%, or roughly 40% from the current level.
Jefferies believes GMR Airports is evolving beyond its traditional airport operations business, with growth increasingly driven by three key segments—airports, passenger-focused consumer businesses and real estate.
Non-Aviation Business Could Drive Growth
According to Jefferies, non-aviation businesses and real estate could become increasingly important contributors to GMR Airports’ growth in the coming years.
The company has started bringing businesses such as duty-free shops and retail operations under its own platform rather than outsourcing them to external operators. This could help increase revenue generated per passenger. The brokerage also sees potential for GMR Airports to secure retail, shopping and other commercial contracts at additional airports in the future.
Rising Passenger Traffic a Key Growth Driver
GMR’s airports currently have an aggregate capacity of around 160 million passengers annually. During FY2025-26, the company handled approximately 122 million passengers.
The company’s long-term plans provide scope to increase its airport capacity to around 400 million passengers. Jefferies expects India’s air passenger traffic to grow at an annual rate of 8-10% over the long term.
The brokerage noted that a substantial portion of the major construction expenditure at Delhi Airport has already been completed. As passenger traffic increases, the company could therefore see earnings grow at a faster pace.
3,000+ Acres of Land Offer Real Estate Opportunity
GMR Airports has more than 3,000 acres of land around its airport assets. Instead of primarily leasing this land to other companies, the company is focusing on developing it through projects such as hotels, retail spaces, business centres and meeting facilities.
Jefferies expects the development of these assets to create an additional source of revenue and improve the company’s long-term growth prospects.
Debt Position Shows Improvement
GMR Airports has also made progress in reducing its leverage. According to Jefferies, the company’s net debt-to-last-twelve-month operating profit ratio has declined from around 10 times to approximately 5 times.
The brokerage views this reduction as an indication of improving financial discipline and progress on deleveraging.
Jefferies’ Earnings Estimates
Jefferies estimates that GMR Airports’ revenue could increase from ₹14,807 crore in FY2025-26 to ₹22,373 crore by FY2028-29.
Over the same period, consolidated profit is estimated to rise from ₹539 crore to ₹2,056 crore.
With passenger traffic expected to expand, airport capacity increasing, non-aviation businesses gaining importance and real estate assets being developed, Jefferies sees multiple potential growth drivers for GMR Airports over the long term.
The brokerage target represents Jefferies’ research view and is not a guarantee of future stock performance. Investors should consider their own risk profile and conduct independent research before making investment decisions.
