Ladies and gentlemen, good day and welcome to GMR Airports Limited conference call to discuss Q2 FY 2027 results. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. We have with us today Mr. Saurabh Chawla, Executive Director of Finance and Strategy. Before we begin, I would like to state that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. Also, recording or transcribing of this call without prior permission of the management is strictly prohibited. I now hand the conference over to Mr. Saurabh Chawla for opening remarks.
Thank you, and over to you, sir.
Thank you, Michelle, and good morning, everyone. Quarter two was characterized by mixed operating environment. While passenger traffic growth remains soft, as we had been alluding since May of 2026, reflecting short-term industry challenges, our conviction in the long-term outlook for Indian aviation remains unchanged. The structural drivers of growth continue to strengthen from fleet expansion and international network development to rising mobility demand and emergence of India as a global aviation hub. Very recently, Lufthansa Group announced that it will increase flight frequencies to key Indian cities, including Delhi, Bengaluru, Hyderabad, and Chennai as part of its largest summer network expansion since 2020. Air India is also expanding its network. It will introduce flights between New Delhi and Osaka in Japan, making Air India the only airline operating the Delhi-Osaka route. Simultaneously, it is also enhancing frequencies to Australia.
IndiGo's new aircraft deliveries have crossed 40 for 2026 and is adding more routes and frequencies. Boeing has now secured certification for its 737 MAX 10, the largest member of its 737 MAX family, clearing a major hurdle for the American aircraft manufacturer and bringing an aircraft delayed for years closer to service. This will support airlines like Akasa Air and Air India to further their offerings and increase capacities. Emirates has also expanded its premium economy offering to all flights to and from Delhi and Kolkata. It is also introducing its flagship Airbus A380 aircraft for the first time on one of its four daily frequencies from Delhi. As for the airline, the Indian market has matured, and there is extremely high demand for travel. As such, our medium and long-term confidence remains intact.
What is particularly encouraging is the resilience of our business model, which extends well beyond passenger volumes. During the quarter, we continue to see healthy performance in non-aeronautical revenues. Cargo throughput at both Delhi and Hyderabad reached record levels for first half of fiscal 2027, underscoring the growing importance of cargo as a strategic growth engine. I will discuss this in greater details on the developments on a consumer platform later during my opening remarks. We are also progressing on our third revenue stream, that is the real estate. Our own self-development, as well as third-party projects, are witnessing good execution pace. These trends demonstrate that while passenger traffic may experience periods of moderation, the broader airport ecosystem continues to create value through multiple avenues of growth. On that note, let me now delve deeper into quarter two performance.
Momentum in total income continued with quarter two at INR 41.9 billion, up 12% year-on-year. EBITDA for the quarter grew 2% year-on-year to INR 15.7 billion. PAT for the quarter came in at INR 654 million versus INR 351 million in quarter two of fiscal 2026. Reported quarterly PAT has remained positive for the fifth consecutive quarter. This demonstrates the strength in our business model as our financial performance has demonstrated growth even in this challenging global macro environment. Consolidated net debt, which excludes the FCCBs of INR 29.1 billion, which are deep in money, remained unchanged versus the last quarter as well as versus the quarter two of fiscal 2027 at INR 340 billion. Like we have been guiding, net debt has peaked with the completion of the Vizag or Bhogapuram Airport.
On the operational front, traffic at GAL-operated airports rose 1% year-on-year in quarter two fiscal 2027, reaching 28 million passengers. This excludes Cebu, but includes Nagpur and Vizag from the date of operationalization. For first half 2027 as well, traffic was up 1% year-on-year from 58.4 million passengers, despite the traffic for India as a whole seeing a decline of 3%. Total income at Delhi Airport rose 13% year-on-year to INR 20.8 billion in quarter two. Aero revenues rose 5% year-on-year, and non-aero revenues increased 20% year-on-year. For the first half of fiscal 2027, total income was up 15% year-on-year to INR 41.5 billion. Aero yield per pax and non-aero IPP for quarter two fiscal 2027 were highest in five years. EBITDA for quarter two was up 12% year-on-year to INR 7.6 billion and was up 12% for the first half to INR 14.6 billion.
The airport has reported profit for INR 1.2 billion for quarter two fiscal 2027, the sixth consecutive quarter of PAT positive. At Hyderabad, total income for quarter two was INR 6.3 billion, down 6% year-on-year as aero revenues fell 8% year-on-year on lower traffic. However, non-aero revenues increased by about 5% year-on-year, and airport achieved a record non-aero IPP of INR 330 in quarter two fiscal 2027. Total income for first half stood at INR 12.6 billion, down 3% year-on-year. EBITDA for quarter two was down 7% year-on-year at INR 4 billion, down 3.5% to INR 7.9 billion for the first half. PAT for the quarter was INR 907 million, down 9% year-on-year. Here again, I want to highlight one aspect that how the non-aero has really picked up and the consumer platform is now thriving despite some softness in the airline passenger growth.
Mopa or Goa Airport reported total income of INR 1 billion in quarter two, up 25% year-on-year, and INR 2.3 billion in first half of 2027, up 24%. Aero revenues increased 35% year-on-year as tariffs reverted to normal post discontinuation of special initiative plan. Non-aero revenues decreased by 5% year-on-year. However, non-aero IPP was up 25% year-on-year to INR 228. EBITDA doubled year-on-year in quarter two, coming to INR 244 million. Notable achievements during the quarter are combined aero yield per pax or YPP in quarter two fiscal 2027 was INR 497 for Delhi, Hyderabad, Mopa, Vizag and Nagpur. Non-aero income per pax or IPP was INR 772, and this includes revenues from non-aero businesses adjusted for the revenue share they paid to the respective airports and non-aero revenues reported by Indian airport entities.
To clarify, MRO and Hyderabad Hospitality, which is predominantly the hotel, are not part of the above IPP number. Non-aero and aero performances improved sequentially despite muted traffic. Coming to our non-aero adjacency businesses, GMR Hospitality Limited, a 70% subsidiary of GAL, which operates the F&B business, won the concession for operating the F&B outlets at Delhi Airport Terminal 3. This was earlier being operated by a JV where GAL's stake was 40%. GAL consolidated financials will start reflecting this from quarter three. GAL, the master concessionaire, also started operationalizing non-aero concessions at Vizag Airport. In cargo, GMR Cargo and Logistics Limited entered into a licensing agreement with FedEx for the operation of Express Cargo terminal at Cargo City in Delhi Airport, while Hyderabad Airport signed an MoU with Brussels Airport to strengthen the air cargo connectivity between Hyderabad and Europe.
Construction on multiple airport land development projects is underway, details of which are available in the results presentation. Fiscal 2027 will see a handover of DIAL's first self-development commercial building at Delhi Aerocity, where pre-leasing discussions are already underway. The indicative rentals are in excess of INR 250 per month. I am told just now that one tenant will be signing a deal at actually about INR 270 per square foot per month. The build to suit terminal hotel, Taj Delhi International, with 380 keys is also planned to start partial operations from quarter four. We have also begun work on the self-development hotel, which is about 500 keys at Delhi Aerocity, which will be operated under Hilton and Waldorf brand. I want to highlight over here the premiumization of the land parcel reflects now the type of brands that are getting attracted.
Waldorf Astoria is coming to Aerocity Delhi. At Vizag-Bhogapuram, the hotel under Vivanta brand, which is about 150 keys, is expected to be handed over in phases within fiscal 2027. During the quarter, we saw multiple credit rating upgrades. Standard and Poor's upgraded Delhi Airport's credit rating on senior secured notes to double B plus from double B. At Hyderabad, S&P and Fitch both upgraded the ratings to triple B minus, taking it to international investment grade. Even at GAL, the listed entity, ratings were upgraded to double A minus by CRISIL and CARE. On refinancing activities, Delhi Airport raised INR 35 billion through a 15-year non-convertible debentures at 8.7% against the effective cost of 9%, to refinance the $522 million of notes, which had an effective cost of 10.9%.
GAL also raised INR 15 billion in form of non-convertible debentures at 9.56% and used the proceeds to refinance existing debt, bearing 10.75% interest. In summary, the costs of all refinancings are on downward trajectories. On the regulatory front, the Hyderabad Airport implemented a new tariff issued by AERA for the fourth control period. Weighted average YPP for five years has been maintained at INR 538, assuming no expansion CapEx, and increases to INR 640 including expansion CapEx. For Vizag Airport, AERA has issued a consultation paper pertaining to tariff order for the first control period. Also, TDSAT, the appellate tribunal, issued a favorable judgment on all issues pertaining to Delhi Airport CP4 tariff order issued by AERA, which were appealed against by us, including appeal pertaining to the non-implementation of the previous TDSAT order. AERA has three months to implement this unless they further appeal.
During the quarter, GAL issued 102 million equity shares to Groupe ADP subsidiary, post the notice of the conversion of 2.5 million optionally convertible redeemable preference shares or OCRPS. These were issued in accordance with the terms of merger of the erstwhile airport holding company with the listed entity, where the conversion ratio was agreed as 1 : 40. The merger scheme entails ADP converting part of its voting equity into OCRPS. As of now, ADP has sold part of its equity of 3.4% to the GMR family. It has decided to convert part of these OCRPS holding into equity to maintain the ratio between the two promoters, which is GMR and ADP to 51/49. On fully diluted basis, the total equity issued and converted remains the same.
At GMR, we firmly believe that integrating ESG principles is crucial for airport operators to build resilient operations, mitigate risks, and secure a license to grow within the evolving regulatory and community expectations. The ESG achievements highlighted in our investor presentation reflect our commitment to responsible growth while maintaining highest standards of governance, safety and operational excellence. In closing, I would like to reiterate that our business performance has shown resilience despite the temporary muted traffic numbers. Our debt has peaked, and we maintain our outlook for free cash generation at our two largest airports and the listed entity in the medium term. The presentation with all financial numbers are already available with you. If not, you can download it from the IR section of our website. We are available to respond to your questions on this call, online and offline.
Now, I would like to open the forum for queries that may be addressed by my colleagues from the corporate and the business teams. Thank you so much.
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press star and one on their touch-tone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only your handsets while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prateek Kumar from Jefferies. Please go ahead.
Yeah. Hi. Good morning, sir. I have two, three questions. Firstly, congrats for strong non-aero performance execution. Strong non-aero revenue growth. But sir, your overall revenue performance has actually not gone through to EBITDA. Your total revenue is higher by around 20%, and EBITDA is kind of flattish. I know traffic was weak, but your non-aero revenue performance has not reflected in EBITDA performance. Any reasons there? Because particularly your SPV seem to do better, airport SPV, but your platform level performance is lower year on year. Can you discuss this question?
Sure, Prateek.
Okay. Because of the traffic has been lower, the aeronautical revenue is lower, whereas the expenses remain the same. Whereas non-aero still has grown. Of course, at the level of EBITDA, there is not much growth because of the lower traffic.
No.
Your total revenue is still higher, right? Revenue is higher and non-aero is much higher. Your platform performance actually, stripping out SPV performance, it seems like flat to lower year-on-year, which is dragging down the overall performance at consolidated level.
Prateek, you have to take into context that Vizag has got added during the quarter, and obviously that will have some impact on the EBITDA numbers as such. If you were to actually exclude the Vizag consolidation, then you will see a pretty decent growth on the EBITDA numbers also. You have to take that into account. Second also is Goa. Both Vizag and Goa have had some downward impact on the EBITDA numbers.
Okay. Other question is your aero YPP have been very high both at Delhi and Hyderabad, versus your expected run rate at these two airports at 360 and 540. What would be the key reasons there?
No, in case of the Delhi, the YPP 365, which the regulator has given, has gone up more than 440, mainly because of the, we have introduced in case of the parking, the dynamic pricing. First four hours is only a fixed, thereafter, it keeps on doubling for every four hours. It becomes 5x by 24 hours. Most of the airlines, wherever they are parking them for more than 12 hours, they have to pay more money. The parking charges has contributed a substantial amount, which has helped us to improve our yield per pax. In case of Hyderabad Airport, basically, the transfer pax has been assumed at a higher level, but the transfer pax has come down whereas the pax number has been maintained, which has helped us improve the yield per pax in case of Hyderabad also.
These are the two major reasons.
Just clarifying on Delhi, is this run rate we should assume for this control period, remaining control period or-
No. We can't assume for the entire control period because now the airlines are also realizing that they are paying more. Then slowly they are trying to turn around the aircrafts much faster. Maybe another one year the run rate may be there, but after that it will flat down. It will go back to the normal rate.
Okay. This will be counted as over-recovery for next control period for determination.
You are absolutely right.
Okay. Lastly, on your interest expense, it seems to have gone up by 6%-7%. Your debt has been flat. The company is seeing improvement credit rating, but interest expense still has gone higher with 1Q. Where do you see this settling, despite like flattish debt expectation?
At the control level, the interest expenses have gone up mainly because of the capitalization of the Bhogapuram Airport, which has started operation on 17th August. Till that date it was getting capitalized. Now it is hitting the P&L account. That is why interest amount has gone up.
Should that settle for next year, like annualized interest outgo for the company?
It should be. I mean, over a period of time then the rate remains the same. Primarily, Prateek, as the debt comes off, as you have said, debt has peaked now. As the principal amounts start getting paid and the debt comes off, the interest number will start to wear down now. We are not taking any significant fresh debt for any major expansion at any airport right now.
The next two quarters will reflect the full interest of the Vizag-Bhogapuram Airport. Thereafter it will stabilize.
Sure. Thank you. I have more questions. I will get back to this.
Thank you. We will take the next question from the line of Shubham Borade from ICICI Securities. Please go ahead.
Thanks for the opportunity. I have two questions. First one, can you please help us with the profit for Bhogapuram and Nagpur separately during the quarter? Second would be on the development of 1 million sq ft at Delhi, can you please help us with the timeline of leasing the total space? Thanks.
Vizag Airport has just started operations, so it has posted a loss of INR 82 crore for the second quarter. As far as Nagpur Airport, it is a full quarter performance, so we have posted a PAT of about INR 8 crore. Bhogapuram, that's Vizag Airport.
Ad hoc tariff because of currently.
Basically the loss which we have posted INR 82 crore is because of the ad hoc tariff we are there. As you know that consultation paper is already out. We're expecting the full tariffs will come by January, and thereafter it will taper down the loss. This third quarter also we will likely to get the same loss.
Second question was, can you please help us with the timeline of leasing the 1 million square feet space at Delhi Airport?
Yeah. So the leasing momentum is very strong. The completion of the project is stated for end of financial year, quarter four of FY 2027. We have recently concluded a transaction of about 80,000 square feet at INR 270 a square feet. The pipeline looks very strong. We expect to have leasing completed within six to nine months, into the next financial year.
Sure, sir. Thank you.
Thank you. We'll take the next question from the line of Achal Kumar from HSBC. Please go ahead.
Yeah, hi. Thanks for taking my question. I have two questions, actually. The first one, you had mentioned on slide 15 that the traffic is stronger in the second half. What gives you that kind of confidence? Is it just because of the festival season, or you see the traffic because ultimately the fuel has further gone up, and probably the fares could further go up. How do you see the traffic? That is my first question. Secondly, what plans do you have to the GHL unit further? You got the bid to operate F&B at Delhi Airport. What else? Do you have any other further plan to your GHL business? Thanks.
You must understand that we have seasonality in our business. The second half of every fiscal year is much stronger than the first half. It is the busy season, it is also the festive season, and there is a lot of international traffic, friends and family that flows in in the month of December and January. That is the first aspect which gives us the confidence that the second half will be much stronger than the first half. Second is that we get insight into the airline slot asks. It is not something that people just fly from one place to the other place. It has to be planned well in advance. The airlines ask for certain slots, and based on those slots and outlooks is how we give an outlook to the market as to how the second half is looking at.
That is how we are giving the guidance. We had given the guidance actually in May that the first half will be looking very soft, and that is because the feedback from the airlines was such, and the first half, from a seasonality perspective, is slightly weaker. Our outlook now for the second half is much stronger. As in every year, we have already highlighted. Also the slot demand from the airlines continues to be quite robust. An interesting part is, and that reflects also actually in Delhi Airport performance. Delhi Airport being the hub airport of the country, has a significant part of it as international traffic, and international traffic has grown quite well. We see a much better momentum in the international traffic, with more international airlines, especially European airlines, asking for more slots at Delhi Airport. On the F&B side of it, Siraj.
Sure. GHL is our vehicle for doing all our F&B businesses. Currently they are in Goa, Hyderabad, Vizag. They were not there in Delhi, so this addition of 50 outlets in Delhi is a significant addition. Anything further which will come up for reconcessioning or a new concession coming up at any of the airports, GHL will definitely look at participating in those bid opportunities, and that is the way forward for GHL.
Right. Sir, going back to the first question, can you please also guide about what kind of growth, you mentioned about the more slots demand and all that. What kind of growth are you envisaging for the second half versus first half or maybe the year-on-year?
The second half we are expecting maybe around 10% growth over the first half. Overall we will be up by about 3% or 4% completely on year basis. So second half we are seeing a good growth in case of the Goa, Hyderabad, Delhi, and a little Nagpur, and Vizag a little stable. Especially the Delhi and Hyderabad have got a good slot request from the airlines, and Goa is actually is going to have better numbers.
Okay, perfect. Thank you so much.
Thank you. The next question is from the line of Biplab Debbarma from Emkay Global. Please go ahead.
Good morning, everyone. My first question is on the non-aero IPP that we witnessed healthy growth in second quarter. Just wondering what are the reasons attributable to this growth? Is it because GMR Airports has overtook the operations in duty-free last year, or passenger in general have spending more? Do you think this healthy growth in non-aero is sustainable? I am just trying to understand what has happened there.
Yeah. I think as we have been narrating it in the past, our spend growth, we look at anything around 7%-8% is the minimum spend growth we look at, and that is what gets also reflected in the IPP. What has further added to the growth of about 12% plus now in this period is the full operationalization impact of new Terminal 1 in Delhi. Hyderabad, the expanded terminal, the full impact of that, plus Hyderabad duty-free departure store. We got an expanded departure store, which led to increased offerings over there. It is a combination of these, plus there are few outlets which were not operating earlier in Delhi, those also became operational. It is a combination of what general growth for PC, as I was mentioning, about 7%-8%, plus these additional areas which got added to our commercial areas.
So 7%-8% is our normal. That will continue. Whatever one of such events may have contributed to additional 3%-4% of the other airport. Is that correct, sir?
Yeah, that is correct. When I say 7%-8%, it is the spend growth which we talk about. Our non-aero growth, which we have been articulating it, is in the range of 15%-17%. That is what we expect from period to period.
Okay. And, sir, recently you have announced some self-development of hotel in Delhi. Can you give us some more details, some insight, some color?
One moment.
Yes, DIAL has started development of a hotel project in Aerocity, which is a dual-branded hotel, Hilton Hotel and the Waldorf Astoria. The exact size in terms of rooms, et cetera, is still being finalized. The development is scheduled to start in January of 2027.
Okay. One final question. I know based on the slots and seasonality, you have given a healthy guidance, which is very encouraging looking at the current scenario. But, sir, we have seen a sharp hike in the airfares, and whenever airfare increases, we assume that it will impact the passenger traffic. People cut down the travel and all. How do you reconcile that despite the significant hike in airfares you expect second half to be very robust. What is happening there? If you could provide some insight on that would be helpful.
I think you need to distinguish the air travel between metro air travel and Tier 2, Tier 3 air travel. Broad numbers of 5% growth, minus 5% growth includes Tier 2, Tier 3 also. Our routes are predominantly metro concentrated. Within this environment, if you look at Delhi has done well. Secondly is also we have a good mix of international at our airports. Delhi has a predominant position in the international side, and those rates on the international side, the demand is very inelastic. People who have to come back to India to meet friends and family, they will not just postpone merely because of ticket prices going up $100-$200. They have pre-planned that months in advance, and they book months in advance to travel into India. Same goes for the tours, the tourist tours that come in.
Based on that itself is how the airlines, they seek slots from us. It is a bottoms-up approach. The airlines see demand, and based on demand, they ask the slots from us, and that is how we guide to the markets. That is the broad way that gives us the confidence to give you that the second half traffic on a broader plane will be growing at about 10% above the first half.
We have also seen, we also closely monitor the bookings of the slots filed by the airlines. Sometimes they file simply slots, and they do not start bookings. But we have seen in case of the Delhi and Hyderabad, all the slot, whatever they have filed, they have already opened the bookings, and the ticket bookings are happening for the next two to three months. In case of Goa, also more than 90% of the bookings have been opened and bookings are happening. Basing on that, we are expecting.
Okay. Thank you, sir, and all the best.
Thank you. The next question is from the line of Anshu from Macquarie. Please go ahead.
Hi. Good morning, everybody. I had one question on the TDSAT ruling that did come in. What would be the timelines? Although the ruling does specify that AERA is mandated to follow it within three months. From an appellate tribunal point of view or from a further challenging point of view, what is the timeline that could be the final decision that we are looking at, and the impact in terms of EBITDA? Our news articles are showing a number of INR 1,500 crore that could come as EBITDA accretion. Does this come in favor at the final settlement? Just wanted to understand the numeric EBITDA flow that could come in from the TDSAT ruling and the timeline of this.
That order in case of the CP4 of the DIAL, it made it very clear to the regulator that whatever orders passed by the TDSAT have to be implemented, which AERA was avoiding it. Now they made it very clear, three months time they have given. AERA has already filed an appeal before the Supreme Court. Now this time, AERA, unless they get a stay from the Supreme Court, there is likely that AERA has to implement it. That is what our guess, and they are going for appeal. There is no doubt about it. AERA is going for appeal. TDSAT judgments which have already come, whatever has been already filed before the Supreme Court, then if the Supreme Court doesn't give the stay, then they will implement it. We are expecting, we'll just wait and see for next three to four months.
If they are not able to get the stay, then we'll insist on the implementation.
Most likely it will be the next fiscal year.
Next fiscal year.
And sir, the quantum of benefit that could come to the EBITDA from this?
No, we would not like to highlight our estimates on the EBITDA. Matter is still subjective, and I think I will let the discussions take place in the court. We will, of course, make our claims based on our calculations. But at this stage, we would not like to hazard or guide the markets as to what our claims would be.
All right. Lastly, on the hypothetical RAB, what would the progress on that situation and case be for us as we speak right now?
The hearings have happened before the Supreme Court, and I think we are expecting the next 3 months to reach the finality.
Three months. Okay. Thank you. Thank you so much.
Thank you. The next question is from the line of Aditya Mongia from Kotak Securities. Please go ahead.
Yeah. Thank you for the opportunity, and congratulations on the strong set of numbers that the company has reported. A few questions from my side. Firstly, wanted to check whether any amount out of the INR 2,500 crore that was given to GMR Power has it come back because there is a mention of about INR 200 crore inside the cash flow statement.
We have already received INR 200 crore during the financial year, and especially they paid the money to Hyderabad Airport, which has lent INR 200 crore. The money has already been paid. The balance we are expecting to receive by March.
Yeah. So there is a-
To the INR 2,400 crore company.
It is only 30% of INR 2,400 crore. That is about INR 720 crore is only payable during the year. Out of that, INR 200 crore has already been received. Only INR 520 crore rupees is to be received, which we are expecting by March.
Aditya, there was a payment plan, which is an annual-based payment plan, and the power entity is paying as per that plan. This was what was agreed at that time of demerger of the erstwhile GMR Infrastructure Limited. It is as per that plan. This year, the balance payment is about INR 500 crore. We have still another two and a half years to go for the balance payments to come in.
Understood. The second question that I had was more on the non-aero per pax number. It seems that the top three airports saw the number grow Q1 to Q4 quite handsomely. But the same was not reflected in GAL's standalone numbers. My sense was that these two numbers should have been broadly related because GAL earns from these three assets. If you could give us a sense of why the divergence is happening.
Aditya, the first point, I think you are right. The SPP and IPP growth has been healthy. That reflects the spend per pax and income per pax. But its translation into the non-aero absolute revenue number is dependent on the traffic. As you would have seen, Hyderabad's traffic has been negative in this period, and hence we couldn't see the full reflection of that into the revenues which are coming as part of GAL. But when it comes to the spend, what is reflecting in the airports is also reflecting as part of our non-aero businesses at GAL level.
Yeah. Your top three airports, non-aero per pax, I am talking per pax, have grown maybe 16%-20%, 15% or 20% Q1 to. It seems as if your non-aero per pax was standalone. It has declined Q1 to. Or let's say just grown single digits at best.
No, if you have seen, I think it is the IPP at a global GAL level. We have talked about your 12% growth in IPP, which is about INR 772 is what we have indicated, and which is a healthy growth of 12%. But I do not know which number you are referring.
GAL standalone.
We talked about the P&L.
As for GAL standalone, we are operating the duty-free cargo, car park and the retail. You understand. Whereas when you look at the income per passenger at the airport level, in addition to these four verticals, they have some other verticals also, they are non-aeronautical. So they take the entire revenue, what they are getting non-aeronautical divided by passenger, income per passenger is at airport level. When it comes to GAL, there are only four verticals. So you are talking about the income per passenger at airport level is different from our income at GAL level.
Understood. Just the growth trends were very different, so that is why I was kind of-
You understood now.
That is one part.
Yeah. Very simply, if you see there is a degrowth at Hyderabad Airport, right? From a passenger throughput perspective. That has an impact on your GAL standalone P&L while the IPP has gone up, but because the throughput is lower, automatically that will have some downward
Definitely
revenue growth will have a downward impact there.
Just a couple of more questions over here. Firstly, the cash position, at a console level, has seen a meaningful boost for INR 4,000 crore. It is now almost INR 9,000 crore. Just checking, what is the endgame over here? Will it eventually lead to debt levels coming down or, will the company be using this cash for whatever purposes they think appropriate?
Aditya, I think one-off item is INR 3,500 crore DIAL has raised on 29th September, whereas the entire amount has been used for repayment of $522 million on 26th October. That is why there is a cash boost about INR 4,000 crore in the cash. Otherwise, our total cash will be around INR 4,500 to INR 5,000 crore only.
Understood. No, I think those were my questions. Thank you for your responses here.
Thank you. The next question is from the line of Karthik Chellappa from Indus Capital Advisors Hong Kong Limited. Please go ahead.
Yeah. Thank you for the opportunity, sir. Three questions from my side. The first is, if I were to take your consolidated EBITDA and, without, let's say, the EBITDA attributable to Delhi, Hyderabad, and Goa. That has seen a sharper decline than, let's say, the EBITDA of the individual airports. You did mention that the Bhogapuram loss this quarter was about INR 820 million. Apart from that, are there any other adjustments which has impacted the EBITDA outside of the three airports?
No, nothing.
Sorry, sir. That is the main adjustment, is it?
Yeah. That is the main. Partly, of course, there will be a little downward because of Goa also, but main is Vizag.
Vizag. Okay. Excellent. Sir, on the gross debt figure, the Q-on-Q increase of about INR 3,900 crore, which SPV would it be attributable to?
This is what we have explained. INR 3,500 crore DIAL has raised on 29th September, whereas that amount has been used only on 26th October for repayment of $522 million bond. There was a gap of 25 days. That is why the debt is showing more as on 30th September, but by 30th October, it is fully paid.
Under Indian regulations, you have to keep cash before you pay off the debt. Don't ask me the merit of it, but that's the negative carry I have in my books over a period of 20 days here.
25 days we have negative carried.
Okay, great. Last question, sir, is if I look at the non-aero revenue at both Delhi and Hyderabad, and if I were to distill it further into duty-free and F&B alone on a year-on-year basis, which drove a larger part of the growth? Was it increase in penetration within passengers, or was it the increased spend per passenger in F&B and duty-free specifically?
I think when we talk about the spend takes into consideration the penetration, any business we talk about. Coming back to your question, which has been the major contributor to the growth? The growth in F&B business in terms of spend has been higher than the growth what we have seen in case of, say, duty-free in Delhi, whereas duty-free in Hyderabad, the growth has been good double-digit numbers. Overall, what you have seen in terms of non-aero revenue growth is a combination of growth coming in from all the segments. But in comparative terms, the hospitality, including F&B, has been a higher growth than the growth we have seen in duty-free.
Got it. If I just heard it correctly, in Delhi, F&B grew faster than duty-free, whereas in Hyderabad, duty-free grew faster than F&B. Is that understandable?
Yes.
Okay. Got it. That is all from my side. Wish the team all the very best for the rest of the year. Thank you very much.
Thank you. Thank you, sir. We will take the next question from the line of Kaseedit Choonnawat from Citigroup Securities. Please go ahead.
Hi, good morning. Thank you for your time.
I'm sorry, sir, your voice is breaking. Mr. Choonnawat, your voice is breaking, sir.
Hi, can you hear me?
Yes, I can hear you. Please proceed.
Thank you. So three housekeeping questions. Number one, just to recap the loss of Bhogapuram this quarter is INR 850 million. What's the profit and loss of Nagpur this quarter, please? That's question one. Question two on depreciation and amortization. Given that the two new airports have entered operation, what will be the run rate from now with, let's say, the current INR 4.9 billion be a good run rate, or we are climbing into, let's say, low five? The last question is on minority. I have noticed an uptick from INR 570 million last quarter to INR 800 million this quarter. What's the key driver, please? Thank you.
As far as the Nagpur is concerned, it has shown a profit of INR 80 million for the second quarter. The run rate of depreciation expected in case of the Vizag Airport, that is called Bhogapuram, will be in the range of about INR 240 million per annum, is about INR 24 crore approximately.
Thank you. Lastly, on minority increases quarter please.
It is INR 240 crore, sorry. It is not 24, INR 240 crore.
This is based on the ad hoc tariff right now. Depreciation is different but from a loss perspective, it is still based on the ad hoc tariff.
That's correct.
What is it?
Thank you. Last question on the quarter-on-quarter increases in minority. Thank you.
The reason for minority is that there's a profit in the DIAL and GAL, so that's why the minority is increased. For all other entities, the GAL is holding the 100% shareholding, so that's why that clause is coming into the GAL account.
Great. Yeah, thank you. Just to recap on the number, you mentioned that Nagpur loss is INR 80 million crore, right? Is that correct?
No, Nagpur is in profits. INR 80 million is for the second quarter profit.
INR 80 what? INR 80 million profit at Nagpur.
80. INR 80 million.
Thank you. That is great. Yeah, thanks.
Thank you. We will take the next question from the line of Achal Kumar from HSBC. Please go ahead.
Yeah, thanks for taking follow-up question. Just a clarity. You mentioned that your F&B business GHL will grow wherever there is an opportunity. I understand that Kolkata and Chennai F&B concessions are coming up for renewal. Do you think GHL would bid for the airports outside GMR, or is it going to stick? What is going to strategy on that?
At this stage, we have been focusing only on our airports. Maybe as part of our extended strategy, we will start looking at opportunities outside of own airport, but not at this stage.
Okay, perfect. Thank you so much.
But just to further emphasize on that, the strategy is to first acquire the GMR Airport businesses, stabilize and grow those businesses. And of course, we call this as a platform play. It allows us to go and bid for other airports also, and which we will do. We have demonstrated in the past in duty-free. There is no reason why we will not be demonstrating the same thing in the businesses of cargo and F&B and other non-aero businesses. So we are creating that as a consumer platform. And I just want to highlight one aspect that it is now showing results. And if you look at the revenue of the platform, is almost equivalent to Hyderabad. And EBITDAs are also in a similar range. So we are in the process of transitioning from purely a utility company to a utility and a consumer company.
And I can assure you that in next three to four years, once we start significant development on the real estate side and start monetizing the real estate portions into a REIT or selling those commercial assets to the pension funds or sovereign funds who like yield, you will see a bigger bump up happening on the real estate side also. So that is the strategy to convert a pure utility company into a utility and consumer, and now from utility consumer into a utility and real estate. That's the whole journey of GMR. We are not a pure utility company. Perfect. Thank you.
Thank you. The next question is from the line of Prateek Kumar from Jefferies. Please go ahead.
Hello. Thanks for taking question again. I have one question on CapEx. In first half, we have incurred INR 1,600 crore CapEx. We were expecting INR 2,000 crore to INR 2,500 crore CapEx for FY 2027. How are we looking at that number now?
The CapEx which we have incurred is basically the Bhogapuram capitalization, which is one aspect. The other aspect is operational CapEx. In case going forward, there is no airport CapEx we are incurring any expansion. It is only operational CapEx, which could be in the range of INR 1,000 crore to INR 1,500 crore across all the airports together.
We are raising CapEx guidance for this year to INR 3,000 crore now from
No.
2,000.
What we said is Bhogapuram CapEx is completed now, so there is no more additional CapEx for any airport expansions. What we have said is that there will be a CapEx, only operational CapEx, which we incur all the airports together between INR 1,000 crore to INR 1,500 crore per annum. So no more expansion CapEx, no more new airport CapEx.
What is the CapEx guidance for FY 2027?
FY 2027-
INR 1,600 crore.
The balance period will be in the range of about INR 1,000 crore.
Sure. That was the only question. Thank you.
Thank you.
Thank you. The next question is from the line of Biplab Debbarma from Emkay Global. Please go ahead.
Thank you. Just one small question. I think I missed it. Why there is a significant degrowth in passenger traffic in Hyderabad?
Primarily, it is because of two reasons. One is the route rationalization by IndiGo, which they started in January of 2026. It has now been fully rationalized, and now we see growth started to come back in that part of the world. The second aspect also, the initial degrowth was also because of the impact of geopolitical events in the Middle East. Hyderabad on its international traffic was more skewed towards the Middle East, and that had an impact on Hyderabad. The international side has recovered completely. We should start seeing better growth on the international side in Hyderabad in the second half. There are also more connectivity to Europe from Hyderabad, so we should see better traction on the international side.
However, on the domestic side, on the route rationalization by IndiGo, that will have some remaining effect from the first half continuing in the second half, which we believe that next year, that should also be behind us.
Okay. Thank you, sir.
Thank you. The next question is from the line of Samay Sabnis from Helios Capital. Please go ahead.
Yeah. Thanks for the opportunity. I just have one question from my side. So this Delhi Car Park used to be operated from a 100% subsidiary, and now the stake in that subsidiary has been reduced to 50.1%. Could you just give the reasons for that?
Delhi Car Park Company, 49% is held by DIAL and 51% is held by GAL. It is a subsidiary of GAL with 51%, but holding 100% through DIAL.
Right. But if I am right, I mean, the previous quarter, your stake was 100% in this subsidiary, right? Not 50.1%.
No, this is the same. 50.1% held by the GAL, 49.9% held by the DIAL. This is the stance. It is always there, but at GAL level, it will become automatically 100% because through DIAL, I am holding the 49.9%.
From a GMR Group perspective, it is 100% holding. The 100% holding is broken into GAL 51% and Delhi Airport 49%.
Simple. Okay. Yeah. Thank you.
Thank you. The next question is from the line of Aditya Mongia from Kotak Securities. Please go ahead.
Hey, thanks for the opportunity again. Just a first question on somewhat of a comparison of non-aero per pax at a portfolio level between yourself and your key peers. There is still a difference of about INR 300 or so, you being at about INR 770. Now, I understand some aspects are already specific to companies that cannot be replicated. But are there things that you think can be implemented? Let's say the app that the peer uses is giving quite good gain. Just your sense on what additional can be done by GMR to prop up the numbers from INR 770 to higher levels of, let's say, INR 1,000.
Aditya,
First of all, our competitors, their numbers, we will not be able to comment on that, how they are working it out and what are the basic basis for that. We can talk about our numbers. As you would have seen, a very healthy growth in our non-aero YPP on a global basis, I think, which is like 772 we are talking about for this period. Coming to your question on what all we are doing, yes, the digital market space is definitely an area. We have our own app, which is in fact now seeing attraction. We have taken some targets for us to how much of digital sales has to come from that app. We are taking steps on that. We have expanded our own duty-free area. We are looking at how do we redo some of the spaces available in T3I.
All that is going to be part of our exponential non-aero YPP or income growth, what we are looking at. I can only tell you more at this stage, this is what we are looking at. Comparison with the peer, we will not be able to say anything at this stage.
Completely take that point. Just also on this aspect, wanted to get a sense of, if we can think through what is the variance inside 770 or YPP of consumers that are not passengers, but are visitors to the airport. Is that a number that you track, and is it starting to become meaningful? Where can it land up over time?
Yeah. Aditya, what you are saying is the right strategy. When we talk about this spend, it has got two components. One is the penetration, and second is the ATV, or what we call the Average Ticket Value. Our strategy of growing non-aero revenue is also focusing on penetration. That is what will lead to the kind of growth we are targeting. When we say 15%-17% of our non-aero revenue growth is also hinging on that penetration strategy.
Okay. I was just trying to get also a sense that consumers who are not passengers but visitors, let's say, those who have come to receive, is that inside your YPP number starting to become material or not?
Yes. As we expand our, what we call it as the curbside area, which is for people who are not travelers but who are also coming to airport either as a meeters and greeters or otherwise. As we are expanding our, what you have seen in Hyderabad as an Aero Plaza, similarly, what we have seen in Goa, similarly, you will see now in Vizag and in Delhi going forward. Yes, definitely, that's also another important constituent of overall non-aero revenue growth.
Understood. For the two assets that have gotten added, Bhogapuram and Vizag, could you also give us the revenue and EBITDA numbers? I think what you're giving is the bottom line number so far.
One second, Aditya.
This from airport, the top line is about INR 42 crore for this quarter with the EBITDA negative about INR 4.2 crore with the loss about INR 82 crore.
For how many days?
This is for 46 days.
Okay. For Nagpur, the quarterly numbers would be?
Just one minute, I will read the Nagpur. Nagpur, the top line is about INR 42 crore, and EBITDA is INR 8.53 crore, and PAT is INR 8.06 crore.
Got that. The net effect on EBITDA was a small positive boost in this quarter.
Yeah. It is a small positive.
Thank you.
Thank you.
Thank you. That was the last question on my side. Thank you.
Thank you. The next question is from the line of Karthik Chellappa from Indus Capital Advisors Hong Kong Limited. Please go ahead.
Yeah. Thank you. Sir, just one clarification. The 100 odd crore increase in other expenses at a consolidated level this quarter, were there any one-offs, and what would explain the 100 crore increase?
These are all mainly Vizag expenditure and the Nagpur expenditure, which are group undertake.
Which means similar amounts should get reflected even in the next quarter, right? This INR 875 crore to INR 900 crore should be the normal run rate, right?
Yeah. Mostly.
Okay. Thank you, sir. That is all from my side. Thank you.
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the floor back to Mr. Saurabh Chawla for closing comments. Thank you, and over to you, sir.
Yeah, thank you. I just wanted to clarify on the EBITDA numbers, the first question that Prateek had.
The first question which was asked that there is a momentum, there is a growth on the revenue side, but EBITDA is flattish. The reason basically is if you look at Delhi and Hyderabad, the EBITDA has grown. The negative impact is mainly because of Goa and Vizag. That is the reason. And during the call, a lot of questions were covered under this head.
I just want to make it clear that this is only because of this Vizag which has been added in this quarter in our portfolio. Delhi, Hyderabad, EBITDA, in fact, you look at margins have also expanded in Q2 this year. I think the message is that both Delhi and Hyderabad, despite soft airline traffic, has really shown resilience. Margins have expanded and had the traffic also remained normal as per our expectations, the numbers would have been surely much better and there would have been much better operating leverage visibility in these two airports. The negative impact is only because of now consolidation of Bhogapuram or Vizag and some softness at the operating level at Goa. That is the broad message that I would give. On the non-aero side is something which is doing very well and the debt has peaked.
On the non-aero side also, the growth momentum, again, we would like to guide that the growth will continue to be around 15% on a secular basis, around that number. The EBITDA margins on the non-aero, consolidated non-aero should be around 20-odd percent, I would say. That is the business, that how you should look at it. Thank you. Thank you everybody for your participation in the call and thank you for your patience. Those who we could not include in the call due to paucity of time, the IR team is available to answer your questions offline through calls or through emails. Thank you everybody. Have a good day.
Thank you, sir. Thank you members of the management. On behalf of GMR Airports Limited, that concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you.