Shares of GMR Airports Ltd. increased on December 22 following a positive outlook from brokerage firm JM Financial, which initiated coverage on the stock with a buy rating. The firm projects the stock to potentially rise by 19% based on the company’s growth prospects.
JM Financial's analysts highlighted the company’s strong project pipeline of new airport developments, a healthy orderbook of aircraft deliveries, and anticipated growth in passenger traffic both domestically and internationally. The broker’s estimates include a 10% annual growth in non-aero revenue streams over FY26 to FY28 and a 19% EBITDA CAGR during this period, supported by the regulated return model that de-risks capital expenditure on airport infrastructure.
The company’s expansion of Delhi International Airport is expected to complete its final phase by FY30, which along with the consolidation of non-aero revenues, aims to enhance revenue visibility and profitability. JM Financial projects a remarkable 111% CAGR in profit after tax over FY26-28, with six out of seven analysts maintaining a buy rating on GMR Airports shares. The stock has already appreciated by 31% in 2025, trading near its 52-week high of ₹110, currently at ₹103.1.
