Synopsis:
GMR Airports surged 5% after Jefferies raised its target price to Rs. 115, citing a strong 74% YoY EBITDA jump driven by tariff hikes, higher non-aero revenues, and expanding platform businesses, with traffic expected to recover ahead.
This company operates across multiple infrastructure segments, including airport development, power generation, coal mining, highway projects, SEZ development, and EPC construction services is now in the focus after Jefferies raised its target to Rs. 115 per share.
With market capitalization of Rs. 1,08,271 cr, the shares of GMR Airports Ltd are currently trading at Rs. 102 per share, increasing 5% in today’s market session making a high of Rs. 102.75, from its previous close of Rs. 97.70 per share. GQG Partners hold a 4.59% stake in the company.
Jefferies on GMR
Jefferies has raised its target price for GMR Airport to Rs. 115 from Rs. 108, which is 18% upside from the previous close, reflecting a positive outlook on the company’s performance and future prospects.
One of the key drivers for this upgrade is a strong EBITDA growth of 74% year-on-year, achieved despite lower passenger traffic. This growth comes primarily from tariff hikes, robust non-aero revenue, and the successful expansion of adjacent businesses.
The company is benefiting significantly from the implementation of new tariffs at Delhi Airport (DIAL), alongside increased aircraft parking charges, which have contributed to stronger aero yields. Non-aero revenues have also seen healthy growth, rising by 13% year-on-year, largely supported by higher passenger spending across Delhi, Hyderabad, and Goa airports.
GMR’s strategy of expanding platform businesses such as duty-free operations, cargo services, car parks, and other consumer verticals is helping deliver incremental earnings.
Regarding future prospects, Jefferies expects airport traffic to rebound in the second half of the fiscal year, once ongoing runway upgrades are completed and airline capacity is restored. Taking these factors into consideration, Jefferies has raised its EBITDA estimates for FY26–28 by 3–7%, citing an improved profitability outlook.
About the company
GMR Airports Ltd is the airport-business arm of the GMR Group and is among India’s largest private airport developers and operators. It manages major airports such as Delhi, Hyderabad, and the new Goa airport, and is also involved in several international airport projects. The company’s work spans airport operations, passenger services, cargo, and related commercial development, including creating aerotropolis zones around its airports.
The company reported strong year-on-year improvement in its Q2FY26 results. Sales rose to Rs. 3,670 crore from Rs. 2,495 crore, a growth of about 47%. The company also saw a major turnaround in profitability, moving from a loss of Rs. 429 crore in Q2FY25 to a profit of Rs. 35.1 crore in Q2FY26. EPS improved significantly as well, from Rs. -0.27 to Rs. -0.04, reflecting an 85% improvement.
Written by Manideep Appana
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