GMR AIRPORTS LIMITED (NSE: GMRAIRPORT) Q3 2026 Earnings Call dated Feb. 14, 2026
Corporate Participants:
Saurabh Chawla — Executive Director (Finance & Strategy)
Rajesh Arora — Chief Financial Officer and Joint Ventures and Corporate Integration
G.R.K. Babu — Chief Financial Officer and Airports, Finance and Accounts
Analysts:
Aditya Mongia — Analyst
Mohit Kumar — Analyst
Nathan Gee — Analyst
Karthik — Analyst
Kaseedit — Analyst
Priyankar — Analyst
Nidhi Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to GMR Airports Limited Conference Call to discuss Q3 FY 2026 Results. As a reminder, all participants lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded. We have with us today, Mr. Saurabh Chawla, Executive Director, Finance and Strategy.
Before we begin, I would like to state that some of the statements made in this 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 over the conference to Mr. Saurabh Chawla for opening remarks. Thank you, and over to you, sir.
Saurabh Chawla — Executive Director (Finance & Strategy)
Thank you and good morning, everyone. I welcome our shareholders, analysts, and other stakeholders to our quarter three fiscal ’26 earnings call.
Before I move into our performance and outlook, I would like to place our results in the context of the broader global and domestic aviation environment. The year to date for the aviation sector has been a testing one, with multiple events trying to disrupt the momentum seen in the air travel. Yet I’m encouraged by the efforts taken by every stakeholder, especially the employees, and the resilience seen in the passenger traffic.
Global demand remains resilient into 2026 despite supply bottlenecks, and India remains one of the aviation’s strongest structural growth markets. IATA projects airlines will deliver about $41 billion of net profit in 2026 on record load factors of 83.8%, while ACI World expects global passenger traffic to exceed 10.2 billion in 2026. Growth will be led by Asia Pacific, where IATA projects traffic growth of 7.3% year-on-year, and within Asia Pacific, China, India, and Vietnam will be the key growth markets.
The supply side is looking to be even more encouraging for 2026. Boeing estimates that aircraft deliveries to its Indian customers, including Air India Group and Akasa Air, will average two planes a month in 2026. In fact, Akasa Air has resumed hiring pilots after an 18-month pause, aiming to expand its fleet with upcoming Boeing deliveries. Similarly, this year Air India has unveiled a brand new Boeing 787 aircraft, and by the end of 2026, nearly 65% of the airline’s wide-bodied fleet and over 50% of its international services will feature modern top-of-the-line cabins as per the Air India’s chief commercial officer.
Indigo also expects delivery of nine A321XLRs in 2026, giving Indigo the advantage in the range to operate up to 8,700 kilometers, opening long-haul opportunities previously out of reach for single-aisle aircraft. Indigo aims to increase international capacity to 40% of its total capacity by fiscal ’30 from current 28%. Thai Airways is also deploying its latest Airbus 321neo aircraft to cities in India as part of its ambitious expansion plan. In a nutshell, 2026 demand is resilient, and supply is normalizing.
On that note, let me delve into our quarter three fiscal ’26 performance, which marked achievements of multiple milestones. I’m happy to share that Hyderabad Airport has again declared an interim dividend of INR7.5 per share at the recently concluded Board meeting. This translates into INR2.1 billion for GAL’s 74% stake.
Momentum in total income continued with quarter three at INR40.8 billion, up 49% year on year. These results underline the strength of our core assets and the success of tariff revisions and the growing contribution of non-aeronautical and adjacency businesses. EBITDA grew 65% year on year to INR17.9 billion, with EBITDA margins for the quarter improving to 55% in quarter three. EBITDA continues to break previous records, achieving new highs each quarter. GAL reported a profit for the quarter of INR1.7 billion versus INR2 billion in quarter three ’25. Importantly, reported PAT excluded the impact of exceptional items was INR3.6 billion for quarter three fiscal ’26 versus INR2.1 billion loss in Q3 ’25. This was the first positive and highest profit seen since the merger.
Consolidated net debt excluding FCCBs of INR27.7 billion, which are deep in the money and shall convert into equity on its due date, stood at INR345 billion, increasing by INR5 billion versus quarter two fiscal ’26. Net debt at Bhogapuram increased by INR1.8 billion. Net debt at GMR Cargo Logistics Limited, entity developing the cargo city in Delhi, increased by INR1.1 billion. GMR Logistics Parks Private Limited, Hyderabad Airport’s wholly owned subsidiary, also refinances existing debt, resulting in increase of about INR1.5 billion in net debt. More importantly, despite debt slightly increasing, our interest cost for the quarter is lower versus quarter two fiscal ’26, a trend which had been communicating as our ratings continue to improve, which enables us to refinance debt at lower costs.
On the operational front, traffic at GAL-operated airports rose 2.5% year on year in quarter three, reaching 31.9 million passengers, and this excludes the Cebu Airport in Philippines. This is the highest quarterly traffic handled on record, despite the disruptions in early December. Delhi Airport handled record quarterly traffic of 20.8 million passengers, reaffirming its position as India’s primary global gateway, and Mopa, the Goa Airport also handled a record 1.5 million passengers for the quarter.
Total income of Delhi Airport rose 41% year on year to INR20.2 billion. While growth in non-aero and CPD income was healthy, the primary driver of the sharp increase in total income was aero revenues, which rose 173% year on year, driven by the implementation of revised tariffs. As a result, quarterly EBITDA reported was the highest on record, increasing 89% year on year to INR8.2 billion. With this, the airport has reported a profit of INR2.3 billion for quarter three ’26, and even excluding exceptional gain, the PAT for the quarter remains positive.
At Hyderabad, total income was INR6.6 billion, up 8% year on year. Non-aero revenues were particularly strong, up 24% year on year. EBITDA was up 11% year on year to INR4.3 billion. Quarterly EBITDA continues to be at near record highs for the airport, and airport has also continued to be PAT positive.
Mopa Airport reported a total income of INR1,061 million, down 15% year on year, while aero revenues declined 16% year on year due to a special initiative program to attract airlines, the impact of which is already visible on the traffic, which rose 21.6% year on year, and non aero revenues, which saw a 30% year on year growth. Also, do note that during quarter three of last fiscal ’25, CPD income saw a bump as airport signed deals for the hotel, and a result CPD for quarter three fiscal ’26 cannot be compared with the last year. The airport continues to report positive EBITDA with quarter three fiscal ’26 at INR418 million.
Notable achievements during the quarter are combined aero Yield Per Pax, or YPP, in quarter three ’26 was INR430 for Delhi, Hyderabad and Mopa, and the non-aero income per pax was INR666. This includes all revenues from non-aero businesses adjusted for revenue share paid to airports, as well as non-aero revenues reported by Delhi, Hyderabad, and Mopa airports.
Progress on scaling the airport adjacency business is gathering pace. We continue to execute on our long-term vision of evolving GAL into a scaled consumer platform anchored by the reliability and discipline of a utility business. GAL financials are now truly reflecting the upsides from the takeover of duty-free operations at Delhi and Hyderabad airports. In fact, at both these airports, duty-free achieved the highest monthly sales in December ’25. Hyderabad duty-free operationalized a new departure store in January ’26, with entire operationalization in next two to three months. This will significantly enhance the departure total store area from 350 square meters to 1,200 square meters.
Moving to cargo. The Delhi cargo terminal handled the highest-ever monthly cargo tonnage in December ’25. On F&B, at Hyderabad, phase-wise openings of F&B outlets is ongoing, and all major outlets are expected to open by quarter four or end of this quarter of fiscal ’26.
Coming to refinancing and fundraising activities. During the quarter, Hyderabad Airport raised INR21 billion in the form of nonconvertible debentures and used the proceeds to refinance an existing dollar-denominated debt. The NCDs carry a coupon of 7.6% per annum and will lead to savings in interest costs of more than 150 basis points. CRISIL Ratings revised its outlook for Hyderabad Airport to positive from stable while reaffirming the rating at CRISIL AA+. GMR Cargo and Logistics Limited, a wholly owned subsidiary of GAL availed a rupee term loan facility of INR7.5 billion to enable it to meet a part of its estimated project cost towards developing the cargo city in Delhi International Airport.
Construction of multiple airport land development projects is underway at all airports, details of which are available in the results presentation. At Hyderabad, the build-to-suit MRO facility of about half a million square feet for Safran was completed and inaugurated by the Honorable Prime Minister, Sri. Narendra Modi. Work on new airport construction is steadily progressing. At Bhogapuram, 95.8% of physical progress has been achieved as of December ’25, and we aim to operationalize the airport in quarter two fiscal ’27, much ahead of our original target of December 2026.
At Crete, 65% progress has been achieved. As a responsible airport operator, GAL is deeply committed to the environmental, social, and governance principles. GAL recently published its sustainability report for fiscal ’25 and is available to be downloaded from our website. The IR presentation contains key highlights of the report, and we invite you to explore our detailed ESG progress and initiatives outlined in the report.
Our initiatives are resulted in significant improvement in ESG ratings across S&P Corporate Sustainability Assessment, or CSA, Sustain Analytics, ESG Risk Ratings, and MSCI ESG Ratings. GAL also became a member of the FTSE4Good index series. GMR-operated airports and subsidiaries continue to set new benchmarks globally, earning prestigious accolades that reflect our relentless pursuit of excellence in innovation. These milestones underscore our commitment to deliver world-class infrastructure, and enhance long-term shareholder value.
In closing, quarter three fiscal ’26 represents another important milestone of GMR Airport’s transformation into a global, diversified, future-ready, and profitable infrastructure platform. Our performance reflects the strength of our core assets, the success of our platform strategy, the dedication of our employees, and the trust of our stakeholders. 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 and offline after the call.
Now, I would like to open the forum to the queries that will be addressed by myself and my colleagues from the corporate and business teams. Thank you.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question and answer session. [Operator Instructions] The first question is from the line of Aditya Mongia from Kotak Securities. Please proceed.
Aditya Mongia
Thank you for the opportunity, and congratulations to Saurabh and the team for the last five years of goodness that have happened for GMR and going through very well. With that being said, a few questions from my side, and the first question was more linked to the uptick that is happening from a retail perspective and then a non-aero perspective in Hyderabad. Just trying to gauge it from you whether — well, new equities will keep on happening. Is there a case for this good growth rate on non-aero per Pax further succeeding in the further months of [Indecipherable]
And a related question over here, in Delhi, how do you think through the prospects of any development that could increase non-narrow from a from the perspective of FY27?
Saurabh Chawla
Aditya, I’ll ask my colleague Rajesh to answer your queries. He leads the business of non-arrow in GMR. Rajesh, go ahead.
Rajesh Arora
So, Aditya, I think your line was babbling in between, but if I understood your question right, one was on the growth in Hyderabad non-aero, and HPP, and the second was on how do we see this in Delhi.
So let me first take up Hyderabad. See as you know, we were in the process of expanding Hyderabad terminal that happened in last year. The existing part of the terminal was also the non-aero part, was undergoing a revamp. So now with the stores opening up, more area is available, like F&B, we also talked about that. So, with all that, what you see is the growth in the current quarter and the current nine months of period. So that has been the underlying reason for a good significant growth in non-aero in Hyderabad.
Delhi, as T1 has opened last year, and even within T1, all the stores are now also becoming operational. Some of our stores underwent reconcessioning, so again the result of that we’ll start seeing it in the coming quarters. For us, as we have been communicating in the past, a more sustainable growth. We look at all our non-aero businesses to grow around 15% kind of thing, which we will be targeting. Whilst there could be some uptick in between as and when the new area is open, but on a long-term basis, this is more like 15% plus long-term growth.
Aditya Mongia
Understood. The second question that I had was more on — just a clarification. Somewhere, it seems like the revenue share implied for Delhi has been a dip this quarter. Wanted to check whether there is something to read over here, or this is just a one-off, and it will reverse over time?
Saurabh Chawla
So, Aditya, G.R.K. garu will answer this question of yours.
G.R.K. Babu
Hi, Aditya. Basically, as you know, in case of Delhi, we have certain exclusions which have to be done, and during this quarter, we have done certain exclusions which are permitted under the OMDA. That is the reason why the revenue share has come up. This is as per the OMDA provision.
Saurabh Chawla
So, Aditya, from your modeling perspective, you should assume what the headline number of revenue share is. There could be some slight ups and downs that may happen because of inclusions or exclusions under the OMDA, but from purely from a malding perspective, you just continue with the 46% headline number.
Aditya Mongia
Understood. And from the perspective of the balance sheet, the debt numbers are slowly [Indecipherable] in terms of completion. Should it be a fair assumption that net debt starts declining somewhere in fiscal ’27, and then the momentum kind of decline increases starting fiscal ’28.
Saurabh Chawla
You’re absolutely correct, Aditya. Debt, I like, I think in the last quarterly call also I said that during this fiscal year, debt will peak as Bhogapuram reaches its what I call a finality from a construction perspective, and in fiscal ’27, we will see debt to start come off. It’s important to also understand that non-aero, as it grows, will continue to decrease this net debt number over a period of time, so momentum will surely come from there.
From a concession perspective, our concession agreements allow debt to continue because that allows us in our tariff determination and cost — and reduces the cost of capital. But we are in a very good spot. You can see Hyderabad as double AA+. You know, Delhi, I think in a very short period of time should go to AA to double AA-.
Rajesh Arora
AA+.
Saurabh Chawla
AA+, sorry. And GAL is something again we are watching — yeah, AA+ to AA-. I think that’s the journey we should see over the next 12 to 18 months. From a pure strategy perspective, the way we look at it in two years’ time, we would like our businesses to be all AAA, okay. And we will have the debt where we get the rating of AAA, we get the least amount of debt cost on our books, and the balance cash is something that gets upstreamed, whether to GAL as — or eventually as GAL starts to give dividend to its shareholders. That’s a very simple strategy that we are following because bulk of the hard work is already behind us.
Aditya Mongia
Maybe just a final question and I’ll return back to queue. Last point, do you think of a certain net debt to EBITDA or interest coverage, wherein dividend starts becoming a possible — a possibility for the shareholders, and any sense whether this is an FY ’28, FY ’29 time frame, or how do you think so, go to the last question. Thank you.
Saurabh Chawla
So theoretically speaking, Aditya, a number of — a multiple of 3 to 3.5 is reasonable to look at. We are a capital-intensive business, and there could be opportunities of new airports coming on board. But if in the current portfolio, the way we look at it between 3 to 3.5 net debt multiple the trigger to start upstreaming dividends will surely begin.
Aditya Mongia
Thank you so much. I’ll get back into the queue. Thank you.
Operator
Thank you, sir. The next question is from the line of Mohit Kumar from ICICI Securities. Please proceed.
Mohit Kumar
Yeah, good morning, sir, and thanks for the opportunity, and congratulations on a very good set of numbers. My first question is the traffic growth has been benign for last nine months, right? Do you think traffic was impacted also due to supply-side constraints? And can — do you have some kind of number, what is the aircraft stock right now, and what is the addition you expect in the near term? If you have the data available here, yeah.
Saurabh Chawla
Yeah. G.R.K. garu, please.
G.R.K. Babu
See, currently, the traffic has been a little flattened due to the aircraft issue, and also the Air India crash and all other issues. But it has started showing the good improvement from December onwards. So next year we’re expecting the total delivery. So, as for the discussion we had with the airlines, so Air India will be taking about almost 20 to 30 aircraft and Indigo will be about 30 to 40 aircrafts, and Akasha also will get about 10 to 12 aircrafts. So there will be a net increase even after grounding of certain aircrafts, maybe around 50 aircrafts in the next year. So that will certainly improve the traffic going forward. And the signs of improvement has already come in the month of January. We have seen a substantial growth in the traffic.
Mohit Kumar
Understood. My second question is, can you help us with the best number for Delhi duty-free so that we can have a fair comparison? Of course, the Delhi duty-free has done pretty well. Is there any one-off also in this quarter in duty free?
Saurabh Chawla
Mohit, can you just repeat your question on —
Mohit Kumar
Two part question. One is I want the base number for Delhi duty-free for Q3 and nine months. And the second question is, was there any one-off in the Delhi duty-free in this quarter?
Saurabh Chawla
Mohit, as you know, Delhi duty-free was earlier a joint venture, and that’s the structure it followed till 27th of July, and effective 27th of July midnight it has become part of GAL’s direct business. In terms of its performance, it has been a steady 6% to 8% kind of growth what we have been seeing quarter on quarter. So there is no one-off kind of thing in the initial performance of duty-free.
Rajesh Arora
And also, Mohit, on slide number 22, we have given all these details in our IR presentation, slide number 22.
Mohit Kumar
Yes, sir, I’ve seen that. But this is a base number that’s asking is there any way to compare the revenue number for duty-free last year compared to this year? Is there anywhere we have the number, otherwise.
Saurabh Chawla
No. Like mentioned, because this duty-free is transited to the listed level recently, hence, the base number is not comparable. It’s not available in the presentation. That can be shared with you.
G.R.K. Babu
Mohit, that can be shared with you offline on a comparative basis.
Mohit Kumar
Understood. First things that you’ve done is a fabulous job on the interest cost and the debt. Do you think there is a scope for further reduction in the interest rate, and the interest cost should see some kind of moderation as we go forward?
Saurabh Chawla
Absolutely, Mohit. You will see over fiscal ’27 as many of the refinancings happen both at Delhi Airport and also at GAL, you will see a reduction of interest rates as we go forward. That is a key focus of the finance team, and we are very confident that these numbers will only come down.
Operator
Understood, sir. Thank you and best of luck. Thank you. Thank you. The next question is from the line of Nathan Gee from Bank of America. Please proceed.
Nathan Gee
Thank you for the call. Maybe two questions from me. Firstly, is there any update in terms of timing of real estate asset monetization, either Delhi, or Hyderabad? So that’s the first question. Second question is on regulation. So any update either in terms of the control period, bond decision, alternatively hypothetical routes. Thank you.
Saurabh Chawla
One second, Nathan, because your line was not very clear. I’m just trying to. Can you repeat the first part of the question? Second is, I think you’re talking about the update on HR. We’ll give you that. But if you can just repeat on the first on the asset monetization, what would you like to know because you know the last — Yeah, sure. Please go ahead.
Nathan Gee
Just whether there’s any update in terms of monetization, either in terms of the self-development project at Delhi or Hyderabad. Thank you.
Saurabh Chawla
Yeah, okay. No, at this stage, you know these projects are still under development and at least for the next 12 odd months — 12 to 18 months, we are not looking at any monetization of these self-development projects. As you are aware, you get the best value when the rents have actually stabilized, so that will be more of a phenomenon, maybe 18 to 24 months down the road.
On HRAB, I think, G.R.K. garu, why don’t you give a quick update?
G.R.K. Babu
The HRAB, as you know that the matter is pending between Supreme Court — before the Supreme Court. The hearings are going on, and the next date of hearing is in the month of February. So we are just waiting for the outcome from the Supreme Court.
Nathan Gee
Thank you. Thank you very much.
Operator
Thank you. The next question is from the line of Karthik [Phonetic] from Indus Capital Advisors Limited. Please proceed.
Karthik
Yeah, thank you for the opportunity. Hope I’m audible. Congrats on the quarter. I have two questions. The first one is, I know you don’t give guidance, but I just want to get a sense of how you’re thinking about this. Let’s say this quarter our exit EBITDA is somewhere around INR18 billion. So, given that barring the Indigo disruption, most of the metrics were in a steady state, is it reasonable to infer that this INR18 billion can be some sort of a base EBITDA for us on a quarterly basis, and we should be able to grow on this as a base EBITDA? And related to that, to your comment that interest cost will continue to come down over a period of time, can we assume that a significant portion of the EBITDA growth that we generate from here on will flow through to the ultimate profit?
Saurabh Chawla
So, Karthik, you’re absolutely right on your comments over here. You can assume the INR1,800 crores of EBITDA base or exit as a base, and we expect the EBITDA to grow at a much better momentum. Of course, I would still put the disclaimer, provided all environmental and geopolitical issues remain abated. The second aspect of interest cost, as they come off, most of the EBITDA will flow down to the PBT levels. Obviously, each airport is a separate legal entity and will have it — will have to do its own tax planning. The good part is at least there are accumulated losses, which will be first set off for any tax payments. But I think in a nutshell what I would say is that it’s a takeoff stage for the business.
Karthik
Excellent. That’s great color. My last question is a minor housekeeping question. If I look at this quarter, if I take the aero revenue for Delhi airport and then divide it just by the passenger throughput of about 20.8 million, the aero revenue per Pax comes to somewhere close or slightly below INR400, which is lower than what we are entitled to under the control period.
Now I know the control period, the tariffs will grow over a period of time, and we are only looking at an average. But I’m just curious to see whether there were any aberrations this quarter which caused that number to slip below INR400. And let’s say going to FY27, we should be able to earn more or us close to what the control period tariff actually guarantee to us.
Saurabh Chawla
The question is that, as per the tariff order of the Delhi Airport, the yield per Pax is actually INR364. It is not INR400. You can look at the tariff order. So, actually, we have achieved better than the yield provided by the regulator. Actually, we have touched about INR385 to around INR400, mainly because in case of the parking charges, we have revised the rates. Because of the revision in the rate, so we have got a better income. So, going forward, you should consider the tariff provided by the regulator, 364, [Phonetic] but you can at the most assume 375 [Phonetic] as a yield per Pax.
Karthik
Got it. Okay. This is very clear. That’s all from my side. Wish the management all the very best for the remaining quarters. Thank you very much.
Saurabh Chawla
Thank you.
Operator
Thank you, sir. The next question is from the line of Kaseedit from Citigroup. Please proceed.
Kaseedit
Hi, management. Kaseedit from Citi here. Congratulations for such strong results. Just a few things. Number one on Delhi material jump in non-aero revenues. It would be great if you can share with perhaps by email, what will be the like-for-like increase in spending. It looks very encouraging.
And second point, given that the Bhogapuram should start operation around second quarter FY ’27, which is what, like, September this year. Right. What would be the incremental depreciation and interest expense that have been capitalized during construction that will kick in on an annual basis now? Thank you.
Saurabh Chawla
On non-aero, I think, Rajesh, will just give you a better color.
Rajesh Arora
So, Delhi duty-free, SPT, I think we’ve already given as part of the presentation, but just to talk about the numbers. The duty-free SPP has increased to INR1,073 from INR1,026 — I’m talking about the nine months period this year versus last year. So that’s on the duty-free side.
On SPP of a pure non-aero of commercial businesses has grown something close to about 7% plus. That is the growth in the SPP, if you’re looking for that.
G.R.K. Babu
As far as the Bhogapuram is concerned, the — it is already been clarified that 100% work is completed on the air side and 95% on the side. We are expected between the — so we are just waiting for the — certain clearances. Otherwise, we are more or less ready.
Kaseedit
Thank you. I understand that once the airport commence operation, there should be depreciation and interest expense kicks in that previously have been capitalized. Is my understanding correct? And if yes, what would be the incremental amount per year? Thank you.
Saurabh Chawla
No. Yes, you are absolutely right. For the next financial year, it will be for nine — eight to nine months operations, so to the extent interest as well as the depreciation will come into picture. If you take the average about 4% depreciation on the assets of over INR4,000 crore, about INR160 crores per annum, then three-fourth is about INR120 crores can be the depreciation. And interest cost is currently INR3,200 crores is the date around 9% for nine months, you can calculate.
Is it clear?
Kaseedit
Thank you very much. Thank you.
Operator
Thank you. The next question is from the line of Priyankar [Phonetic] from GM Financial. Please proceed.
Priyankar
Yeah. Hi. Congratulations on the great set of results. I would say. First of all, I see that you have done quite well in Goa Airport from what it has been doing, let’s say, in the past few quarters. So, can you explain whether these EBITDA margins that we see at the Goa Airport are sustainable and what has caused the other expenses level to fall off there? So that’s my first question.
Saurabh Chawla
Goa Airport, EBITDA, whatever have declared is absolutely sustainable. Actually, we are trying to improve upon it. The costs are under total control, and we are expecting that by year end, we improve on the EBITDA level.
Priyankar
So there you see further scope for EBITDA margin expansion from the 36% that you have reported, maybe in 4Q or 1Q. So would that be a correct understanding?
Saurabh Chawla
Q4, this year-end we may maintain more or less same, but next year onwards, absolutely, it will certainly go up because of the increase in the traffic and also certain incentives, everything we are under control in them.
Priyankar
Okay. Sir, if you can also share with us, like what should be the capex pipeline for the next few years? The reason why I asked this question is we have come across, let’s say, articles that eventually there would be some large Hyderabad expansion — airport expansion in the next control period. I’m sure you would have submitted your traffic assessments to ERA for the next control period discussion — taking this capex into consideration. So if you can give us some high-level guidelines, like how should we see the capex numbers, let’s say in the next — let’s say from FY26 to ’28, like for individual years?
Saurabh Chawla
As far as Hyderabad is concerned, you are right — you are absolutely right that we have applied to the regulator for an expansion, but the expenditure likely to start within only FY ’27, ’28 onwards — latter ’28, because the master plan is going on, the EPC contract has to be onboarded. It will take time, almost a year or so. So the actual expenditure will start kicking only FY ’28.
Priyankar
Sir, still can you give us a sense, like on an overall GMR basis, like what would you expect your capex levels to be like let’s say, in FY ’27 and ’28, like FY ’28 you have some talent, like the beginning capex from Hyderabad. So what should we be factoring in, like FY ’27 overall levels?
Saurabh Chawla
Honestly, as Bhogapuram is now getting completed, there is no capex that is happening of anything other than Bhogapuram, and once that is — when that goes live, there is no capex happening at any of the airports. Any significant capex will only begin in Hyderabad, where — which is like G.R.K. garu was told about is in fiscal ’28. Once the plans — the master plans are fully approved, and we have a better understanding of what the capex numbers would be.
So it is a fiscal ’28 target as of now. Nothing for the next 12 months to 18 months.
Priyankar
Sir, would it be right to say that for the large-scale expansion at Hyderabad, the cost could be anything like INR13,000 crores to INR15,000 crores, I mean, given the scale that you are planning?
Saurabh Chawla
It will be around INR12,000 crores to INR13,000 crore. It will be spent over a period of four years. This is basically we are contemplating to go for a new terminal because Hyderabad itself is already reaching 34 million, which is — current terminal is also meant for 34 million. But we will, we will try to sweat it for one or two more years, then we’ll start the expansion. The maximum capex is expected to be around INR12,000 crore to INR13,000 crore, which includes a new runway, a new terminal, and cross taxiways, and everything.
G.R.K. Babu
And just for — you know, just because you know Hyderabad just has 4% revenue share, you know the cash flows and everything else is passed through, so the margins really don’t get impacted. You start to generate free cash very quickly at Hyderabad airport, even on the expanded regulated base.
Priyankar
And sir, if I may squeeze one last question. So like as it stands today, what would be your total accumulated clauses at the console level? So, like, which you can use as a tax offset probably?
Saurabh Chawla
You’ll have to look at entity by entity. For tax purposes, Delhi will be separate, Hyderabad will be separate. You can’t — unlike in the U.S., where you can combine these accumulated losses, in India, it has to be entity by entity basis. So we can take that offline. I think the team can tell you each asset what is the accumulated loss — losses and what the tax planning would be on those specific assets.
Priyankar
Okay, sir, that’s all from my side. Thank you so much.
Saurabh Chawla
Yes, just to add one comment over here is that the tariff submission at Hyderabad, the factors in the expansion.
G.R.K. Babu
Yeah, we have already included the capex, which I’ve explained as part of our application for CP4, so we will certainly get some amount in the form of tariff even for the expansion. That’s what we are expecting.
Operator
Thank you, sir. The next question is from the line of Nidhi Shah from ICICI Securities. Please proceed.
Nidhi Shah
Yes. Thank you so much for taking my question. My first question is on asset monetization. Have you heard anything from the government, especially anything on Chennai?
Saurabh Chawla
You’re talking about Chennai greenfield? No, right now — sorry. No, no. New greenfield project in Chennai, no, nothing right now. I think the land is still being acquired, but that will be an asset that on a greenfield basis, GMR would be definitely interested in looking at very closely.
As a group, we like greenfield projects because we can pace our development on greenfield. So, Chennai greenfield project, as and when the bids come out, we will surely look at that very closely. Same would be in Pune. Again, that’s a city that desperately requires a new international airport. So we would look at also as very, very careful.
Nidhi Shah
And anything on asset monetization, especially from the airports that were named in the national monetization plan.
G.R.K. Babu
Nidhi, you would have also seen in newspaper recently these 11 airports, a combination of five plus six, the privatization process is likely to kick in, and if we go by the latest reports, they are likely to start the process in the first quarter of coming financial year. That’s the news we also have. We are waiting to get more details on that, but that’s what is there in the public domain.
Nidhi Shah
Lastly, in the result note number 11 calls out INR113 crore exceptional amount. Could you please explain this with exceptional level, sir?
Saurabh Chawla
Basically, in case of the Delhi International Limited, as you know the [Indecipherable] was the cargo contractor, and their security has been withdrawn, and this contract has been terminated. So, amount of deposit which we have taken and also the lease rentals on the land equalization, both — which are amortized over a period of the entire period has to be reversed. For the balance period, it is up to 34. [Phonetic] So first has happened. It is a non-cash item.
Nidhi Shah
All right. Thank you so much.
Operator
Thank you. [Operator Instructions] As there are no further questions from the participants, I now hand over the floor to Mr. Saurabh sir for closing comments. Over to you, sir.
Saurabh Chawla
Thank you, and thank you, everybody, for participating in our quarterly call on a Saturday morning. I appreciate your participation. From our side, the airport entity is now very well positioned to capture the growth as we go forward. All our capex plans are behind us. Even Bhogapuram more or less is not behind us, so we need to just capture the traffic, grow the aero revenues, and the most important part of course is the non-aero side of it. But last but not the least is something where from a longer-term strategy perspective how we now monetize our real estate through self-development, I think that is something that we are working on, and hopefully in next three to six months, we will be able to guide our new strategy in real estate monetizations on all our three airports, which are currently live. Last but not the least, we had guided the markets that GAL will be profitable in fiscal ’26, and we are profitable. We will continue to be profitable for the end of this year and going forward. So our strategy of medium term of GAL starting to distribute dividends is also on track.
Thank you so much, and look forward to talking to you offline. Thank you. Bye-bye.
Operator
[Operator Closing Remarks]