GMR Airports Ltd (NSE: GMRAIRPORT) Q1 2026 Earnings Call dated Jul. 30, 2025
Corporate Participants:
Unidentified Speaker
Saurabh Chawla — Executive Director, Finance and Strategy.
Analysts:
Unidentified Participant
Mohit — Analyst
Nirav Shah — Analyst
Kartik Chilappa — Analyst
Kasi Dit — Analyst
Nidhi Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to GMR Airports Limited. Formerly GMR Airports Infrastructure Limited conference call to discuss Q1FY26 result. 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 this conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this call is being recorded. We have with us today Mr. Sourabh Chawla, Executive Director, 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 risk and uncertainties.
Also, recording or transcribing of this call without prior permission of the management is strictly prohibited. With this, I now hand the conference over to to Mr. Sourav Chawla for opening remarks. Thank you. And over to you, sir.
Saurabh Chawla — Executive Director, Finance and Strategy.
Thank you and good evening everyone. Actually. Good afternoon everyone. I welcome our shareholders, analysts and other stakeholders to our quarter one fiscal 26 earnings call. Despite global disruptions, the demand for air travel remains resilient and is accelerating. Over the past decade, the real cost of flying has dropped by 40. Hello.
operator
Sorry sir.
Saurabh Chawla — Executive Director, Finance and Strategy.
You are able to hear me?
operator
Yes, sir,
Saurabh Chawla — Executive Director, Finance and Strategy.
we are not able to hear them.
operator
No, no, I am able to hear you but I don’t. I’m not able to hear them.
Saurabh Chawla — Executive Director, Finance and Strategy.
That’s what I. I think they got lost. They got disconnected. Just check up again. Hello.
operator
Hello.
Saurabh Chawla — Executive Director, Finance and Strategy.
No, I am not able to hear them.
operator
Yes, same sir,
Saurabh Chawla — Executive Director, Finance and Strategy.
but you are the mc. No.
operator
I am checking sir. Just give me a moment. Ladies and gentlemen, the line for the management has been disconnected. I request you to stay connected while we rejoin them.
Saurabh Chawla — Executive Director, Finance and Strategy.
Hello.
operator
Hello.
Unidentified Speaker
Sir, now we are able to hear you.
Saurabh Chawla — Executive Director, Finance and Strategy.
Okay, shall I go ahead?
Unidentified Speaker
You start. I think you have to start afresh, sir. Because we did not hear you. Anything.
Saurabh Chawla — Executive Director, Finance and Strategy.
From. Right from the start itself.
Unidentified Speaker
Yes.
Saurabh Chawla — Executive Director, Finance and Strategy.
Okay.
Unidentified Speaker
You said good afternoon. That’s very useful.
Saurabh Chawla — Executive Director, Finance and Strategy.
Okay. Good afternoon everybody. Welcome to our shareholders, analysts and other stakeholders for our quarter one fiscal 26 earnings call. Despite global disruptions, the demand for air travel remains resilient and accelerating. Over the past decade, the real cost of flying has dropped from by about 40% as per sources in IATA. Making air travel more accessible to millions. Even amid rising operational costs and taxes. The challenge today lies not in demand but in supply. Aircraft production delays have constrained fleet expansions. As Air India’s CEO noted, available capacity has been nearly exhausted. Indigo’s recent MoU with Airbus for 30 additional Airbus 350 with options for 40 more signals strong long haul ambitions Encouragingly, Airbus is now seeing initial signs of stabilization in its supply chain and aims to ramp up Airbus 320 production to 75 aircrafts per month by 2027, up from a current 60.
For us as airport operators, this translates into sustained traffic growth, increased route connectivity and greater infrastructure demand. We are strategically positioned to capitalize on this momentum with investments already undertaken in capacity expansion, digitization and passenger experience. In conclusion, despite short term disruptions, the long term fundamentals of air travel in India remain exceptionally strong. We are confident in the sector’s trajectory and committed to delivering value through operational excellence and strategic foresight. On that note, let me delve in our quarter one fiscal 26 performance momentum in total income continued with quarter one 26 at 32.2 billion INR up 33% year on year driven by growth in revenues across all business segments, especially due to the revised tariffs at Delhi Airport which have been effective from mid April.
This has translated into an EBITDA growth of 26% year on year to INR 12.8 billion. EBITDA margin for the quarter was stable at 51% in quarter one despite a forex loss hit of INR 1.4 billion in quarter one 26 as the Euro INR rate reached 100 in June from 92 in March which led to a non cash mark to market impact. On our profit and loss statement at this stage I would like to highlight that this is a notional loss as the FCCB strike price is at 4350 and no holder will ask for redemption given that the instrument is deep into money given the current stock price.
Hence logically it should be treated as equity and not debt due to the country’s accounting standards, we still recognize it as debt in our books. It may also be noted that once these FCCBs convert into equity all these provisionings will be written back as one time profits. This aspect must be taken into account for financial performance. Loss from continuing operations for the quarter was INR 1.4 billion versus loss of INR 3.4 billion in quarter one. But for the forex hit GAL would have been at near break even point at the at the profit. At the pat level, consolidated net debt excluding FCB’s of INR 26.2 billion which are deep into money stood at INR 325 billion increasing by INR 14 billion versus quarter four fiscal 25 gal had raised INR 15 billion in the form of three year non convertible bonds in quarter four fiscal 25 mainly for financing the purchase of Fraport’s 10% stake in Dial, of which the balance INR 4 billion was received.
During quarter one. Net debt at Bhogapuram increased at INR 3.2 billion which is going towards the greenfield project construction costs. Net debt also increased by INR 2.6 billion due to the impact of consolidation of ESR GMR Logistics Park Private Limited which is now a wholly owned subsidiary post the acquisition. On the operational front, traffic growth at GAL operated airports continues with the total traffic up 4% year on year in quarter one reaching 30.1 million passengers and this excludes Cebu because we have already sold our equity in Cebu. Hyderabad airport handled the highest ever quarterly traffic of 8.1 million passengers in quarter one despite the temporary disruption of traffic in Delhi due to the India park and Israel Iran conflicts.
Total income at Delhi airport rose 37% year on year to INR 17.7 billion. While growth in non Aero and CBT income was healthy, the primary driver for the sharp increase in total income was the AERO revenues which rose 127% year on year as the revised tariffs were implemented from mid April onwards. As a result, quarterly EBITDA reported was the highest in four years increasing 62% year on year to INR 6.3 billion. With this the airport has begun its journey towards profitability. At Hyderabad total income was INR 6.2 billion up 8% year on year. With traffic driving its growth, EBITDA was up 8% year on year to 3.9 billion billion rupees.
This is the highest quarterly EBITDA on record for Hyderabad airport and the airport has continued to be PAT positive. MOPA which is the Goa airport reported a total income of INR 1024 million up 8% year on year. The airport continues to report a positive EBITDA with quarter one at quarter one 26 EBITDA number of 232 million rupees. Despite the impact of revenue share, notable achievements during the quarter are non aero revenue at all our airports was strong in the quarter Combined non Aero revenues at Delhi, Hyderabad and Goa airports rose 15% year on year in quarter one.
Duty free SPP at Delhi increased to INR 1033 in quarter one up from 1019 in quarter one 25 fiscal 25 while at Hyderabad SPP was INR 769 in quarter one fiscal 26 up from 715 in quarter one fiscal 25. Earlier during the month the TDSAT which is the Telecom Dispute Settlement and Appellate Tribunal quashed and set aside the calculation of HRAP which is hypothetical RAP by AIRA Airport Economic Regulatory Authority of India for Delhi Airport, TDSAT has not directed AIRA to include both aeronautical as well as non aeronautical revenues and cost for fiscal year 20082009 while arriving at the calculation of HRAP and has given it 12 weeks to complete the revised calculation.
This 12 weeks starts from 1st July onwards. This sets the stage for DIAL or Delhi Airport to claim under recovery in Aero revenue since control period one and we have a highly high degree of confidence of obtaining and getting this implemented. Hyderabad airport declared a second dividend of INR 2.5 per share for fiscal 25 taking the total dividend for fiscal 25 to INR 10 per share or INR 3.8 billion rupees of which Gyal’s share amount amounts to INR 2.8 billion. Moving forward in its strategy towards consolidation of stakes and existing assets, Hyderabad Airport concluded the share purchase agreement to acquire 70% stake in the ESR GMR Logistics Park Private Limited from other shareholders at a consideration of INR 413 million.
With this transaction, EGL PPL has now become a wholly owned subsidiary of Hyderabad Airport. This transaction is highly value accretive to gal with IRRs expected to be in high teens while the cost of debt is in single digits. This acquisition will further strengthen airport based industrial and warehousing portfolio. Progress on developing the airport adjacency business is gathering pace. We are steadfast in our long term strategy of converting GAL into a consumer business with the underpinnings of a utility company. GAL has recently completed the takeover of Delhi duty free concession and will also take over the operations of duty free at Hyderabad airport in quarter two fiscal 26.
As per our earlier guidance, as you know, GAL has been granted a concession to operate, maintain and manage the existing cargo terminal at Delhi Airport on similar terms to ensure continuity of operations post termination of security clearance of one of the cargo operating companies resulting in the cancellation of the concession. GAL financials are already started reflecting the upsides from these transactions as Cargo was operated by GAL for one and a half months and has started operating daily duty free from 28th of July. Construction on multiple airport land development projects is underway at all airports. Delhi Airport signed an agreement with Hilton Hotels and Resort for development of hotels under the Waldorf brand and Hilton brands.
Waldorf is 150 room and Hilton is 350 room projects at Hyderabad. An operator agreement has been signed with IHCL for a 170 key hotel project under the TAJ Vevanta brand construction is steadily progressing on all airports on multiple projects, details of which are available in our results presentation. Credit rating of GAL the listed entity was upgraded recently by Crisil which assigned a stable rating for the proposed 6000 or 60 billion INR non convertible debentures to be issued by GAL. CARE also upgraded the rating of GALs Rupeedin denominated rated and listed NCDs to CARE A from CARE BBB.
As we have been alluding to in the past, this was an expected event given our strategy and outlook for the listco which is GMR Airports Ltd. Additionally, India ratings and Research upgraded Delhi Airport’s debt instruments to AA from AA minus with stable Outlook. MRO operations at Hyderabad Airport signed a three year agreement with the CASA Air for base maintenance and support for its business for its Boeing 737 Max fleet. The current fleet size is about 30 aircrafts. Work on the new airport construction is steadily progressing. At Bhogapuram, 80% of the physical construction has been achieved as of June 25 while at Crete 54% has been achieved.
Airports operated by GMR continue to receive multiple awards and recognitions globally showcasing how we consistently improve our services while adapting to changes as we expand our airport operations. We remain deeply committed to the ESG principles. Sustainability, inclusivity and strong governance are integral to our to how we design, build and manage our businesses and infrastructure. GAL witnessed significant improvement in ESG ratings across both Standard and Poor’s, corporate sustainability assessments and sustaining like Susten Analytics, ESG risk ratings driven by focused ESG initiatives, enhanced transparency and public disclosures. More details are available in our IR presentation. 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 for queries that will be addressed by my colleagues from corporate and business teams. Thank you so much.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Mohit from ICICI securities. Please go ahead.
Mohit
Yeah, good afternoon and thanks for the opportunity. My first question on the hypothetical Rabbit. Of course you received a very positive order from Supreme Court and the TDS Act. My question is once let’s say this value gets crystallized, right. Do you think this will get implemented in near time or do you think this will get implemented the next control period?
Saurabh Chawla
Okay, shall I answer?
Unidentified Speaker
Yeah, just one second. Maybe I’ll take this. So honestly speaking, you know as a. Commercial organization we would like it to be implemented immediately. But there is a process of law and there is a regulator. So really actually we can’t guide you as to when it will get implemented. At first stage I think the ERA has to compute the numbers and represent it back to the Supreme Court and the process will go from there on. Jia Kegaru, you can add nouns.
Saurabh Chawla
Yes sir. I think the TD said order is very clear that the HR has to be recomputed and whatever the earlier computation done by the ERA has been quashed. So the order says that in 12 weeks they have to compute and implement it. But as you know that law takes its own course. That ERA has got an opportunity that they can appeal. So it. It will be very difficult to say that it will be implemented immediately.
Mohit
Understood. My second question Is on the 142 crore of loss which has been booked in the towards the foreign exchange. Is this entire thing is linked to the MTM impact on cct, is that understanding? Right.
Saurabh Chawla
So it is the forex loss which is booked on an MTM basis on the FCCB interest. You know. So now that instrument itself is well into money and that’s what I had highlighted in my opening remarks. There is no possibility of that being treated as debt. It is. Most of the analysts of course treat it as equity anyways. And even in our presentation on our debt we exclude the FCCBs over there. So it is purely following the accounting standards of the country. And we expect that once these are converted into equity all these notional provisionings that are being done on a quarterly basis will all be written back as profits. As exceptional profits at the time of that conversion.
Mohit
Understood. My question was that 142 crore what is booked entirely is linked to CCD. Is that understanding right?
Saurabh Chawla
Correct. Correct. Correct.
Mohit
My third question is how the Delhi duty free grown in Q1 FY26 compared to life compared to last year. Do you think there was underinvestment in the asset because of transition?
Saurabh Chawla
I’ll ask Rajesh to respond to this.
Unidentified Speaker
So Mohit, this daily duty free transition is only happening now 27th of July. So the first quarter was purely as is business as usual. So that’s the no impact of the transition over there. In terms of its growth in the duty free revenue the overall revenue grew by almost 7%. Or just give me a second, I’ll just pull out the non arrow revenue has for duty free has gone by about 4%.
Mohit
Understood. Sir, my question was it was under investment in the recent past because of transition. Because there was. No, because of. Because you taking over. The other guy was not interested in investing in the asset.
Unidentified Speaker
No. So you know primarily there are two things which are there for running the business is the shop, the way you know you do the fit out in the shop and the inventory. So the business was being run because we were also a joint venture partner in that. So there was no such thing where we had cut on the investments requirement over there. So no impact because of. Because of that.
Mohit
Understood? Understood. Thank you. And all the best, sir. Thank you.
operator
Thank you. The next question comes from the line of Nirav Shah from GC Holdings. Please go ahead.
Nirav Shah
Yeah. Good afternoon sir. And congrats on solid state of performance. So few questions. Firstly on our Hyderabad Cargo and MRO business. Last full year we did an EBITDA of 275 crores. And this quarter itself we did around 98 crores. Now you’ve mentioned in your opening remarks about three year contract with Akasa. But from here on what kind of kind of quarterly rent rate can we expect? Because it’s a pretty strong number that we have reported at this segment.
Saurabh Chawla
So Nirav, I’ll of course ask Rajesh to respond. But we really don’t give guidances on any future outlook. All that we can say is that it is a robust business. And with increasing aircraft coming into the country the outlook is very positive on the MRO business of ours. But Rajesh, I’ll leave it to you. To talk more about it.
Unidentified Speaker
Sourabh, you already covered it. Well. So in terms of the MRO business per se, in terms of its growth potential. Sourabh has already talked about this. The kind of order book we have in terms of maintenance and the order book, what airlines have placed. So it’s on a real good growth trajectory and we leave it there without giving any guidance on the numbers going forward.
Nirav Shah
Okay, but just the utilization for assets over there. I mean the area was it the optimum or there is still room to grow.
Saurabh Chawla
So there is some room to grow. We are also looking at the expansion of the capacity that’s again need based depending upon the order book what we’ll have. But yes, as you know it doesn’t require a very significant investment in terms of hangers and all that. But yeah we are evaluating the possible options of expansion.
Nirav Shah
Got it. Second question is on our Delhi duty free. I mean in last call we did mention that from this year onwards the margins should be somewhere around 17% range and we’ve reported around 14%. So is it something like this just seasonality or we should revert to 17% on an annualized basis.
Saurabh Chawla
Yeah. We are still targeting our margins in the range of 17% and it could be some impact of seasonality here. Plus as we will go we also looking at some efficiency coming in in our procurement processes. So that will further add to our margins.
Nirav Shah
Lastly on the proposed, I mean this 6000 crore of non convertible bond that will be used to refinance the Holdco debt. Am I correct?
Saurabh Chawla
Yes Nirav, you’re correct.
Nirav Shah
So what is the current blended interest cost or what is the savings that we can expect once this process is completed and by when will we reach this convertible bond? What’s the plan over there?
Saurabh Chawla
JRK Garu, you want to come in here?
Unidentified Speaker
Yes. The blended cost currently is around 14%. And we are looking for for a substantial reduction in the interest cost. Number two, we are trying to speak and we have been discussing with the bankers and everybody. We are trying to complete the transaction by second week or third week of August.
Nirav Shah
Got it. Great. Great. That’s really heartening and thank you sir. All the best.
operator
Thank you. The next question comes from the line of Kartik Chilappa from Indus Capital Advisors. Please go ahead.
Kartik Chilappa
Thank you for the opportunity. Sir, I have three questions. The first one is if I were to look at Delhi airport this quarter. If I exclude the exceptional Item of about 91 crore of gain there is still a loss of about 42 crore. Although it is down significantly year on year. Now assuming that given that the aero tariff change is already in if we were to see a traffic revival in the remaining quarters can we reasonably assume that Delhi airport will be churning out a profit?
Saurabh Chawla
Yes Karthik. Yes Karthik. You can reasonably assume that. GRK please go ahead.
Unidentified Speaker
Yes sir. I think in the first quarter the tariffs have been implemented only from the 16th of April onwards. That too only for the tickets sold from 16th only the we have got the revised tariffs. So as Sourabh has rightly pointed out in the second quarter we can reasonably assume that we should be making green or profit in second quarter.
Kartik Chilappa
Okay. Excellent. My second question sir is if I were to look at Hyderabad airport. I mean this quarter the non aero revenues are grew more or less in line with the passenger traffic which means the non arrow revenue per packs was very very soft. And this is a trend which we have seen I think in the last few quarters as well. What do you think is the hindrance to actually getting a non arrow revenue per PACS growth? I think we were targeting at least about 5 to 6% in the past. But this seems to be softer than that.
Saurabh Chawla
Rajesh, please go ahead.
Unidentified Speaker
So see when you look at the non arrow revenues it has got two components. One is commercial revenue and then there are certain fixed revenues in nature. So non narrow commercial revenues have grown by almost 23% as against a PACS growth of 17% which means the SPP growth is about 6%. So when you combine their rentals and other things which are in the fixed nature, that is where it looks like that these have not grown in line with the traffic growth or maybe only in line with the traffic growth.
Saurabh Chawla
Just one second. Also you have to look at the mix of the growth. There is more growth on the domestic side. When we look at the weighted average growth of 17% the domestic growth is about 19% whereas the international is slightly lower. So this mix also plays a role. In the SPP growth which should reverse as we move forward.
Kartik Chilappa
Okay, so the way I should understand it is just keeping aside the domestic versus international. If I look at non arrow, the non commercial revenues grew faster than the commercial this quarter. So that is why to be a bit low. Is that how.
Unidentified Speaker
No, no, it’s the other way. What I was clarifying, the non narrow commercial revenues have grown at about 23% as against the pack growth of 17%. Okay then there are certain like rentals, those are in the fixed nature. Those will like you know, will go at the rate of 4 to 5% or 7% kind of thing. So that’s when you take a mix of these two, overall non error revenue will look like they are at par with the traffic growth. But if you segregate the commercial revenues which are directly linked to packs is what has grown at a pace faster than the traffic growth.
Saurabh Chawla
In nutshell the spend by the passengers are significantly higher. You know from a passenger throughput perspective.
Unidentified Speaker
Yeah.
Kartik Chilappa
That’S correct. My last question sir is if I were to look at our cash and cash equivalents, fourth quarter of last year we were at about 38 billion and now today at about 34. So I presume that has been, I mean the free cash flow generation hasn’t been there yet. So with the expectation of Delhi airport turning a profit next quarter and Hyderabad growing at the rate that it is. And with most of the Capex already done can we expect that this year we should be able to generate free cash flow at a consolidated level.
Saurabh Chawla
So I mean we still have to complete our investment in Capex for the Bhogapuram airport. And also there is a possibility, high degree of possibility of us taking over Nagpur. I think we need to put that into play. But for the existing assets that we have right now, your outlook is correct.
Kartik Chilappa
Excellent. Okay, that’s all from my side. Wish you and the team all the very best for the remainder of the year. Sir. Thank you.
Saurabh Chawla
Thank you.
operator
Thank you. The next question comes from the line of Kasi Dit from Citigroup. Please go ahead.
Kasi Dit
Hi. Congratulations management. Just two questions from me and apology for my newness to the market. Number one on Delhi potential under recoupment. Right. What I’m seeing now is the wrapped size of Delhi airport is about 140 billion rupee. What would be the amount of the under recruitment that can be recognized either immediately or in the next RP period. That’s questions number one and questions number two. Please help me understand what’s the upside from taking back beautifully operation at Delhi and Hyderabad. Like how could you make it better and drive spending for example and profitability. Thank you very much.
Saurabh Chawla
So I’ll allow Rajesh to first answer on the duty free side of it and then you can pick up on the. On the rab. Yeah.
Unidentified Speaker
See on the duty free side as I mentioned in one of the earlier questions which were asked as we are now getting into a platform play with consolidation of Delhi, Hyderabad, Kannur and Bogapuram and Goa, you know we will. This will also bring in the good amount of efficiency in our procurement processes which will be further adding to the overall profitability and value creation in our duty free business. That’s one. Secondly, even in terms of certain marketing and sales activities being driven through a platform now should also add to the overall value. So these are the two clear advantages which will.
Which will start coming in from the next quarter onwards as we consolidate these businesses under one umbrella.
Saurabh Chawla
So regarding the dial, if I understand your question, the additional rap which has gone into the tariff determination, that is what you are asking for.
Kasi Dit
That is correct. My understanding with the court case this bill is done. Delhi and Mumbai have potentially under recouped your investment since let’s say about a decade ago. Right. I’m trying to estimate what would be the potential upside to the rap size that can be added back. Thank you.
Unidentified Speaker
No, this is basing on the TD side judgment that you are referring to.
Kasi Dit
Yeah.
Saurabh Chawla
Yes, that’s what he’s referring.
Unidentified Speaker
As far as the TD said judgment is concerned. Of course the the originally the H RAF has already been added to the to the our RAB by the regulator which has now been revised by the TDSAT saying that that is not the right amount. So they have asked us to re compute by the regulator and then add back to the ramp. So that working has to be done by the regulator where a period of next 12 weeks and then they will have to do it. And also they have a right to appeal to the Supreme Court.
So we are still waiting for the final numbers to be computed by the regulator.
Kasi Dit
Any guidance of what will be the rough. The rough size that you can add on top. Thank you.
Saurabh Chawla
It will be very difficult to see the numbers because it is both airports different and the existing they have added originally about 470crore rupees was there in first control period. They’ve added for HRAF it should go up substantially. That is what our guess.
Kasi Dit
Got it. That’s very clear. Thank you. Just last question. On duty free, right. I just looked through the available resources and if my understanding is correct the duty free operation at Delhi previously the company has been bought by Adani. Is that correct? And by taking back the operation that should help bringing back the in house customer database for example to be kept within gmr. Would that be a fair comment? Thank you.
Unidentified Speaker
No. So first of all the existing concession was not being run by Adani or bought by Adani. It was a concession which was being run by a joint venture consisting of Arianta Delhi Airport and GMR Airports. That concession came to an end on 27th of July. That’s where GMR Airports got this concession through a competitive bidding and have started operating it as a wholly owned business of GMR Airports.
Kasi Dit
Got it. That’s very clear.
Saurabh Chawla
Thank you. Just I want to come back on the H RA All I can say is that the option value has just got crystallized. I don’t want to put out my number because that will be shooting myself in my own feet. Right. Let the regulator come out with a number and then we’ll see how it works out from there.
Kasi Dit
Okay. All the best. Looking forward. Thank you.
Saurabh Chawla
Thank you so much.
operator
Thank you. Before we proceed to the next participants, a reminder to all participants. You may press star and one to ask a question. Thank you. The next question comes from the line of Nirav Shah from GC Holdings. Please go ahead.
Nirav Shah
Yeah, so just. Just one follow up sir. At in dial financials Delhi Airport financials. If I look at our incremental revenues on a sequential basis it is somewhere around 140 crores. This is post revenue share excluding other income. And if I look at the incremental operating profit again without other income, it’s around 160 crores. So our incremental EBITDA is actually 10% of our incremental revenues. Though I believe that we benefited from implementation of CP4. Any particular reason you would like to throw? I mean share some clarity on this.
Saurabh Chawla
Amit, why don’t you answer this please.
Unidentified Speaker
If you look at your delta between the thing, you have to also look at the expenditure. There is a reduction in the expenditure which is there between Q4 and Q1 this year. So if you adjust for that the numbers will make more logical sense. So it’s not only revenue which you. Have to look at, you have to look at the expenditure.
Nirav Shah
So once you take the full benefit of that additional 15 to 30 days of YPP in Q2, you will get a normalized margins which should be upwards of this. So that’s a sustainable number.
Unidentified Speaker
Yes, perfectly.
Nirav Shah
Great. Great. Thanks. That’s from my side.
operator
Thank you. The next question comes from the line of Nidisha from ICICI securities. Please go ahead.
Nidhi Shah
Thank you for taking my question. So my first question is why has the CDC revenue decline QQ for Delhi for this quarter.
Saurabh Chawla
In case of this. Cpd. Okay, sorry, sorry.
Unidentified Speaker
The last quarter we have booked the India’s lease accounting which has been done for one of the assets which has now come in operational and which was almost about 120 crore. 180 crore rupees has been accounted for in the last quarter. Whereas this. That is for the entire period of about 1 and a half year. Entire amount has been accounted in the last quarter. Quarter. Whereas this quarter it is only for. One quarter amount has been. Between the last quarter and this pattern. Keep it down.
Nidhi Shah
All right. And is there any advantage to. So my second question would be is there any advantage to the Delhi airport moving from. I. Sorry, the Delhi duty free moving to gal. And. Or is it that we’re just consolidating access.
Unidentified Speaker
Daily duty free. Earlier was more like over 67% held by GMR. 33% was with the joint venture partner. Now it becomes a hundred % owned by GMR Airports. So naturally the 33% to the portion which was earlier going to a joint venture partner will fully flow to gmr.
Nidhi Shah
All right, some questions on the Delhi duty. So basically now that we see that traffic at Delhi airport is growing moderately where are they expecting the growth in Delhi duty revenues and EBITDA to come from? That’s the first thing on Delhi duty. The second thing is that currently what is the rental that Delhi duty free is paying to dial under the new concession?
Saurabh Chawla
Yeah. So let me first take up the first point on the traffic. The traffic during this quarter. You know, as all of us know there has been geopolitical issues in the first quarter of this year. So that has impacted the traffic and more so the international traffic during this period. And we with the geopolitical issues getting resolved, we expect the traffic growth to come back. That’s point number one. And accordingly, you know, and with the international traffic directly linked to that, so duty free, the sales and growth of that will be, will get aligned to the growth in the traffic that’s on the duty free.
How that is duty free revenue and growth will look like as we go along the rentals, which we call it as a concession fee. In the current concession versus the new concession, there is no significant increase. It’s more or less in the range of what it used to be in the old concession. So this being the percentage number is being sensitive, commercially sensitive in nature. So I’m not sharing that with you. But in terms of the rentals, it is more or less the same as. It used to be earlier.
Nidhi Shah
Lastly, on dial we are seeing an exceptional amount of about 90 crores. So what is that exactly?
Saurabh Chawla
Yeah, sure. Okay, go ahead. Drk.
Unidentified Speaker
It consists of two components. Basically number one is the daily duty free has bought back the 25% of its equity. So basing on that, the dial has also surrendered its 25% stake in the, I mean in the daily duty free. And they have got a capital gain of about 53 crore rupees, which is an exceptional item. Number two, earlier they have made a provision for one of our joint ventures, Julie Holi, and now it is no more required. So to the extent about 37,38 crore rupees has been reversed, both put together is about 91 crore rupees is the exceptional item.
Nidhi Shah
All right, thank you so much. Those were my questions.
operator
Thank you. Ladies and gentlemen, we’ll take this as the last question for today. I would now like to hand the conference over to the management for closing comments.
Saurabh Chawla
Thank you. Thank you everybody for joining this call. And the teams are of course available offline or through email to answer any of your queries and further details. Appreciate your participation today. Thank you so much.
operator
Thank you. On behalf of GMR Airports Limited that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.