GMR Airports Ltd (NSE: GMRAIRPORT) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
Saurabh Chawla — Executive Director, Finance and Strategy
Unidentified Speaker
GRK Babu — Chief Financial Officer
Analysts:
Mohit Kumar — Analyst
Karthik Chellappa — Analyst
Prateek Kumar — Analyst
Dario Maglione — Analyst
Nidhi Shah — Analyst
Aditya Mongia — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to GMR Airports Limited, formerly GMR Airports Infrastructure Limited conference call to discuss Q4FY 2025 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 touchstone phone. Please note that this conference 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 involve risk 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. Sourabh Chawla for the opening remarks. Thank you. And over to you, sir.
Saurabh Chawla — Executive Director, Finance and Strategy
Thank you, Ryan. And good evening everyone. I welcome our shareholders, analysts and other stakeholders to our quarterly 4 fiscal 25 earnings call. The past few weeks have been very challenging for our entire nation and we need to be mindful of the environment as we navigate the coming quarter. Minor turbulence is part of the journey, but our view about the long term remains intact. Boeing Co. Forecasts India’s air traffic to grow over 7.9% annually through 2043. Indian and South Asian airlines will add over 2,800 commercial aircrafts to the fleet by 2043, of which 90% will come from the Indian airlines. Echoing the sentiment, Netherlands flag carrier. KLM is expanding its operations by starting flights to Hyderabad in September. Malaysian Airlines also affirmed that the Indian market has emerged as a cornerstone for Malaysia Airlines, ranking among the largest and fastest growing markets in its network, expecting a 14% growth in its passenger traffic flow to and from India in 2025. Efforts are also underway to establish India as a global transit hub. Air India’s VAS campaign aims to attract foreign travellers by offering enhanced connectivity between the uk, Europe, Australia and Southeast Asia through India, with connection times reduced to about two and a half hours. Many of these connections will be serviced by Delhi Airport which also serves as Indigo Airlines largest base with 250 daily departures. Airports operated by GMR continue to receive multiple rewards and recognitions globally showcasing how we consistently improve our services while adapting to changes. Delhi Airport, which is the ninth busiest airport in the world as per aci, was awarded the best airport in India and South Asia by Skytrax, with its global ranking improving to 32 in 2025 from 36 in 2024. Skytrax also awarded Hyderabad with the best airport staff in India and South Asia for the fourth time, with global rank improving to 56 in 2025 from 61 in 2024, while Goa airport’s rank improved to 80 from 92. Delhi and Hyderabad airports have also been winning the ACI ASQ award for the best airport in Asia Pacific with the respective passenger categories for multiple consecutive years. On that note, let me now delve into our Q4 25 performance. Momentum in total income continued with quarter four fiscal 25 at INR29.8 billion, up 16% year on year driven by traffic and growth in non euro revenues translating to an EBITDA growth of 19% year on year with INR11.2 billion. For fiscal 25 the total income was up 18% year on year to INR108 billion and EBITDA increased 22.5% year on year to INR42 billion. EBITDA margin for the quarter was 51. One percent in quarter four fiscal 25 versus 48% in quarter four 24 loss from continuing operations for the quarter was INR2.9 billion versus loss of INR2.1 billion in Q4 24 while that for fiscal year 25 was a loss of 8.2 billion almost unchanged year on year. This is despite a 27% increase in interest expenses for fiscal 25 and 30% increase in depreciation, both resulting from capitalization of expansion capex already incurred. Had the final tariff for Delhi Airport been issued by midyear, our results would have been substantially better. Looking ahead given the expected traffic increase and tariff provision, our position will only improve from here. Consolidated net debt excluding the FCCDs of INR24 billion which are deep in money stood at INR315 billion increasing by INR18 billion versus quarter three fiscal 25 gal had raised INR15 billion in the form of three year non convertible bonds primarily to purchase the 10% equity stake in Delhi Airport from Fraport, while Bhogapuram availed a subordinated debt facility of INR3.5 billion for its greenfield project which is already at an advanced stage of completion. On the operational front, Traffic continues to grow 9% year on year and 1% Q1Q growth in Q4 fiscal 25 reaching 31.5 million passengers. This is a number which excludes SEIRU. Domestic passenger traffic grew 9% year on year while international traffic grew 11% year on year in quarter 425 International passenger traffic share for the quarter was 25% Fiscal 25 Passenger traffic increased 9% year on year to 120.5 million for the group with respect to specific airports. During quarter 4 fiscal year 25, passenger traffic at Delhi rose 7.5% year on year to 20.6 million and rose 7.6% year on year to 79.3 million for the full fiscal year 25. At Hyderabad, traffic was up 21% year on year to 7.8 million. For quarter four fiscal 25 and up 18% year on year to 29.5 million for fiscal year 25. Both these airports handled the highest quarterly passengers in quarter four fiscal 25. Goa traffic for the quarter declined 5% year on year to 1.27 million passengers. Our international passengers more than doubled versus last year. For Goa in fiscal 25 traffic rose 7.77% year on year to 4.7 passengers. As new aircraft deliveries gather pace, we expect strong growth in international traffic and there is latent demand for international travel. Total income of Delhi airport rose 24% year on year to INR16.4 billion driven by traffic growth, increase in non aero income as well as income from commercial property development with EBITDA increasing 42% year on year to INR5.3 billion. At Hyderabad total income was INR5.9 billion up 7% year on year. With traffic driving this growth, EBITDA was up 9% year on year for 2 INR3.6 billion. MOPAR or Goa Airport reported a total income of INR1,201 million almost unchanged year on year as quarter four fiscal 24 had some CPD income arising from signing hotel agreements. The airport continues to report positive EBITDA in its initial years of operation with quarter four fiscal 25 at 253 million. Despite a full quarter impact of revenue share kicking in. Notable achievements during the quarter are non aero revenue at all our airports was stronger in the quarter combined. Non aero revenues at Delhi, Hyderabad and Goa airports rose 13% year on year both in quarter four and for the full fiscal year 25. Duty free SPT at Delhi increased to INR10.10 rupees in fiscal 25 from 997 rupees in fiscal 24 while Hyderabad SPP was INR727 in fiscal 25 up from 683 rupees fiscal 24. The traffic order for control period four for Delhi airport was issued by AIRA and new tariffs have been effective. From 16th April 2025. With this, the Aero yield per tax or YPP should now be close to INR360 rupees versus 145 rupees prior to the order. This also should have should drive significant improvement in Aero revenue, overall profitability and cash flow generation Delhi Airport during the current fiscal year, the share purchase agreement with FAPORT towards the acquisition of Fapport’s minority 10% equity stake in Delhi was concluded in the quarter thereby increasing GAL stake in Delhi to 74% from earlier 64%. This was done at a deep discount to what the analysts have been valuing Delhi Airport moving forward in its strategy towards consolidation of stakes and existing assets, Hyderabad Airport entered into a share purchase agreement required 70% stake in ESR GMR Logistics Park Private Limited from other shareholders at a consideration of INR413 million. The airport solely owned subsidiary GMR Hyderabad Aerotropolis Limited already holds 30% stake in EGL PPL and with this transaction EGL PPL will become a wholly owned subsidiary of the airport. Progress on developing the airport adjacency business continues. We are steadfast in long term strategy of converting GAL into a consumer business with the underpinnings of a utility company. GAL will start operating the Delhi duty free concession from July 25 and will also take over the operations of duty free at Hyderabad airport in quarter two of fiscal 26. Very recently gal has been granted the concession to operate, maintain and manage the existing cargo terminal at Delhi Airport on similar terms to ensure continuity of operations post the termination of security clearance of one of the cargo operators resulting in cancellation of that concession overnight, GAL had to take over this concession thereby ensuring seamless transition and no disruption of services to customers. Construction of multiple airport land development projects are underway at all airports as of March. At Bhogapuram, 69% of physical progress is completed and we expect the airport construction to be completed by December 2026. At Crete, 48% has been achieved with our target completion date being February of 27. Credit ratings of Delhi Airport were upgraded by Standard and Poor’s to double B from BB minus by Fitch to Double B from double B and by ICRA to AA from AA minus. The expected improvement of financials in fiscal 26 will further improve in ratings and costs. Further at Hyderabad 2, Moody’s upgraded the credit ratings from Ba1 to Ba2. At GMR, we firmly believe that integrating EHG principles is crucial for airport operators to build resilient operations, mitigate risks and secure a license to grow. With an evolving regulatory and community expectations, Delhi Airport released its Sustainability Report 2024, a comprehensive disclosure that sets a new benchmark for climate action, innovation and social impact in the Indian aviation industry. The report outlines airport’s transformation journey in embedding sustainability to the heart of its operations, making not just India India’s busiest airport but also its greenest. Key highlights of the report are Became Delhi airport became Asia’s first Level 5 carbon accredited airport in over 40 million passengers per annum category. Delhi Airport continues to operate entirely on net renewable energy. Over the last four years the airport achieved a 52% absolute reduction in carbon dioxide emissions and a 36% in carbon dioxide emissions per passenger. Infrastructure projects like Eastern Cross Taxiway and deployment of taxi bots and 22 new bridge mounted equipment have dramatically cut aircraft taxing time, fuel usage and greenhouse gas emissions. Delhi Airport is on track to become a water positive airport through the GMR Varalakshmi Foundation. Delhi Airport is actively uplifting the underprivileged communities across the National Capital region. It recently implemented a Hidden Disability Sunflower program making Indira Gandhi International Airport a Sunflower friendly airport with personalized support for persons with non visible disabilities. The report is available on Delhi Airport’s website and I would encourage you to read. The report to appreciate Delhi Airport’s initiatives and actions on the ESG front. Hyderabad airport achieved a level 5 carbon accreditation under the globally recognized Airport carbon accreditation or ACA program. Placing the airport among the top four airports in ACI, Asia Pacific and Middle east region. Goa Airport 1 Build India Infra Awards in 2025 for sustainability in civil aviation sector. Our IR presentation with all the financial numbers are already available with you. If not, you can download it from our investor relations 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 can be addressed by my colleagues from the corporate and the business teams. Thank you so much.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Good evening sir and thanks for the opportunity. My first question is. Sir, can you please explain the impact of Delhi tariff order expected on the annual revenues of the dial?
Saurabh Chawla
Mohit, we don’t give forward guidances on revenues. Obviously the new tariff order carries capital. So the new tariff order we can talk specifics on that aspect of it here. Sidhal, why don’t you.
Unidentified Speaker
Yeah. The current the tariff was 145 rupees yield per packs. Now the revised tariff which is now implemented from 16th April 2025 is 360 rupees yield per pax. That means there is an increase of 215 rupees yield per pax. So basically now that you can do the calculation if it is 80 million passengers is about 1600 rupees value go up.
Mohit Kumar
Understood, sir. My second question is on this. On a depreciation interest. Of course the interest has seen a sharpen increase. IOI and QQ. Is this 9 billion number quarterly number? Is this a number? A 9 or 10 billion number? That’s the number which you we should work with for the F26 is a 50. Fair assumption
Saurabh Chawla
Is in the interest cost and depreciation on capitalization which has been completed last year. This is on yearly basis. This will be more or less the final depreciation and interest cost.
Mohit Kumar
See the scope for reduction in the interest cost as you go forward. This number looks to be sitting right higher side.
Saurabh Chawla
So there will be some reduction in interest cost because in case of the Delhi there is one of about 80 crore rupees are charged because of the cancellation of the hedges. And that will not be there going forward. Further, since we have refinanced nearly 2500 crores in case of Delhi about 12% rate of interest to 9, 5. So there will be some more saving. So going forward there will be some reduction in case of the interest cost.
Mohit Kumar
Understood. Thank you and all the better.
Saurabh Chawla
Thank you.
Operator
Thank you. We take the next question from the line of Kartik Chalappa from Indus Capital Advisors. Please go ahead.
Karthik Chellappa
Good evening sir. Thank you very much for the opportunity. Three questions from my side. The first one is on Delhi airport. If we look at the CPD rental this quarter.
Saurabh Chawla
Can you speak? Sorry, can you come closer to the mic please? We can’t hear you very well. There’s a little disturbance also now in the.
Karthik Chellappa
How. How is this one, sir? Is this any better?
Saurabh Chawla
Yeah, this is much better. Much better. Much better.
Karthik Chellappa
Okay. Excellent. Yeah. Thank you for the opportunity. Sir, I have three questions. The first question is if I were to look at our CPD rental income for Delhi Airport against a mandate of about 200 crores for several quarters this quarter we have seen a sizable bump up to about 383 crore. What has actually driven that and what is a steady state kind of CPD rental that we can actually expect going forward?
Saurabh Chawla
Okay. This quarter one of the assets which has been leased out in case of the CPD land. Now all the CPs have been completed. Hence India’s 116 refinancing has kicked in. So we have equalized all the MMGs which has been receivable over a period of next 46 years. As a result there is a bump of about 188 to 100190 crore rupees this quarter. And going forward on yearly basis there will be an increase to the extent about 120 crore going forward.
Karthik Chellappa
Okay, so from here on the steady state should be somewhere about 3 to 3.2 billion per quarter, right?
Saurabh Chawla
No. 120 crore rupees increase going forward on yearly basis.
Karthik Chellappa
Okay. So 1 billion increase on a yearly basis. Okay. Great. Thank you. My second question sir is now the FY26 will. Will see the first year of the full effect of the new YPP. So I don’t mean it in the form of a guidance. But if I were to just do a basic math of keeping all other things equal our arrow revenues will now more than double. And if I keep our interest, depreciation, everything constant. Is it reasonable to assume that FY26 Delhi airport should be able to break even?
Saurabh Chawla
I think that would again allude to guidance. I really don’t want to give that forecast to you. But there is a significant improvement. If you look at the Delhi duty free, the Delhi airports P and L and if you impute the numbers that you’re articulating I think the results will be quite obvious over there.
Karthik Chellappa
Okay, great. My last question sir is on Hyderabad airport. What we have seen is this quarter there has been a sequential softness in the EBITDA margins for the Hyderabad airport. And the effective tax rate this quarter has also been very high. Almost about 44, 45%. So could you please clarify what led to the sequential softness and also the effective tax rate?
Saurabh Chawla
Just one question. Just one minute please.
Karthik Chellappa
Sure.
Saurabh Chawla
If you adjust this with respect to other income you will see improvement in EBITDA margin is mainly because in Q4 the other income is lower compared to Q3. That’s the main reason.
Karthik Chellappa
Okay. Because even if I adjust the other income, even if I exclude it, there seems to be a reduction. So that was why I was curious to see whether there was anything else apart from other income.
Saurabh Chawla
No. There could be some year end expenses.
Unidentified Speaker
Year end expenses have been booked. Some of the expenses which have come around 10 crore extra which has been accounted for.
Unidentified Speaker
And as far as the tax is concerned, it is only in a book entry and we actually take Mac credit back into the books. Hyderabad airport is not paying any taxes.
Karthik Chellappa
Got it. So which means the steady state tax rate, I mean it’s not paying any taxes but the steady state tax rate should continue to be about 33, 34%. Right?
Saurabh Chawla
No, this is actually what we have accounted for is only a mat. It is not full tax. We are under mat because we have a carry forward losses available under income tax.
Karthik Chellappa
Okay, excellent. Just one follow up sir, if I mean to your earlier, the comments that you made at the beginning that the economic environment had been a bit volatile in the first two months because of the developments recently. Has that had any impact on your volumes or your forward bookings in the short term? And if yes, how long do you expect that to last whether it is in Delhi or in Hyderabad?
Saurabh Chawla
Basically you are talking about the India, Pakistan, India, Pakistan and the impact on the traffic. So honestly it’s a very minimal impact on. It was only certain airports north India to be shut down during those operations during those 7, 10 days. Minimal impact given the size of operations at Delhi, Hyderabad, almost no impact. And now we see, you know, a comeback even in those. In those.
Karthik Chellappa
Okay, that’s it for myself sir. Thank you very much and wish the management team all the very best for fy.
Operator
Thank you. We take the next question from the line of Pratik Kumar from Jefferies. Please go ahead.
Prateek Kumar
Hi, good evening sir. My questions firstly on re CPD income jump. So we are implying that our annual CPD income at Delhi will jump from around 800 odd crore to 920930 odd crores going forward annually. The right assessment. Also related question, what is the timeline of other RE projects which are going to commission including Dharshi reality starting to give you these rental and other projects including the destination mall which we are building now.
Saurabh Chawla
That patient I have here, Aman Kapoor who heads our CPD business over here. So he will guide you on developments in that business. So respect to Bharti in the first phase of the 5 million square feet far that was granted the almost 55% of will get ready and commission by third quarter of this this calendar year. That has no impact on revenues per diem because there is no revenue share and the fixed land rentals are continuing to be paid. So it has no necessarily an economic impact. With respect to the shopping center it is expected in first quarter of 2028 to start operations. From this financial year onwards the minimum guaranteed rent has kicked in and that will continue to be paid irrespective of whether the project is completed or not.So that’s what the straight lining which GRK Garu had highlighted explained earlier.
Prateek Kumar
And the Bharti phase two is when is that supposed to come in picture in terms of rentals contribution to the company dial.
Saurabh Chawla
Well they have a right to choose up until end of FY. I think it’s the year 2027. They have a right to exercise that option.
Prateek Kumar
So from FY28 onwards we should probably print that number.
Saurabh Chawla
Yes, if they exercise that option correct then the rentals will start kicking.
Prateek Kumar
My other question was regarding Delhi duty free. We have given this data on annual numbers for the big entities, duty, cargo etc. That shows that EBITDA and FAT for the financial year 25 has 340 crore and 205 crores. That seemed to be like suggest a very small growth year on year. Like basically compression of margins and like almost a decline in fact while the top line seems to be growing. Well why that specifically?
Saurabh Chawla
Yeah, this is basically if you look at it 23:24 financial year 25 you are looking at it in 23:24 financial year FY24 ending the duty free was getting the refund of ITC on both arrival at part of stores. So they got a benefit about 50 to 60 crore rupees. Whereas the government has withdrawn on arrival store and they are allowing.
GRK Babu
Only on departure store the ITC credit going forward from October 2023 onwards. As a result if you compare 24 and versus 25 even though turnover has gone up because of that ITC credit not available in 2425.
Saurabh Chawla
So just a 4% so it’s a sustained impact.
Prateek Kumar
So is this below EBITDA or above EBITDA line item? Okay, so your top line has grown 14, EBITDA has gone 3% and fat has actually declined by around 10% in FY25 in this segment. So that’s why a question was there. So I’m not sure if it is this completely explained. So they’re like line items below EBITDA also which explains the FAT performance
GRK Babu
Below because there are no issues below. EBITDA is basically the last year profit versus this year profit. Profit has come down mainly because of the ITC refunds which they used to take used to put less cost in 2324 whereas 100% cost has been accounted for in 2425. That is the reason why at EBITDA level it has come down compared to 24 to 25 and going forward that will be refined.
Saurabh Chawla
Yeah. So Prateek, your EBITDA margins in your duty free business will be about 15 to 17% going forward. Taking into account this one time adjustment of withdrawal order from the government. This was. This was as against a 20% EBITDA margin earlier. So from your modeling perspective you should assume about 17% EBITDA margin.
Prateek Kumar
Sure. And lastly on net debt has like now touched 31,400 crores in this quarter. How do you see net debt in FY26 from here? And what is the CapEx expectation FY26 for the overall operation?
Saurabh Chawla
There will be addition because the Bogapuram construction is happening. If you look at it in the 31,000 crores the Bogapuram is accounted for only 1400 crores 1500 crores. So we will be drawing additional 1700 crores in this 2526. So to that extent the debt can go up further and gan level also we have raised 400 crore in April and we may likely to raise another 2, 300 crores in this financial year. So about 700 crore rupees also gal level clock. So total above 17,000. Plus 2,400 crore rupees can go up.
Prateek Kumar
This is the gross debt but net debt because your EBITDA cash accruals will also increase significantly because of tariff benefits in dial. So net debt can continue to go up or like that may have peaked in FY25.
Saurabh Chawla
So net debt will also go up slightly but not as much as the gross granted because of the cash accruals. Because of the enhanced tariff that we have now in place. Dal will throw good amount of cash because of implementation of the tariffs so that cash accrual will be there. Gross debt may go up by around 2,500 crores but net debt may not go up that much.
Prateek Kumar
Sure, I’ll get back to you. Thank you.
Operator
Thank you. The next question comes from the line of Dario Maglion from BNP Pariba. Please go ahead.
Dario Maglione
Hi, good afternoon. Thanks for allowing me to ask you some questions. I have two if I may. One is in on the Noida airport. It should open in the next few months. So are you seeing any impact on airline scheduled capacity for the New Delhi airport? And question number two is on actually Groupe Depair. As you know, the CEO has changed at the beginning of the year and on the full year results call the CEO mentioned that one of the pillar of its strategy is to get basically dividends from international assets including GMR airports.
However, you also mentioned previously that there is a lot of opportunity to invest in India. So within this context, when do you think that GMR airports will pay dividends? Thanks.
Saurabh Chawla
Yeah, so on jwr, honestly speaking, the opening of that airport is quite complementary to to our Delhi airport. Delhi airport. As you know we have expanded our capacity to about 100 million passengers and there will be, you know, some we would actually encourage some of the low yielding traffic and when I say low yielding traffic is, you know, the ATRs and some domestic traffic which does not spend too much at my airport to move over the next three to four years. It’s not going to happen immediately, but next three to four years is what we expect that to happen, which is. Beneficial because my international airport, international traffic is growing quite robustly and that will release the capacity at the airport on the air side of it for the aircraft movements. So it’s very complimentary for us that JWR will open. The market itself is growing almost 8 to 10% every year. There is enough for everybody. From a comparative competitive scenario, you know, JWAR airport is almost, you know, 70, 80 kilometers from.
Operator
Ladies and gentlemen, we have lost the line of the management. Please stay connected while I rejoin the management. Sam, that’s la. Ladies and gentlemen, we have the management reconnected. Dario, if you can please repeat your question. Thank you.
Dario Maglione
Yes, hi. Yes, so I think to answer the question on Noida you were mentioning that Jewa Noida Airport is 70 to 80 kilometers away. That’s from the central daily.
Saurabh Chawla
Yes. So you know, purely from a distance perspective, it doesn’t serve the main Delhi and go down clientele, even Noida clientele it doesn’t service. It does service the greater Noida and the catchment area for that is mostly Agra and Aligarh areas which are from an economic standpoint much lower than the high yielding passenger traffic that we have from Delhi, Gurgaon and also other northern parts of India. So we expect that as time goes by and over the next two to three years as our traffic also starts to or capacity starts to reach about 100 million passengers, we expect some of the low yielding passengers to continue to move from Delhi airport and we concentrate on the high yielding passengers which are usually the international traffic or full service. So that’s the strategy in nutshell. JWR is very complementary to our business model. And as we go forward, you know, we will continue to work with airlines to facilitate, you know, their slots over here at Delhi airport. I just want to highlight one aspect that airlines don’t give up slots. Once they get hold of slots, they hold them very, very dearly. Yes. On the low yielding ones, you know, we would encourage these airlines to move to jwa. On adp. Sorry,
Dario Maglione
Thanks.
Saurabh Chawla
On adp. Just want to again highlight, you know, Philippe Pascal has taken over as the chairman and Managing Director of ADP adp. Philippe was the CFO when we did the transaction in 2020 and he was one of the persons who negotiated with us. He fully understands the spirit behind their investment in GMR airports. So we have a very strong relationship with the current senior management. Many of them have also worked for a brief period of time at GMR airports here in New Delhi.
So from a transition perspective, we don’t expect any turbulence. There’s total alignment of strategy and objectives between group ADP and GMR as far as the GMR airports business is concerned. With respect to dividend outlook, you know, we have always highlighted that we should be achieving, you know, on a consolidated level at GAL, free cash, free FCFE positive status by fiscal 28. And the prerogative of giving dividend, of course is with the board of directors. I really can’t speak for them. All I can highlight to you is that purely from a cash flow perspective, going forward from fiscal 28, Gall would be in a position to give dividends as it goes forward. So we will of course guide the markets as we reach that milestone. But that’s what our thought process is that GAL should be a dividend paying entity for its shareholders. As you would have seen during last fiscal year, Hyderabad Airport has already declared two dividends which have come to GAL with the new tariff order.
Delhi should also start giving dividends after three years and hence we. Believe that also by that time the transition of the non aero businesses into GAL would be mature enough. Cash flow generation would have happened at. Would have started to happen at Gall. You know facilitating any outflow of dividend from fiscal 28 onwards. That’s my guidance.
Dario Maglione
Okay. Thank you very much.
Saurabh Chawla
Thank you.
Operator
Thank you. The next question comes from the line of Nidhi Shah from ICICI Securities. Please go ahead.
Nidhi Shah
Yes, thank you so much for taking my question. So my first question is now since the cancellation of the. Of the celebrity Delhi, who’s managing it? Is it Dial or is it Galaxy? And what are the revenues and fat for what are the revenues on PAD for FY25 and what can we expect for FY26?
GRK Babu
Yeah. So this is being managed by GAL now in terms of concession being taken over by G. And in terms of the revenues for FY25 they cross about 780 crores. And with a cat of 120 crores for FY26 is will it. This will be a forward looking number. So maybe I’ll. I’ll. You know not talk about that. But you can. You can assume the reasonable growth over the numbers what I just told you.
Nidhi Shah
All right. And the. And the Delhi beauty free. Could you tell me about the revenues and PATA for FY25? If I missed it, it’s mention
GRK Babu
This Delhi Pre Fi 25 crossed its revenue of 2,200 crores with a PAT of about 210 crores.
Nidhi Shah
Okay. And last lastly just that The Hyderabad airport duty three has got moved from. From GMR hospitality and detail to gag.
GRK Babu
It will. Yes, it started moving into the GAL and full fledged operations will be started by GAL from July 25th.
Nidhi Shah
All right. Thank you so much.
Operator
Thank you. Ladies and gentlemen. If you wish to ask a question please press star and 1. The next question comes from the line of Aditya Mongya from Kotak Securities. Please go ahead.
Aditya Mongia
Good evening everyone and thank you for the opportunity. My first question to the growth we’ve seen recent months at the Delhi airport. It started becoming more like a 6% kind of print. Could you give us a sense why growth appears to be kind of slowing down in these months March and April? Because I would want to assume that like Hyderabad, capacity is only expanding. And could you give us a sense of how to kind of then think through a reversal growth happening in Delhi?
GRK Babu
In case of the Delhi, I think March has clocked very well and April, since the base is very high, the Delhi always growth is between 5 to 6% maximum 7%. When it comes to Hyderabad, the base is very low which is about 24 million. It has achieved 29 million. The growth is 17%. And as far as the capacity is concerned, Hyderabad has been built for 34 million capacity and it has closed with 29 million this financial year. Next year we are expecting to touch about 32 to 33.
Aditya Mongia
Understood. So essentially Delhi should be on this stable 5, 6% growth pattern from here on
GRK Babu
6 to 8% is the growth you can assume at Delhi airport given the fact that today we are doing almost 80 million passengers. The base is so high.
Aditya Mongia
Yeah, it’s not a capacity issue right now. Right. It’s just the way the panning out in recent months and they made slightly better. I think that’s the way.
GRK Babu
Also. No, also Aditya capacity is already gone. The airside capacity is fully completed. It’s actually, you know, we don’t have to put in any capex to increase airside capacity. The airside capacity will only now increase due to technological improvements for better, you know, ATM management. Okay. It can go up to almost 140 million there. Okay. But for that you have to continuously work with the regulator which is DGCA to improve the software and other equipment. Over there on the city side is where we have 100 million terminal capacity as on date. We can sweat these assets to take it to about 120 million. And if we reach that level, it’s good news for all of us. And we need to put some capex to further enhance the terminal to balance the capacity.
We will do it at that point of time. So now it’s only a question of passenger throughput. And for that the best guidance you will get at least in the listed space is from Indigo. And I think I read today there was some news reports of indigo that almost 80 aircrafts which were grounded are coming back over the next six months with their Pratt and Whitney engine issues. Getting resources. So as the aircraft supply increases the supply side will get re bottlenecked and obviously you know Delhi being almost 30% to 40% market share in India that will also flow through Delhi and last but not the least will have a positive impact on fares which will again put some tailwind on the demand for fly.
Aditya Mongia
Understood that. Clarify the second question that I had was that again trying to kind of pick your brains up. You said 13% is a non error growth for the three aggregate assets in the fiscal and about I think 10ish percent of the growth in tax count. So it’s about 1.3 times that is happening in terms of growth and obviously inflation and size. It doesn’t seem as if beyond inflation any other meaningful factors that should be driving the performance penetration premiumization, so on so forth is helping us right now. How soon should we be expecting more than a kind of a 3% differential in non narrow revenue growth versus the PACS growth for the three assets that we have?
Unidentified Speaker
Yeah. So Aditya, you would have seen even in the past our growth of spp, you know which is growth over the normal traffic growth has been in the range of about 5% and that is like with the available space and all that as we go forward. And you would have seen in case of Hyderabad airport duty free business the SPP growth has been significant. You know this was with the expanded area with the new outings. So our focus is on three count one, how do you get more space to cater to the additional offerings? That’s one within our given space how do you bring in premiumization? What we are doing is like Hyderabad, we are bringing in rich food luxury to luxury segment as part of our retail offering. Similarly on the FNB side we are bringing in Michelin star restaurants.
So those are the steps which are being taken to bring in reorganization of the offerings, more space and also basically bringing in the essential product offerings here. So I think that’s something which is now the focus and which will be driving our further growth beyond what you generally call it as a Hindu rate of worth for svp.
Saurabh Chawla
Also I think you need to take into account as the concession of the previous concession year was ending, obviously the focus was more on the transitioning aspect rather than on the growth aspect of it as it comes back to gmr. Airport fold. You know full efforts will be there to put the necessary investments both from from area space perspective, brands perspective to take it to a to a different level.
Aditya Mongia
Understood. Third question that I had was on the part beyond the three airports in terms of revenues and EBITDA and thank you so much for providing color in the presentation to this committee that you have. It’s very helpful. The way I see through it the additional EBITDA the other three actors is coming in from two buckets one of which is very clear. The facilities of your the hotel, the PTC in Hyderabad, parking in Delhi. The other half has been clubbed up inside Gyan standalone as we’ve been done. By the way this is a fairly high EBITDA margin business that is getting clubbed up. Could you give us a sense of which 15 bucket and what were key drivers? How should we think in this item which is all clubbed up for now clarity would be useful.
Saurabh Chawla
Basically in case of the CAs the revenues are we call it we put it in three buckets. One is basically the management fee and operator fee which we select. The second one is the interesting somewhere. The third one is adjacency business non arrow basically three verticals. One is the retail, other one is the cargo, third one is the car park and fourth one is the ticket free. So now all those things have started showing in this current financial year in gal which are likely to grow substantially going forward especially duty free where we are taking over the Delhi as well as Hyderabad duty free so which will start operating from July 2025 onwards.
So in nutshell I think what Dr. K garu is highlighting to you is that this is mostly management fee, dividend earned from Hyderabad and interest earned from loans extended to its subsidiaries. That’s the component that today that bar represents. But as the transition happens of the non aero businesses this component as relative to the growth of the other component will slowly come down and operating income will substantially go.
GRK Babu
The operating income in the FY26 can go as much as more than 2,200 crores
Aditya Mongia
From the existing 809 records that is there maybe in this bucket at this point of time. Now just wanted to kind of clarify when you’ll be adding in the next year You will be cargo from July onwards. Yes,
GRK Babu
That’s correct, sir.
Aditya Mongia
Yeah.
GRK Babu
Delhi duty free. Hyderabad duty free. Both will be operated by G from July 2025 to July 2025. That’s what I said. This current financial gal has closed with a turnover about 1100, 1200 crores. With a bit about 600 crores which will substantially go up the next financial year. Because of adding up the duty and EBITDA also substantially.
Aditya Mongia
Are you also counting in Delhi, Cabo and Hyderabad Warehousing venture. Very aggregated state. Will they be over?
Saurabh Chawla
Sorry to intervene. There are few other participants also in the queue. Would request if you can come again in the queue.
Aditya Mongia
Thank you so much for your response. Thank you.
Operator
Thank you. We take the next question from the line of Kartik Chalapa from Indus Capital Advisors. Please go ahead.
Karthik Chellappa
Yeah. Thank you for the opportunity again. Sir, I just have one question to a comment that you had made earlier. That you expect the gross bet to still go up by about 24 billion. Split between Bogapuram which would be another 17 and another 6 to 7 at the holding company level. So am I correct in factually?
Saurabh Chawla
Yes, correct. You’re absolute right.
Karthik Chellappa
Okay, so just one question that. Number one is Bogapuram is already 69% complete. In other words, almost more than two thirds complete. And if I look at the net debt on Bogapuram, it’s already about 17 billion. But if you are borrowing another 17, it’s almost doubling the borrowing there for an additional 30%. So how do I reconcile that?
GRK Babu
Physical progress we are showing. But billing has not happened from the contract director. So we continue to pay them as and when the bills have been received. There will be always a lag to the extent of 300 to 400 crores in payment. It is not because we don’t have the money because they take more time to submit. Number one. Number two, the total debt for Bogapuram airport itself is 3215 crores. That means we have raised about 14, 1500 crores. Another 16, 1700 crores. We have to write to complete the project. Complete and pay all the.
Karthik Chellappa
Excellent. One last question, sir. On the holding company debt where you’re raising another 6 to 7 billion. What would that be employed for?
GRK Babu
Basically about 250 crore rupees. This is a deposit which we have used to tile for the duty free business. We also have to make equity investment in case of the Nagpur airport to extend about 200 crores. And we also have to make another 110 crores equity investment in case of Bhogapuram and other smaller requirements. All put together about six.
Karthik Chellappa
Okay. Okay. Thank you very much for this detailed clarification sir. That’s all from my side.
Operator
Thank you. We take the next question from the line of Pratik Kumar from Jeffries. Please go ahead.
Prateek Kumar
Yeah, thanks for the opportunity. Again I have just a couple of questions. Firstly on because of this Pakistan airspace ban and diversion of traffic routes. Because of that has there been any instance of some airlines shifting traffic to maybe Mumbai or do you foresee that happening? And second question is a different question on regarding new concessions like government has recently approved few new Greenfield projects at Odisha quota and Chennai part 2. So how are we looking at the concessions coming up?
Saurabh Chawla
So typically I’ll just say that there is no movement of traffic from Delhi to other airports because of the airspace having got shut by Pakistan. And now actually most of the foreign airlines are now operating. They started to operate through Pakistan airspace. Indian owned airlines are not or Indian flag airlines are not operating. So there was no movement away from Delhi. So that is one feedback on the part of the new Chennai second airport and other opportunities. These are the projects which we look at on the merit of it and as and when those you know, processes are launched by the, by the government. Yes, we definitely have keen interest in all opportunities in India but it should be value accretive to all to the shareholders. So those will be evaluated and considered on the basis of opportunity.
Prateek Kumar
Thank you. That is
Saurabh Chawla
Again Pratik, very simply put, today I’m at about 120 million passengers growing at about 8% to 10% every year. I want to make money on the investment we have already done. I am under no pressure obligation. For optical reasons, to have more airports under my belt as a preference. We like to put more money to work in greenfield airports. Let’s see what the terms and conditions come for these greenfield airports. But we are hungry for returns. We are hungry for dividend. And we will grow our current portfolio to whatever levels of capacity that we have created. So that’s the only guidance I would like to give to you.
Prateek Kumar
Thanks for the clarity, sir.
Operator
Thank you. Ladies and gentlemen. We take that as the last question and conclude the question and answer session. I now hand the conference over to Mr. Sourabh Chawla for his closing comments.
Saurabh Chawla
Thank you. Thank you friends for joining us on this quarter four, fiscal 25 and annual results call. I hope we have been able to satisfy all your queries. But in case you have any further questions, the IR team is available offline both through email questions or by having a call with them. I urge you to contact them and clarify your questions and look forward meeting with you very soon. Thank you so much.
Operator
Thank you. On behalf of GMR Airports Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.