Why Did GMR Airports Report a Rs 253 Crore Loss in the January-March Quarter?
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Synopsis
GMR Airports experiences a significant rise in losses for the January-March quarter, reporting Rs 253 crore in losses despite an increase in income. The company's financial performance raises questions about its operational efficiency and future profitability amidst rising expenses.
Key Takeaways
- Consolidated loss of Rs 253 crore for Q4 FY25.
- Total income increased to Rs 2,977 crore.
- EBITDA grew by 19.39% year-on-year.
- Total expenses surged by 13.73%.
- Passenger traffic up by 9% year-on-year.
New Delhi, May 23 (NationPress) GMR Airports announced on Friday that its consolidated loss escalated to Rs 253 crore for the January-March quarter of 2024-25, despite an uptick in the company's total income during the same timeframe. This marks an increase from a loss of Rs 168 crore in the corresponding quarter of the previous year.
According to a regulatory filing, GMR Airports saw its total income rise to Rs 2,977 crore in the fourth quarter of 2024-25, up from Rs 2,570 crore in the prior year.
In the fourth quarter, EBITDA reached Rs 1,122.74 crore, reflecting a year-on-year growth of 19.39%.
Total expenses surged by 13.73% year-on-year to Rs 1,854.02 crore for the quarter ending March 31, 2025. This includes Rs 42.80 crore for materials consumed, Rs 393.52 crore for employee benefits, and Rs 586.63 crore for other expenses in Q4 FY25.
For the complete financial year of 2024-25, the company reported a loss of Rs 817 crore, a slight improvement from the Rs 829 crore loss in the same period last year.
GMR Airports Ltd (GAL) operates several airports, including those in Delhi, Hyderabad, and Mopa (Goa), and is in the process of developing the Bhogapuram Airport in Andhra Pradesh.
As noted in the regulatory filing, total passenger traffic at GAL-owned airports rose by 9% year-on-year, reaching 31.5 million in Q4 FY25 and 120.5 million for FY25.
GAL also operates Medan Airport in Indonesia and is developing Crete Airport in Greece as part of its international projects.
The recent tariff order from regulator AERA, effective April 16, 2025, for the fourth control period ending March 31, 2029, is expected to significantly boost the aero revenue at the Delhi airport, which could enhance overall profitability and cash flow for DIAL and GAL.
The filing stated, "The financial performance of DIAL and GAL would have been more favorable had this order been issued during FY25."
Meanwhile, GAL's share prices dipped over 2% to Rs 87.08 per share in late afternoon trading on BSE.
Point of View
It is essential to highlight that GMR Airports’ recent financial struggles reflect broader challenges within the aviation sector. The increase in losses, despite rising income, raises critical questions about operational efficiency and cost management. Stakeholders must closely monitor these developments as GMR Airports navigates these turbulent times.
NationPress
21/09/2025
Frequently Asked Questions
What was GMR Airports' loss for the January-March quarter?
GMR Airports reported a consolidated loss of Rs 253 crore for the January-March quarter of 2024-25.
How much did the company's total income increase?
The total income rose to Rs 2,977 crore, up from Rs 2,570 crore in the previous year.
What are the main expenses reported by GMR Airports?
Total expenses increased to Rs 1,854.02 crore, with significant costs in employee benefits and other operational expenses.
What impact did the recent tariff order have?
The tariff order is expected to significantly enhance aero revenue at the Delhi airport, benefiting overall profitability.
How did GMR Airports' share prices react to the news?
GMR Airports' share prices fell over 2% to Rs 87.08 in late afternoon trading on BSE.
