D2C businesses will be a pillar of growth for GMR airports – GM Rao
Direct-to-consumer (D2C) businesses will be a significant pillar of GMR Airport Limited’s (GAL) growth, chairman GM Rao has said in the company’s latest annual report.
GMR group runs airports in Delhi, Hyderabad and Goa which collectively account for 27.5 per cent of all passenger traffic in India in FY 2025. Non aeronautical businesses such as retail, F&B and duty free which were run separately at each airport are being consolidated in a single platform at the group level. GAL took over the duty free business at Delhi airport in July after securing concession rights and it will assume control of duty free business in Hyderabad in second quarter of FY 26.
Similarly GAL has assumed charge of existing cargo terminal at Delhi airport following revocation of Turkish firm Celebi’s security approval.
“The benefits of these developments will begin to reflect from the next financial year as we add more revenue streams and drive substantial expansion in the company’s overall revenues and profitability. Looking ahead, these D2C businesses are set to become an increasingly significant pillar of GAL’s growth trajectory,” Rao said.
Thus for instance the consolidation of duty free business will result in higher volumes and better yields due to economies of scale. It is expected to bring efficiency in procurement, reduce marketing expenses and generate a better value. The company hopes these will improve its cash flows and creditworthiness.
Already ongoing initiatives are yielding results.
“Over the past two to three years, our cost of debt has decreased by more than 3.5 per cent, reflecting the growing confidence in our creditworthiness,” Rao said.
As of June end GAL had a consolidated net debt of ₹32,900 crore. On a standalone basis the company’s net debt was ₹5900 crore.
On the airport development side GMR group expects to commence operations at three airports in next two years. It plans to take over operations of Nagpur airport in current fiscal. Around 69 per cent work at Bhogapuram airport was complete by March end.
“Although the original commissioning timeline was set for December 2026, the pace of progress indicates that we are well on track to deliver the project significantly earlier,” Rao said.
“On the international front, the construction of Crete airport, in Heraklion, Greece, is also advancing steadily. This world-class facility is currently scheduled to be commissioned by February 2027, “ Rao said.
Apart from the three airports in India, the group operates an airport in Medan in Indonesia. Besides these it also provides technical assistance to Mactan Cebu international airport in Philippines.
In FY 25 GAL earned a revenue of ₹10,414 crore, a growth of 19 per cent from previous years. Earning before interest tax depreciation and amortisation grew 22.5 per cent to ₹4188 crore.
Published on September 7, 2025
