Shares of GMR Airports Ltd are in focus after global brokerage Jefferies reiterated its Buy rating on the stock and retained a target price of ₹125, implying an upside of about 25% from the previous closing level.
The stock rose 2.8% during the day to ₹103.25, compared with its previous close of ₹100.35. GMR Airports commands a market capitalisation of ₹1.08 lakh crore.
Delhi Airport Traffic Picks Up
Passenger traffic at Indira Gandhi International Airport (IGIA) rebounded in May 2026 after two months of flat growth.
Traffic increased 14% year-on-year, reflecting a recovery in travel demand.
The improvement comes after passenger growth had remained subdued over the previous two months.
Domestic Travel Drives Growth
Domestic traffic emerged as the biggest growth driver.
According to Jefferies:
- Domestic passenger traffic rose 18% year-on-year
- Overall Delhi Airport traffic grew 14%
The brokerage believes strong domestic demand could support higher passenger volumes and boost commercial revenues over the long term.
International Traffic Returns To Growth
International traffic also moved back into positive territory after a period of moderation.
The recovery in overseas travel and improving connectivity are providing an additional tailwind for overall passenger growth.
Delhi Strengthens Its Hub Position
Transfer traffic has increased sharply, underlining Delhi Airport’s growing role as a transit hub.
Transfer passengers accounted for:
- 27% of total traffic in May 2026
- 23% a month earlier
- 20% a year ago
Higher transfer traffic generally improves airline connectivity and helps airports attract additional passenger flows.
Jefferies Maintains Positive View
Jefferies said Delhi Airport’s strengthening position as a hub for North India continues to support traffic growth.
The brokerage retained:
- Rating: Buy
- Target price: ₹125
It expects expanding domestic and international connectivity to drive higher passenger traffic and support earnings growth.
Quarterly Performance
GMR Airports reported a strong improvement in financial performance during the March quarter.
- Revenue rose 37.54% to ₹3,938 crore, compared with ₹2,863 crore a year earlier.
- The company reported a profit of ₹400 crore, against a net loss of ₹253 crore in the corresponding quarter last year.
Large Airport Platform
GMR Airports is the largest private airport operator in India and the world’s second-largest private airport operator based on CY2025 passenger traffic.
Its portfolio includes:
- Delhi Airport (DIAL)
- Hyderabad Airport (GHIAL)
- Goa Airport (Mopa)
- Medan
- Cebu
Additional projects are under development.
Network Capacity
The company’s network accounts for around 27.3% of India’s passenger traffic.
Its infrastructure includes:
- Operational capacity of about 197 million passengers
- Additional capacity of around 25 million passengers under development
- Around 1,342 million cumulative passengers handled
- Land bank of nearly 2,510 acres
The company also has opportunities in airport-linked real estate development through its “airport-plus” model.
Growth Momentum Improves
The recovery in Delhi Airport traffic, supported by stronger domestic demand, improving international travel and rising transfer traffic, has strengthened the outlook for GMR Airports.
Brokerage firm Jefferies expects these trends to support earnings growth and has maintained a positive stance on the stock.
TL;DR
GMR Airports gained after Jefferies reiterated its Buy rating and ₹125 target price. Passenger traffic at Delhi Airport rose 14% in May 2026, aided by strong domestic demand and higher transfer traffic, improving the company’s growth outlook.
AI summary
- Jefferies retained a Buy rating and ₹125 target on GMR Airports.
- Delhi Airport traffic rose 14% year-on-year in May 2026.
- Domestic traffic increased 18%, while international traffic returned to growth.
- Transfer passengers accounted for 27% of total traffic.
- GMR Airports posted a profit of ₹400 crore in Q4 FY26.
