JEFFERIES ON GMR AIRPORTS ; ACCUMULATE | TP ₹135
• AERA approved Hyderabad Airport’s FY27-31 tariff order; aero tariffs at ~₹540-630 through FY29.
• FY30-31 baseline tariff falls from ₹630 to ₹410 by FY31, but could rise to ~₹700-720 if planned capex is completed by FY29.
• Hyderabad Airport plans capacity expansion from 34mn to 60mn passengers with ~₹14,000 Cr capex.
• AERA approved ~₹13,800 Cr capex for CP4, ~99% of GMR’s request; 89% classified as Aero Capex.
• New Incremental ARR framework allows tariff recovery on large capex only after assets are commissioned and operational.
• Recovery mechanism remains intact; only timing of tariff recovery changes.
