GMR Airports in focus after it sues Govt over commercial flights at Hindon Terminal

During Monday’s trading session, the shares of a leading global airport platform company engaged in designing, constructing, and operating world-class sustainable airports are in focus on BSE, after reports mentioned that the company is suing the government over flights from defence airbase.

Price Movement

With a market capitalisation of Rs. 78,411 crores, the shares of GMR Airports Limited reached an intraday high at Rs. 75.29, up by nearly 1.2 percent, as against its previous closing price of Rs. 74.38. The stock has delivered negative returns of nearly 4 percent over one year, but gained around 6 percent in one month.

What’s the news

As per several reports, Delhi International Airport Limited (DIAL), primarily owned by GMR Airports, has initiated legal proceedings against the government for allowing commercial flights to operate from a nearby defence airbase in Ghaziabad. 

The lawsuit, filed on 10th March, is scheduled for a hearing today. DIAL is majority-owned by GMR Airports, while the Airports Authority of India, a government entity, also holds a stake in the company.

In its petition, DIAL claims that the government’s decision breaches regulations that prohibit the establishment of a new airport within 150 km of an existing one unless there is sufficient passenger demand to justify it.

The company warns that this move endangers the financial viability of the Delhi airport, stating that it could render operations and become “economically and financially unviable,” DIAL mentioned in the lawsuit.

Delhi Airport, which handled 7.36 crore passengers last year as per official records, remains one of India’s busiest; however, it incurred a $21 million loss due to increased government fees. Meanwhile, Hindon Airforce Station, located just 30 km away, had ~1,400 users by Sunday.

DIAL highlights media reports indicating that Air India Express commenced flight operations from the airbase in March. Seeking legal recourse, the company has petitioned the court to revoke the government’s approval.

DIAL aims to overturn the government’s decision and refers to media reports to support its claim that Air India Express began flights from Hindon Airforce Station, situated about 30 km from Delhi airport. Trilegal, a leading Indian law firm, is representing DIAL in this case.

Also read: Navaratna stock jumps 4% after signing ₹11,000 Cr loan agreement with Andhra Govt

About Delhi International Airport

Delhi International Airport Limited (DIAL) is a subsidiary of GMR Airports, with its ownership structure consisting of GMR Airports (64 percent), Airports Authority of India (AAI) (26 percent), and Fraport AG Frankfurt Airport Services Worldwide (Fraport) (10 percent).

DIAL entered into a long-term agreement to operate, manage and develop the Indira Gandhi International Airport (Delhi International Airport), Delhi.

Financials & Shareholding

GMR Airports reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 19 percent, rising from Rs. 2,227 crores in Q3 FY24 to Rs. 2,653 crores in Q3 FY25.

During the same period, the company turned its net loss of Rs. 486 crores to a net profit of Rs. 202 crores, showing a strong recovery. According to the latest shareholding pattern with the BSE, GQG Partners Emerging Markets Equity Fund holds a 1.62 percent stake in GMR Airports.

About the company

GMR Airports Limited is mainly engaged in the development, maintenance and operation of airports, and construction business including Engineering, Procurement and Construction (EPC) contracting activities and providing security services.

Under the brand name “GMR AERO”, the company offers pioneering aviation solutions in retail, aero services, and real estate. Additionally, as a platform business, GAL also provides a range of aero services including Duty-Free, Retail, F&B, Cargo, Car Parking, O&M, and PMC services.

Written by Shivani Singh

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