GMR Hyderabad International Airport Limited (GMRLIN)

Based on public information, the current credit quality is best organised as a two-layer assessment: high investment grade in the domestic rupee market, and a BB-category private airport infrastructure issuer in global comparison for foreign-currency bonds. The credit direction is improving in operating terms and in access to the domestic NCD market, but because CP4 tariffs, the post-maturity treatment of the February 2026 bonds, refinancing of the 2027 bonds, and dividend policy are unconfirmed, it cannot be said that the overall credit profile will move rapidly upward. The likelihood of rapid credit deterioration may have declined in the near term because of the January 2026 NCD issuance, but given the absence of a confirmed post-refinancing balance sheet, the liquidity assessment remains provisional. If adverse facts are confirmed on the tariff regime or refinancing, the view could be revised downward relatively quickly.

Credit quality is supported by Hyderabad airport’s strong regional franchise, growth in passengers, aircraft movements, and cargo, the depth of non-aeronautical revenue, access to the domestic NCD market, ICRA/CRISIL AA+/Positive ratings, and the long-term concession. H1 FY26 passenger traffic of 15.38 million, 9MFY26 passenger traffic of 23.2 million, and H1 FY26 adjusted EBITDA margin of 64% indicate strong airport earnings capacity. The January 2026 issuance of INR 21 billion of NCDs is positive as long-term domestic funding to address foreign-currency debt maturing in February 2026, but this report has not confirmed full redemption and a zero remaining balance for that foreign-currency debt.

By contrast, credit quality is constrained by the large borrowing balance, uncertainty in the tariff regime, concentration in a single airport, unconfirmed terms of the foreign-currency bonds and domestic NCDs, and dividend and group fund-movement risk. Total borrowings of INR 9,258.61 crore as of September 2025 are material relative to the airport’s operating strength, and short-term liquid assets at that time were below current borrowings. This pressure likely improved because of the NCD refinancing, but the post-issuance balance sheet as of 12 May 2026 needs to be confirmed.