Are GMR Airports Ltd latest results good or bad?

GMR Airports Ltd's latest financial results for the quarter ending September 2025 present a complex picture of operational growth amidst ongoing profitability challenges. The company reported net sales of ₹3,669.99 crores, reflecting a significant year-on-year growth of 47.07%, which indicates a robust recovery in the aviation sector, particularly in passenger traffic across its major airports in Delhi and Hyderabad. This marks an all-time high for quarterly sales and demonstrates a strong upward trend in revenue generation. Operating profit before depreciation, interest, and tax (excluding other income) reached ₹1,447.03 crores, with an operating margin of 39.43%, showcasing improved operational efficiency and cost management. The operating margin expanded by 305 basis points from the previous quarter, indicating effective leverage of fixed costs against higher revenue volumes. However, GMR Airports continues to face substantial challenges on the profitability front. The consolidated net loss for the quarter was ₹37.09 crores, which, while an improvement from the previous quarter's loss, still highlights persistent issues with profitability. The company has reported losses in six of the last seven quarters, and the negative book value of ₹2.82 per share raises concerns about its long-term financial sustainability. The financial burden is exacerbated by a high debt level, with interest costs amounting to ₹1,042.58 crores, which consumed a significant portion of operating profits. This debt situation contributes to a negative debt-to-equity ratio, indicating that liabilities exceed assets. In summary, while GMR Airports Ltd has demonstrated impressive revenue growth and operational efficiency, the ongoing net losses and high debt levels present significant risks. The company saw an adjustment in its evaluation, reflecting these mixed operational trends. Investors may need to weigh the strong revenue momentum against the structural profitability challenges that persist.