GMR Airports accelerates growth of air cargo across India
GMR Airports Limited (GAL) is consolidating its foothold in air cargo and logistics market in India with record freight volumes in the second quarter and first half of the financial year 2027 (FY27). The company’s growth strategy is a combination of increasing cargo handling capacity, infrastructure investment and international partnerships across its airport network.
Cargo has become a more important segment of GAL’s overall business strategy. The company sees logistics as a long-term growth opportunity, due to relatively lower capital requirements, strong revenue potential and economies of scale across domestic and international markets.
Its two major hubs Delhi and Hyderabad are performing well and demonstrate the momentum behind this strategy, while newer airports indicate opportunities for further expansion.
Delhi Airport scales new heights in cargo as FedEx facility moves forward
Delhi International Airport Limited (DIAL) posted its best ever cargo performance in Q2FY27 and the first half of the financial year. Cargo volumes increased 12% YoY to 0.63 million tons in H1FY27.
Higher freight activity also translated into higher revenues. Cargo revenue at Delhi Airport rose 15 per cent year-on-year to Rs 2.8 billion in the six-month period. Cargo operations contribute 14% to the airport’s non-aeronautical revenue which was ₹20.1 billion in H1FY27.
In addition to this operational performance, GMR Cargo and Logistics Ltd. (GCLL) has taken another major step towards the development of the freight infrastructure in Delhi by signing an MoU with FedEx Express Transportation and Supply Chain Services (India) Pvt. Ltd.
The licence agreement allows for a dedicated express cargo terminal to operate within Cargo City at Delhi Airport. The facility is expected to boost the airport’s ability to handle express shipments and help grow its logistics ecosystem.
This is an extension of the earlier participation of GAL in the Delhi cargo infrastructure. The company received the concession to operate, maintain and manage the existing cargo terminal of the airport after the security clearance of one of the previous cargo operators was terminated for a period of mid-May 2025.
Delhi’s cargo trade also continued to contribute a substantial amount of money. The division was operating on the standalone platform of GAL in Q2FY27 with a total income of ₹2,368 million. EBITDA (after revenue sharing) was ₹676 million and profit before tax (PBT) was ₹646 million.
H1FY27 total income was Rs 4,707 million, with EBITDA at Rs 1,364 million and PBT at Rs 1,319 million.
Hyderabad strengthens its European air freight connections
Hyderabad Airport (GHIAL) also posted a historic performance in its cargo operations, recording its highest ever freight volumes during the reporting period.
The airport handled 52,000 metric tons of cargo in Q2FY27, taking the cumulative cargo throughput to around 102,000 metric tons in the first six months of the financial year.
GHIAL is working on expanding its international cargo network beyond just volume growth. The airport has inked a Memorandum of Understanding (MoU) with Brussels Airport to establish a framework for enhancing air cargo connectivity between Hyderabad and Europe and to foster more efficient trade routes between the two markets.
GHIAL’s subsidiary, which is wholly owned by the company, handles cargo operations in Hyderabad. For Q2FY27, the entity reported total income of ₹830 million with EBITDA of ₹321 million and profit after tax (PAT) of ₹194 million.
Its financial results over six months were just as significant. The subsidiary reported total income of Rs 1,679 million, EBITDA of Rs 708 million and PAT of Rs 445 million in H1FY27.
On the positive regulatory front, the business outlook for Hyderabad’s airport operations has improved. Traditionally, revenues from cargo handling, ground handling and fuel farm activities have been classified as aeronautical revenues, in terms of the applicable local Tariff Order. However, GHIAL recently secured a favourable order from the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) permitting these activities to be classified as non-aeronautical revenues.
This designation may give the airport more latitude in managing and developing these complementary businesses.
GMR grows cargo footprint with new airports
GMR Airports is taking its logistics strategy beyond Delhi and Hyderabad to other airports. Its cargo network is slowly getting new airports.
The cargo infrastructure was part of the initial development plans of Vizag (Bhogapuram) Airport, which commenced commercial operations on August 17, 2026. The facility will be capable of handling up to 25,000 metric tons of freight per year.
The non-aeronautical concessions of the airport which were also commissioned after the operationalization of the airport include air freight facilities.
In the first phase of development in Q2FY27, Bhogapuram Cargo generated a total income of ₹3 million. However, the business posted a loss in EBITDA of ₹9 million and a loss in PBT of ₹11 million which is reflective of the nascent stage of operations.
The cargo activity at Mopa airport in Goa is slowly taking shape. The division posted total income of ₹10 million in Q2FY27, with EBITDA loss at ₹13 million and loss at PBT at ₹22 million. The airport earned ₹23 million in cargo revenue in the first half of FY27.
“These newer operations are still developing but do offer capacity for the company to grow its logistics operations over time within GAL’s broader airport portfolio.”
GMR’s strategy is based on long-term cargo growth
A history of steady growth in cargo volumes at a number of airports in its network supports the company’s growth plans.
GMR Airports posted the following cargo compound annual growth rates (CAGR):
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Hyderabad Airport: 4.1%
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Delhi Airport 3.0%
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Nagpur Airport: 2.8 percent
These figures highlight the underlying demand driving the group’s logistics business and underscore the importance of cargo as a business segment in the long term.
To garner more freight business, GAL has invested in specialised infrastructure, including the dedicated FedEx express terminal at Delhi, and international cooperation pacts such as the one with Brussels Airport.
GMR Airports will enhance handling capacity, boost international trade links and develop cargo facilities across its portfolio of airports to expand volumes and improve yields and strengthen profitability.
The strategy also enables the company to diversify its revenue base beyond traditional regulated aeronautical activities. Cargo is also likely to remain an important part of GAL’s long-term value creation strategy, with its established hubs continuing to expand and newer airports developing their freight operations.”
Source: This article first appeared in Indian Transport & Logistics News.
Image placement: The image of the Hyderabad Airport cargo is placed in the middle of the article (between the Delhi and Hyderabad sections).
