03-07-2025
Jefferies sees upside in GMR Airports as TDSAT ruling on HRAB boosts prospects
By Aditya Bhagchandani Published on July 3, 2025, 08:32 IST
Jefferies has reiterated a buy rating on GMR Airports with a target price of ₹100, citing potential upside from a favorable ruling on the Highly Regulated Asset Base (HRAB) for Delhi International Airport (DIAL).
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) recently quashed the Airports Economic Regulatory Authority's (AERA) earlier computation of HRAB for DIAL and directed a fresh calculation. The HRAB, a notional asset base, is critical in determining aero tariffs for airports.
Jefferies noted that TDSAT found AERA's methodology for calculating HRAB to be incorrect, and if the final ruling favors DIAL, it could allow the airport operator to recover significant under-recoveries from the past. This would meaningfully enhance DIAL's tariff recovery and profitability going forward.
The brokerage highlighted that other debated under-recoveries are also under review, which could further add to the upside potential in DIAL's earnings if resolved favorably.
Meanwhile, the shares of GMR Airports continue to trade actively as investors await clarity on the final HRAB calculation and its impact on future profitability.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
