When Can We Expect A Profit From GMR Airports Limited (NSE:GMRAIRPORT)?

GMR Airports Limited (NSE:GMRAIRPORT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. GMR Airports Limited operates and develops airports in India. The ₹737b market-cap company’s loss lessened since it announced a ₹5.6b loss in the full financial year, compared to the latest trailing-twelve-month loss of ₹2.8b, as it approaches breakeven. Many investors are wondering about the rate at which GMR Airports will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for GMR Airports

GMR Airports is bordering on breakeven, according to the 3 Indian Infrastructure analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of ₹4.8b in 2026. So, the company is predicted to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 108% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for GMR Airports given that this is a high-level summary, but, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with GMR Airports is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of GMR Airports which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at GMR Airports, take a look at GMR Airports' company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Valuation: What is GMR Airports worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether GMR Airports is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on GMR Airports’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.