Rating Rationale
January 29, 2025 | Mumbai
 
GMR Goa International Airport Limited
Rating outlook revised to 'Negative'; Rating Reaffirmed; Bank Loan Facility and NCD Withdrawn
 
Rating Action
Total Bank Loan Facilities Rated Rs.62 Crore
Long Term Rating Crisil A-/Negative (Outlook revised from ‘Stable’; Rating Withdrawn)
 
Rs.25 Crore (Reduced from Rs.60 Crore) Long Term Principal Protected Market Linked Debentures Crisil PPMLD A-/Negative (Outlook revised from ‘Stable’; Rating Reaffirmed)
Rs.50 Crore Non Convertible Debentures Crisil A-/Negative (Outlook revised from ‘Stable’; Rating Withdrawn)
Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

 

Detailed Rationale

Crisil Ratings has revised its outlook on the long-term principal-protected market-linked debentures of GMR Goa International Airport Ltd (GMR Goa) to ‘Negative’ from ‘Stable’ while reaffirming the rating at ‘Crisil PPMLD A-’. Crisil Ratings has also withdrawn its rating on Rs 35 crore long-term principal-protected market-linked debentures of GMR Goa as the same has been redeemed. The withdrawal is in line with CRISIL Ratings' policy on withdrawal of ratings.

 

Crisil Ratings has also revised its outlook on the non-convertible debentures and bank loan facility of GMR Goa to ‘Negative’ from 'Stable' and simultaneously withdrawn its rating on the request of the company as the loans are repaid and based on receipt of no-due certificate from the bankers. The withdrawal is in line with Crisil Ratings' policy on withdrawal of ratings.

 

The revision in outlook reflects a scenario of lower-than-expected traffic and non-aeronautical revenue in fiscal 2026 based on lower-than-expected traction in traffic and non-aero revenue in the first nine months of fiscal 2025. The airport saw passenger traffic of 3.4 million in the first nine months of fiscal 2025 and non-aero revenue (excluding real estate deposits) of Rs 33 crore in the first six months of fiscal 2025. This could lead to lower-than-expected traffic of ~6.5 million and non-aero revenue of Rs 90 crore in fiscal 2026, thereby lowering the debt servicing cushion and ramp-up thereon.

 

Additionally, operating expenses were higher than anticipated in the first half of fiscal 2025 at ~Rs 112 crore on account of one-time expenses for airport stabilisation and finishing work. Operating expenses are expected to remain stable in fiscal 2026, improving the debt service cushion. That said, debt servicing is also expected to be supported through raising of incremental real estate monetisation deposits (from January 2025 onwards) of over Rs 40 crore in fiscals 2025 and 2026.

 

The rating continues to reflect the above-average business risk profile of GMR Goa supported by the experience of the parent, GMR Airports Ltd (GAL), in operating airports, and the regulated hybrid-till-tariff structure and ring-fenced business structure, with the presence of the government of Goa. These strengths are partially offset by volatility in traffic growth posing a risk to liquidity covers, competition from the existing airport in Goa and exposure to regulatory risks.

Analytical Approach

Crisil Ratings has considered the standalone business and financial risk profiles of GMR Goa.

Key Rating Drivers & Detailed Description

Strengths:

  • Above-average business risk profile: GMR Goa has current operational capacity of 7.7 million passengers per annum. The airport is favourably located in the state and has connectivity to all major domestic cities. This is expected to help develop the airport as an aero hub for both passengers (domestic and international) as well as cargo, from Goa over the next 2-3 years. Crisil Ratings expects the airport will have total passenger volume of 5.8 and 6.4 million in fiscals 2025 and 2026, respectively, driven by its advantages over the existing Dabolim airport, such as night parking availability, unconstrained operational hours, ability to provide maintenance support to aircraft (in future) and additional/niche cargo storage facilities.

 

The airport also has upside potential from monetisation of available land parcels of 232 acre.

 

  • Regulated tariff structure with assured returns on aero assets: The Airports Economic Regulatory Authority of India (AERA) shall regulate the tariff, based on a favourable hybrid-till mechanism, in line with the concession agreement. This will allow for regulated returns on aero assets and an upside potential for 70% of non-aero revenue.

 

  • Operational support from the promoters: GMR Goa is likely to receive operational support (if required) from GAL to set up operations and monetise non-aero and commercial property revenue streams. GAL is also likely to provide support in traffic ramp-up at GMR Goa through its position of operating Delhi International Airport Ltd and GMR Hyderabad International Airport Ltd.

 

Weaknesses:

  • Volatility in traffic ramp-up posing a risk to liquidity covers: A weaker traffic growth of 10.4% to 3.38 million in the first nine months of fiscal 2025 (as against 3.06 million in the corresponding period of the previous fiscal) led to subdued aero revenue. The traction in non-aero revenue was also lower due to slower traffic growth. Going forward, lower-than-expected traffic ramp-up coupled with commencement of revenue share payments to Government of Goa may lead to fall in the liquidity cover and increase the dependency on real estate monetization to maintain liquidity levels and debt servicing in fiscal 2026. As on December 31, 2024, total cash and equivalents were about Rs 314 crore, including debt service reserve account (DSRA) of Rs 128 crore, and the company had unutilised bank limits of Rs 35 crore.

 

  • Risk of sustained offtake as the existing airport will continue to operate: The airport at Dabolim is expected to continue operations. This exposes GMR Goa to competition risk for passenger volume, which could impact demand and pricing for non-aero and commercial property revenue streams. Though GMR Goa has captured more than 40% of the air passenger market, the risk persists.

 

  • Exposure to regulatory risks: Although regulations have been largely favourable for developers in recent years, some risks associated with regulatory uncertainty persist. Appropriate and timely true-ups for lower traffic and approval for cost overrun for capex, if any, are the risks currently.

Liquidity: Adequate

GMR Goa had unencumbered cash and equivalents of around Rs 314 crore as of December 2024, including Rs 128 crore of DSRA. The free cash reserve is expected to support the liquidity position given that the airport is likely to face debt servicing shortfall in the initial phase. Debt servicing is expected to be supported by raising incremental real estate monetisation deposits (from January 2025 onwards) of over Rs 40 crore in fiscals 2025 and 2026.

Outlook: Negative

Crisil Ratings believes the credit profile of GMR Goa may weaken due to lower-than-expected traffic ramp-up, subdued non-aero revenue leading to dependance on real estate monetisation for debt servicing.

Rating sensitivity factors

Upward factors

  • Ramp-up in traffic towards earlier expectation (~6.5 million passengers for fiscal 2026) and non-aero/commercial property revenue (expected at ~Rs 90 crore for fiscal 2026)
  • Enhancement in capital structure leading to improvement in financial risk profile over long term

 

Downward factors

  • Lower-than-expected revenue and passenger volume
  • Fall in liquidity cover (free cash) below 3 months of debt servicing

About the Company

Incorporated in 2016, GMR Goa is a 99.9% subsidiary of GAL with the remaining stake, including one Golden Share, held by the government of Goa. GAL won the bid for developing, operating and maintaining a greenfield airport in Mopa, North Goa, under a 40-year concession agreement (extendable by 20 years subject to a re-bid). Phase I was implemented at a cost of Rs 3,400 crore and was completed in October 2024 taking the operating capacity to 7.7 million passengers.

Key Financial Indicators

Particulars

Unit

2024

2023

Revenue

Rs crore

245

27

Profit after tax (PAT)

Rs crore

(363)

(148)

PAT margin

%

(148)

(546)

Adjusted debt/ adjusted networth

Times

3.31

4.03

Interest coverage

Times

NM

NM

NM: Not meaningful

Any other information: Not Applicable

Note on complexity levels of the rated instrument:
Crisil Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

Crisil Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the Crisil Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN Name Of Instrument Date of
Allotment		 Coupon
Rate (%)		 Maturity
Date		 Issue Size
(Rs.Crore)		 Complexity
Levels		      Rating Outstanding
with Outlook
INE735X07038 Long-term principal-protected market-linked debentures 26-Nov-22 13.25 26-Jan-26 25 Complex Crisil PPMLD A-/Negative

 

 

Annexure - Details of Rating Withdrawn

ISIN Name Of Instrument Date of
Allotment		 Coupon
Rate (%)		 Maturity
Date		 Issue Size
(Rs. Crore)		 Complexity
Levels		      Rating Outstanding
with Outlook
INE735X07012 Long-term principal-protected market-linked debentures 26-Nov-22 13.25 26-Dec-23 2.5 Complex Withdrawn
INE735X07020 Long-term principal-protected market-linked debentures 26-Nov-22 13.25 26-Nov-24 32.5 Complex Withdrawn
INE735X07046 Non-convertible debentures 25-Nov-22 13.90 25-Nov-25 50 Complex Withdrawn
NA Bank Guarantee NA NA NA 62 NA Withdrawn
Annexure - Rating History for last 3 Years
  Current 2025 (History) 2024  2023  2022  Start of 2022
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT   --   -- 26-02-24 Withdrawn 06-03-23 Crisil BBB+/Stable 22-02-22 Crisil BBB-/Stable Crisil BBB-/Stable
Non-Fund Based Facilities LT 62.0 Withdrawn   -- 26-02-24 Crisil A-/Stable 06-03-23 Crisil BBB+/Stable 22-02-22 Crisil BBB-/Stable Crisil BBB-/Stable
Non Convertible Debentures LT 50.0 Withdrawn   -- 26-02-24 Crisil A-/Stable 06-03-23 Crisil BBB+/Stable   -- --
Long Term Principal Protected Market Linked Debentures LT 25.0 Crisil PPMLD A-/Negative   -- 26-02-24 Crisil PPMLD A-/Stable 06-03-23 Crisil PPMLD BBB+/Stable   -- --
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Bank Guarantee 62 Axis Bank Limited Withdrawn
Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios

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