Ladies and gentlemen, good day, and welcome to the GMR Airports Limited conference call to discuss Q1 FY 2027 results. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. We have with us today Mr. Saurabh Chawla, Executive Director of Finance and Strategy. Before we begin, I would like to state that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. Also, recording or transcribing of this call without prior permission of the management is strictly prohibited. I now hand the conference over to Mr. Saurabh Chawla for opening remarks. Thank you, and over to you, sir. Thank you, and good morning, everyone. I am delighted to begin this by sharing a significant milestone in our journey. GMR Airports family has further expanded with the addition of Nagpur Airport and Bhogapuram International Airport to our operating portfolio. We assumed operations of Nagpur Airport on June 25th, while Bhogapuram was inaugurated by the Honorable Prime Minister of India on August 1st and is scheduled to commence commercial operations on August 17th. Notably, all scheduled commercial passenger operations currently handled at existing Visakhapatnam Airport will transition to Bhogapuram, creating a new aviation gateway for North Andhra Pradesh. Bhogapuram is particularly special for us. Completing a greenfield airport of this scale ahead of schedule reflects the strength of our execution capabilities, deep operational expertise, and the commitment of our teams. While the sector is navigating through the challenges arising from the geopolitical developments in the Middle East as well as in Ukraine and Russia, we continue to believe that the long-term fundamentals of air travel remain exceptionally strong. The International Air Transport Association, IATA, projects Asia-Pacific passenger traffic to increase from approximately 1.7 billion passengers in 2024 to 4.1 billion passengers by 2044, with India expected to remain one of the most important contributors to this growth. Importantly, the vision of transforming India into a global aviation hub is no longer a future aspiration. It has already begun to take shape. On the aviation business perspective, Air India has launched its hub-and-spoke strategy with Delhi Airport as the country's first operational hub, enabling passengers from cities such as Varanasi and Amritsar to complete check-in and immigration formalities at their origin airport and seamlessly connect to international destinations through Delhi. In fact, the Delhi State Government's decision to reduce VAT on ATF from 25% to 7% with effect from May 16th is proving a level playing field for Delhi Airport, aiding the envisioned hub strategy. At the same time, Indian carriers are entering a new phase of international expansion, with Air India set to restore most of its international services from September 1st, while IndiGo and other airlines are expanding their international operations and fleet size. These developments are creating a powerful multiplier effect for airport operators, particularly the hub airports, as growth extends beyond passenger volumes into the non-aeronautical revenue streams and commercial land development. On that note, let me now delve into our quarter one performance. Momentum in total income continued with quarter one at INR 40.8 billion, up 23% year-on-year. More than 50% of this income came from non-aero businesses and about 1/3 also came from the aero revenue. EBITDA for the quarter grew 22% year-on-year to INR 15.7 billion. PAT for the quarter came at INR 1.5 billion versus a loss of INR 1.4 billion in quarter one of fiscal 2026. Reported quarterly PAT has remained positive for the fourth consecutive quarter. Consolidated net debt, excluding FCCBs of INR 28.9 billion, which are deep in the money, remained unchanged versus last quarter at INR 340 billion. Combined net debt of Delhi and Hyderabad therefore decreased by INR 5.9 billion, offset by the increase of INR 3.1 billion at Bhogapuram and INR 2.9 billion at GAL standalone. On the operational front, traffic at GAL-operated airports rose 1% year-on-year in quarter one fiscal 2027, reaching 30.5 million passengers. This excludes the traffic at Cebu. On a quarterly basis, India's international traffic share handled by GAL-operated airports was highest in the past four years. However, as we have been alluding to in the recent past, we expect traffic to remain soft in the first half of fiscal 2027 and recover only in the second half of fiscal 2027. I would also like to highlight that we have some seasonality on a quarterly basis. Hyderabad has been impacted by the ongoing West Asian geopolitical instability, exposure to migrant gulf routes, and rising airfares, while on domestic front, impact is due to the route rationalization by certain airlines. We see some green shoots emerging as Air India plans to restore more suspended domestic and international flights from September onwards, after cutting up to 15% capacity during June to August. Total income at Delhi Airport rose 17% year-on-year to INR 20.7 billion. Aero revenues rose 24% year-on-year, and non-aero revenues increased 13% year-on-year. EBITDA for quarter one was up 11% year-on-year to INR 7 billion. With this, the airport has reported profit of INR 7 billion for quarter one, fiscal 2027, making it the fifth consecutive quarter of positive PAT. At Hyderabad, total income for quarter one was INR 6.3 billion, almost unchanged year-on-year. While aero revenues fell 7% year-on-year, non-aero revenues increased by 12% year-on-year. EBITDA for quarter one is almost unchanged year-on-year at INR 3.9 billion. PAT for the quarter was INR 847 million, up 35% year-on-year. Mopa or Goa Airport reported a total income of INR 1.3 billion in quarter one, up 23% year-on-year. Aero revenue increased 31% year-on-year as tariffs reverted to normal post discontinuation of special incentive plan. Non-aero revenues increased by 8% year-on-year. Notable achievements during the quarter are combined aero yield per pax or YPP in quarter one fiscal 2027 was INR 445 for Delhi, Hyderabad, and Mopa. Non-aero income per pax or IPP was INR 691. This includes the revenues from non-aero businesses adjusted for revenue share paid to airports and non-aero revenues reported by Delhi, Hyderabad, and Mopa Goa airports. To clarify, MRO and Hyderabad hotel are not part of the above IPP number. Non-aero and aero performance improved sequentially despite muted traffic. Coming to our non-aero adjacency business, duty-free revenue at Delhi and Hyderabad was stable versus quarter four despite softness in international traffic. At both airports, duty-free achieved highest monthly spend per passenger in June 2026. At Hyderabad, the new larger duty-free store is ready, expanding the store size from 400 sq m to 1,300 sq m. That will enable us to introduce new categories and products. GMR Airports Limited will participate in bids for non-aero adjacency businesses that are rebid by airports as and when the respective concessions at the airports end. Construction on multiple airport land development projects is underway, details of which are available in the results presentation. Fiscal 2027 will see the handover of Delhi International Airport Limited's first self-development commercial building at Delhi Aerocity, where the pre-leasing discussions are already underway. At Mopa or Goa, sub-license agreements were signed for a retail interchange, a MICE hotel, as well as a K-12 Day School, while at Bhogapuram, the hotel under the Vivanta brand is in final stages of construction. CARE upgraded the credit rating of GMR Airports Limited to CARE A+ positive, stable from INR 15 billion NCDs as well as long-term bank facilities. For CARE A1+ from CARE A1 for short-term business facilities. MRO business signed an agreement with Honeywell Aerospace for maintenance, repair, and overhaul of seven Honeywell Aerospace line replacement units installed on LEAP engines powering Airbus A320neo and Boeing 737 MAX. In line with our responsibility as a leading airport infrastructure company, sustainability remains deeply embedded in the way we design, build, and operate our assets. Across our portfolio, we continue to focus on decarbonization, renewable energy adoption, water stewardship, waste management, operational efficiency, and community development. The ESG achievements highlighted in our investor presentation reflect our commitment to responsible growth while maintaining the highest standards of governance, safety, and operational excellence. As we expand our footprint, sustainability will continue to remain a core pillar of our strategy and a key enabler of long-term value creation. In closing, GMR Airports today is very different from what it used to be a few years ago. We have evolved from being primarily an airport operator into an integrated airport infrastructure platform with growing exposure to commercial development, retail, duty-free cargo, MRO, and hospitality, and the airport linked urban ecosystems. As these businesses continue to scale, we expect an increasingly diversified and resilient earnings profile that will complement our core airport operations and strengthen long-term value creation for all stakeholders. The presentation with all financial numbers is already available with you. If not, you can download it from our IR section of our website. We are available to respond to your questions on this call and offline after the call. I would like to open the forum for queries that will be addressed by my colleagues from corporate and business teams. Thank you so much. Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, if you wish to ask a question, please press star and one. We take the first question from the line of Prateek Kumar from Jefferies. Please go ahead. Yeah. Hi. Good morning, sir. I have three questions. Firstly, on Hyderabad Airport traffic being extremely weak in recent quarters, could you highlight any initiatives specifically which you might be taking to revive traffic related to some loss of traffic to competing airports? What should be our growth expectation for this airport for FY 2027-2028 in current environment? As far as the Hyderabad Airport is concerned, I think new routes are also being now opened for the international. As far as the domestic is concerned, efforts are being made to provide some incentives to the airlines. As it is, we have not lost the traffic to any competing airports. It is an all-India phenomenon, except Delhi, which has got growth. The traffic, what we are expecting in 2026-2027 is more or less of the last year traffic, about 30.5 million - 31 million. Prateek, again, I want to highlight over here is that whilst yes, as a component, Hyderabad and Delhi form a bulk of our traffic, but as we have now made this into a platform, there are multiple streams of revenue that flow into our consolidated results. In our May call, we had already highlighted that there will be a soft first half based on the airlines' inputs as they rationalize their routes. Now as we speak right now, we are giving you a much more robust outlook for the second half of this year, given again, the inputs that we have from the airlines as they come back with an expanded capacity. Sure. My other question is on the new AERA tariff framework, which has been talked about. Would you update on AERA's thinking around proposed shift and which airport should be allowed to recover aero charges only after completion of underlying CapEx? What this could mean for your tariff expectation, which you talked about, of increasing versus prior periods for the next control period. Are you referring to the incremental IRR concept of AERA, or which one you are referring? Yeah, incremental AERA. Last quarter we guided for our aero tariff YPP at Hyderabad will be higher versus prior control period. What is our expectation now in new framework? I know it is still in discussion and consultation phase. But how should we think for modeling purpose? Modeling purposes, conceptually, it is actually one and the same. There is not much difference between earlier concept and new concept. What the regulator has mentioned is that the increased tariff will be provided once the asset is put to use, construction is completed. However, the good thing is in the consultation paper of Hyderabad, we can also see he has already acknowledged that INR 13,800 crore is being spent by Hyderabad Airport, and accordingly, the tariffs also will go up soon after the construction is completed. That is what is the recommendation. However, we have already made a request to the regulator that the moment we provide the increase in tariff after put to use, then there will be a sudden spike in the tariffs. To equalize it over a period of time, we have still suggested the regulator that the current methodology should be continued, and the airlines have also expressed more or less the same view, though they did not say specifically, because they also do not want any spikes suddenly. In case of Hyderabad, for example, September 29th, when the construction completes, the current tariff which he has proposed, INR 485, will become almost INR 900. But that is not advisable for the airlines or other airports. So we have suggested the regulator. Our regulator has actually requested us to come back with a revised formula. More or less, we will be sticking on to the existing methodology only. We have to still wait and see how the regulator is going to respond. Okay. A question on other airports, like Bhogapuram Airport, based on the current ad hoc tariffs, which came recently, what is the implied YPP and how does this compare versus your expectation of airport once operations scale up? The Bhogapuram Airport, the ad hoc tariff is basically, regulator provides around 60%-75% of the actual tariff only. So he has given us the average yield of around INR 200 at ad hoc, and our expectation should be in the range of between INR 1,700 - INR 1,900 yield per pax. Regulator has given INR 200 versus expectation- INR 200 about INR 1,800. No, INR 200 is the ad hoc tariff. Normally, regulator provides around between 60%-75% of the actual tariff only they give as ad hoc. They do not give nearer to the tariff. Our tariff expectation between INR 1,700-INR 1,900 yield per pax. Final tariff. Okay. Lastly, on Nagpur Airport, could you share FY 2026 revenue EBITDA for the airport? FY 2026? No, because the last year, they have closed. It was operated by MIPL. They have closed with around 140 crore INR of the revenue and EBITDA about INR 40 crore -INR 45 crore, if I'm correct, because they don't have any interest and they don't have anything else. I think they have posted a PAT around INR 30 crore- INR 35 crore. We will start paying 15% revenue share or, sorry, 18% revenue share on this INR 140 crore number scaling up. That will go over EBITDA. How should we think of EBITDA in FY 2027? No. We continue to pay 14.49% of the revenue share. That is as per the concession agreement, and we have already started because June we have already started July. Their EBITDA and our EBITDA is not comparable because the way they operate a non-aero revenue under the areas are very, very premature. Whereas we are going to totally ramp up the entire terminal as well as non-aero areas. So we are expecting that our EBITDA and profit should be much better. Sure, sir. I have more question. I will get back to you. Thank you. We take the next question from the line of Nathan Gee from Bank of America. Please go ahead. Hi, sir. Thank you for the call. Maybe two questions from me. Firstly, just in terms of Delhi, are you able to talk about 1Q costs? I think they are up about 19% year-on-year, so the drivers of that, and then is that a good run rate for the next few quarters? That is the first question. Second question is just in terms of short-term traffic. Anything you can say around the July traffic trends? Is June a good image for how July is trending? Thank you. In case of the Delhi, the first quarter, the expenses have gone up on two fronts. One is being the summer, there is electricity charges have gone up by about INR 17 crore-INR 18 crore. The second one is airport operator fee is payable on the previous year turnover. So the previous year turnover is more than INR 700 crore-INR 800 crore, although INR 800 crore on a year-on-year basis. That is why there is an extra provision towards the airport operator fee in the first quarter. These are the two major, and a small repair and maintenance, about INR 10 crore extra has come up during this quarter. And it will be moderated over a period of the next three quarters. Okay, that's clear. Thank you. Thank you. We take the next question from the line of Karthik Chellappa from Indus Capital. Please go ahead. Hi. Thank you very much for the opportunity, sir. Am I audible? Yeah. Okay, great. Sir, two questions from my side. The first is, as far as our standalone debt is concerned, I know you had highlighted in the past that this is likely to go up and it's more opportunistic because you're preparing to bid for various projects. At what point do you think the standalone debt is likely to peak? Currently, the standalone debt is standing around INR 7,400 crore. As of today, we have a room, another INR 200 crore only to rise as per the bondholders' covenant is concerned. For the time being, we are not planning to raise any additional debt for it because we don't have any further requirement of investment. Nagpur, we have already done some investment, and as far as other projects are concerned, we have already made investments. So right now, we are not planning for any additional debt. There's no opportunity right now. We don't have an opportunity right now. So that's why I think the debt is peaking at about INR 7,400 crore and shall remain at this. If there is any opportunity which requires us to raise capital, then of course, we will raise it. Along with that, there will be, of course, EBITDA contributions that will come against that any debt raise that we do. So at this stage, I think from your modeling perspective, assume that it is about INR 7,400 crore. What will be the average cost of this debt, sir? No, average cost of debt as of today is around 11.5% maximum, and another INR 1,500 crore is coming up for. It is completing the make-whole period. We are now targeting below 10% for cost for refinancing of the INR 1,500 crore. So our intention is the entire debt cost should come below 10% over the next 12 months period. I just also want to clarify that the INR 7,400 is the gross debt number. The net debt number is about INR 6,400 crore, INR 6,500 crore. Cash sitting. It has cash also sitting on its books. I think from a tracking perspective, look at the net debt number as such. Okay, this is useful. The reason I ask is, if I look at our first quarter interest liability on GAL standalone, which is, let us say about INR 290 crore, if I just annualize it, let us say about INR 1,200 crore or so, and if I take that on the gross debt amount, the interest cost implicitly comes to a much higher number than 11% - 11.5%. I am just trying to see how do I reconcile that. I think this includes the finance cost, includes the FCCB interest also. You need to exclude the FCCB interest. Okay. The balance is basically FCCB interest, which is in there. Okay, that is fine. My second Okay. FCCB, you should take it as equity because it is deep into money. The strike price is INR 43, INR 40. Because of the accounting standards, we need to recognize the interest on an accrual basis over there. Okay, excellent. My second question, sir, is if you look at Hyderabad, the traffic pressure, you already explained in your opening remarks. If you look at the non-aero revenue growth, that has been very healthy. In fact, on a per pack basis, it is also up double digits, which is very commendable given the current circumstances. Despite that, the absolute EBITDA didn't grow for Hyderabad. Apart from the non-aero revenue decline and the traffic pressure, are there any other nuances which also resulted in the EBITDA not growing? Is it just purely traffic and aero revenue decline driven? It is more or less purely on aero income. As far as non-aero income is actually compensated, the loss of revenue under aero income, if you look at it, the comparison of even Q4 to Q1 or Q1 over Q1. Okay. We said that the traffic improvement we expect in second half 2027, but for the full year, Hyderabad traffic volume growth will more or less be flat year-on-year, if I heard that correctly. Yes, you heard that correctly. It will remain flat as it was last year. That is the only, honestly speaking, the soft part of our portfolio, if you were to compare with fiscal 2025. Delhi is showing good growth, and hopefully, I think, the second half will catch up for Hyderabad, but on an overall annual basis, it will be flat. Excellent. I do have a few follow-up, but I will come back in the queue. Thank you very much, sir, and wish you and the team all the very best for the remaining quarters. Thank you. Thank you. We take the next question from the line of Aditya Mongia from Kotak Institutional Equities. Please go ahead. Yes, thank you for the opportunity and great sets of results once again on non-aero. That being said, a few questions from my side. The first question that I had was just on, let us say, loans that have been given from GAL to outside entities. I think it is a relevant number at about INR 2,000- odd crores, if I am not wrong. Since we have only as much of leeway remaining to invest from a gross debt perspective, is there any thought process of getting this money back, and then what are the timelines for the same? Aditya, let me just give you a background. GMR Airports Limited never gave specific loans to its associate entity, which is GPUIL. This is part of the demerger process that happened few years back. In the demerger process, as per the tax laws, you have to identify the end use of the debt that is raised of the merged entity. As per that end use, you have to then allocate it to the two demerged entities. This is the history behind this current debt, which is there in GMR Airports Limited's books. Second thing is, GMR Airports Limited has already received last year, it received about INR 800, INR 850- odd crores from GPUIL. This year also, it is expected to receive another INR 1,000- odd crores. There is a plan that is in place, which was agreed at the time of the demerger, that over a period of four to five years, GPUIL will continue to pay off its debt to GMR Airports Limited. It is continuing as per the plan, and we expect that over the next three- odd years the total money of about INR 2,500 crores plus the interest will be received from GPUIL to GMR Airports Limited. That is the broad construct of it. Understood. Just a related question. From a dividend perspective, this is obviously an inflow coming in. Then there would also be certain covenants wherein the debt numbers have to first of all be paid down, I am not sure. Just trying to get a sense of, is there a certain date number to which you have to fall from INR 7,400 before you start thinking of paying dividends? Honestly, I think the first step is to have, from a GMR Airports Limited perspective, the requisite free cash coming from at least three streams of business. One is Hyderabad, which is already giving dividends. Two is robust growth of our non-aero business, which is already happening, and you can see it. The third is also dividends to start flowing from Delhi Airport. We expect dividends to start coming from Delhi Airport in next two years as Delhi Airport's own standalone balance sheet becomes positive. It's already started to generate free cash, hence, in two years' time, it should be ready to start giving dividends to GMR Airports Limited, its 74% shareholder. So that is the plan right now. The covenants are not there. The covenants are basically our own. Our own covenants are that we need to keep our net debt to EBITDA at a reasonable level. We are very comfortable for a growth company like ours, which is very capital-intensive in nature, to have a net debt to EBITDA multiple of about 4x - 4.5x. Yeah. We will achieve that much ahead of the time period when dividends are expected to be declared. That's how we are moving forward. Understood. I just have few clarifications from my side, then get back into queue. When GMR Airports Limited is increasing the debt numbers, I can see GMR Airports Limited is at standalone level now making a PAT that is positive, even if I don't assume dividends, which is commendable now I think. But still GMR Airports Limited is borrowing more and more. Where is this money going in right now? There is no borrowing now. Where is the borrowing more and more? Which year are you looking at? INR 300 crores. GMR Airports Limited standalone has added INR 300 crores to net debt quarter-on-quarter. That's where the question is happening. So- We've not added any debt. We have not added any debt in Q1. What number are you looking at then? One sec. Aditya, if I may come in. It is basically because we are reporting the net debt. There's a reduction of cash, and hence you are looking at the net debt number slightly moving up. It's a reduction of cash which was available in our books as of year-end. I think the question is where is the cash going? Is it going into your upcoming airports or is there another conduit where it is going? One, there are no upcoming airports. No, the cash has come down because we have made two investments. Yeah. One is that since Nagpur Airport has been taken over, as per the concession agreement, you have to make a minimum investment of INR 168 crore. That investment has been done. The second one is we have also made investment in the GCL, GMR Cargo and Logistics Limited, about INR 100 crore. These are all investments have been made out of the cash available, but debt has not gone up. Understood. Last and final question. On the non-aero, Goa has two parts, aero and non-aero. The aero CapEx, it's a very different number this quarter. If you can explain that. Secondly, we would have anticipated that the non-aero CapEx starts showing good growth trends, which are yet not visible. Those are the last few things that I thought I'll take your views on. Another thing is, in continuing with GMR Airports Limited, we have also made investment of INR 250 crore in cargo business as a deposit we are going to tie. That also depleted our cash in GMR Airports Limited. There are three investments we made. Coming to the Goa, since we have withdrawn all the incentives given to the airlines, that is the reason why even though traffic has come down, the aero revenues have gone up. That is the reason. I think Saurabh has already explained during his- Opening remarks. Opening remarks, that we have withdrawn all the incentives which we have given to the airlines, which was about almost INR 170 crore last year. Because of that, despite the fact traffic has come down, the revenues have gone up. Any comments on non-aero in Goa? How to think through it incrementally when some numbers are still kind of flattish over here, not improving meaningfully? Non-aero, if you would have seen both SPP and IPP have gone up. In fact, SPP has gone up by almost 24% pure play non-aero commercial SPP. This was primarily driven by the new liquor retail store, which got opened last year after June. As we have been communicating consistently, we look at on a more sustained basis about 7%-8% kind of SPP growth. On a very sustained basis and overall non-aero income going up by about 14%-15%, depending upon the traffic growth of over 7%-8%. That's the, I would say, more long-term consistent number, I would say. Aditya, basically, if you look at it, the revenues of non-aero have come down in the first quarter, mainly because the traffic has come down. The traffic in the 1.59 million to 1.2 million, it has come down. That impact is there on non-aero income, whereas aero income has gone up because you have tapered on all the incentives. As Rajesh said that there is spend per passenger, income per passenger actually has gone up in case of the Goa. Understood. I'll get back into the queue, ma'am. Thank you for taking all my questions. Thank you. We take the next question from the line of Anshu Dayani from Macquarie. Please go ahead. Hello? Yeah. Hello. Hi. Hi. Thank you for the opportunity. Two questions on the platform adjacencies. If you look at car parking margins, they have been pretty volatile. It is small, I know, but I would want to understand better on that. In terms of Delhi duty-free, we have seen the spend per passenger going up. Is there any mix change, if you could help us with the current mix at the duty-free, and the area also, the physical space at Delhi duty-free? Also, will the space be expanded at Delhi duty-free, or how do we look at the retail area at the Delhi duty-free business? Sure. In terms of Delhi duty-free, currently we are looking at expanding the space by another 400-500 sq m. That is on the arrival side. That should be available, I would say, by end of this calendar year. In terms of SPP growth in Delhi, which is about 7%-8%, and this is in line with what the target we have taken it for ourself. Broadly, that is on Delhi. Hyderabad, though you have not asked about Hyderabad. Hyderabad, we have recently expanded our departure area from 400 to 1,300 sq m. The benefit of that we will start seeing in the coming quarters. With that expanded area, we will be able to broad base our offerings. We should expect a better SPP growth in Hyderabad duty-free. Coming back to your question on car park, I am not too sure what is the reference point where you have seen the volatility. But the car park's SPP as well as the tariff, there has been some increase in tariff, which we do it once in three years kind of tariff increase. That could have had some impact on the EBITDA margins, if that is what you are asking. If I look at this quarter's margin, they have been at 24% versus the previous quarter at 30%-ish, and last year also running at 29%, 28% levels. That is where I was coming from on car park. This is for Delhi car park you are saying? Yes, that is right. Maybe some. Penetrations. I think must be some expenses would have come by this gain. On a more sustained basis, what we have seen last years on an annual basis, that is the kind of EBITDA margin we. Just one second, Amit, why don't you- Also to note that whenever you look at car park, because as you said, car park has a sticky nature of expenses. There are few expenses which are fixed in nature in terms of maintenance of car park and all. Because of that also margin can fluctuate marginally. Okay. Just one more question, and this is more broader in terms of the next bidding that comes out. The government has outlined the NMP in which Amritsar and Trichy and such airports are outlined. Would we be looking at bidding and what is our appetite to participate in loss-making assets going forward? We will surely look at bidding any new airports that come for privatization. This we have been always alluding to over the last three to four years, whenever the government has made some noises on the privatizations. But then again, if you look at our whole portfolio, these airports add less than 10% of the overall traffic, which is already there in our portfolio. Every year we are growing actually faster than these airports even if we were to win. Very early days in that. We would be definitely interested if the price is right. We will bid for these airports at a very rational price and not be in the mode of creating a portfolio which is a loss-making portfolio going forward. It will be a conservative, judicious bidding that we will undertake. Thank you so much. Thank you. We take the next question from the line of Hem Raval from Elara Capital. Please go ahead. Yeah. Thank you for the opportunity. A couple of questions from my end. On the SPP increase part, what categories of product segment has the largest headroom to increase your SPP going ahead? SPP, when you really look at the major contributor to the airport's SPP, duty-free being the topmost, then comes retail, then comes F&B, then you have the other categories. For us, I think the headroom is, I would say it is equally between duty-free retail and F&B. When I say equally between these segments, retail, when we are looking at the premiumization of our own offerings, that is where it creates more headroom for us. Duty-free, we all know and understand the kind of value it brings it to the overall SBP growth. So I would say it is equally between these three top categories, while there are other small contributors also there. Understood. Next question would be, you mentioned you will be open to acquire more airports as and when available. What would be the return threshold that would be considered as appropriate when evaluating new airport concession? Like versus investing in existing assets and NCDs? Well, NCDs are, of course, a little higher return threshold because the nature of that business, we can target those higher returns. As far as airports are concerned, I think a number which is northward of 16%, 17% is something that is acceptable. An equity IRR, that is something which we target. Again, there is no hard and fast rule because there could be airports which offer much higher potential of growth. In order to acquire such an asset into our portfolio, we may agree to a slightly higher price to pay in the initial years, and then capture the growth over the next 60- odd years as and when that traffic starts to emerge. There are airports which have an embedded opportunity, and it is only now for us to see how our forecast is in our consultation with the airlines, and also the economic footprint that that airport serves. That is the way we look at it. Understood. Thank you. That is it from my side. Thank you. Thank you. We take the next question from the line of Karthik Chellappa from Indus Capital. Please go ahead. Yeah. Thank you for the opportunity again, sir. I just have two follow-ups. The first is on Delhi Airport. If I were to look at our non-aero revenue split, what exactly gets classified under others? Because that ratio is now 18%, and I am noticing that steadily that has actually been somewhat inching up. It used to be about 15%, 16%, has now become 18%. So I am just curious to see what all kinds of non-aero revenue gets classified there. Non-aero revenue consists of- Others. Others? Within the category of others, which non-aeros are flowing there. I think that is Karthik's question. But basically all the wraps, all others. No, you are talking about the non-aero income, or you are talking about others? I am talking about slide 38, non-aero revenue breakup. There is one category called others, which is now 18%, and that has actually inched up from a 15%, 16% level in the last several quarters. So I am just curious to understand what exactly goes under others. Just one second, Kartik. Just one second. Sure. We can take it offline also, if it is okay. I have no issue. I was just curious to see whether you had it readily with you. Instantly. What is the breakup here? There are so many small items like flight catering, car rentals, and some other like wrapping of the bags. There are so many other like ATMs. Small businesses will be there, which are all combined under others in case of the non-aero. The increase in the ratio to 18% is pretty much organic, basically. It is just that they have been growing fast off a lower base. Is that how we should read it? No, maybe some other additional, for example, some advertisement like cars they advertise in the terminal. Suddenly you may get in one quarter additional revenue, and which is grouped under others. Which is not seasonal. Maybe some seasonal business must have got it, then it will be grouped under that. Okay, excellent. My last question, sir, is just on data point. If I were to look at your duty-free revenue for both Delhi and Hyderabad on a year-on-year basis, would you be able to share what is the percentage of passengers who generated duty-free revenue for you? That is called penetration, you are talking about it. Yes, exactly. On a year-on-year basis, I am just curious to see how that has changed. The penetration generally in duty-free business will be about 14% or so in Delhi. Hyderabad will be about 11%-12% kind of penetration. That generally is the-- We have seen that trend in the last few years. That is only international. This 14% will be what a year ago? First quarter 2026, this 14% would have been what percentage? It should be on the similar lines. Only thing is, like Goa, if you see, because of the stoppage of Gatwick flight, it may have had some impact. In terms of penetration. Generally, this is the trend we have seen all across. Not much variation between the quarters. Okay. This is very helpful. Thank you, sir. Thank you very much, and wish you all the very best. Thank you. We take the next question from the line of Prateek Kumar from Jefferies. Please go ahead. Yeah. Thank you for the opportunity again. I have two follow-up questions. Firstly, sir, how do we see consolidated CapEx for FY 2027 and FY 2028, and could you provide breakup of the projects and the broad scope of planned CapEx? In case of the There is no specific CapEx planned. Basically, we have got only operational CapEx. The estimated operational CapEx or maintenance CapEx, we call it, between the Delhi and Hyderabad may be around INR 1,500-INR 1,600 crore for the full financial year. And we may also incur CapEx in Nagpur for the refurbishment, which could be in the range of INR 250-INR 300 crore. Consolidated CapEx for FY 2027 could be, and including real estate CapEx, could be closer to INR 2,500 crore for FY 2027? Yeah. You can take it. No. You see, like GRK Babu said, the operational CapEx is about INR 1,500 odd crores. Another INR 250 odd crores is the CapEx for refurbishment at Nagpur. Or INR 1,800 crores - INR 1,900 crores? About INR 1,800 crores, INR 1,900 crores. The real estate CapEx, the Building 5 which is currently under construction, is actually getting completed within the current fiscal year. So maybe about INR 50 crores or INR 100 crores more, that may go. Or, sorry, INR 200 crores may go. So in total, about INR 2,000- odd crores is a number that you can assume for the full fiscal 2027. Sure. Do we have any update on HRAB case regulatory decision timing or dates for the Delhi airport? The hearings are happening now in the Supreme Court, the appellant hearings are happening, then our turn will come. Most probably, maybe it should be settled in the next three to six months. Okay. Last question. On new, while FY 2026 performance of the company was significantly boosted by significant scale-up in platform revenues added by Delhi T3 and Cargo business integrations, how do you see or what kind of new meaningful opportunities which may get added to platform which can help in the run rate of business growth continuing into next three years? I can't really predict, Prateek, as to what happens from an inorganic perspective that gets added on. What will surely come is addition of Bhogapuram non-aero. There'll be a small addition that will come at Nagpur non-aero. These are, I would consider them as now organic in nature because they're part of our portfolio. Having said that, the business development teams are looking at many such opportunities in the region. As I've already highlighted in the past, non-aero capital light opportunities is a focus area for us, whether it is domestic or international, whether it is in Middle East or Southeast Asia. That is something that we are definitely interested in. But these are again, very lumpy, success-driven. So focus is there. On an organic basis, I think the business will grow at about 15%-18% on a secular basis. That is something that we have already highlighted. You can assume 15% for sure. In good years, once the traffic starts to improve, 18% is also not very far away. Yeah. Thank you, sir. These are my questions, and all the best. Thank you. We take the next question from the line of Aditya Mongia from Kotak Institutional Equities. Please go ahead. Sir, thank you for the opportunity. A couple of more questions from my side. A, on real estate, whatever you are going to monetize in FY 2028, could you give us a sense of what will be the investment size that you have gone from your side? And B, what would be the quantum that you can reap in FY 2028 against that? One second. I will ask Aman to just respond to it. This is a 1 million sq ft of commercial office development which is underway. Aman, what is the capital cost of that, and what is the opportunity three years or two years down the road on the monetization of it? What is the value? Just one second. Sure. Thanks. The usable area of the building is about 650,000 sq ft. We expect to achieve average rental for this building upwards of INR 240. Accordingly, I think the value derived from that, the current market caps are in the 7.5%-8% range. I expect to get that value. What will be the investment against this quantum that we would be ending up doing maybe early FY 2027 when it is complete? Our construction hard and soft cost budget is INR 450 crores. There are some additional manpower costs that maybe take it up to about INR 500 crores. This monetization can be assumed to happen in fiscal 2028, or should we think of fiscal 2029? Yeah, I think this fiscal 2028 is a reasonable estimate. Okay. The second list of questions I had was more at a broad portfolio level. Thanks for sharing the non-aero part, but wanted to focus a little bit more on the passenger spending patterns. Could you give us a sense of, let's say again, 3 crore passengers that would have come for this quarter, how many transactions would have happened by those passengers? It just gives us a sense of penetration in a different manner. Okay. And by passenger maybe doing more than one transaction as well, that is also fine. But some sense of number of transactions against 3 crore passengers that have happened for the quarter, and what is the average spending that happens per transaction? Aditya, this penetration, it varies from category to category. As I just mentioned in one of the previous questions, the penetration, in case of, say, Delhi duty-free, is in the range of about 14%. Hyderabad is 11%-12%. When you go to F&B, if you talk about the broader spectrum of non-aero, when you go to F&B, it will have a different set of penetration. It varies from category to category. If I can know your specific question that what do you want to understand from that, I can answer it more specifically. Or maybe we can do it offline along with Amit, if needed, Aditya. If you want to go slightly deeper into that. Understood. No, I will just give you a sense of what I am asking, and if it can come in the presentation, even that would be great from next time onwards. Just a sense of how many transactions are happening and the per transaction value for the quarter. It will be a mix of things, I get that, but it will give us a sense of things, I think. Yeah, sure. Aditya, the way to look at this, we look at SPP for sales per pax. Which takes into consideration the two components. One is the average ticket value, what is the amount you are spending, and the penetration. A combination of that gives you the SPP. Our focus generally is on SPP. The strategy to grow SPP could be based on improving penetration or increasing ATV. That depends on how you want to look at the whole thing. But our focus is to keep growing the SPP year-on-year, and which I have been saying, say, in the range of about 7%-8% is our target. Understood. That will be all from my side. Thank you for your response on that. Thank you. Ladies and gentlemen, as there are no further questions from the participants, I will now hand the conference over to Mr. Saurabh Chawla for his closing comments. Yeah, thank you. Thank you everybody for joining this call at an early hour today. We are happy to engage with you offline, and the IR team awaits any of your specific questions that you may have. We will be happy to answer. Thank you so much and have a wonderful day. Thank you. Thank you, sir. On behalf of GMR Airports Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your line.