DIAL Faces Financial Strain Amid Legal Battles and Rising Debt

Delhi International Airport Ltd (DIAL), majority-owned by GMR Airports (NSE: GMRAP), flagged significant financial risks in court filings, citing cumulative losses of ₹2,900 crore (as of Dec 2024) and debt exceeding ₹15,000 crore. Equity erosion is projected to worsen in FY25, raising borrowing costs. A crucial Supreme Court hearing on AERA’s tariff appeals and a Delhi High Court order favoring DIAL’s revenue definition exclusion could impact future cash flows. GMR recently increased its stake in DIAL to 74%, but challenges persist as tariff proposals await regulatory approval to offset losses.

Sources: NSE, BSE, Economic Times, Upstox