Core Announcement – Order Details
Awarding Entity: Delhi International Airport Limited (DIAL)
Domestic/International Order: Domestic (India)
Nature of Order/Contract:
License agreement for designing, financing, developing, setting up, operating, managing, and maintaining the Food & Beverages Outlets at Terminal 3 of Indira Gandhi International Airport, New Delhi.
Order Value:
The license fee is based on a revenue share payment model with a Minimum Monthly Guarantee payable by GHL to DIAL, plus advertisement fees. The estimated aggregate amount of license fees is ~₹49 crores for FY 2026-27 and ~₹109 crores for FY 2027-28.
Materiality Context:
Not Specified
Execution Timeline:
Initial period up to May 2036, with an option to extend by 10 additional years.
Revenue Recognition / Billing Structure:
Revenue share model based on year-on-year revenue from Food & Beverages Outlets, with a Minimum Monthly Guarantee payable to DIAL. Advertisement fees are also part of the structure.
Key Terms & Payment Milestones:
Not Specified beyond the revenue share model and minimum guarantee structure.
Whether Related Party Transaction:
Yes. DIAL is an Indian Subsidiary of GMR Airports Limited, and GHL is also an Indian subsidiary of the Company. The transaction was conducted on an arms' length basis, and necessary approvals were obtained in accordance with SEBI Listing Regulations and the Companies Act, 2013.
Promoter Group Involvement:
The promoter/promoter group/group companies of the Company do not hold any interest, other than their existing Direct/Indirect shareholding in DIAL & GHL.
Financial Implication:
Not Specified