IndiGo reports ₹2,582 crore Q2 net loss on forex impact

Currency fluctuations along with a traditionally-weak quarter dragged down airline major IndiGo’s (InterGlobe Aviation) net profit during the second quarter of fiscal year 2025-26.

Consequently, the airline reported a net loss of ₹2,582 crore for the quarter ended September 30, 2025.

The loss was primarily due to the impact of currency movement on dollar-based future obligations.

However, excluding the impact of currency fluctuations, IndiGo recorded a net profit of ₹104 crore, compared with a net loss of ₹754 crore during the same period last year.

Besides, total revenue for the quarter stood at ₹19,599 crore, reflecting a 10 per cent increase on a year-on-year basis.

Similarly, revenue from operations rose 9.3 per cent to ₹18,555 crore, while passenger ticket revenue grew 11.2 per cent to ₹15,967 crore, and ancillary revenue rose 14.2 per cent to ₹2,141 crore.

Revenue drivers

According to IndiGo’s Chief Executive Officer Pieter Elbers, the airline’s optimised capacity deployment helped deliver a 10 per cent topline growth and an operational profit of ₹104 crore despite seasonal weakness.

“As India’s aviation sector continues to grow and mature, we recognise the importance of structurally optimising capacity during seasonally-weaker periods to sustain profitability,” Elbers said.

Elbers cited that the year began with significant external challenges across the industry, but operations stabilised in July, followed by a strong recovery through August and September.

Furthermore, he pointed out that despite temporary disruptions such as Delhi’s runway closure, IndiGo restored its capacity to planned levels by mid-September.

Accordingly, the airline has scaled up its operational plans for the second half of the fiscal year and raised its full-year capacity growth guidance to the early teens.

In the quarter under review, capacity increased 7.8 per cent to 4,120 crore, while the number of passengers carried rose 3.6 per cent to 2.88 crore.

Elbers noted that IndiGo’s “stretch” product, launched a year ago, continues to perform strongly on high-demand domestic routes such as Delhi-Mumbai and is now gaining traction on newer routes, including Bengaluru and Hyderabad.

He said that IndiGo has expanded the stretch offering to international destinations such as Bangkok, Dubai, Singapore and Phuket.

In the quarterly results, IndiGo reported total expenses of ₹22,081 crore, an 18.3 per cent increase.

During Q2FY26, EBITDAR, excluding foreign exchange impact, stood at ₹3,800 crore, reflecting a 20.5 per cent margin, compared with ₹2,667 crore (15.7 per cent) in the year-ago quarter.

Including the forex impact, EBITDAR was ₹1,114 crore (6 per cent margin), down from ₹2,434 crore (14.3 per cent) last year.

Meanwhile, Elbers emphasised that IndiGo continues to focus on cost discipline and efficiency, citing high fleet utilisation, network optimisation and digital transformation initiatives such as its “60 Skies” programme.

Expansion plans

In an update on fleet and expansion plans, Elbers confirmed that IndiGo’s grounded Pratt & Whitney-powered aircraft have reduced from the 70s to around 40 and that all-new deliveries are now LEAP engine-powered.

Additionally, he said that the airline expects to receive its first Airbus A321XLR by the end of December and will launch new flights to Athens from Delhi and Mumbai in mid-January 2026.

In addition, Elbers said that the airline has returned to operating around 2,300 daily flights, aided by strong demand during the Diwali period.

As of September 30, 2025, IndiGo’s total cash balance stood at ₹53,515 crore, including ₹38,516 crore in free cash and ₹14,998 crore in restricted cash.

IndiGo’s capitalised operating lease liability was ₹49,651 crore, while the total debt, including lease obligations, was ₹74,813 crore.

The airline’s fleet strength stood at 417 aircraft, including 30 A320ceos (four on damp lease), 180 A320neos, 153 A321neos, 47 ATRs, three A321 freighters and four wide-body aircraft on damp lease.

IndiGo operated at a peak of 2,244 daily flights, including non-scheduled services and provided scheduled connectivity to 94 domestic and 41 international destinations.

Published on November 4, 2025