InterGlobe Aviation, the parent company of India’s largest airline, IndiGo, announced its September quarter results today, November 4, post market hours, reporting a net loss of ₹2,582 crore in Q2 compared to a loss of ₹987 crore in the same quarter last year.
The airline’s performance was impacted by higher operational costs and a sharp decline in EBITDA margin, even as revenue from operations rose 9.3% year-on-year to ₹18,555 crore, supported by steady growth in passenger traffic and improved yields.
Capacity during the quarter increased 7.8% to 41.2 billion, while passenger numbers grew 3.6% to 28.8 million. However, a significant reduction in Earnings before finance income and cost, tax, depreciation, amortization and aircraft, engine rental (EBITDAR) margin to 6.0% from 14.3% in the year-ago period weighed on overall profitability.
Pieter Elbers, CEO, said, The year began with significant external challenges across the industry, but we saw stabilization in July and a strong recovery through August and September. Looking ahead, we have scaled up our operational plans for the second half to meet demand and continue driving growth. With that we have nudged up our capacity guidance for the full financial year 2026 to early teens growth.”
Forex losses drive total expenses higher
IndiGo’s total expenses for the September quarter surged 18.3% year-on-year to ₹22,081 crore, largely driven by a sharp spike in foreign exchange losses. The airline reported a forex loss of ₹2,892 crore, compared to just ₹204 crore in the same quarter last year, marking a massive 1,102% increase, the steepest rise among all cost components.
Apart from forex losses, depreciation and amortization expenses rose 26.5% YoY to ₹2,640 crore, while finance costs increased 18.1% YoY to ₹1,465 crore, reflecting IndiGo’s expanding fleet size and higher lease liabilities.
Meanwhile, supplementary rentals and aircraft repair & maintenance costs climbed 18.9% YoY to ₹3,263 crore, adding to the cost burden, though aircraft fuel expenses provided some relief, declining 9.7% YoY to ₹5,962 crore.
Forex losses mask otherwise profitable quarter
Earnings before finance income and cost, tax, depreciation, amortization, and aircraft and engine rental (EBITDAR), excluding the impact of foreign exchange fluctuations, stood at ₹3,800 crore, reflecting an EBITDAR margin of 20.5%.
Excluding the impact of foreign exchange fluctuations, IndiGo would have reported a net profit of ₹103.9 crore.
Fleet Breakup
As of September 30, 2025, IndiGo’s fleet stood at 417 aircraft, slightly higher than 416 aircraft in June 2025 and 410 aircraft in September 2024. The current fleet includes 14 owned planes, 62 under finance lease, 333 under operating lease, and 8 under damp lease.
In terms of aircraft type, IndiGo operates 180 A320neo, 26 A320ceo, 153 A321neo, 47 ATR, and 3 A321 freighters. Under damp lease arrangements, the airline currently has 2 Boeing 777s, 4 A320ceos, and 2 Boeing 787s.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.