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IndiGo's Shocking Q2 Loss: How Rs 2,582 Crore Deficit Stuns Aviation

IndiGo has reported a massive quarterly loss of Rs 2,582 crore, marking a dramatic reversal from the previous quarter's profit. The airline's financial performance was heavily impacted by foreign exchange losses totaling Rs 2,892 crore during the period. Despite the loss, the company showed strong operational performance with revenue growth of 9% year-on-year. CEO Pieter Elbers emphasized the need for capacity optimization during weaker periods to maintain sustainable profitability.

Key Points: IndiGo Reports Rs 2582 Crore Loss in Q2 FY26 Despite Revenue Growth

  • Airline swung from Rs 2,176 crore profit to Rs 2,582 crore loss quarter-on-quarter
  • Revenue grew 9% YoY to Rs 18,555 crore driven by passenger demand
  • Massive forex loss of Rs 2,892 crore primarily drove the quarterly deficit
  • Without forex impact, airline would have posted Rs 104 crore net profit
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IndiGo back into red with Rs 2,582 crore loss in Q2

IndiGo slips into Rs 2,582 crore Q2 loss due to forex impact, despite 9% revenue growth and strong operational performance. CEO Elbers outlines capacity optimization strategy.

"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. - Pieter Elbers, IndiGo CEO"

Mumbai, Nov 4

Aviation major IndiGo on Tuesday slipped into a loss of Rs 2,582 crore in the July–September quarter (Q2) of FY26, compared with a profit of Rs 2,176 crore in the previous April–June quarter (Q1 FY26).

The airline's loss also widened from Rs 987 crore in the same period last financial year (Q2 FY25), according to its stock exchange filing.

However, IndiGo's revenue from operations rose 9 per cent year-on-year (YoY) to Rs 18,555 crore, driven by strong passenger and ancillary income.

Passenger ticket revenues grew 11.2 per cent to Rs 15,967 crore, while ancillary revenues such as baggage fees and in-flight sales rose 14 per cent to Rs 2,141 crore.

The airline's EBITDAR (earnings before interest, tax, depreciation, amortisation and rent) dropped sharply to Rs 1,114 crore from Rs 2,434 crore a year ago.

However, excluding the impact of foreign exchange (forex) losses, IndiGo's EBITDAR increased 43 per cent year-on-year to Rs 3,800 crore, with margins improving to 20.5 per cent from 15.7 per cent.

IndiGo said its loss during the quarter was mainly due to the impact of currency movement, leading to a steep forex loss of Rs 2,892 crore compared with Rs 241 crore in the same period last financial year.

Without the forex impact, the airline would have reported a net profit of Rs 104 crore, as per its regulatory filing.

Rental and aircraft maintenance costs rose to Rs 3,262 crore from Rs 2,745 crore a year earlier, while tax expenses stood at Rs 100 crore, up from Rs 80 crore last financial year.

Commenting on the results, IndiGo CEO Pieter Elbers said, "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."

He added that the airline had delivered strong operational performance, maintaining its leadership in on-time performance and expanding its network.

On Tuesday, shares of InterGlobe Aviation Limited, the parent company of IndiGo, closed 1.06 per cent lower at Rs 5,635 on the BSE.

- IANS

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Reader Comments

R
Rohit P
Without forex impact, they would have made profit of Rs 104 crore. That's the real story! Our rupee volatility is hurting Indian companies badly. Government needs to stabilize the currency situation.
S
Sarah B
As a frequent flyer, I've noticed IndiGo's baggage fees have increased significantly. Now I understand why - ancillary revenues up 14%! They're making money from everything except the actual ticket.
A
Aditya G
The operational performance is still strong - on-time leadership maintained. That's what matters most for passengers. Temporary losses due to forex shouldn't worry regular travelers like us.
K
Karthik V
Rental costs up by Rs 500+ crore! Aircraft leasing is becoming too expensive. Maybe time for Indian airlines to focus more on owning aircraft rather than leasing. Long term cost control is needed.
M
Michael C
Respectfully, IndiGo needs better forex risk management. A Rs 2,892 crore forex loss when they knew about currency volatility? That's poor financial planning for a company of this size.

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