IndiGo Posts ₹2,582 Crore Net Loss in Q2 FY26, But Revenue and EBITDA Show Strong Growth

InterGlobe Aviation Ltd, widely known as IndiGo, has announced its financial results for the second quarter ending September 2025. The airline reported a net loss of ₹2,582 crore, a significant increase compared to the ₹988.8 crore loss recorded in the same period last year. This wider loss was largely influenced by a substantial foreign exchange loss of ₹2,892 crore, a stark contrast to the ₹241 crore forex loss in the previous year.

Despite the net loss, the company's operational performance showed positive trends. Revenue from operations grew by 9.3% year-on-year, reaching ₹18,555 crore from ₹16,969 crore. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) saw a robust increase of 85%, climbing to ₹3,472 crore from ₹1,873 crore a year ago. This improvement is reflected in the EBITDA margin, which expanded to 18.7% from 11% year-on-year.

EBITDAR (Earnings Before Interest, Tax, Depreciation, Amortisation, and Rent) excluding forex also demonstrated strength, increasing by 43% year-on-year to ₹3,800 crore, with the margin improving to 20.5% from 15.7%.

However, operational costs did rise, with rental and aircraft maintenance charges increasing to ₹3,262 crore from ₹2,745 crore. Tax expense also stood at ₹100 crore compared to ₹80 crore in the prior year.

Impact: This news is significant for investors as it highlights IndiGo's operational resilience and growth potential despite external financial headwinds like currency fluctuations. While the net loss is concerning, the strong revenue and EBITDA growth indicate underlying business strength. Investors will be watching how the company manages forex risks and operational costs going forward. The stock price reacted negatively to the results, closing down 1.06% on the BSE.

Difficult Terms: Net Loss: The total expenses of a company exceed its total revenues. This means the company spent more money than it earned during a specific period. Revenue from operations: This is the total income generated from the primary business activities of the company. EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation): This is a measure of a company's operating performance. It excludes the effects of financing, accounting decisions, and tax environments. EBITDA Margin: This is calculated by dividing EBITDA by revenue, showing how much of the revenue is left after deducting operating expenses. Forex Loss: This is a loss incurred due to fluctuations in foreign currency exchange rates when a company has transactions or assets/liabilities denominated in foreign currencies. EBITDAR (Earnings Before Interest, Tax, Depreciation, Amortisation, and Rent): Similar to EBITDA, but also excludes rent expenses. It is often used in the airline and hospitality industries.