IndiGo Reports Rs 2,582 Crore Loss in Q2 Due to Weaker Rupee, Revenue Grows 10%

InterGlobe Aviation Limited, operating as IndiGo, announced a net loss of Rs 2,582 crore for the second quarter (July-September) of the current fiscal year. This performance marks a significant downturn from the Rs 2,176 crore profit reported in the first quarter. The primary driver behind this substantial loss was the depreciation of the Indian Rupee against major currencies, which increased foreign exchange-related costs.

Impact This development is significant for Indian stock market investors, particularly those holding IndiGo shares. The substantial loss, especially after a profitable prior quarter, may lead to investor caution and potentially affect the company's stock price. It also underscores the sensitivity of the Indian aviation industry to currency fluctuations. (Rating: 7/10)

Despite the net loss, IndiGo's total revenue saw a healthy 10% year-on-year growth, reaching Rs 19,599.5 crore during the quarter. IndiGo CEO Pieter Elbers highlighted that optimized capacity deployment enabled this topline growth. He further stated that excluding the impact of currency movements, the airline achieved an operational profit of Rs 104 crore, a notable improvement compared to an operational loss in the same period last year. Elbers expressed optimism about the continued growth of India's aviation sector and emphasized the strategy of structurally optimizing capacity, especially during seasonally slower periods, to sustain profitability.

Looking ahead, IndiGo has increased its capacity guidance for the full financial year 2026, expecting growth in the early teens. As of September 1, 2025, the airline maintained a strong liquidity position with a cash balance of Rs 53,515.2 crore. Its capitalised operating lease liability was Rs 49,651.4 crore, and its total debt, including these liabilities, stood at Rs 74,813.8 crore. By the end of September, IndiGo operated a fleet of 417 aircraft and handled a peak of 2,244 daily flights during the quarter.

Difficult terms: Rupee depreciation: This occurs when the value of the Indian Rupee falls relative to other currencies, making imports more expensive and exports cheaper. Q2: Stands for the second quarter of a company's financial year, typically from July 1 to September 30. Fiscal year: A 12-month accounting period used by companies for financial reporting, which may differ from the calendar year. Topline revenue: The total revenue generated from a company's primary business activities, before deducting costs or expenses. Capacity deployment: The strategic allocation of an airline's fleet and routes to match market demand and maximize utilization. Operational profit: Profit generated from a company's core business operations before accounting for interest, taxes, depreciation, and amortization. Capitalised operating lease liability: A financial obligation recorded on a company's balance sheet for long-term leases of assets, such as aircraft, treated as if the asset were purchased. Total debt: The sum of all outstanding financial obligations owed by a company to external lenders.