InterGlobe Aviation (IndiGo) Reports Rs 2,582 Crore Net Loss in Q2; Operational Profit Achieved Excluding Currency Impact

InterGlobe Aviation, the parent company of India's largest airline IndiGo, has reported a net loss of ₹2,582 crore for the three-month period ending September. The primary reason for this substantial loss was the adverse impact of currency movements, particularly on its dollar-denominated future obligations. In comparison, the airline had reported a net loss of ₹986 crore in the same quarter last year.

Despite the net loss, the company's total income for the quarter saw an increase, reaching ₹19,599 crore, up from ₹17,759 crore in the corresponding period last year. IndiGo clarified that if the effects of currency fluctuations were excluded, the airline would have recorded a net profit of ₹1,039 million (approximately ₹10.4 crore), a significant improvement from a net loss of ₹7,539 million during the same period a year ago.

IndiGo CEO Pieter Elbers highlighted that optimized capacity deployment led to a 10% growth in topline revenue, excluding currency impacts. He also noted an operational profit of ₹104 crore, a turnaround from an operational loss in the previous year. Elbers mentioned that after initial industry challenges, stabilization occurred in July, followed by a strong recovery in August and September. Looking forward, the airline plans to increase capacity guidance for the full financial year 2026 to early teens growth, signaling confidence in future demand. IndiGo maintained its strong market presence, holding a 64.3% domestic market share in September.

Impact 7/10

Difficult Terms Net Loss: The amount of money a company loses after deducting all expenses from its revenue. Currency Movements: Fluctuations in the exchange rate of one currency against another. Dollar-based future obligations: Payments or liabilities that are fixed to be made in the future, denominated in US dollars. Regulatory filing: Official documents submitted by a company to government agencies or stock exchanges, providing important financial and operational information. Topline revenue: The total amount of money a company generates from its sales before any deductions. Capacity deployment: The strategy a company uses to allocate its resources (like aircraft in an airline's case) to meet market demand.