Indigo Q1 FY26 Net Profit Falls 20.7% QoQ to ₹2,176 Crore; Revenue Declines 7.5% Sequentially

Gurugram, July 30, 2025 — InterGlobe Aviation Ltd (NSE: INDIGO, BSE: 539448), operator of India’s leading airline IndiGo, reported a consolidated net profit of ₹2,176 crore for the quarter ended June 30, 2025 (Q1 FY26), down 20.7% quarter-on-quarter (QoQ) from ₹3,067 crore in Q4 FY25, and down 20.2% year-on-year (YoY) from ₹2,728 crore in Q1 FY25.

Total revenue from operations stood at ₹20,496 crore, representing a decline of 7.5% QoQ but a 4.7% YoY increase. The dip in profitability was largely attributed to lower topline and sustained operating expenses amid currency fluctuations.

Consolidated Financial Highlights (₹ in crore)

• InterGlobe Aviation Ltd, the parent company of IndiGo, posted a 4.7% year-on-year rise in revenue from operations at ₹20,496 crore for the June quarter (Q1FY26), up from ₹19,571 crore a year earlier.
• However, the company reported a sequential decline of 7.5% from ₹22,152 crore in the previous quarter (Q4FY25), reflecting seasonal softness and cost pressures.
• Total income rose 6.4% YoY to ₹21,543 crore, but dipped 6.7% QoQ.
• Operating expenses jumped 10.2% YoY to ₹19,232 crore, driven by higher fuel costs, staff expansion, and network growth.
• On a quarter-on-quarter basis, expenses were down 3.5%, indicating some cost rationalization.
• Profit before tax (PBT) declined 17.6% YoY to ₹2,311 crore, compared to ₹2,804 crore in Q1FY25.
• Sequentially, PBT was down 27.1% from ₹3,169 crore in the March 2025 quarter.
• Net profit (PAT) for the quarter stood at ₹2,176 crore, marking a 20.2% YoY drop from ₹2,728 crore and a 29.1% QoQ fall from ₹3,067 crore.
• Basic earnings per share (EPS) came in at ₹56.31, versus ₹70.70 in Q1FY25 and ₹79.38 in Q4FY25.
• Diluted EPS also declined to ₹56.24 from ₹70.57 a year ago and ₹79.27 in the previous quarter.
• Despite softer margins, IndiGo continues to hold a strong market position and remains profitable amid a volatile operating environment.

Standalone Financial Highlights (₹ in crore)

• IndiGo reported a 6.4% year-on-year increase in standalone total income at ₹21,543 crore in Q1FY26, compared to ₹20,250 crore in the same period last year.
• On a sequential basis, income was down 6.8% from ₹23,105 crore in the March 2025 quarter (Q4FY25), reflecting a seasonal dip.
• Standalone profit after tax (PAT) fell sharply by 20.7% YoY to ₹2,161 crore, from ₹2,727 crore in Q1FY25.
• Compared to the preceding quarter, PAT declined 29.7%, down from ₹3,073 crore in Q4FY25.
• Basic earnings per share (EPS) dropped to ₹55.92, from ₹70.64 in Q1FY25 and ₹79.54 in Q4FY25, a decline of 20.8% YoY and 29.7% QoQ.
• Diluted EPS stood at ₹55.84, also down 20.8% YoY and 29.7% QoQ, compared to ₹70.51 in the year-ago period and ₹79.43 in the previous quarter.

Key Expense Breakdown (Consolidated)

• Fuel Costs fell 9.1% YoY to ₹5,833 crore.
• Aircraft & Engine Rentals decreased YoY to ₹492 crore.
• Employee Benefits rose 16.6% YoY to ₹2,050 crore.
• Foreign Exchange Loss of ₹147 crore compared to a ₹14 crore gain last quarter.

Management’s Outlook

The company attributed the YoY growth in revenue to continued passenger demand, but acknowledged pressure from foreign exchange volatility and elevated operational costs. However, it emphasised strong cost controls and high load factors as key stabilising factors.

Corporate Announcements

• Director Appointments & Resignations:
  • Michael G. Whitaker was appointed as Independent Director (effective July 14, 2025).
  • Venkataramani Sumantran stepped down as Chairman (May 28, 2025).
  • Vikram Singh Mehta appointed as new Chairman.
  • Amitabh Kant appointed as Additional Director (Non-Executive, Non-Independent), pending MoCA clearance.
  • 11,650 shares allotted under ESOP 2023 post-quarter close.
  • 86,851 shares issued under ESOP 2015 during Q1.

Regulatory Matters

• Tax Litigation: Potential exposure of ₹2,418.5 crore (excluding interest and penalties) remains under dispute with authorities regarding the treatment of aircraft incentives. The company holds favourable ITAT and High Court rulings.
• IGST Dispute: ₹1,978 crore paid under protest for IGST on re-imported aircraft parts is deemed recoverable after the Supreme Court and Delhi HC decisions favoured the airline.

About InterGlobe Aviation Ltd

InterGlobe Aviation Ltd, listed on NSE and BSE, is India’s largest passenger airline by market share, operating under the brand ‘IndiGo’. With a reputation for low-cost efficiency, it serves domestic and international routes and maintains one of the youngest fleets globally. The company’s equity capital stands at ₹386.5 crore.

REF:https://nsearchives.nseindia.com/corporate/Indigo1_30072025160145_Results_F_.pdf

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