Indigo shares close the day, down by 1.55%
By Ankur Chandra | Updated at: Nov 7, 2025 05:39 PM IST
Indigo shares closed the day today, 7th November, 2025, down by 1.55%, trading at Rs 5,604.50. Nifty 50 index ended the day, down by 0.068%.
Net loss widened in the September quarter as the company had not fully hedged its dollar exposure
Indigo posted its September quarter result two days back. Its net loss in the quarter increased by 161% to Rs 2,582.10 crore. But this was mainly due to depreciation in rupee against the dollar. Indigo has to pay for its aircraft lease costs and some other costs in US dollars. When the rupee depreciates against the dollar, these costs increase in rupee terms for the company.
The Indian rupee has depreciated against the US dollar by more than 4.7% in the past 1 year. It is among the worst performing currencies in the world against the US dollar in this period. Costs increased for Indigo in the quarter because it had not fully hedged its foreign currency exposure.
Hedging of foreign currency exposure means taking offsetting positions so that exchange rate risks are neutralized. For instance, taking a long futures position in US dollar would have offset the adverse impact of depreciation in rupee against the dollar. Hedging carries its own costs so companies sometimes do not fully hedge their positions.
Expansion on international routes may provide more natural hedging
Indigo has expanded rapidly on international routes in the past some time. It now runs almost the same number of international flights as Air India. More international routes mean more earnings in dollars and other foreign currencies for the airline. This will provide better natural hedge for the company in the foreseeable future.
Indigo’s shares have gained more than 21% YTD in 2025
Year-to-date (YTD) in 2025, Indigo’s shares have gained 21.60%. Nifty 50 index has gained 7.40% in this period. Indigo’s shares have outperformed the Nifty 50 index by more than 14% this year. Indigo’s shares are currently trading at a price-to-earnings (P/E) ratio of 42.34. 52-week high price of the stock currently is Rs 6,232.50. 52-week low price of the stock is Rs 3,830.
Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest.
Source: NSE, Indigo
