Interglobe Aviation , operating as IndiGo, India's leading airline, has reported a robust performance for the second quarter of fiscal year 2026, marking significant strides in revenue growth and operational profitability despite currency headwinds.

Financial Highlights

IndiGo posted a total income of ₹196.00 billion for the quarter ended September 2025, representing a 10% increase compared to the same period last year. The airline achieved an operational profit of ₹1.00 billion (excluding forex impact), a notable turnaround from a loss of ₹7.50 billion in the previous year.

However, the company reported a net loss of ₹25.80 billion due to the impact of foreign exchange movements, primarily attributed to a 4% depreciation of the rupee during the quarter.

Operational Performance

The airline demonstrated strong operational metrics during the quarter:

• Served 28.8 million passengers
• Expanded network to 94 destinations
• Passenger unit revenue (PRASK) increased by 3% year-over-year to ₹3.87
• Fuel costs reduced by 16%

Strategic Expansion and Fleet Enhancement

IndiGo continues to make significant strides in its expansion strategy:

• Added the first A321XLR aircraft to its fleet
• Announced operations to Athens from Delhi and Mumbai
• Doubled A350 widebody order from 30 to 60 aircraft
• Broke ground on a new MRO facility in Bengaluru

International Growth and Capacity Outlook

The airline is accelerating its international expansion:

• Introduced flights to Amsterdam, Manchester, Copenhagen, and London Heathrow
• Planning to increase wide-body operations from 4 to 6 aircraft
• Expects high teens capacity growth for Q3 and Q4 FY26
• Revised full-year FY26 capacity growth guidance to early teens

Financial Position

IndiGo maintains a strong financial position:

Total fleet of 417 aircraft as of September 30, 2025

Future Outlook

IndiGo is poised for continued growth:

• Anticipates early teens capacity growth for full FY26
• Expects flattish to slight growth in passenger unit revenues for Q3 FY26
• Focuses on expanding international operations and optimizing fleet mix

As IndiGo navigates through the evolving aviation landscape, the company remains committed to its long-term strategy of becoming a global aviation player while maintaining its strong domestic presence.

Note: All financial figures are in Indian Rupees (₹).

Interglobe Aviation , the parent company of IndiGo, India's largest airline, has reported a significant financial setback in its latest quarterly results. The company's performance highlights the volatile nature of the aviation industry and the impact of external factors on its bottom line.

Financial Performance Overview

IndiGo's financial results for the second quarter paint a complex picture:

Key Highlights

• Reversal of Fortune: The Q2 loss of Rs 2,582.00 crore marks a stark contrast to the Rs 2,176.00 crore profit reported in the previous quarter.
• Revenue Growth: Despite challenges, revenue from operations grew by 9% year-on-year, driven by both passenger and ancillary businesses.
• Passenger Ticket Revenues: Increased by 11.2% to Rs 15,967.00 crore.
• Ancillary Revenues: Grew by 14% to Rs 2,141.00 crore.

Factors Influencing Performance

Interglobe Aviation attributes the substantial loss primarily to foreign exchange movements. The company stated that excluding the currency impact, it would have posted a profit of Rs 104.00 crore. This underscores the significant role that currency fluctuations play in the airline's financial health.

Expense Management

The total expenses surged by 18% to Rs 22,081.00 crore, outpacing the revenue growth. This increase in costs, coupled with the foreign exchange impact, contributed to the widening of losses compared to the same quarter last year.

Market Perspective

Nuvama, a financial services firm, has maintained a 'Hold' rating on IndiGo stock with a target price of Rs 5,330.00. However, they noted that the Q2 EBITDAR was down 62% year-on-year and missed consensus estimates by 39%, indicating that the company's performance fell short of market expectations.

Looking Ahead

As Interglobe Aviation navigates through these challenging times, investors and industry observers will be keenly watching how the company manages its foreign exchange exposure and controls its expenses. The ability to balance revenue growth with cost management will be crucial for IndiGo's financial recovery in the coming quarters.

The aviation sector remains susceptible to various external factors, including fuel prices, currency fluctuations, and global economic conditions. IndiGo's performance in the subsequent quarters will likely depend on how effectively it can mitigate these risks while capitalizing on the growing demand for air travel in India.