InterGlobe Aviation Limited has received a credit rating reaffirmation from CRISIL Ratings Limited, with the agency removing its ratings from 'Rating Watch with Developing Implications' and maintaining a positive outlook. The development comes after the airline successfully addressed operational challenges that had impacted its services in December 2025.
Rating Action and Financial Overview
CRISIL has reaffirmed the company's credit ratings while assigning a positive outlook to long-term facilities. The rating action covers total bank loan facilities worth Rs 9,000 crore.
| Rating Type: |
Current Rating |
Previous Status |
| Long Term Rating: |
CRISIL AA-/Positive |
Rating Watch with Developing Implications |
| Short Term Rating: |
CRISIL A1+ |
Rating Watch with Developing Implications |
| Total Facilities Rated: |
Rs 9,000 crore |
- |
Operational Recovery Drives Rating Resolution
The ratings were initially placed on watch on December 08, 2025, following widespread flight cancellations across major airports. These disruptions resulted from operational challenges during the implementation of phase II Flight Duty Time Limitation (FDTL) norms, which became effective November 01, 2025. Additional factors including technical glitches, airport system delays, winter schedule changes, air traffic congestion, and adverse weather conditions compounded the situation.
The Directorate General of Civil Aviation (DGCA) provided a one-time exemption for FDTL norms implementation until February 10, 2026. InterGlobe Aviation's swift recovery through various corrective measures, including enhanced manpower planning, roster optimization, network coordination, and system enhancements, enabled smooth operations post-FDTL phase-II implementation in February 2026.
Market Position and Performance Metrics
The company has demonstrated resilience in key operational metrics despite temporary disruptions. Market share recovery has been notable, with domestic market share rebounding from 59.6% in December 2025 to 63.6% in January 2026.
| Performance Indicator: |
Details |
| Passenger Load Factor: |
Above 80% consistently through January 2026 |
| Domestic Market Share (Dec 2025): |
59.6% |
| Domestic Market Share (Jan 2026): |
63.6% |
| On-time Performance: |
Recovered to historical levels |
Financial Strength and Liquidity Position
InterGlobe Aviation maintains robust financial flexibility with substantial liquidity reserves. As of December 31, 2025, the company held unencumbered cash and equivalents of Rs 36,945 crore, providing adequate cushion against adverse external events. Additionally, the company had undrawn working capital limits of Rs 2,680 crore and restricted cash of Rs 14,662 crore placed with lenders for lease rental and maintenance obligations.
Revenue from operations during the first nine months of fiscal 2026 grew 6.6% to Rs 62,524 crore, supported by healthy passenger growth across domestic and international networks. However, EBITDAR margin declined to 20% from 24.1% in the corresponding previous period, primarily due to first-quarter challenges and foreign exchange losses from rupee depreciation.
Regulatory Actions and Outlook
The DGCA imposed enforcement actions in January 2026 following a detailed inquiry, including a financial penalty of Rs 22.2 crore and a bank guarantee-linked reform framework of Rs 50 crore under the IndiGo Systemic Reform Assurance Scheme (ISRAS). The bank guarantee will be released in phases over 15 months, tied to DGCA's verification of reform implementation.
CRISIL expects the company's net debt to EBITDAR ratio to remain below 2.0 times over the medium term, with projections of 2.0-2.1 times in fiscal 2026. The positive outlook reflects confidence in continued operational stability and healthy financial metrics, supported by the company's strong market position and prudent liquidity management.
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