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.

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.

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.

InterGlobe Aviation Limited has completed the allotment of 200 equity shares under its Employee Stock Option Scheme 2023, following the exercise of vested stock options by employees. The ESOP Allotment Committee meeting was conducted on March 5, 2026, from 1100 hours to 1115 hours IST to approve this share allotment.

Share Allotment Details

The company allotted shares with specific parameters that demonstrate the structured nature of the ESOP implementation:

Post-Allotment Capital Structure

Following this share allotment, InterGlobe Aviation Limited's capital structure has been updated to reflect the new equity position:

Regulatory Compliance and Share Characteristics

The allotment was conducted under the InterGlobe Aviation Limited Employee Stock Option Scheme 2023, which was filed with both NSE and BSE on September 6, 2023. The filing numbers were NSE/LIST/37358 for NSE and DCS/IPO/SC/ESOP-IP/2906/2023-24 for BSE.

The newly allotted equity shares are identical in all respects to the existing shares of the company. No lock-in provisions apply to these shares, and no premium was charged beyond the exercise price. The shares have been issued in demat form under the ISIN INE646L01027.

Corporate Governance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 10(c) of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Company Secretary and Chief Compliance Officer Neerja Sharma signed the regulatory filing, ensuring proper corporate governance standards were maintained throughout the process.