IndiGo October-December Profit Falls 78% to ₹5.5 Billion on Exceptional Costs; Revenue Up 6%

InterGlobe Aviation Ltd (IndiGo) reported a net profit of ₹5.5 billion for the December-ended quarter, a decrease of 77.6% from ₹24.5 billion in the corresponding period of the previous fiscal year. In a filing with the National Stock Exchange of India (NSE) and BSE Limited on Thursday, the airline attributed the decline to exceptional costs and foreign exchange volatility.

The company reported exceptional items aggregating ₹15.5 billion for the quarter. According to the financial results, this included an estimated provision of ₹9.7 billion towards the implementation of new labour laws and ₹5.8 billion related to operational disruptions. The disruption impact comprised ₹5,550 million in costs and a penalty of ₹222 million levied under a Directorate General of Civil Aviation (DGCA) order. Additionally, the results were affected by currency movements on dollar-based future obligations amounting to ₹10.4 billion

Excluding the impact of exceptional items and foreign exchange fluctuations, the underlying net profit for the quarter was ₹31.3 billion, compared to ₹38.46 billion in the same period last year.

Revenue from operations increased 6.2% to ₹234.7 billion from ₹221.11 billion in the December quarter of the previous year. Total income rose 6.7% to ₹245.4 billion.This figure includes other income of ₹10.7 billion, which grew 21.2% year-on-year.

Earnings before interest, tax, depreciation, amortisation and rent (EBITDAR) stood at ₹60.1 billion, with a margin of 25.6%, compared to ₹60.6 billion and a margin of 27.4% in the year-ago period.

Operational Metrics
According to the press release, capacity measured in Available Seat Kilometres (ASK) increased 11.2% to 45.4 billion. Revenue Passenger Kilometres (RPK) grew 8.2% to 38.4 billion. The passenger load factor contracted by 2.4 percentage points to 84.6% from 86.9%. Yield per kilometre fell 1.8% to ₹5.33.

Total expenses for the quarter rose 9.6% year-on-year to ₹224.3 billion. Fuel costs increased 8.1% to ₹69,445 million. Cost per Available Seat Kilometre (CASK) decreased 1.9% to ₹4.73. 

IndiGo CEO Pieter Elbers said in the statement: "This quarter, the Company faced major operational disruptions that resulted in significant flight cancellations and delays from 3rd to 5th December. We deeply regret the inconvenience faced by our customers and express our heartfelt gratitude for their patience and trust."

Elbers added: "I also want to thank all IndiGo colleagues who worked tirelessly to stabilize operations—your dedication and 'service from the heart' enabled us to return swiftly to normal operations."

Regarding the financial performance, Elbers stated: "Despite these operational disruptions, IndiGo delivered a topline of around 245 billion rupees in the December quarter, reflecting a growth of around 7% with a reported profit of around 5 billion rupees and an underlying profit excluding exceptional items and forex of 31 billion rupees."

The CEO noted the airline welcomed nearly 32 million customers in the quarter and around 124 million customers in calendar year 2025.

Fleet and Balance Sheet
As of December 31, 2025, IndiGo's total cash balance was ₹516.069 billion, comprising ₹369.4 billion in free cash and ₹146.6 billion in restricted cash. The capitalised operating lease liability stood at ₹524,784 million, bringing total debt to ₹768.6 billion.

The fleet size stood at 440 aircraft, a net increase of 23 passenger aircraft during the quarter. The fleet included 27 A320 CEOs (one on damp lease), 180 A320 NEOs, 171 A321 NEOs (three on damp lease), one A321XLR, 46 ATRs, three A321 freighters, two B777s (damp lease), five B737s (damp lease), and five B787s (damp lease).

The airline operated a peak of 2,344 daily flights during the reported period, connecting 96 domestic and 44 international destinations.

For the October-December 2025 period, Technical Dispatch Reliability was 99.9%. For October and November 2025, the airline recorded an on-time performance of 76.6% across six key metros and a flight cancellation rate of 1.03%.

Outlook and Governance
The company stated that capacity in terms of ASKs is expected to grow by approximately 10% in the fourth quarter of fiscal 2026 compared to the same period in fiscal 2025.

The Board approved the re-appointment of Deloitte Touche Tohmatsu India LLP as internal auditors for three financial years, from 2026-27 to 2028-29. The filing highlighted Deloitte's experience in the aviation sector and its global network.

IndiGo also announced it was awarded 'Airline of the Year (Indian)' at the 6th Annual South-East Air Cargo Conclave & Awards 2025 and recognised for 'Excellence in Engagement' at the oneDXB Airport Excellence Awards 2025.