IndiGo parent InterGlobe Aviation Ltd. reported a sharp decline in net profit in the third quarter of the current fiscal, weighed by one-time impact of new labour codes and flight disruptions in December.
Consolidated net profit plunged 76% to Rs 550 crore in the October-December quarter, compared to Rs 2,450 crore in the year-ago period, according to a stock exchange filing on Thursday. Analysts' consensus estimates compiled by Bloomberg projected a bottomline of Rs 1,997 crore.
IndiGo Q3FY26 Results (Consolidated, YoY)
- Revenue up 6% at Rs 23,472 crore vs Rs 22,111 crore (Bloomberg estimate: Rs 23,711 crore)
- Profit down 76% at Rs 550 crore vs Rs 2,450 crore (Bloomberg estimate: Rs 1,997 crore)
India's top airline took a one-time hit of Rs 1,547 crore, including an exceptional loss of Rs 969 crore owing to new labour codes, exceptional loss of Rs 577 crore due to flight disruption and regulatory penalty of Rs 22 crore. During the first week of December 2025, IndiGo experienced operational challenges that resulted in significant flight cancellations and delays. These disruptions led to a material reduction in passenger revenue during the affected period, the company said.
Moreover, a sharp depreciation in the rupee led to profit excluding foreign exchange tanking 59%. Currency movement pertaining to dollar-based future obligations aggregated to Rs 1,035 crore.
Operating income, denoted as earnings before finance costs, depreciation, amortisation and rentals (Ebitdar), fell nearly 1% to Rs 6,008 crore, leading to a margin contraction to 25.6% from 27.4% in the comparable quarter last year. Excluding forex impact, the margin was 30% versus 33.7%.
For the quarter, passenger ticket revenues increased 6.2% and ancillary revenues jumped 13.6% compared to the same period last year.
IndiGo's fleet net added 23 aircraft during the quarter, taking it to a total 440.
Shares of InterGlobe Aviation settled 1.2% higher at Rs 4,913.8 on the BSE, ahead of the results, compared to a 0.5% advance in the benchmark Sensex. The stock is up 23% on a 12-month basis.
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