IndiGo Q1 Results: Profit Rises 47.5%, Misses Estimates

IndiGo's parent InterGlobe Aviation Ltd. saw its profit rise in the first quarter of fiscal 2025, but missed analysts' estimates.

The operator of India's largest airline reported a 47.5% surge in the bottom line to Rs 1,063 crore during the April-June period, according to an exchange filing on Friday. A consensus estimate of analysts tracked by Bloomberg had projected a profit of Rs 2,503.4 crore.

The company witnessed a 22.7% rise in aircraft fuel expenses on a yearly basis at Rs 6,416.5 crore during the quarter. IndiGo operated at a peak of 2,029 daily flights during the period.

During an earnings call with analysts, IndiGo Chief Financial Officer Gaurav Negi said there is an escalation in fuel prices as some states have started increasing the Value-Added Tax on jet fuel.

The airport charges have also started to climb upwards, and the airline is monitoring it as well as having discussions with airport partners, he said. Further, maintenance works are going through a bit of an inflationary cycle, according to him.

Revenue of the budget carrier rose 17.3% year-on-year to Rs 19,571 crore for the quarter. That compared with an estimate of Rs 18,717.6 crore.

The aircraft's capacity increased by 11.1% on a yearly basis in the quarter-ended June, while passengers increased 6.2% year-on-year during the period. IndiGo now expects a single digit increase in capacity during the second quarter of the financial year ending March 2025.

"Currently, we are experiencing a higher inflationary environment... it is across the board, we are experiencing, nonetheless, we are looking at ways on how to control the costs," Negi said, adding that an increase in capacity is helping to offset higher costs.

The operational performance strengthened as the reported earnings before interest, tax, depreciation, amortisation and rental cost of the company increased 15.5% on a yearly basis to Rs 5,840.8 crore, according to the filing. The operating margin contracted to 29.8% from 30.3%. Analyst estimates for Ebitdar and Ebitdar margin tracked by Bloomberg were Rs 4,399 crore and 23.5%, respectively.

Shares of InterGlobe Aviation closed 1.38% higher at Rs 4,493.40 apiece on Friday ahead of the earnings announcement. That compares with a 1.8% advance in the country's benchmark NSE Nifty 50.

(With Inputs From PTI)