IndiGo Q2 results: Net loss narrows 27% to Rs 1,879 crore; fuel costs weigh despite 26% revenue jump

However, IndiGo's net loss excluding foreign exchange effects stood at Rs 723.7 crore, compared with a profit of Rs 103.9 crore in the year-ago quarter, indicating deterioration in underlying profitability despite the narrower reported loss. The airline's earnings before interest, tax, depreciation, amortisation and rent (EBITDAR) surged 120.8 percent to Rs 2,459.9 crore from Rs 1,114.3 crore a year earlier.

EBITDAR margin expanded to 10.5 percent from 6 percent. However, EBITDAR excluding foreign exchange effects declined 4.9 percent to Rs 3,615.3 crore from Rs 3,800.3 crore, while the corresponding margin contracted to 15.5 percent from 20.5 percent. IndiGo attributed the pressure on profitability to exceptionally high aviation fuel costs and rupee depreciation, alongside continued geopolitical uncertainty.

The airline's fuel cost per available seat kilometre (fuel CASK) surged 68.9 percent year-on-year to Rs 2.44, while CASK excluding fuel and foreign exchange effects increased 14.6 percent to Rs 3.45. Total expenses rose 18.6 percent to Rs 26,188 crore, compared with Rs 22,081 crore in the corresponding quarter last year. On the operational front, IndiGo carried 27.5 million passengers during the September quarter, a decline of 4.7 percent year-on-year.

Capacity, measured in available seat kilometres (ASK), declined 1 percent to 40.8 billion. Revenue passenger kilometres (RPK) fell 3.7 percent to 32.8 billion, while the passenger load factor declined by 2.2 percentage points to 80.3 percent from 82.5 percent a year earlier. However, passenger yield increased sharply by 34.3 percent year-on-year to Rs 6.30, helping the airline deliver strong revenue growth despite lower passenger volumes.

IndiGo's total debt increased 16.7 percent year-on-year to Rs 87,303 crore as of September 2026, compared with Rs 74,814 crore a year earlier. This included Rs 55,159 crore in capitalised operating lease liabilities. The airline's total cash balance declined 1.6 percent to Rs 52,685 crore from Rs 53,515 crore. However, free cash increased 3.7 percent to Rs 39,999 crore, while restricted cash declined 14.9 percent to Rs 12,756 crore.

Commenting on the quarterly performance, IndiGo CEO Willie Walsh said: “The seasonally soft September quarter saw exceptionally elevated fuel costs and continued geopolitical turmoil. We responded with prudent capacity reduction and yield management, supporting strong revenue performance but only partially offsetting the higher costs. Despite these actions, the quarter resulted in a net loss of around 19 billion rupees.

“We remain focused on managing the near-term challenges while continuing to invest for the future. India’s long-term aviation opportunity remains compelling, and our priorities remain clear: safe and reliable operations, rigorous cost discipline, and disciplined growth that creates sustainable value.”