IndiGo Reports 27% Reduction in Q2 Losses to ₹1,879 Crore
IndiGo's net loss narrows significantly in Q2 FY27, driven by revenue growth despite high fuel costs.
IndiGo's net loss for Q2 FY27 is ₹1,879 crore, down 27% from last year.
Revenue from operations increased by 25.9% to ₹23,364 crore.
High fuel costs and rupee depreciation continue to pressure profitability.
IndiGo, the largest airline in India by market share, announced a consolidated net loss of ₹1,879 crore for the quarter ending September 2026, marking a 27.2% reduction from the loss of ₹2,582 crore reported in the same quarter last year. This improvement is attributed to a significant increase in revenue, which partially offset the impact of rising fuel costs and the depreciation of the Indian rupee.
The airline's revenue from operations surged by 25.9% year-on-year to reach ₹23,364 crore, up from ₹18,555 crore a year earlier. This growth was supported by higher passenger yields and a disciplined approach to capacity deployment. However, when excluding foreign exchange effects, IndiGo's net loss stood at ₹723.7 crore, contrasting with a profit of ₹103.9 crore in the previous year, indicating a decline in underlying profitability despite the narrower overall loss.
IndiGo's earnings before interest, tax, depreciation, amortization, and rent (EBITDAR) rose sharply by 120.8% to ₹2,459.9 crore from ₹1,114.3 crore a year earlier, with EBITDAR margins expanding to 10.5% from 6%. Nevertheless, EBITDAR excluding foreign exchange effects fell by 4.9% to ₹3,615.3 crore, with the margin contracting from 20.5% to 15.5%. The airline cited high aviation fuel costs and ongoing geopolitical uncertainties as key factors affecting profitability.
Operationally, IndiGo transported 27.5 million passengers during the September quarter, a decrease of 4.7% compared to the previous year. The available seat kilometers (ASK) also saw a slight decline of 1% to 40.8 billion. While revenue passenger kilometers (RPK) fell by 3.7% to 32.8 billion, the passenger load factor decreased by 2.2 percentage points to 80.3%. Despite these challenges, passenger yield increased by 34.3% year-on-year to ₹6.30, contributing to the airline's revenue growth.
As of September 2026, IndiGo's total debt rose by 16.7% year-on-year to ₹87,303 crore, which includes ₹55,159 crore in capitalized operating lease liabilities. The airline's cash balance decreased by 1.6% to ₹52,685 crore, while free cash increased by 3.7% to ₹39,999 crore. CEO Willie Walsh commented on the challenging quarter, emphasizing the need for prudent capacity management and a focus on long-term growth strategies despite the current difficulties in the aviation sector.
