IndiGo reports loss of ₹987 crore; operational revenue grows by 14%

IndiGo, India’s biggest airline by market share with a capitalisation of nearly ₹1,68,944 crore, reported a net loss of Rs 986.7 crore for the second quarter of the current fiscal (FY25) on Friday, October 25. The surprising loss of the company is due to grounding of planes and higher fuel costs.

The airline posted a profit of ₹188.9 crore in the year-ago period, according to a release. The profit reported is also significantly lower than the ₹2,728.8 crore profit recorded in the previous quarter, Q1 FY25.

IndiGo’s shares closed 3.2% lower at ₹4,373.70 on the NSE.

Pieter Elbers, the CEO of IndiGo, said the airline's growth and expansion continued as the topline grew by 14.6% on a year-on-year basis in the September quarter to Rs 17,800 crore.

"In a traditionally weaker second quarter, results were further impacted by headwinds related to groundings and fuel costs. We have turned the corner as the number of grounded aircraft and associated costs have started reducing," he said.

The airline's fuel costs surged 12.8% to ₹6,605.2 crore in the second quarter of this fiscal.

Key highlights

IndiGo reported a 14% year-on-year increase in revenue from operations at ₹16,970 crore. This is a decline of over 13% from the ₹19,570.7 crore recorded in Q1 FY25, most possibly impacted by the usual seasonal dip in the second quarter.

The airline's operating earnings before interest, tax, depreciation, amortization, and rent (EBITDAR) hit ₹2,434 crore. The EBITDAR margin was at 14.3%.

In Q2 FY25, IndiGo's aviation turbine fuel (ATF) expenses increased to ₹6,605 crore, up from ₹6,416 crore in Q1 FY25. The increase in fuel prices is mainly due to fluctuations in global fuel prices.

Additionally, aircraft and engine rentals increased to ₹763 crore, as compared to ₹624 crore in the previous quarter. Repair and maintenance costs also increased, reaching ₹2,744 crore from ₹2,603 crore.

Foreign exchange losses jumped to ₹240 crore in Q2 FY25, up from just ₹57 crore in the first quarter. Overall, total expenses rose to ₹18,666 crore from ₹17,444 crore in Q1.