IndiGo Q2 results: Revenue likely to rise up to 30% YoY driven by airfare hike; key focus on ATF prices rise and its impact on profitability

InterGlobe Aviation, which operates IndiGo airlines, will announce its September quarter earnings on Thursday, October 29. The results come as the aviation industry faces higher aviation turbine fuel (ATF) costs due to the West Asia conflict. ATF, which accounts for about 40% of an airline’s operating costs, has risen nearly 25% in price over the last three months.

IndiGo Q2 revenue and net profit expectations

According to experts, IndiGo could report mixed quarterly earnings. Net sales could rise 27% to 30% YoY to between ₹23,500 crore and ₹24,200 crore, mainly due to higher airfares during the quarter. However, this would be a 2% to 4% decline from the previous quarter. The company reported net sales of ₹24,584 crore in the previous quarter and ₹18,555 crore in the September quarter of FY26.

On the profitability front, IndiGo could swing to a net profit of ₹510 crore to ₹580 crore, compared with a consolidated net loss of ₹2,582 crore in Q2FY26 and ₹238 crore in Q1FY27.

Investors will look for management commentary on the overall business outlook under new CEO Willie Walsh, who took charge on August 3, succeeding Pieter Elbers. Passenger traffic and market share gains will also be tracked closely.

Ahead of the Q2FY27 results, IndiGo shares closed 2% higher at ₹4,690 on Wednesday, October 28. So far this year, IndiGo shares are down over 7%.

IndiGo share technical outlook ahead of Q2 results

IndiGo has rebounded just ahead of its Q2FY27 results, but the stock is still in a downtrend.The 20-day EMA has been below the 50-day EMA since mid-September, so the short-term trend remains weak.

The daily Directional Movement Index (DMI) shows the selling pressure is starting to ease and the ADX has flattened at 31.4. This suggests the downtrend is slowing, though buyers have not yet taken control.

IndiGo options: a wide move priced in

IndiGo has the widest expected move of all the stocks covered this season. The options market expects a move of about ±7.6% by the November 23 expiry, which puts the expected range at roughly ₹4,357 to ₹5,071.

IndiGo’s past reactions, however, have rarely been this large. A day after the stock moved more than 7.6% on the day after its results only once in the last 12 quarters, an 8% fall after Q2FY25. In 10 of those 12 quarters, the next-day move stayed within ±3.3%. Meanwhile, in 10 days the stock moved more than 7.6% only once, a 9.6% rise after Q4FY26.

Options strategy for IndiGo Q2 results

If you expect the stock to stay in a range: A short straddle could be considered. The premium is high compared with IndiGo’s past reactions, and option premiums usually fall once the results are out. The strategy makes profit if the stock stays between roughly ₹4,343 and ₹5,057 until the November expiry. However, airline results can bring large surprises. Traders can limit the risk by buying a call and a put further away from the current price.

If you expect a sharp move after the results: A long straddle could be considered. In the last two quarters, the stock rallied 9.6% and 5.8% within 10 days of its results. The strategy makes profit if IndiGo falls below roughly ₹4,343 or rises above ₹5,057 by expiry. However, the cost is high, and option premiums usually fall after the results, so the move needs to be large for this trade to work.