InterGlobe Aviation (IndiGo) Q1 results: Net profit declines 20% to ₹2,176 crore; revenue rises 5%

InterGlobe Aviation, the parent of India's largest airline IndiGo, on Wednesday, July 30, reported net profit of ₹2,176 crore in the first quarter of current financial year (Q1FY26) marking a decline of 20% from ₹2,729 crore in the same period last year.

“Despite a challenging operating environment marked by geopolitical tensions, airspace restrictions and the tragic accident in the Indian Aviation sector, IndiGo reported a net profit of INR 21,763 million for the quarter ended June 30, 2025,” the company said in a press release.

IndiGo's revenue from operations, however, rose 5% to ₹20,496 crore from ₹19,571 crore in the year-ago period.

The company reported subdued operational performance as its earnings before finance income and cost, tax, depreciation, amortization and aircraft, engine rental (EBITDAR) fell 1.2% to ₹5,739 crore and its EBITDAR margin shrank by 170 basis points to 28% at the end of June quarter.

At the end of the first quarter, IndiGo had a fleet of 416 aircraft, up 9% from 382 aircraft in the same period last year.

The passenger volumes demonstrated a strong growth of around 12% year-over-year reflecting resilient demand despite the external headwinds, IndiGo said.

The airline expanded its available seat kilometer (ASK) capacity by 16.4% to 42.3 billion, carrying 31 million passengers, a jump of 11.6% compared to the previous year. However, competitive pressures and pricing softness impacted yields, which fell 5% to ₹4.98, and the load factor slipped by 2.1 percentage points to 84.6%, IndiGo added.

There was a sharp 21.9% reduction in fuel cost per available seat kilometer (CASK) to ₹1.38, driven by lower global fuel prices and operational efficiencies. However, CASK excluding fuel rose by 2.5% to ₹2.93, reflecting increased costs in areas such as maintenance, staff, and airport charges.

“The June quarter was shaped by significant external challenges that created headwinds for the entire aviation sector. Despite these industry wide disruptions, we reported a net profit of INR 21,763 million with a net profit margin of around 11% for the quarter ended June 2025. While the revenue environment saw moderation, demand for air travel held strong as we served more than 31 million passengers during the quarter, reflecting a growth of around 12 percent on a year-over-year basis,” said Pieter Elbers, CEO, InterGlobe Aviation.

“Looking forward, we remain optimistic about the growth of air travel and with our scale, network and fit for purpose fleet, we remain committed to serve the growing demand,” he added.

During the quarter, IndiGo provided scheduled services to 91 domestic destinations and 41 international destinations.

IndiGo shares ended 0.67% lower at ₹5,717.50 on the National Stock Exchange ahead of earnings announcement.