IndiGo share price falls over 3.5% post Q3 earnings; what you need to know

The stock was under pressure following the company's December quarter (Q3 FY26) results, which were announced post-market hours on Thursday.

The low-cost airline on Thursday reported a 78% decline in its net profit at ₹549.1 crore for the December quarter (Q3 FY26) as flight disruptions and implementation of the new labour code took a toll on its earnings.

IndiGo Q3 Earnings

The airline reported a net profit of ₹549.1 crore in the October-December quarter, compared with ₹2,448.8 crore earnings logged in the year-ago period, according to a company statement.

The company said it took a hit of ₹1,546.5 crore in the third quarter. This included ₹577.2 crore due to massive flight disruptions witnessed during early December and another ₹969.3 crore on account of the implementation of new labour laws.

IndiGo was slapped with a fine of ₹22.2 crore for the flight disruptions, which it has accounted for in exceptional items.

Currency movement related to dollar-based future obligations aggregated to ₹1,035 crore in the December quarter.

In the third quarter of the current financial year, InterGlobe Aviation, the parent of IndiGo, recorded a total income of ₹24,540.6 crore, higher than the ₹22,992.8 crore posted in the year-ago period.

IndiGo CEO Pieter Elbers said in the December quarter, the company faced major operational disruptions that resulted in significant flight cancellations and delays from December 3 to 5.

"Despite these operational disruptions, IndiGo delivered a topline of around 245 billion rupees in the December quarter, reflecting a growth of around 7 per cent with a reported profit of around 5 billion rupees and an underlying profit excluding exceptional items and forex of 31 billion rupees," Elbers said.

In the December quarter, the airline carried nearly 32 million passengers, and the total number of passengers flown last year stood at around 124 million.

What analysts say

UBS said IndiGo’s near-term outlook remains weak, though its medium- to long-term prospects continue to be strong. The company delivered a decent performance despite disruptions in early December.

Citi noted that Q3 was expected to be sharply impacted by the FDTL-related disruption. While operational parameters were broadly in line with expectations, the financial impact was lower than estimated.

It also noted that yields were better than expected.

Citi added that it has adjusted its estimates to reflect slightly higher costs and marginally lower yields, with management highlighting some softness in 4Q.

IndiGo’s operations are normalising, the overall impact of the disruption (including penalties) was not very severe, market share remains strong, and international route expansion continues, supported by the induction of the A321 XLR aircraft.

IndiGo carrying out in-depth review

IndiGo is carrying out an in-depth review of the robustness and resilience of its internal processes, the airline's CEO Pieter Elbers said on Thursday, against the backdrop of the massive operational disruptions last month.

The country's largest airline, on Thursday, posted a 78 per cent decline in profit at Rs 549.1 crore in the three months ended in December on account of higher expenses, including a ₹577 crore financial impact due to the disruptions.

During a call with mediapersons post announcement of the December quarter results, Elbers said an in-depth review of the robustness and resilience of internal processes is on the way, and efforts are being made to ensure continuity and stability in operations.

The Directorate General of Civil Aviation (DGCA) has curtailed the airline's winter schedule by 10 per cent, and now, the civil aviation ministry has asked other carriers to submit their requests for the slots vacated by IndiGo.

Referring to the disruptions, Elbers said that when it comes to having a proper evaluation of what happened, there are many factors which have come into play.