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  5. IndiGo shares surge 4% as Q2 loss narrows, passenger revenue expected to grow over 25% in FY27; what analysts said

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IndiGo shares surge 4% as Q2 loss narrows, passenger revenue expected to grow over 25% in FY27; what analysts said

Abha Raverkar
By Abha Raverkar

4 min read | Updated on October 30, 2026, 11:44 IST

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SUMMARY

IndiGo Q2 results: Its cost per available seat kilometer (CASK) surged 68.9% YoY to ₹2.44, while CASK excluding fuel and foreign exchange rose 14.6% YoY to ₹3.45 in Q2 FY27.

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INDIGO
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IndiGo Q2

InterGlobe Aviation has a total market capitalisation of ₹1.86 lakh crore as of October 30, 2026, according to data on the NSE. | Image: Shutterstock

IndiGo share price: Shares of air carrier InterGlobe Aviation, the parent company of IndiGo, surged as much as 4.15% to hit an intraday high of ₹4,869 per unit on the National Stock Exchange (NSE) on Friday, October 30, as the company saw its net loss narrow, along with reporting a surge in revenue.
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Analysts made note of the company’s better-than-expected EBITDA (earnings before interest, tax, depreciation, and amortisation), along with its focus on pricing over capacity as jet fuel prices increased. IndiGo guided its PRASK (passenger revenue per available seat kilometer) to grow over 25% in Q3 and FY27.

According to a regulatory filing, the budget air carrier reported a consolidated net loss of ₹1,878.6 crore in the second quarter of the 2026-27 financial year (Q2 FY27), compared with a loss of ₹2,581.7 crore in the same period last year.

Its consolidated revenue from operations jumped 25.9% year-on-year (YoY) to ₹23,363.8 crore during the quarter under review, as against ₹18,555.3 crore in the July-September quarter of the 2025-26 fiscal year (Q2 FY26).

At the operational level, the company’s performance further improved as the EBITDA jumped two-fold YoY to ₹1,907 crore in Q2 FY27, from ₹543 crore in the year-ago period.

Similarly, the EBITDA margin expanded over 500 basis points (bps) to 8.1%.

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The ATF (Air turbine fuel) expenses for the quarter jumped 67% YoY to ₹9,967 crore for the quarter ended September 2026, from ₹5,961 crore for the quarter ended September 30, 2025.

The firm said that its capacity reduced marginally to 40.8 billion available seat kilometres (ASKs), and its passengers dropped by 4.7% to 2.75 crore for the reporting quarter.

Similarly, its revenue passenger kilometers (RPK) declined 3.7% to 32.8 billion vs 34 billion in the same quarter last year.

Its cost per available seat kilometer (CASK) surged by 68.9% YoY to ₹2.44, with its CASK, excluding fuel and foreign exchange, rising 14.6% YoY to ₹3.45.

What the analysts said

Analysts at Jefferies said that the aviation company reported soft Q2 earnings, as expected, with strong yields partly offsetting elevated fuel or other costs. The firm continued to prioritise pricing over capacity, guiding for low-single-digit ASK growth in the third quarter and for FY27.

The company estimated its PRASK to grow over 25% in Q2, with FY28 capacity growth remaining in the mid-teens. Furthermore, IndiGo’s management eased concerns over near-term yields and ex-fuel and forex costs, despite earnings remaining sensitive to jet fuel prices.

In an analyst note, Nomura said that IndiGo recorded robust Q2 FY27 results, demonstrating that demand remains supportive enough to pass on cost inflation through pricing. Its EBITDA numbers were ahead of the consensus, on the back of better-than-expected PRASK and yield growth.

The analysts expect its Q3 FY27 margins to be stronger quarter-on-quarter (QoQ) despite sequentially higher fuel prices. The company’s pricing captures 80-90% of the cost increase, they added.

CITI analysts stated that the reported revenue was 6% above estimates, due to robust yield. Its fuel CASK was surprisingly lower sequentially, they said, adding that, which is why its EBITDAR was much higher than the muted estimate for the quarter. However, the analysts added that the company’s operating environment remains challenging in the near-term.
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Analysts at HSBC noted that the company’s Q2 EBITDA was higher than consensus, supported by stronger yields and a lower fuel bill, compared to consensus. The company guided its PRASK to grow over 25% in Q3 and full-year FY27, with capacity guided to grow in the low-single-digit range. The ex-fuel unit cost was guided to grow in the high-single- to low-double-digit range, with a strong focus on ancillary, cargo, and stretch.

At around 11:27 AM, the stock was trading 2.93% higher at ₹4,812.20 per equity share on the NSE.

InterGlobe Aviation has a total market capitalisation of ₹1.86 lakh crore as of October 30, 2026, according to data on the NSE.

Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Securities mentioned are illustrative and not recommendations. Please consult a financial advisor before making any investment decisions.

About The Author

Abha Raverkar
Abha Raverkar is a post-graduate in economics from Christ University, Bengaluru. She has a strong interest in the markets and loves to unravel the nitty-gritties of the latest happenings in the world of markets, business, and the economy.

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