This article first appeared on GuruFocus .
-
Total Income:INR256 billion, a growth of around 19% year over year.
-
Yield Growth:21.3% increase.
-
Load Factor:83%, a reduction of 1.3 percentage points year over year.
-
EBITDA:INR38.3 billion with a margin of 15.6%.
-
Net Loss:INR2.4 billion compared to a profit of INR21.8 billion in the same quarter last year.
-
Passenger Growth:Served 31.3 million passengers, a growth of 1% year over year.
-
Capacity Growth:3% increase year over year.
-
Fleet Size:Total of 432 aircraft at the quarter end.
-
Total Cash:INR529 billion, with free cash at INR390 billion.
-
Total Debt:INR815 billion, including capitalized operating lease liabilities.
-
Warning! GuruFocus has detected 4 Warning Signs with BOM:533088.
-
Is BOM:539448 fairly valued? Test your thesis with our free DCF calculator.
Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
InterGlobe Aviation Ltd ( BOM:539448 ) reported a total income of INR256 billion, marking a 19% year-over-year growth.
-
The company experienced a yield growth of 21.3%, indicating strong pricing power.
-
Passenger demand remained robust, with 31.3 million passengers served, a 1% increase year over year.
-
InterGlobe Aviation Ltd ( BOM:539448 ) signed an MOU with CFM International for over 1,000 LEAP-1A engines, supporting future growth and structural strength.
-
The company continues to expand its network, including new flights to Jamnagar and operations from Jewa Airport in Noida, enhancing domestic and international connectivity.
Negative Points
-
InterGlobe Aviation Ltd ( BOM:539448 ) reported a net loss of INR2.4 billion for the quarter, compared to a profit of INR21.8 billion in the same quarter last year.
-
Fuel costs remain a significant pressure point, with global fuel markets causing volatility and elevated costs.
-
The company faced a 63% quarter-on-quarter increase in fuel costs, driven by geopolitical tensions and market dynamics.
-
Capacity deployment was impacted by geopolitical developments, particularly airspace-related constraints and disruptions in international corridors.
-
EBITDA margin decreased to 15.6% from 28% in the same period last year, reflecting the challenging cost environment.
Q & A Highlights
Q: What factors contributed to the rationalization of capacity and the flattish guidance for Q2 FY27? A: Gaurav Negi, CFO, explained that the pricing discipline is holding up, and yields have been tapering upwards, which is why the guidance for Q2 is 25% and north of 25%. The load factors are expected to be flattish or slightly down, driven by reduced capacity typical of the off-season quarter.
Q: Is there a target spread number that IndiGo aims to maintain despite cost increases? A: Gaurav Negi, CFO, stated that the goal is to maintain an economically viable proposition with a healthy spread. However, external factors like fuel and currency fluctuations are significant headwinds. The company continues to test high levels of yields to offset increased costs.
Q: Has there been any change to the full-year ASK guidance given the weak first quarter and flattish second quarter guidance? A: Gaurav Negi, CFO, confirmed that the company is holding to the single-digit capacity growth guidance given at the analyst meet. Post-FY27, the guidance is expected to return to early double-digit growth.
Q: How has the cost of fuel impacted the financials, and what is the effective rate for the quarter? A: Gaurav Negi, CFO, explained that the fuel cost increase was driven by elevated rates and consumption. The effective rate was influenced by a government cap on domestic fuel prices, which was lifted on June 9th, leading to market rates being applied.
Q: What is the status of the fleet strategy, particularly regarding damp leases and Middle East capacity? A: Gaurav Negi, CFO, mentioned that most damp leases have been returned, and the company will assess the situation in Q3. Middle East capacity is operating at about 90% of pre-crisis levels, and the company continues to monitor the situation.
Q: How does IndiGo view the potential entry of airport operators into the airline sector? A: Rahul Bhatia, Managing Director, stated that if the news has merit, it would reflect a massive conflict of interest with no global precedence. The company will watch how this development unfolds.
Q: What is the impact of FX loss on the financials, and why is the number lower than expected? A: Gaurav Negi, CFO, explained that the FX loss of 82 crores is due to a 10% shift in the rupee-dollar exchange rate. The mark-to-market impact was favorable as the rupee strengthened by the end of the quarter.
Q: How does IndiGo plan to manage yield increases versus cost pressures, especially with fuel price volatility? A: Gaurav Negi, CFO, noted that the company will continue to test high levels of yields to offset increased costs. The cost environment remains volatile, and the company will adjust pricing strategies accordingly.
Q: What is the outlook for international ASK share growth, and will it exceed previous estimates? A: Gaurav Negi, CFO, confirmed that the company is on track to achieve a 40% international ASK share by 2030, with deliveries of XLRs and wide-body aircraft supporting this growth.
Q: How does IndiGo plan to handle the cost environment and maintain profitability? A: Gaurav Negi, CFO, stated that the company is focused on cost efficiency, prioritizing fuel-efficient aircraft, and managing discretionary expenses. The aim is to balance growth with economic realities and maintain long-term shareholder value.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
