Synopsis: A large-cap company’s shares are in focus after the company reported negative turnaround to loss despite increase in revenue.
India’s largest passenger airline operating as a low-cost carrier, is in the spotlight after reporting a loss despite a 10 percent surge in revenue. Read the article below for detailed insights.
With a market capitalization of Rs. 2,20,993.54 crore, the shares of Interglobe Aviation Limited is trading at Rs. 5,712.50, up by 1.34 percent from its previous closing price of Rs. 5,637 per equity share. The stock has touched an intraday high of Rs. 5,833.50 in today’s trading session, implying an upside of 3.49 percent from previous day’s close price.
Q2FY26 Results & Updates
Interglobe Aviation Limited reported Rs. 18,555.3 crore in revenue for the second quarter of FY26, a 9.34 percent increase over the Rs. 16,969.6 crore for the same period in FY25. It decreased by 9.47 percent as compared to Rs. 20,496.3 crore in Q1 FY26.
The consolidated net loss for the second quarter of FY26 was Rs. 2,582.1 crore, which was a negative turnaround from a profit of Rs. 2,176.3 crore in Q1 FY26 and widened from a loss of Rs. 986.7 crore in Q2 FY25.
IndiGo’s capacity increased by 7.8 percent to 41.2 billion, with passengers growing by 3.6 percent to 28.8 million. Yield rose 3.2 percent to INR 4.69, while the load factor remained stable at 82.5 percent. Fuel CASK improved by 16.3 percent to INR 1.45, though CASK ex-fuel ex-FX increased by 3.9 percent to INR 3.01.
As of September 30, 2025, the fleet comprised 417 aircraft, with a net addition of one passenger aircraft during the quarter. IndiGo operated up to 2,244 daily flights and served 94 domestic and 41 international destinations. Operationally, the airline achieved a Technical Dispatch Reliability of 99.89 percent, with an on-time performance of 89.8 percent at six major metros and a low flight cancellation rate of 0.5 percent.
Management View
According to CEO Mr. Pieter Elbers, IndiGo achieved a 10 percent growth in topline revenue, with an operational profit of Rs. 104 crore, compared to an operational loss last year, excluding currency impact. He emphasized the importance of optimizing capacity during seasonally weaker periods to maintain profitability as India’s aviation sector grows. IndiGo continued to lead in On-Time Performance, customer satisfaction, and network expansion.
Despite external industry challenges at the start of the year, the company saw recovery in July and a strong performance in August and September. Looking ahead, IndiGo has raised its capacity guidance for FY26 to early teens growth to meet rising demand and sustain growth.
Reason for Loss Despite Revenue Growth
IndiGo reported a 10 percent year-on-year increase in total revenue, reaching Rs. 19,599.5 crore. Excluding the impact of currency fluctuations, the airline posted a net profit of Rs. 103.9 crore, a significant improvement compared to a net loss of Rs. 753.9 crore during the same period last year.
However, including the impact of currency movement related to dollar-based future obligations, the company incurred a net loss of Rs. 2,582.1 crore for the quarter. The substantial loss was driven primarily by unfavorable currency fluctuations, which impacted IndiGo’s future obligations, offsetting the strong revenue growth and profitability in the core operations.
About the company
InterGlobe Aviation Limited, incorporated in 2004 and based in Gurugram, operates IndiGo, India’s leading airline offering domestic and international air transportation, cargo, and charter services. It also provides ground handling, aircraft leasing, hotel booking, and pilot training. As of September 30, 2025, it had a fleet of 417 aircraft serving 94 domestic and 41 international destinations.
A return on equity (ROE) of about 103 percent, a return on capital employed (ROCE) of about 17.3 percent and debt to equity ratio at 8.67 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 43.2x which is higher as compared to its industry P/E 32.4x.
As of September 2025, the company’s shareholding pattern shows that promoters hold 41.58 percent of the total equity, indicating strong promoter ownership. Foreign Institutional Investors (FIIs) hold 28.44 percent, while Domestic Institutional Investors (DIIs) own 24.58 percent. The government holds 0.07 percent and the public shareholding stands at 5.32 percent, reflecting a healthy level of institutional participation in the company.
Written By Akshay Sanghavi
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