IndiGo Faces ₹2.17 Crore Penalty Over Aircraft Parts Import Duty Exemption Denial

India’s largest airline, IndiGo, disclosed on Monday, January 6, 2025, that it has been penalised ₹2.17 crore by the Principal Commissioner of Customs, Air Cargo Complex (Import).

The penalty stems from the denial of duty exemption on the import of aircraft parts. IndiGo received the order on January 4, 2025, a non-working day, and filed the disclosure on the first working day thereafter.

Customs Denial of Duty Exemption

The penalty arises from a customs ruling that denied IndiGo the duty exemption it had claimed on imported aircraft parts. The airline’s corporate office in Gurgaon received the official order on January 4, and the company filed the disclosure on the next business day, January 6, 2025.

Stock Performance

On January 07, 2025, IndiGo share price traded 1.49% higher at ₹4,328.65 at 1:09 PM (IST), while the BSE benchmark Sensex jumped 283.68 points to 78,248.67. IndiGo share price reached a 52-week high of ₹5,033.20 on September 12, 2024, and a 52-week low of ₹2,844.45 on January 25, 2024. As per BSE, the total traded volume for the stock stood at 0.15 lakh shares with a turnover of ₹6.59 crore.

At the current price, IndiGo shares are trading at a price-to-earnings (P/E) ratio of 24.85x, based on its trailing 12-month earnings per share (EPS) of ₹171.65, and a price-to-book (P/B) ratio of 44.12, according to exchange data.

IndiGo Reports Net Loss for Q2 FY25

In its latest financial results, IndiGo reported a net loss of ₹986.7 crore for the second quarter of FY25, which ended September 2024. This marks a sharp contrast from the ₹188.9 crore profit recorded during the same quarter of the previous fiscal year.

Revenue Growth but Seasonal Weakness

Despite the loss, IndiGo’s revenue from operations grew to ₹16,970 crore, slightly exceeding analysts’ expectations of ₹16,790 crore. However, the airline saw a significant sequential decline in revenue of over 13% from ₹19,570.7 crore in Q1 FY25, reflecting the seasonal weakness typically observed in the second quarter.

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