IndiGo Share Price in Focus; Total Income Up 6.4% YoY, Profit Drops in Q1 FY26 Results

InterGlobe Aviation Limited (IndiGo) (NSE: INDIGO), announced its financial results for the first quarter of fiscal year 2026, showcasing mixed performance amid rising costs and stable operational growth.

Operational Performance

For the quarter ended June 30, 2025, IndiGo reported a 16.4% year-on-year increase in capacity, reaching 42.3 billion Available Seat Kilometers (ASKs). Passenger traffic grew by 11.6% to 31 million, reflecting robust demand despite a 5% decline in yield to ₹4.98. The load factor dropped slightly by 2.1 percentage points to 84.6%, indicating marginally lower aircraft occupancy.

Revenue and Profitability

IndiGo’s Revenue from Operations rose by 4.7% YoY to ₹2,04,963 million. The airline also saw total income climb 6.4% to ₹2,15,426 million. The key drivers were passenger ticket revenues, which increased by 7.8% to ₹1,77,917 million, and ancillary revenues, which jumped by 22.1% to ₹21,534 million.

However, profitability took a hit. The airline reported a net profit of ₹21,763 million, down from ₹27,288 million in Q1 FY25. The EBITDAR margin stood at 28.0%, compared to 29.7% a year ago, with EBITDAR falling slightly to ₹57,386 million. On the cost side, total expenses increased by 10.2% YoY to ₹192,319 million.

Cost Metrics

On the cost front, IndiGo benefited from a 21.9% reduction in fuel CASK (Cost per Available Seat Kilometer) to ₹1.38. However, CASK excluding fuel rose 2.5% to ₹2.93, indicating inflationary pressure on non-fuel operational costs.

Balance Sheet Position

As of June 30, 2025, IndiGo held a total cash balance of ₹494,057 million, which included ₹348,019 million in free cash and ₹146,038 million in restricted cash. The total debt stood at ₹684,884 million, including ₹467,818 million in capitalised operating lease liabilities.

Mr. Pieter Elbers, CEO, said, “The June quarter was shaped by significant external challenges that created headwinds for the entire aviation sector. Despite these industry wide disruptions, we reported a net profit of INR 21,763 million with a net profit margin of around 11% for the quarter ended June 2025. While the revenue environment saw moderation, demand for air travel held strong as we served more than 31 million passengers during the quarter, reflecting a growth of around 12 percent on a year-over-year basis.”

He further added, “Looking forward, we remain optimistic about the growth of air travel and with our scale, network and fit for purpose fleet, we remain committed to serve the growing demand.”

Outlook

IndiGo expects capacity growth in Q2 FY26 in the mid to high single digits compared to the year-ago period, continuing its expansion trajectory.

IndiGo Share Price Performance

On July 31, 2025, IndiGo share price opened at ₹5,625.00, down from its previous close of ₹5,740.00. At 10:45 AM, the share price of IndiGo was trading at ₹5,784.00, up by 0.77% on the NSE.

Also Read: IndiGo Signs MoU with Singapore Tourism Board to Promote Tourism and Travel!

Conclusion

While IndiGo delivered steady growth in passenger volumes and revenues in Q1 FY26, profitability was impacted by rising non-fuel costs.

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