IndiGo Q2 Results FY26: InterGlobe Aviation Reports Rs 2,582 Cr Net Loss Despite 9% Revenue Growth

InterGlobe Aviation Ltd, the parent company of IndiGo Airlines, reported a sharp widening of losses for the second quarter (Q2 FY26). The airline's net loss jumped more than two-and-a-half times year-on-year to Rs 2,581.7 crore, as total expenditure significantly outpaced revenue growth.

IndiGo Q2 Results FY2026: InterGlobe Aviation's Net Loss Widens 156% YoY; Revenue Growth Outpaced by Rising Costs

During the July-September 2025 quarter, IndiGo's revenue from operations rose 9.3% to Rs 18,555.3 crore, driven by steady travel demand and higher ticket sales. However, total expenses climbed 18.3% year-on-year to Rs 22,081.2 crore, led by higher operational costs and steep foreign exchange losses.

A major factor behind the increased losses was the foreign exchange impact, which surged nearly 12 times to Rs 2,892 crore compared to the same quarter last year.

IndiGo Q2 EBITDAR Falls Sharply

The airline's EBITDAR (Earnings Before Interest, Tax, Depreciation, Amortisation, and Rent) fell sharply to Rs 1,114 crore, down from Rs 2,434 crore a year ago. This decline underscores the financial strain from rising costs, currency fluctuations, and competitive pricing pressures within the aviation sector.

Forex Losses Weigh Heavily on Bottom Line

IndiGo stated that its reported loss was primarily due to adverse currency movements. Excluding the impact of foreign exchange losses, the company would have posted a net profit of Rs 104 crore for the quarter, highlighting its underlying operational strength.

Passenger and Ancillary Revenues Show Growth

For the quarter, passenger ticket revenues stood at Rs 15,967 crore, representing an 11.2% year-on-year increase, driven by higher load factors and stable demand. Additionally, ancillary revenues, which include services like baggage fees, seat selection, and in-flight sales, rose 14% year-on-year to Rs 2,141 crore, reflecting the airline's efforts to diversify income streams.

Operationally, IndiGo's passenger yields, or the average fare earned per kilometer, rose to Rs 4.69 per km, marking a 3.2% increase compared to the same quarter last year. Revenue per available seat kilometer (RASK) also improved by 2.3%, reaching Rs 4.55.

Fuel Costs Decline While Other Operating Expenses Surge

Fuel expenses fell 10% to Rs 5,962 crore, providing some relief. However, other operating costs, including maintenance, airport charges, and staff expenses, jumped 34% to Rs 16,119 crore, reflecting rising operational pressures.

CASK Increases Amid Cost Pressures

IndiGo's cost per available seat kilometer (CASK) increased 10% to Rs 5.16, highlighting overall cost inflation. Excluding fuel, CASK rose sharply by 25% to Rs 3.71, indicating significant margin pressure despite lower jet fuel prices. When factoring out both fuel and foreign exchange impacts, CASK ex-fuel ex-forex increased 4% year-on-year to Rs 3.01.