IndiGo Q3 Results: InterGlobe Aviation's Net Profit Slumps 78% to Rs 550 Cr on Exceptional Losses, Revenue Up

InterGlobe Aviation, the parent company of IndiGo, reported a sharp decline in profitability for the third quarter of FY26, as one-time exceptional costs and operational disruptions significantly impacted earnings, even as revenues and capacity continued to grow.

IndiGo Q3 Results FY26: InterGlobe Aviation's Net Profit Falls 78% Sharply Due to Exceptional Items

For the quarter ended December 2025, IndiGo posted a consolidated net profit of Rs 549.8 crore, marking a steep 77.5 percent year-on-year decline from Rs 2,448.8 crore in the same period last year. The airline attributed the sharp fall in profit to the implementation of new labour codes and severe operational disruptions witnessed in December 2025.

Total exceptional items during the quarter amounted to Rs 1,546.5 crore. Excluding these one-time costs, the company said its net profit would have stood at Rs 2,096.3 crore, which still reflects a 14 percent year-on-year decline.

InterGlobe Aviation Q3 Results: Revenue Rises 6% Despite Profit Pressure

Despite the hit to profitability, IndiGo delivered steady top-line growth. Revenue from operations rose 6.2 percent year-on-year to Rs 23,471.9 crore in Q3 FY26, compared with Rs 22,110 crore in the corresponding quarter last year. The airline continued to benefit from its dominant position, commanding nearly two-thirds of India's domestic aviation market.

Indigo Q3 Earnings: EBITDA Improves, Margins Ease

Operating performance was mixed during the quarter. EBITDA increased 3.6 percent year-on-year to Rs 5,367 crore from Rs 5,178.5 crore, while the EBITDA margin moderated to 22.9 percent from 23.4 percent a year ago.

EBITDAR excluding forex declined 5.5 percent year-on-year to Rs 7,043 crore, with the corresponding margin falling to 30 percent from 33.7 percent in the year-ago quarter, reflecting cost pressures and softer yields.

Capacity Expansion Continues, Load Factor Declines

IndiGo reported strong capacity growth, with available seat kilometres increasing 11.2 percent year-on-year to 4,540 crore. Passenger traffic rose at a slower pace of 2.8 percent year-on-year to 3,190 crore passengers during the quarter.

As a result, the airline's load factor declined by 2.4 percentage points to 84.6 percent. Yield also softened, falling 1.8 percent year-on-year to Rs 5.33.

Costs Rise Despite Lower Fuel CASK

Fuel cost per available seat kilometre (CASK) declined 2.8 percent year-on-year to Rs 1.53, offering some cost relief. However, overall expenses climbed nearly 10 percent during the quarter, driven by an 8 percent increase in fuel costs and higher employee-related and operational expenses.

IndiGo Flight Cancellations in December 2025; Disruptions Hit Operations

A major drag on Q3 performance was the operational disruption in December 2025, when IndiGo faced mass flight cancellations and widespread chaos at major airports across India. The disruption was largely caused by a shortage of crew, particularly pilots, following the implementation of revised Flight Duty Time Limitation (FDTL) norms.

The new rules mandate longer rest hours and more humane rostering practices, forcing the airline to rework its schedules and network. According to estimates, more than 300,000 passengers were affected during the disruption.

One-Time Loss From December Crisis

IndiGo reported a one-time exceptional loss of Rs 577.2 crore linked specifically to the December 2025 crisis, which significantly weighed on quarterly earnings.