InterGlobe Aviation (INDIGO) Q2 25/26 earnings summary

Executive summary

• Total income for Q2 FY26 reached INR 195,995 million, up 10.4% year-over-year, with operational profit (excluding forex/hedging) of INR 1.04 billion versus a loss last year.

• Served 28.8 million passengers, expanded the network with 6 new domestic and 9 new international destinations, and grew the fleet by 7 aircraft year-over-year.

• Expanded international footprint, including new routes to Europe and China, and announced a co-chair partnership with Aegean Airlines.

• Launched new products (A321XLR, Stretch business class), grew loyalty program Blue Chip to 7 million members, and launched new co-branded credit cards.

• Unaudited financial results for the quarter and half year ended 30 September 2025 were approved, with both standalone and consolidated statements reviewed by auditors with unmodified conclusions.

Financial highlights

• Adjusted EBITDA (ex-forex/hedging) was INR 38 billion (20% margin), up from INR 27 billion (16% margin) year-over-year.

• PAT (Profit After Tax) was a loss of INR 25,821 million, widening from a loss of INR 9,867 million in Q2 FY25, mainly due to rupee depreciation and dollar obligations.

• Passenger unit revenue (PrASK) rose 3% year-over-year; fuel CASK fell 16% due to lower fuel prices and aircraft redelivery.

• CASK rose 10% to INR 5.16, and CASK ex-fuel increased 25.4% to INR 3.71.

• Free cash at quarter-end was INR 385 billion, with total debt (including leases) at INR 748 billion.

Outlook and guidance

• Capacity growth for FY26 revised upward to early teens, with high teens growth expected in Q3 and Q4.

• PrASK for Q3 expected to be flattish to slightly positive year-over-year, despite strong prior-year base.

• Early single-digit increase in unit cost (ex-fuel, ex-forex) anticipated for FY26 due to currency and damp lease costs.

• Provided services to 86 international destinations through strategic partnerships during the quarter.

• The company continues to contest significant tax and IGST matters, with favorable court orders but ongoing appeals, and expects no provision is required based on legal advice.