IndiGo reports Rs 2,537 crore loss in March quarter

IndiGo reported a Rs 2,536.9 crore loss in the March quarter due to rupee depreciation, operational disruptions and labour law-related expenses. Despite higher capacity and increased total income, multiple challenges impacted the airline’s profitability during the 2025-26 financial year

New Delhi: Flying into the red, IndiGo on Friday reported a loss of Rs 2,536.9 crore in the March quarter due to multiple headwinds, including challenging operating conditions and rupee depreciation.

The country’s largest airline had posted a profit of Rs 3,067.5 crore in the year-ago period.

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For the 2025-26 fiscal, the carrier posted a net loss of Rs 2,393.6 crore, but excluding the impact of foreign exchange and exceptional items, it would have reported a profit of Rs 7,502.5 crore, it said in a release.

Total income in the fourth quarter of the 2025-26 fiscal rose by over 3 per cent to Rs 23,830.7 crore from Rs 23,097.5 crore in the same period a year ago, according to the release.

“For the quarter ended March 2026, IndiGo reported a net loss of Rs 25,369 million. Excluding the impact of foreign exchange and exceptional items, the company reported a net profit of Rs 19,206 million,” the release said.

Despite continuing external disruptions in 2025-26, IndiGo said its capacity rose 9.5 per cent year-on-year, and total income grew 6.4 per cent to Rs 89,513.4 crore.

“Exceptionally sharp rupee depreciation, changes in labour laws and a challenging operating environment offset the operational profit, and the company reported a net loss of Rs 23,936 million,” the airline said.

In 2025-26, the foreign exchange loss was around Rs 8,100 crore, and the impact of the December flight disruptions stood at Rs 580 crore. Besides, expenses related to the implementation of the new labour laws stood at Rs 1,200 crore, as per the airline’s financial statements.

IndiGo MD Rahul Bhatia said FY26 was marked by an exceptionally challenging operating environment, which materially impacted its profitability.

“During the year, our capacity grew by 9.5 per cent, and total income increased by over 6 per cent. Excluding the impact of foreign exchange and exceptional items, IndiGo delivered a profit of Rs 75 billion,” he said.

In the June quarter, capacity in terms of ASKs (Available Seat Kilometres) is expected to grow by around 3-4 per cent compared with the first quarter of fiscal year 2026.

The airline witnessed multiple challenges in the last financial year, including massive operational disruptions, especially between December 3 and 5 last year, during which 2,507 flights were cancelled and 1,852 flights were delayed, impacting over 3 lakh passengers at airports across the country.

In March, Pieter Elbers quit as CEO, and later that month, the airline announced the appointment of William Walsh, a pilot and current chief of global airlines’ grouping IATA, as its next CEO.

The airline’s domestic market share stood at 63.3 per cent in March.

Shares of IndiGo fell 3.27 per cent to close at Rs 4,418.40 apiece on the BSE.