Shares of InterGlobe Aviation Ltd, the parent of IndiGo, fell nearly 3% after the airline reported a net loss of ₹2,400 crore for FY26, its first annual loss since FY22.
The stock was last trading at ₹4,361.10, down 2.68% from the previous close of ₹4,481.30. The company commands a market capitalisation of ₹1.69 lakh crore.
The financial details were presented during the company’s Analyst Day 2026, held on Monday at iFly Gurugram.
Reported loss masks operating profit
IndiGo carried a record 123 million passengers during FY26.
Total income rose 6.4% year-on-year to ₹89,500 crore, while available seat kilometres expanded 9.5% to 172 billion.
However, the airline posted a reported net loss of ₹2,400 crore.
Excluding forex-related movements and exceptional items, IndiGo reported a profit of ₹7,500 crore, compared with ₹8,900 crore in FY25.
What dragged earnings?
The gap between reported and adjusted profit was mainly due to:
- Forex mark-to-market losses
- Hedging losses
- Higher fuel costs
- Compensation expenses linked to operational disruptions
IndiGo has around $9 billion of US dollar-denominated exposure, largely from aircraft lease liabilities and maintenance reserves.
As the rupee weakened during FY26, these liabilities were revalued higher, affecting the company’s reported earnings.
Margins under pressure
EBITDAR, excluding forex effects, stood at ₹23,200 crore with a margin of 27%, compared with 28% in FY25.
Including forex losses, the reported EBITDAR margin declined to 18% from 26% a year earlier.
Jet fuel continued to be the airline’s biggest expense.
The company said its CASK ex-fuel ex-forex stood at 3.38 US cents, among the lowest globally for low-cost carriers.
Hedging coverage increased
IndiGo has increased its hedging coverage over the past year.
- Hedged exposure stood at 15% in March 2025.
- Coverage rose to 33% by March 2026.
- The airline aims to reach 50% coverage on a rolling 12-month cash-flow basis.
The company uses a mix of forwards and options, with maturities extending up to five years.
December disruption added to costs
An operational disruption in December 2025 also weighed on earnings.
According to the presentation, the airline had to arrange:
- More than 10,000 cabs
- Hotel accommodation for affected passengers
The disruption resulted in around ₹1,000 crore of refunds and compensation payments.
FY30 growth roadmap
IndiGo outlined plans to expand its operations over the next four years.
By FY30, the airline targets:
- Around 200 million passengers
- About 3,000 daily departures
- A fleet of more than 550 aircraft
- International capacity accounting for 40% of total capacity
For comparison, FY26 figures stood at:
- 123 million passengers
- Around 2,200 daily departures
- International operations contributing roughly 25-30%
Fleet expansion plans
The airline expects to receive nine A321 XLR aircraft in FY27.
These aircraft, with a flying range of about 8.5 hours, could open routes to:
- Athens
- Istanbul
- Bali
IndiGo has also doubled its order for Airbus A350 widebody aircraft to 60, up from 30 in 2024.
The company plans to increase the share of owned and financed aircraft from about 20% currently to 30-40% by FY30.
Capacity growth to remain moderate in FY27
Management expects capacity growth in FY27 to remain in the single digits.
The company expects growth to accelerate to a mid-teens CAGR during FY28-FY30.
As of March 2026, IndiGo operated a fleet of 441 aircraft and served more than 140 destinations.
TL;DR
InterGlobe Aviation shares fell nearly 3% after IndiGo reported a ₹2,400 crore loss for FY26. The airline remained operationally profitable, but forex losses, higher fuel costs and disruption-related expenses weighed on reported earnings.
AI Summary
- IndiGo posted a ₹2,400 crore loss in FY26.
- Shares of InterGlobe Aviation fell nearly 3%.
- Adjusted profit stood at ₹7,500 crore.
- Forex losses and fuel costs hurt margins.
- IndiGo aims to carry 200 million passengers by FY30.
