IndiGo Q2 Results: 5 Key Takeaways Investors Should Know

IndiGo Reports Steep Net Loss India’s largest airline, IndiGo, posted a net loss of Rs. 2,582 crore in Q2 FY26, compared to a Rs. 987 crore loss in the same quarter last year. The widening loss was primarily due to higher foreign exchange costs, although the airline saw revenue rise 9.3% to Rs. 18,555 crore.

Revenue Growth Amid Operational Challenges IndiGo expanded its capacity by 7.8% to 41.2 billion seat kilometers, carrying 28.8 million passengers — a 3.6% increase YoY. Strong operational execution helped drive revenue growth, but rising expenses, including forex losses, depreciation, and aircraft rentals, constrained profitability.

Forex Costs Hit Hard Foreign exchange losses surged to Rs. 2,892 crore in Q2, up from Rs. 204 crore last year — a 1,102% jump. This sharp increase in forex impact was the primary reason for the wider net loss, overshadowing operational gains during the quarter.

Operational Margins Under Pressure EBITDAR — earnings before finance, tax, depreciation, amortization, and aircraft & engine rentals — fell to Rs. 1,114 crore from Rs. 2,434 crore last year. The EBITDAR margin dropped to 6% from 14.3%, reflecting higher cost burdens. Excluding forex effects, EBITDAR would have been Rs. 3,800 crore, with a margin of 20.5%, indicating underlying operational strength.

Fleet Expansion and Cost Dynamics IndiGo’s fleet increased to 417 aircraft, including A320neo, A320ceo, A321neo, ATRs, and a few freighters. While fuel costs declined 9.7% YoY, expenses from leases, aircraft repairs, and depreciation rose significantly, adding to the overall cost pressures.

CEO Outlook on Recovery CEO Pieter Elbers noted that after industry-wide challenges earlier in the year, IndiGo stabilized from July and showed strong recovery in August-September. The airline has scaled up operational plans for H2 FY26, targeting early-teens capacity growth to meet rising demand.

Key Takeaway for Investors While Q2 results show a record net loss due to forex volatility, IndiGo’s operational fundamentals remain solid. Excluding forex impact, the airline would have been profitable, highlighting resilience in capacity deployment, fleet utilization, and passenger growth. Investors should watch H2 FY26 for revenue and margin recovery trends.

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