IndiGo Reports FY26 Loss of ₹23.9 Billion

Full Year FY26 (Ended March 31, 2026):

Reported consolidated total income of ₹895 billion, representing growth of 6.4% year-over-year
Reported net loss of ₹23.9 billion for the financial year
Primary driver of loss was foreign exchange movement, with rupee depreciating by more than 11% against US dollar
Reported exceptional items in Q3 and Q4 related to December disruption and New Labor Code adoption
Underlying net profit excluding forex impact and exceptional items was ₹75 billion compared to ₹89 billion in FY25
EBITDAR excluding forex impact was ₹231.9 billion with margin of 27.3% compared to ₹228.6 billion with 28.3% margin in FY25
Served 123 million passengers, the highest ever

Q4 FY26 (Quarter Ended March 31, 2026):

Reported total income of ₹238 billion, increase of approximately 3% year-over-year
Reported net loss of ₹25.4 billion compared to net profit of ₹30.7 billion in same period last year
EBITDAR excluding forex impact was ₹64.4 billion with margin of 28.7% compared to ₹68.6 billion with 31.0% margin in Q4 FY25
Foreign exchange losses of ₹48.2 billion due to rupee depreciation of approximately 5% against US dollar
Net profit excluding forex impact and exceptional items was ₹19.2 billion compared to ₹29.8 billion in same period last year
Passenger unit revenue (PRASK) came in at ₹4.46, which is 4% lower year-over-year

Capacity and Network:

ASK growth of 9.5% with RPK growth of 7.5% for FY26
Seat growth of around 5% with passenger growth of around 4%
Q4 capacity growth came in at 3%, lower than initially planned due to Middle East disruptions
Operated 97 domestic and 45 international destinations at FY26 end
Middle East and Europe markets represent approximately 18% of total capacity (approximately 160 daily flights)
Expecting to add capacity of 3-4% in Q1 FY27 compared to same period last year

Fleet Update:

Fleet size of 441 aircraft at FY26 end
Inducted 51 aircraft from original orderbook during FY26
Inducted 21 aircraft on damp lease basis
Redelivered 37 aircraft from original orderbook and 28 damp-leases during FY26
Pratt and Whitney-related groundings currently in the 40s, expected to trend downwards to 30s by year-end
Inducted India's first A321 XLR aircraft, deployed on services to Athens and Istanbul

Cost Structure:

Fuel CASK reduced by approximately 5% year-over-year in Q4 primarily driven by reduction in benchmark Singapore Jet fuel prices
CASK ex fuel ex forex for Q4 came in at ₹3.15, higher by approximately 7% year-over-year
Cost increases driven by: inflated dollar-denominated costs due to rupee depreciation (more than 50% of costs are dollar denominated); lower aircraft utilization due to airspace restrictions; annual contractual increases across airport charges and maintenance

Position at FY26 End:

Total cash of approximately ₹516 billion (₹362 billion free cash + ₹154 billion restricted cash)
Capitalized operating lease liability of approximately ₹535 billion
Total debt including capitalized operating lease liability of approximately ₹777 billion
Right to use assets of approximately ₹521 billion
Total cash increased by ₹437 million during the quarter

Capital Allocation Initiatives:

Prepaid loans for 17 aircraft, resulting in 36 unencumbered assets with aggregate book value exceeding ₹95 billion
53 aircraft on finance leases with underlying ownership
Announced capital investment of $820 million in GIFT City entity for acquisition of aviation assets
Prepaying finance lease obligations aggregating $450 million (₹43.4 billion) through GIFT City entity
Developing Integrated Corporate Campus as long-term investment
Continued investment in BluChip loyalty platform with over 11 million registered members
No dividend recommended for FY2026 due to financial performance and distributable reserves position

December Disruption Impact:

Reported exceptional item of ₹5.8 billion for December disruption
Incremental impact of approximately ₹15-16 billion on account of lower capacity and reduced unit revenue

New Labor Code Implementation:

Additional impact of approximately ₹2.5 billion recognized in Q4 based on revised estimates
Total provision for FY2026 is ₹12.2 billion

Sensitivity:

Every ₹1 movement against US dollar translates to approximately ₹900 crore impact on mark-to-market
Net dollar exposure approximately $10 billion
Hedging position: $1.3 billion hedged with goal to increase to $3 billion ($1 billion for 12-month period, $2 billion spread over 2-5 year period)

Q1 FY27 Expectations:

Capacity growth of 3-4% compared to same period last year
Mid-teens improvement in unit passenger revenue (PRASK) compared to Q1 FY26
Improvement driven by calibrated fuel charges and lower base from previous year's geopolitical developments

Operational Strategy:

Selective recalibration of certain routes to protect margins during seasonally softer demand from mid-June
Reducing usage of older-generation aircraft
Returning certain narrow body damp-leased aircraft that are more expensive
Optimizing widebody ACMI operations due to ongoing airspace restrictions and elevated fuel costs

Leadership Appointments:

Willie Walsh appointed as new Chief Executive Officer, expected to join from early August 2026
Aloke Singh appointed as Chief Strategy Officer

External Challenges:

Geopolitical conflict in Middle East leading to route disruptions and jet fuel price increases
Significant rupee depreciation impacting dollar-denominated costs
Fuel price volatility with benchmark jet fuel prices spiking significantly
Airspace restrictions impacting operations