New Delhi: InterGlobe Aviation, which operates IndiGo, on Thursday reported a steep decline in reported net profit for the December quarter, weighed down by exceptional items related to labour law implementation, operational disruptions and currency movements, even as passenger demand and revenues continued to grow.
The airline posted a net profit of ₹549 crore for the quarter ended December 31, 2025, sharply lower than ₹2,449 crore a year earlier. Total income rose 6.7% year-on-year to ₹24,541 crore, supported by higher passenger volumes and growth in ancillary revenues.
Excluding the impact of exceptional items and forex movements, IndiGo delivered an underlying net profit of ₹3,131 crore, compared with ₹3,846 crore in the year-ago period, reflecting pressure on yields and costs amid capacity expansion and operational challenges during the quarter.
During the quarter, IndiGo faced major operational disruptions between December 3 and December 5, leading to flight cancellations and delays. The airline said these disruptions, along with provisions for new labour laws and penalties imposed by the aviation regulator, resulted in exceptional costs of about ₹1,547 crore.
On the operating front, capacity increased 11.2% year-on-year, while passenger numbers rose 2.8% to nearly 32 million. However, yields declined 1.8% and load factor fell by 2.4 percentage points to 84.6%, reflecting a combination of competitive pricing and network expansion.
EBITDAR for the quarter stood largely flat at ₹6,008 crore, while EBITDAR margins compressed to 25.6% from 27.4% a year earlier. Fuel unit costs declined, but overall expenses rose nearly 10%, driven by higher non-fuel costs and scale-related expenses.
As of December 31, 2025, IndiGo reported a total cash balance of over ₹51,600 crore, providing a strong liquidity cushion to support fleet expansion and network growth. The airline operated a fleet of 440 aircraft at the end of the quarter and served 96 domestic and 44 international destinations.
Commenting on the results, CEO Pieter Elbers said that despite the disruptions, the company’s long-term fundamentals remain strong, backed by a growing fleet and expanding network. IndiGo expects capacity in the March quarter to grow around 10% year-on-year, indicating continued confidence in demand prospects.
In a separate development, the board reappointed Deloitte Touche Tohmatsu India LLP as internal auditor for a three-year term beginning FY27, as part of its governance and compliance processes