New Delhi: CRISIL Ratings has placed InterGlobe Aviation Ltd’s (IndiGo) long-term and short-term bank facilities—aggregating ₹9,000 crore—on ‘Rating Watch with Developing Implications’, citing operational disruptions arising from large-scale flight cancellations and regulatory scrutiny, the airline said in a stock exchange filing on Monday.
The rating action covers IndiGo’s CRISIL AA- (long-term) and CRISIL A1+ (short-term) ratings, both of which have been moved to watch status. The shift follows days of widespread cancellations across major airports linked to the rollout of Phase II of the Flight Duty Time Limitation (FDTL) norms, technical issues, airport system delays, winter schedule adjustments, air traffic congestion, and adverse weather conditions. CRISIL said these combined factors could affect IndiGo’s near-term operating and financial performance.
The Ministry of Civil Aviation has already launched an inquiry, while the DGCA has kept certain FDTL provisions in abeyance pending further review.
CRISIL said it will closely monitor operational recovery and any regulatory developments that may influence the airline’s credit profile.
Despite the cautionary stance, the ratings continue to reflect IndiGo’s strong market position, holding ~64% domestic market share and around 20% share among Indian carriers on international routes during H1 FY26.
The airline’s liquidity remains robust, with ₹38,517 crore of unencumbered cash and equivalents and a net debt-to-EBITDAR ratio of 1.8x as of September 2025.
However, profitability pressures have emerged, with EBITDAR margins slipping to 17.5% from 22.6% a year earlier due to geopolitical disruptions, airspace restrictions, and forex losses. IndiGo continues to face structural risks from volatile fuel prices, competitive pricing pressures, and dependence on the Airbus A320 family, CRISI L noted.