MUMBAI: Hit hard by a depreciating rupee, InterGlobe Aviation, the parent company of India’s largest airline, IndiGo, on Tuesday reported a net loss of Rs 2,582 crore for the quarter ending September 2025 (Q2FY26) compared to a loss of Rs 987 crore in the same quarter last fiscal. IndiGo had posted a profit of Rs 2,161 crore for the quarter ended June 2025.
“Including the impact of currency movement pertaining to dollar-based future obligations, the net loss for the quarter aggregated to INR 25,821 million,” said the airline. The losses came despite revenue from operations growing 9.3% year-on-year to Rs 18,555 crore in the traditionally weak Sepetmebr quarter.
The airline's yield or rupee earned per kilometre rose 3.2 per cent to Rs 4.69 in Q2FY25 from Rs 4.55 in the year-ago period. IndiGo’s total expenses for the September quarter surged 18.3% year-on-year to Rs 22,081 crore.
The airline reported a forex loss of Rs 2,892 crore, compared to just Rs 204 crore in the same quarter last year, a whopping 1,102% increase. Excluding the impact of foreign exchange fluctuations, IndiGo stated that it would have reported a net profit of Rs 103.9 crore.
The rupee depreciated by 2.8% against the US dollar in 2024 and so far in 2025 it is down more than 3%. The decline is primarily attributed to fund outflow and concerns over steep US tariffs on Indian goods.
Apart from forex losses, InidGo’s depreciation and amortisation expenses grew 26.5% to Rs 2,640 crore and supplementary rentals and aircraft repair and maintenance (net) cost surged nearly 19% to Rs 3,263 crore. The airline’s other cost excluding fuel grew 33.7% to Rs 16,119 crore.
“Our optimized capacity deployment has enabled us to deliver a 10% growth in topline revenue and excluding impact of currency movement, an operational profit of 104 crore rupees as compared to an operational loss last year. As India’s aviation sector continues to grow and mature, we recognize the importance of structurally optimizing capacity during seasonally weaker periods to sustain profitability,” said Pieter Elbers, CEO of IndiGo.
He added that the year began with significant external challenges across the industry, but they saw stabilisation in July and a strong recovery through August and September.
Looking ahead, Elbers said the company has scaled up its operational plans for the second half to meet demand and continue driving growth. "With that, we have nudged up our capacity guidance for the full financial year 2026 to early teens growth,” he added.
