InterGlobe Aviation Limited (IndiGo) announced its financial results for the quarter and financial year ended March 31, 2026. The company reported a net loss of ₹25.4 billion for the fourth quarter and ₹23.9 billion for the full financial year. During the earnings call on May 29, 2026, Managing Director Rahul Bhatia acknowledged the demanding period for the Indian aviation industry, citing external disruptions and a shortfall in service standards during a December incident. He expressed gratitude to customers, employees, and stakeholders for their support. Chief Financial Officer Gaurav Negi detailed the financial performance, noting that the full year income was ₹895 billion, a 6.4% growth, but resulted in a net loss primarily due to a significant foreign exchange movement where the rupee depreciated by over 11% against the US dollar. Excluding foreign exchange and exceptional items, the underlying net profit for FY26 was ₹75 billion compared to ₹89 billion in FY25. The fourth quarter saw a total income of ₹238 billion, a 3% increase, with a net loss of ₹25.4 billion compared to a profit of ₹30.7 billion in the prior year. This was impacted by a 5% rupee depreciation in the quarter, leading to foreign exchange losses of ₹48.2 billion, and an additional provision of ₹2.5 billion for the New Labour Codes. IndiGo also announced significant leadership changes. The Board has appointed Willie Walsh as the new Chief Executive Officer, expected to join in early August, bringing extensive global aviation experience. Aloke Singh has been appointed as the Chief Strategy Officer. The company highlighted its operational recovery post-December disruption, leading in on-time performance in the last quarter. However, geopolitical conflict in the Middle East led to route disruptions and increased jet fuel prices, impacting international operations which represent about 18% of total capacity. For the upcoming first quarter of FY27, IndiGo expects a capacity increase of 3-4% year-on-year and estimates a mid-teens improvement in unit passenger revenue (PRASK), driven by calibrated fuel charges and a lower base from the previous year. However, elevated costs due to higher fuel prices, rupee depreciation, and annual contractual escalations are also anticipated. The company is optimizing capacity by recalibrating certain routes, reducing the use of older-generation aircraft, and discussing optimization of long-haul operations. IndiGo ended FY26 with a fleet of 441 aircraft, operating 97 domestic and 45 international destinations. The company inducted India's first A321 XLR aircraft, a key element of its international strategy. The balance sheet shows a capitalized operating lease liability of ₹535 billion and total debt of ₹777 billion, with strong liquidity maintained at ₹516 billion in total cash. Given the financial performance and distributable reserves, the company has decided not to recommend a dividend for FY2026. The transcript of the earnings call, held on May 29, 2026, was provided to the stock exchanges on June 4, 2026.
