IndiGo Q1 Results: InterGlobe Aviation’s Net Profit Falls 20% Despite 4.7% Rise in Revenue; Margins Narrow

InterGlobe Aviation, the parent company of IndiGo, reported a 20% decline in its consolidated profit after tax (PAT) for the quarter ended June 30, 2025. The company posted a PAT of Rs 2,176.3 crore in Q1 FY26, compared to Rs 2,728.8 crore in the corresponding quarter last year.

IndiGo Q1 Results: InterGlobe Aviation's Net Profit Decline, Revenue Up

The drop in profitability comes amid a challenging operating environment marked by global geopolitical tensions, restricted airspace and a tragic aviation accident that affected the Indian sector earlier this year.

Despite the profit decline, InterGlobe Aviation recorded a 4.7% increase in total revenue, which rose to Rs 20,496.3 crore in the April-June quarter, up from ₹19,571 crore in Q1 FY25.

In a statement, the company acknowledged the difficult market conditions but noted that strong travel demand helped offset some of the adverse effects. "Despite a challenging operating environment marked by geopolitical tensions, airspace restrictions, and the tragic accident in the Indian aviation sector, IndiGo reported a net profit of Rs 21,763 million for the quarter ended June 30, 2025," the company said.

InterGlobe Aviation EBITDA

InterGlobe Aviation also reported that earnings before interest, tax, depreciation, and amortization (EBITDA) increased marginally by 0.66% to Rs 5,866.3 crore, compared to Rs 5,828 crore in the year-ago quarter.

However, the EBITDA margin contracted to 28.6% from 30%, indicating that rising operational costs weighed on overall margins. The company noted that costs rose due to higher airport fees and charges, employee benefits, supplementary rentals, and aircraft repair and maintenance expenses.

IndiGo Airlines Operation

Passenger volumes for IndiGo, India's largest airline by market share, grew approximately 12% year-over-year, demonstrating strong and sustained demand for air travel. However, the airline's load factor, a key indicator of seat occupancy, declined slightly to 84.6% from 86.7% during the same period last year, reflecting pressure on overall capacity utilisation.

IndiGo's yield or average revenue per passenger per kilometre dropped 5% year-on-year (YoY) to Rs 4.98/km, highlighting a more competitive and price-sensitive environment.

Additionally, the airline's revenue per available seat kilometre (RASK) stood at Rs 4.86, down 10% from a year ago, while cost per available seat kilometre (CASK) was Rs 4.31, a decline of 6.8%. The greater fall in RASK compared to CASK resulted in compressed profit margins.

IndiGo Share Price: InterGlobe Aviation Ltd Stock Ahead of Earnings Reporting

Ahead of the earnings announcement, IndiGo's stock declined slightly by 0.28% to close at Rs 5,740 per share on the National Stock Exchange (NSE), signaling muted investor sentiment amid margin concerns.

Shares of InterGlobe Aviation opened at Rs 5,800.00 and touched an intraday high of Rs 5,805.50 on Wednesday. The stock also saw a low of Rs 5,698.00 during the trading session. Over the past year, the stock has recorded a 52-week high of Rs 6,018.00 and a 52-week low of Rs 3,780.00.