IndiGo's Q1 profit down 20% YoY to ₹2,176cr
What's the story
IndiGo, India's largest airline, has reported a 20% drop in its net profit for the first quarter of FY26. The company's profit after tax (PAT) stood at ₹2,176.3 crore for the April-June period, down from ₹2,728.8 crore in the same period last year. The decline was attributed to a challenging operating environment, including geopolitical tensions, airspace restrictions, as well as a tragic accident in the Indian aviation sector.
Financial performance
Revenue up by 4.7%
Despite the decline in profit, IndiGo's consolidated revenue for the quarter increased by 4.7% to ₹20,496.3 crore from ₹19,571 crore in Q1 FY25. The airline recorded a marginal 0.66% rise in EBITDA at ₹5,866.3 crore for the June quarter, compared to ₹5,828 crore during the same period last year. However, EBITDA margin decreased to 28.6% from last year's 30%, indicating profitability pressures amid external challenges affecting the entire aviation sector.
Growth indicators
Passenger volumes grew 12% YoY
IndiGo's passenger volumes grew by a robust 12% year-on-year, with over 31 million passengers flown during the quarter. As of June 30, IndiGo's fleet comprised 416 aircraft, including A320 CEOs (two on damp lease), A320 NEOs, and A321 NEOs, among others.
CEO statement
Demand for air travel remained strong
Commenting on the airline's Q1 performance, Pieter Elbers, IndiGo's CEO, said that despite industry-wide disruptions, they reported a net profit of ₹2,176.3 crore with a net profit margin of around 11% for Q1 FY26. He further added that while the revenue environment moderated somewhat, the demand for air travel remained strong. "We remain optimistic about the growth of air travel and with our scale," Elbers claimed.