IndiGo reports second straight quarterly loss as fuel costs bite; revenue rises 20% YoY | Stock Market News

InterGlobe Aviation, the parent of India's largest airline IndiGo, on Thursday reported a consolidated net loss of ₹238 crore for the June quarter (Q1 FY27), compared with a net profit of ₹2,176.3 crore in the corresponding period last year.

This marks the airline's second consecutive quarterly loss, after it reported a loss of ₹2,537 crore in the preceding March quarter.

The profitability during the quarter was impacted by a combination of higher fuel prices, adverse foreign exchange movements, and disruptions arising from the Middle East conflict.

Despite the loss, the company reported healthy growth in its top line. Total income rose to ₹25,614.1 crore in the June quarter from ₹21,542.6 crore in the year-ago period. However, the increase in revenue was offset by a sharp rise in operating expenses.

During the quarter, passenger ticket revenue increased 23% year-on-year to ₹21,878.6 crore, while ancillary revenue grew 13.9% to ₹2,453.4 crore, reflecting healthy demand and higher non-ticket income.

Overall, the company's total expenses increased 34% YoY during the quarter, weighing on earnings despite strong revenue growth.

Aircraft fuel expenses jumped to ₹10,833 crore during the quarter, a 100% jump from ₹5,833 crore a year ago, while foreign exchange loss narrowed to ₹83 crore from ₹147 crore in the year-ago period.

Capacity during the quarter increased 2.9% to 43.5 billion, while passenger numbers grew marginally by 0.7% to 31.3 million, as per the company's regulatory filing.

At the operating level, Earnings before finance income and cost, tax, depreciation, amortization and aircraft, engine rental (EBITDAR) slid to ₹3,833 crore from ₹5,739 crore, with the EBITDAR margin dropping to 15.6% from 28% in the year-ago quarter.

The company said that, in line with lower demand during a traditionally weaker quarter, coupled with the operational uncertainty affecting travel between India and West Asia, capacity in the second quarter of FY27, measured in terms of Available Seat Kilometres (ASKs), is expected to remain broadly flat compared with the corresponding quarter of FY26, reflecting lower aircraft utilisation.

It added that, as the airline moves beyond the seasonally weaker quarter, aircraft utilisation is expected to progressively increase.

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Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.

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