InterGlobe Aviation (INDIGO) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 was marked by significant external disruptions, including geopolitical tensions, airspace restrictions, and tragic safety events, impacting operations and demand, especially on international routes.

• Total income rose 6.4% year-over-year to INR 215,426 million, with revenue from operations up 4.7%.

• Passenger growth reached 12% year-over-year, double the industry average, with over 31 million customers served.

• PAT declined 20.2% year-over-year to INR 21,763 million, with PAT margin dropping to 10.6%.

• Strategic initiatives included expanding international operations, launching new destinations, and strengthening codeshare partnerships.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was ₹204,963 million, up from ₹195,707 million year-over-year.

• Net profit for the quarter was INR 21.8 billion, with a net profit margin of 10.6%, down from 13.9% in Q1 FY25.

• Passenger unit revenue (RASK) was INR 4.21, down 7% year-over-year; yields declined 5% to INR 4.98; load factor was 85%, 2% lower than last year.

• Total expenses increased to ₹192,319 million (consolidated), up from ₹174,449 million year-over-year.

• Free cash at quarter-end was INR 348 billion, with total debt at INR 685 billion.

Outlook and guidance

• Full-year capacity guidance remains early double-digit growth; Q2 capacity to grow mid to high single digits year-over-year, reflecting seasonal softness.

• Passenger unit revenues for Q2 expected to be flat year-over-year, with stabilization seen in July and anticipated improvement in August and September.

• Q3 and Q4 expected to see strong rebound and growth as demand recovers.

• Eight new international destinations and three new domestic destinations were added in Q1FY26.

• Closing aircraft count reached 416, up by 34 year-over-year, supporting further network growth.