IndiGo’s Q3 FY26 net profit plunged 76% to ₹550 crore, hit by new labour codes, December flight disruptions, and regulatory penalties.
Operational disruptions in December cost the airline ₹577 crore, as widespread cancellations and delays led to a sharp drop in passenger revenue.
Despite higher revenues and fleet expansion, forex losses from a weaker rupee and margin pressure weighed on earnings.
InterGlobe Aviation, the parent company of India’s largest airline IndiGo, reported a sharp decline in net profit for the third quarter of financial year 2025-26 (FY26), largely due to one-time impact of new labour codes and its operation meltdown in December, 2025.
Its consolidated net profit fell 76% to ₹550 crore for the October-December quarter, compared to ₹2,450 crore in the same period last year. Revenue grew 6% to ₹23,472 crore.
The airline, which holds majority of India's aviation market, incurred a total one-time hit of ₹1,547 crore, which included ₹969 crore from compliance with new labour codes.
Its one-time exceptional loss due to the December crisis stood at ₹577 crore. Additionally it incurred ₹22 crore loss as this was the fine levied by the DGCA for the operational meltdown.
The operational challenges in the first week of December led to significant flight cancellations and delays, materially reducing passenger revenue during that period.
Foreign exchange losses also weighed on profitability. A sharp depreciation in the rupee caused profit excluding forex impact to drop 59%, with currency movement related to dollar-based future obligations accounting for ₹1,035 crore.
Operating income, measured as earnings before finance costs, depreciation, amortisation, and rentals (Ebitdar), dipped nearly 1% to ₹6,008 crore, shrinking margins to 25.6% from 27.4% in the year-ago quarter. Excluding forex impact, the margin stood at 30%, down from 33.7% previously.
Passenger ticket revenues rose 6.2% year-on-year (YoY), while ancillary revenues, including fees from baggage and onboard services, grew 13.6%. IndiGo also added 23 aircraft during the quarter, expanding its fleet to a total of 440 planes.
Shares of InterGlobe Aviation rose 1.2% to settle at ₹4,913.8 on the BSE on Thursday. The stock has gained 23% over the past year.
