Earnings Review
InterGlobe's PAT below view, sales growth slowest in 4 yrs
This story was originally published at 20:26 IST on 30 July 2025
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--InterGlobe Aviation Apr-Jun net profit INR 21.61 bln
--Analysts saw InterGlobe Aviation Apr-Jun net profit at INR 24.45 bln
--InterGlobe Aviation Apr-Jun PAT INR 21.61 bln vs INR 27.27 bln year ago
--InterGlobe Aviation Apr-Jun revenue INR 204.96 bln vs INR 195.71 bln yr ago
--InterGlobe Aviation Q1 expenses INR 192.47 bln vs INR 174.49 bln yr ago
--InterGlobe Aviation Apr-Jun EBITDAR INR 57.39 bln vs INR 58.11 bln yr ago
--InterGlobe Aviation Apr-Jun EBITDAR margin 28.0% vs 29.7% year ago
--InterGlobe expects Q2 capacity to rise in mid-to-high single digit YoY
--InterGlobe Aviation Apr-Jun capacity 42.3 bln, up 16.4% on year
--InterGlobe Aviation Apr-Jun passengers 31 mln, up 11.6% on year
--InterGlobe Aviation Apr-Jun load factor 84.6% vs 86.7% year ago
--InterGlobe Aviation Apr-Jun yield INR 4.98 per km, down 5% on year
--InterGlobe Aviation Q1 fuel cost INR 58.33 bln vs INR 64.17 bln yr ago
By Simran Rede
MUMBAI - InterGlobe Aviation Ltd., which operates no-frills airline IndiGo, started the financial year 2025-26 (Apr-Mar) on a weak note, with its bottom line for the June quarter declining on year. This was because the company's expenses increased at a faster pace than its revenue. The top line growth was the slowest in four years and weighed on the bottom line, which failed to meet the Street's expectations.
InterGlobe Aviation's net profit for Apr-Jun fell nearly 21% on year to INR 21.61 billion. Analysts had expected a net profit of INR 24.45 billion. The company's revenue for the reporting quarter rose nearly 5% on year to INR 204.96 billion, lower than the expectations of an 8% rise to INR 211.08 billion.
Analysts had expected the top line growth of the company to be at a multi-year low and a double-digit fall in the bottom line. According to analysts, the two metrics were likely affected in the reporting quarter due to the recent conflict between India and Pakistan. InterGlobe Aviation also reported a weaker load factor and yield per km in the June quarter due to the events in May, in-line with analysts' expectations.
The airline's depreciation and amortisation expenses rose nearly 37% on year to INR 25.53 billion. Its other expenses rose over 23% on year to INR 21.79 billion. Supplementary rentals, aircraft repair, and maintenance expenses were up over 18% on year at INR 30.79 billion. Among costs, only aircraft fuel expenses fell over 9% to INR 58.33 billion. The fuel cost per available seat kilometre fell 22% on year to INR 1.38 and the cost per available seat kilometre rose 2.5% on year to INR 2.93.
InterGlobe Aviation's load factor declined 2.1 percentage points on year to 84.6% and the yield fell 5% on year to INR 4.98 per km. On the other hand, the company's capacity rose more than 16% on year in the June quarter to 42.3 billion. The number of passengers to have flown the airline in the reporting quarter was up almost 12% on year to 31 million.
The airline's earnings before interest, taxes, depreciation, amortisation, and rent or restructuring costs dropped over 1% on year to INR 57.39 billion. Its EBITDAR margin also fell to 28.0% in the reporting quarter from 29.7% in the corresponding quarter a year ago.
The company expects its capacity to rise in mid-to-high single digit on year in the September quarter. Going ahead, InterGlobe Aviation is optimistic about the growth of air travel, Chief Executive Officer Pieter Elbers said in a press release. "...with our scale, network and fit for purpose fleet, we remain committed to serve the growing demand," he said. During the June quarter, it provided scheduled services to 91 domestic destinations and 41 international destinations.
InterGlobe Aviation's total fleet fell by 18 aircraft in the June quarter to 416 aircraft as on Jun. 30. Its total debt was INR 684.88 billion as on Jun. 30 and capitalised operating lease liability was INR 467.82 billion. The company had a total cash balance of INR 494.06 billion comprising INR 348.02 billion of free cash and INR 146.04 billion of restricted cash.
For the June quarter, IndiGo had a technical dispatch reliability of 99.88%, on-time performance of 83.4% at six key metros, and flight cancellation rate of 1%. Its revenue passenger kilometer was up nearly 14% at INR 35.70 billion.
On Wednesday, shares of the company closed at INR 5,740 on the National Stock Exchange, down 0.3%. End
Edited by Nishant Maher
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