Despite returning to losses, revenue from operations rose 9% YoY to Rs 18,555 crore, reflecting continued momentum in passenger and ancillary businesses.
However, EBITDAR (earnings before interest, tax, depreciation, amortisation, and rent) more than halved to Rs 1,114 crore from Rs 2,434 crore a year ago, highlighting pressure on operating profitability.
The company attributed the Q2 loss primarily to foreign exchange movements. Excluding the impact of currency fluctuations, IndiGo would have reported a net profit of Rs 104 crore. Depreciation of the Indian rupee increases the cost of dollar-denominated expenses such as aircraft leasing, maintenance, and fuel payments, affecting profitability even if underlying dollar prices remain stable.
Passenger ticket revenues for the quarter stood at Rs 15,967 crore, up 11.2% YoY, while ancillary revenues grew 14% to Rs 2,141 crore. However, total expenses surged 18% YoY to Rs 22,081 crore, outpacing revenue growth and squeezing margins.
Brokerage firm Nuvama has maintained a ‘Hold’ rating on InterGlobe Aviation with a target price of Rs 5,330. The firm noted that Q2FY26 EBITDAR was down 62% YoY and missed consensus estimates by 39%, largely due to higher-than-expected forex losses. Costs, particularly CASK ex-fuel and forex, were up 4% YoY, prompting a cautious outlook.For Q3, Nuvama expects high ASKM (Available Seat Kilometres) growth and stable to marginally higher PRASK (Passenger Revenue per Available Seat Kilometre). However, a sticky Age of Aircraft in the 40s may keep CASK ex-fuel in the early single digits. The firm also revised its FY26/27E EBITDAR estimates down by 8% and 2%, respectively, while retaining its ‘Hold’ view based on IndiGo’s premium valuation relative to global peers.Also read: Desi Money Dominates: DII holdings hit record as foreign ownership sinks to 13-year low
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