IndiGo’s December-quarter performance came under sharp pressure as large-scale flight cancellations and higher employee-related costs eroded profitability, even as revenue showed moderate growth.
InterGlobe Aviation, the parent company of IndiGo, reported a 77.5 percent year-on-year decline in net profit for the third quarter of FY26, largely due to exceptional costs linked to operational disruptions and the implementation of new labour codes.
Net profit stood at Rs 549 crore in Q3 FY26
Profit fell 77.5 percent from Rs 2,448 crore in Q3 FY25
Exceptional items totalled Rs 1,546.5 crore
Revenue from operations rose 6.1 percent year-on-year to Rs 23,471 crore
The sharp drop in profit was mainly due to two developments during the quarter:
Operational disruptions
Financial impact of Rs 577.2 crore
Around 4,500 flights cancelled in December 2025
Disruptions followed stricter Flight Duty Time Limitation rules for pilots
Implementation of new labour codes
Cost impact of Rs 969.3 crore
Higher employee-related expenses recognised during the quarter
Together, these resulted in exceptional costs of Rs 1,546.5 crore in Q3 FY26.
A Rs 22.2 crore penalty imposed by the Directorate General of Civil Aviation on January 17, 2026 was provided for as an exceptional item
The DGCA directed IndiGo to furnish a Rs 500 million bank guarantee under the IndiGo Systemic Reform Assurance Scheme
Release of the guarantee will be phased, subject to regulatory verification
Chief executive officer Pieter Elbers said IndiGo delivered a topline of around Rs 24,500 crore in the December quarter, reflecting growth of about 7 percent despite disruptions.
He added that underlying profit, excluding exceptional items and foreign exchange impact, stood at around Rs 31 billion, indicating the strength of the airline’s core operations.
