IndiGo Q3 profit drops 18.6% to Rs 2,448.8 crore; revenue grows 13.7%

The dip was attributed to the absence of a festive season boost, which had positively impacted demand in the base quarter, the company noted.

In the July-September quarter, IndiGo posted a net loss of Rs 987 crore, weighed down by increased airport fees, aircraft maintenance costs, and higher fuel expenses.

Despite the profit decline, consolidated revenue from operations rose by 13.7% to Rs 22,110.7 crore, compared to Rs 19,452.1 crore a year earlier.

The growth was driven by a 12% rise in available seat kilometres (ASK) and a 13.5% increase in revenue passenger kilometres (RPK).

The load factor improved by 1.2 percentage points to 86.9%, indicating better passenger occupancy.

IndiGo carried 27.325 million passengers during the quarter, up from 24.31 million a year ago, capturing a 63.8% market share compared to 62.1% previously.

Operational costs impacted the performance, with cost per available seat kilometre (CASK), excluding fuel, rising 23.1% year-on-year to Rs 3.25 due to inflation and escalating operational expenses.

Depreciation and amortisation costs also increased by 33.6% during the quarter.

Earnings before interest, tax, depreciation, amortisation, and rent (Ebitdar) grew by 10.7% to Rs 6,059 crore.

The EBITDAR margin stood at 27.4%, a decline of 70 basis points year-on-year, but adjusted for forex impacts, it improved to 33.7%.

IndiGo maintained a robust financial position with total cash reserves of Rs 43,781 crore as of December 31, 2024, reflecting a 35% year-on-year increase. Free cash reserves surged 50.5% to Rs 28,904 crore.

However, total debt rose by 27.3% to Rs 65,139 crore, primarily due to capitalised operating lease liabilities.