India’s largest airline IndiGo on Friday reported a net loss of Rs 2,536.9 crore for the March quarter of FY26, reversing from a profit recorded during the same period last year, as foreign exchange losses and operational disruptions weighed heavily on earnings.
The airline had posted a profit of Rs 3,067.5 crore in the corresponding quarter of the previous financial year.
Revenue rises despite sharp quarterly loss
According to the company, total income during the fourth quarter rose over 3 per cent to Rs 23,830.7 crore compared to Rs 23,097.5 crore in the year-ago period.
“For the quarter ended March 2026, IndiGo reported a net loss of INR 25,369 million. Excluding the impact of foreign exchange and exceptional items, the company reported a net profit of Rs 19,206 million,” the release said.
For the full financial year 2025-26, IndiGo reported a net loss of Rs 2,393.6 crore.
However, the airline said that excluding the impact of foreign exchange losses and exceptional items, it would have reported a profit of Rs 7,502.5 crore for the fiscal year.
Rupee depreciation, labour law changes hit profitability
The airline said multiple external challenges affected profitability during FY26 despite continued growth in passenger capacity and revenue.
“Exceptionally sharp rupee depreciation, changes in labour laws and a challenging operating environment offset the operational profit and the company reported a net loss of Rs 23,936 million,” the airline said, according to news agency PTI.
According to the airline’s financial statements, foreign exchange losses during the financial year stood at around Rs 8,100 crore.
The company also said disruptions caused in December last year had an estimated financial impact of Rs 580 crore, while implementation of new labour laws added expenses of nearly Rs 1,200 crore.
Capacity growth and operational disruptions during FY26
Despite the financial pressure, IndiGo said its capacity increased 9.5 per cent year-on-year during FY26, while total income rose 6.4 per cent to Rs 89,513.4 crore.
IndiGo MD Rahul Bhatia said FY26 was marked by an exceptionally challenging operating environment, which materially impacted its profitability.
“During the year, our capacity grew by 9.5 per cent, and total income increased by over 6 per cent. Excluding the impact of foreign exchange and exceptional items, IndiGo delivered a profit of Rs 75 billion,” he said.
The airline also faced major operational disruptions during the last financial year, especially between December 3 and 5, when 2,507 flights were cancelled and 1,852 flights were delayed, impacting more than three lakh passengers across the country.
Leadership changes and outlook for next quarter
Earlier this year, IndiGo also saw a major leadership transition after CEO Pieter Elbers stepped down in March.
Later the same month, the airline announced the appointment of William Walsh, current chief of global airline body IATA, as its next CEO.
Looking ahead, IndiGo said its capacity in terms of Available Seat Kilometres (ASKs) is expected to grow around 3-4 per cent in the June quarter compared to the corresponding quarter of FY26.
The airline’s domestic market share stood at 63.3 per cent in March, while shares of IndiGo declined 3.27 per cent to close at Rs 4,418.40 apiece on the BSE following the earnings announcement.