💰 Financial Performance

Revenue Growth by Segment

H1 FY2026 revenue from operations grew 7% to INR 39,052 Cr. Ancillary products and services revenue grew 20.7% to INR 7,944 Cr in FY2025. Other income grew 41.6% to INR 3,295.3 Cr in FY2025.

Geographic Revenue Split

International ASK share stood at 29% in FY2025, with a strategic target to increase this to 40% by FY2030. Domestic operations cover 91 destinations with over 2,200 daily flights.

Profitability Margins

EBITDAR margin for H1 FY2026 was 17.5%, a decrease from 22.6% in H1 FY2025 due to geopolitical tensions and forex losses. FY2025 EBITDAR margin was approximately 16%.

EBITDA Margin

EBITDAR margin reduced to 17.5% in H1 FY2026 from 22.6% YoY. Core profitability is supported by a net debt to EBITDAR ratio of 1.8x as of September 2025.

Capital Expenditure

Total debt of INR 66,809.8 Cr as of March 2025, primarily driven by capitalized operating lease liabilities of INR 65,009.8 Cr for fleet expansion. Future expansion is supported by an order book of 920+ aircraft.

Credit Rating & Borrowing

Moody’s: Baa3 (Stable); CRISIL/ICRA: AA- (Stable); Short-term: A1+. Interest coverage stood at 3.6x in FY2025.

⚙️ Operational Drivers

Raw Materials

Aviation Turbine Fuel (ATF) is the primary raw material, accounting for 35-40% of total operating costs.

Import Sources

ATF prices are directly linked to global crude oil prices, sourced via domestic oil marketing companies but influenced by Middle East/global benchmarks.

Key Suppliers

Airbus is the primary aircraft supplier (single OEM concentration). Engine suppliers include Pratt & Whitney and CFM (implied by NEO/CEO fleet).

Capacity Expansion

Current fleet of 430+ aircraft (March 2025) with 2,200+ daily departures. Planned expansion to 600+ aircraft by 2030 and a total outstanding order book of 920+ aircraft for delivery through 2035.

Raw Material Costs

ATF costs represent 35-40% of revenue. Costs are volatile due to global crude linkage; mitigated by a 76-78% fuel-efficient NEO fleet.

Manufacturing Efficiency

Passenger Load Factor (PLF) maintained at approximately 85%. High aircraft utilization and a young fleet (average age 4.9 years) drive operational efficiency.

Logistics & Distribution

Distribution costs are managed through direct digital sales and a wide network of 130+ destinations. Specific % of revenue not disclosed.

📈 Strategic Growth

Expected Growth Rate

12-15%

Growth Strategy

Expansion of international ASK to 40% by 2030. Launch of 'IndiGoStretch' business class to capture premium segments. Scaling the fleet to 600+ aircraft by 2030 using a 920+ aircraft order book. Growth in ancillary revenue (Cargo, Loyalty).

Products & Services

Passenger air transportation, CarGo (freight), and ancillary services including excess baggage, seat selection, in-flight sales, and ticket modifications.

Brand Portfolio

IndiGo, IndiGoStretch, 6E Voice, iFly Training Institute.

New Products/Services

IndiGoStretch (business class) and enhanced loyalty programs. Ancillary revenue grew 20.7% in FY2025, showing increasing contribution.

Market Expansion

Targeting international markets in Europe, UK, Asia, Africa, and Middle East. Aiming for 40% international ASK by FY2030.

Market Share & Ranking

Dominant market leader with ~65% domestic market share and ~20% share of international traffic among Indian carriers.

Strategic Alliances

Collaborations with start-ups for technical expertise. Active member of Federation of Indian Airlines (FIA) and IATA.

🌍 External Factors

Industry Trends

Indian aviation is maturing with structural seasonality. Shift towards fuel-efficient NEO aircraft (76% of IndiGo fleet). Industry growing while IndiGo outpaces with 4% passenger growth vs stagnant industry.

Competitive Landscape

Intense competition from other carriers; IndiGo maintains edge through cost leadership and reliability (on-time performance).

Competitive Moat

Cost leadership (lowest CASK) via single fleet type and high-density seating (A321 NEO). Network effect from 2,200+ daily flights and 65% market share.

Macro Economic Sensitivity

Highly sensitive to USD/INR fluctuations and global crude oil prices (ATF is 35-40% of costs).

Consumer Behavior

Increasing demand for affordable, reliable travel; shift towards premium services (IndiGoStretch) and international travel.

Geopolitical Risks

Airspace restrictions and regional tensions impacted Q1 FY2026 revenue performance.

⚖️ Regulatory & Governance

Industry Regulations

Governed by DGCA, Ministry of Civil Aviation, and FDTL (Flight Duty Time Limitations) norms which may increase pilot hiring costs.

Environmental Compliance

Exposed to carbon emission regulations (aviation is 2% of global emissions). Focus on fuel-efficient NEO aircraft (76% of fleet) to mitigate impact.

Legal Contingencies

Show cause notices issued by DGCA to the CEO and COO. No specific INR case values disclosed.

⚠️ Risk Analysis

Key Uncertainties

Aircraft on Ground (AOG) due to engine issues and potential regulatory changes in pilot duty norms (FDTL).

Geographic Concentration Risk

65% domestic market share; 29% of capacity (ASK) is international.

Third Party Dependencies

High dependency on Airbus (single OEM) for aircraft deliveries and maintenance parts.

Technology Obsolescence Risk

Low risk due to youngest fleet globally (average age 4.9 years) and high proportion of new-generation NEO aircraft (78%).

Credit & Counterparty Risk

Strong liquidity with INR 38,517 Cr unencumbered cash as of September 2025.