IndiGo Share Price Surges 5% Despite Reporting ₹2,536 Crore Quarterly Loss
IndiGo Shares Jump as Much as 4.62% After Q4 Results
InterGlobe Aviation, the parent company of budget carrier IndiGo, saw its shares jump as much as 4.62% in Monday's trading session after the company posted its financial results for the quarter ended March 31, 2026. The stock opened at ₹4,525 apiece, compared with the previous close of ₹4,405 on Friday last week. The stock touched an intraday high of ₹4,633 on the NSE on June 1.
IndiGo reported a net loss of ₹2,536 crore for the fourth quarter of FY26, compared with a net profit of ₹3,067 crore in the corresponding quarter last year. Revenue from operations increased slightly by 1% year-on-year to ₹22,438 crore. The airline posted its earnings after market hours on Friday.
| Metric | Q4 FY26 | Q4 FY25 | YoY Change |
|---|---|---|---|
| Net Loss/Profit (₹ crore) | ₹2,536 crore | ₹3,067 crore | -17.2% |
| Revenue from Operations (₹ crore) | ₹22,438 crore | ₹22,215 crore | 0.9% |
| Capacity (Available Seat Kilometers, billion) | 43.6 billion | 42.2 billion | 3.4% |
| Passenger Traffic (million) | 31.6 million | 32.0 million | -1.1% |
| Load Factor (%) | 85.8% | 87.5% | -1.7 percentage points |
| Yield (₹) | ₹5.2 | ₹5.3 | -2% |
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The airline said its capacity, measured in available seat kilometres (ASKs), grew 3.4% to 43.6 billion despite disruptions linked to the ongoing Middle East conflict. Passenger traffic edged down 1.1% year-on-year to 31.6 million, while the load factor declined by 1.7 percentage points to 85.8%. Yield decreased 2% YoY to ₹5.2, reflecting pressure on operating performance during the quarter.
EBITDAR, excluding foreign exchange impact, stood at ₹6,435 crore versus ₹6,862 crore in the year-ago period, with the EBITDAR margin narrowing to 28.7% from 31%. On a reported basis, EBITDAR dropped significantly to ₹2,228 crore from ₹6,948 crore a year earlier, while the corresponding margin contracted to 9.9% from 31.4%.
IndiGo's managing director, Rahul Bhatia, attributed the challenging operating environment to the net loss. "FY26 was marked by an exceptionally challenging operating environment, which materially impacted our profitability. Despite these conditions, the underlying performance of the business remained resilient," he said.
Brokerage firms Motilal Oswal and JM Financial have maintained their 'buy' and 'add' ratings on the IndiGo stock, respectively. Motilal Oswal has set a target price of ₹5,600 apiece, while JM Financial has given a target price of ₹5,000 per share, seeing an upside potential of up to 13.5%.
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Investor Takeaway
IndiGo's share price surged despite reporting a significant quarterly loss, indicating market optimism.
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