Shares of InterGlobe Aviation (IndiGo) declined as much as 3.79% to hit an intraday low of ₹4,722.50 on the NSE on Friday, January 23.
The stock came under pressure after the airline reported weak December quarter (Q3 FY26) earnings post market hours on Thursday.
📊 IndiGo Q3 FY26 Earnings Highlights
The country’s largest airline reported a 78% year-on-year decline in net profit at ₹549.1 crore for the October–December quarter, compared with ₹2,448.8 crore in the same period last year.
🔹 Key Numbers:
- Net Profit: ₹549.1 crore (↓ 78% YoY)
- Total Income: ₹24,540.6 crore (vs ₹22,992.8 crore YoY)
- Passengers Carried (Q3): ~32 million
- Passengers in CY25: ~124 million
⚠️ What Impacted IndiGo’s Earnings?
IndiGo said it took a financial hit of ₹1,546.5 crore during the quarter due to multiple factors:
- ₹577.2 crore impact from massive flight disruptions (Dec 3–5)
- ₹969.3 crore hit due to implementation of the new labour codes
- ₹22.2 crore fine imposed for disruptions (booked under exceptional items)
- ₹1,035 crore impact due to forex movement linked to dollar-based obligations
🗣️ What IndiGo CEO Said
IndiGo CEO Pieter Elbers said that the airline faced significant operational challenges in early December, leading to flight cancellations and delays.
“Despite these operational disruptions, IndiGo delivered a topline of around ₹245 billion in the December quarter, reflecting a growth of around 7%. Underlying profit excluding exceptional items and forex stood at around ₹31 billion,” Elbers said.
He also added that the airline is conducting an in-depth review of its internal processes to strengthen operational resilience and ensure continuity.
🛫 Regulatory Update
Following the disruptions, aviation regulator DGCA curtailed IndiGo’s winter schedule by 10%, while the civil aviation ministry invited other airlines to apply for available slots.
📈 What Analysts Say
- UBS:
Near-term outlook remains weak, but medium- to long-term prospects stay strong. Market leadership intact despite disruptions. - Citi:
Q3 impact from disruptions was expected. Financial damage turned out lower than estimates, with better-than-expected yields.
Management indicated some softness in Q4, but operations are normalising.
Analysts also noted that international route expansion continues, supported by the induction of A321 XLR aircraft.
