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News Topical, Digital Desk : InterGlobe Aviation (IndiGo) has released its December quarter results, and this time the company has suffered a major profit setback. While revenue increased to ₹23,471 crore in a year-over-year (YoY) comparison, the company's net profit fell from ₹2,448 crore to just ₹550 crore. Rising costs, operational difficulties, and a large exceptional loss have put the company's profits under significant pressure. EBITDA showed a slight increase, but margins declined significantly. IndiGo's parent company, InterGlobe Aviation, reported mixed results for the December quarter. Total revenue rose, but profitability was severely pressured. The company reported that its revenue increased from ₹22,110 crore to ₹23,471 crore in the quarter. It's clear that travel demand remained strong, and the company generated good revenue from operations. However, net profit is a major concern. The company's profit fell from ₹2,448 crore to just ₹550 crore on a year-on-year basis. This means that despite the increase in revenue, the company's profitability was severely impacted. The biggest reason for this was the exceptional loss of ₹1,547 crore that the company recorded this quarter. This loss is related to the impact of new labor codes, operational disruptions, and DGCA penalties.
EBITDA increased, but margins remained weak. EBITDA, or operational-level earnings, increased slightly this quarter. The company's EBITDA increased from ₹5,178.5 crore in the previous year to ₹5,367 crore. This increase indicates that the company's core business remains strong.
But there's a downside here, too. EBITDA margins fell from 23.4% to 22.9%. This means that rising costs and operational disruptions eroded earnings. Fuel expenses, airport charges, and maintenance costs also rose significantly during the quarter, directly impacting margins.
Operational setbacks were also significant . According to the PDF, the company faced significant operational disruptions in early December between December 3–5, 2025— numerous flight cancellations, significant delays, system and network reboots, and crew repositioning. All of this impacted the company's daily earnings. The company also had to provide compensation and travel vouchers to passengers. This combined impact further weakened the company's profitability for the quarter. Furthermore, the DGCA imposed a penalty of ₹222 crore and directed the company to provide a bank guarantee of ₹500 crore. This burden was reflected in the company's results as an exceptional loss. What does the company have to say? The company stated clearly at its board meeting that it is focused on stabilizing operations. Furthermore, the new labor code expenses are a one-time expense and the situation is expected to return to normal in the future. Overall revenue and business demand are strong, but unexpected events and increased costs significantly pressured results this quarter.
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