Rupee Down Impact: The rupee falls short against the dollar! These companies suffered a setback as their shares plummeted, surpassing $90.

News Topical, Digital Desk : The rupee has crossed 90 per dollar, and its two effects are clearly visible on Indian companies. Export-driven sectors like IT and pharmaceuticals are gaining momentum, while aviation and companies with dollar debt are facing increasing pressure. IndiGo suffered a loss of ₹2,582 crore in Q2 due to heavy forex losses, while HUDCO also suffered a loss of ₹176 crore due to foreign exchange fluctuations. The sharp volatility of the rupee is now emerging as a major challenge.

IndiGo suffers a major setback - forex losses wipe out entire profits - InterGlobe Aviation (IndiGo's parent company) reported a larger-than-expected loss of ₹2,582 crore in the September 2025 quarter. The biggest reason for this decline was the 3.4% depreciation of the rupee, which nearly wiped out the company's earnings. Had the rupee remained stable, IndiGo would have reported a profit of ₹104 crore. The reason is clear: more than 60% of IndiGo's expenses are directly or indirectly denominated in dollars, such as
fuel,
lease payments,
maintenance, and
the cost of foreign routes.
As the rupee falls, all these expenses increase in rupee terms.

Some relief in Q3:
The rupee's decline in the December quarter so far has been limited – around 1.2%. Furthermore, crude oil prices have fallen by more than 6%. This means the aviation sector may see some relief in Q3. IndiGo CEO, Pieter Elbers, stated that the company's increasing international flights would provide a "natural hedge"—meaning that dollar-denominated earnings would offset dollar-denominated expenses. 

HUDCO also under pressure—₹176 crore loss The Housing and Urban Development Corporation (HUDCO) also suffered a loss of ₹176 crore in the first half of FY26 due to foreign exchange fluctuations, compared to zero losses in the previous year. The company has approximately ₹10,000 crore worth of ECBs (External Commercial Borrowings) and significant short-term FCNR loans on its balance sheet. Daljit Singh Khatri, HUDCO's Director-Finance, stated that the company has $400 million worth of FCNR loans maturing in Q3. The company is unwinding some positions with $175 million remaining in November due to the significant volatility in December. It is fully hedging all loans again, even if it incurs additional costs. According to him, by doing so, about 50% of the potential loss can be saved. 

Why is there pressure on the Rupee Market experts say that the weakness of the Rupee is due to these reasons: Continuous FII outflow, Increase in demand for dollar due to NDF (Non-Deliverable Forward) expiry, Limited intervention by RBI Union Bank of India's Chief Economic Advisor Kanika Pasricha says that if the level of 90 is broken decisively, then the Rupee may see "overshooting" or a further fall for some time. However, progress on the trade deal may improve the sentiment.

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