IndiGo’s Results Analyzed

Key Points

• IndiGo’s profits fell due to costs and FX losses in Q3 FY26.
• Underlying demand remains strong, despite some disruptions and rising costs.
• Increased costs are driven by a weak rupee, leases, and aircraft supply issues.
• IndiGo is expanding internationally and investing in owned aircraft.
• International growth and currency exposure are key hedges against risks.
• Analysts remain positive, with targets still above current prices.

IndiGo, India’s biggest airline, had a less successful quarter in December (Q3) of its financial year 2026. A few problems with how the airline runs things, combined with a loss because the value of the rupee changed, made the airline’s profits smaller than expected. This happened even though many people still wanted to fly and IndiGo was doing well overall.

The main reason profits dropped was because of extra costs. These costs were related to new rules about workers and paying passengers when there were problems. There was also a big loss because of changes in the value of the rupee. To make things a little clearer, if you take those big costs out of the picture, IndiGo was actually doing okay, like it was supposed to.

IndiGo made a little more money – about ₹23,470 crore – mostly because they were flying more planes and more people were traveling. However, the price people were paying for tickets went down a bit because they had been higher before. It’s like if something is popular, it gets more expensive, but eventually, it comes back down.

Lots of experts (called “brokerages”) think IndiGo will do well in the future, even though this quarter wasn’t great. They say IndiGo is a big airline, has a lot of money saved, and is starting to fly to other countries. They also believe IndiGo will continue to grow.

One of the biggest worries for IndiGo is the cost of running the airline. IndiGo expects to pay more for things like plane leases and maintenance. They are also paying more because the rupee is worth less than it used to be. To help with this, IndiGo is flying fewer planes on some routes and using other airlines to fly passengers for a fee.

Despite these challenges, IndiGo is trying to grow its business. They plan to fly more international routes and are investing in new airplanes. They are also buying planes from other companies, which means they own more planes themselves. This is good because it helps them control costs and grow faster.

Experts believe that IndiGo’s plans to fly to more countries and use the foreign currency to their advantage will help them in the long run. It’s like having a backup plan if one thing goes wrong.

Most experts still think IndiGo is a good investment, but they’ve lowered their expectations for how much money the airline will make in the short term. Some experts are saying IndiGo will make about ₹6,100 per share, and they think the airline’s profits will grow over the next few years.

Airlines are businesses that need to balance making money with keeping costs low and flying people safely.