IndiGo set for strong gains in FY26 on lower costs, capacity boost

While IndiGo posted a strong Q4 and has promising FY26 prospects due to falling fuel costs and capacity gains, Q1 may face pressure from geopolitical disruptions

InterGlobe Aviation, India’s largest airline and the operator of IndiGo, posted its highest-ever consolidated net profit in Q4FY25, bolstered by lower unit costs and higher yields.

 

The airline’s healthy operating performance was largely driven by a 24 per cent year-on-year (Y-o-Y) increase in revenue, with passenger revenue rising 25 per cent and ancillary income growing at a similar pace.

 

Operating profit margins before rentals and adjusted for forex changes stood at a robust 30.8 per cent. This was underpinned by a 2.2 per cent increase in yields to ₹5.32, aided in part by strong demand during the Maha