IndiGo's margin drops to 8.16% as Q2 loss widens
Revenue fell -4.96% QoQ while expenses rose +0.65%, with interest costs also increasing +5.91%.
Filed 29 Oct 2026, 15:53 IST · after market close · Interglobe Aviation Ltd (INDIGO)
Key takeaways
- IndiGo's consolidated operating margin fell 5.13 percentage points QoQ to 8.16% as revenue declined -4.96% while expenses rose +0.65%.
- The company reported a consolidated net loss of Rs 1,879.1 cr, its third straight quarterly loss, although the loss narrowed +27.23% YoY.
- Management said the fleet reached 442 aircraft, while domestic and international destinations rose to 97 and 42 respectively.
Price around the results
Q2 margin reverses the Q1 improvement
IndiGo's consolidated operating margin fell 5.13 percentage points QoQ to 8.16%, after recovering to 13.29% in Q1FY27. Revenue declined -4.96% while expenses increased +0.65%, so costs grew despite lower sales. Year on year, revenue rose +25.91% and operating margin improved by 5.04 percentage points, but the quarter still marked a sharp sequential deterioration.
Financing and depreciation kept profit below break-even
Interest costs rose +5.91% QoQ to Rs 1,657.8 cr, while depreciation increased +3.50% to Rs 3,074.2 cr, adding pressure below operating profit. Other income was Rs 948.1 cr, equivalent to -50.52% of pre-tax profit because pre-tax profit remained negative; it did not offset the loss. The tax rate fell 0.31 percentage points to -0.14%, but the Rs 2.6 cr tax charge was too small to materially affect the result.
Fleet and network expansion continued despite the loss
Management said IndiGo's closing aircraft count rose to 442, up 25 from Q2FY26, while domestic destinations increased to 97 and international destinations to 42. The company also said it served 98 additional international destinations through strategic partnerships during Q2FY27. The operating margin remains well below the 22.87% recorded in Q3FY26, while the company has now reported losses for three consecutive quarters.
Margin trails Services peers; market reaction is pending
IndiGo's 8.16% operating margin was 14.65 percentage points below the 22.81% median for 16 Services peers that had reported the quarter. The results were filed after market close, so there is no market reaction to report yet. In the past eight result reactions, the stock rose five times and fell three times, with a median absolute move of 1.10%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹23,364 cr | ₹24,584 cr | -4.96% | +25.91% |
| Other income | ₹948 cr | ₹1,030 cr | -7.95% | -9.20% |
| Expenses | ₹21,456 cr | ₹21,317 cr | +0.65% | +19.36% |
| Operating profit | ₹1,907 cr | ₹3,267 cr | -41.62% | +229.15% |
| Operating margin (%) | 8.16% | 13.29% | — | — |
| Interest | ₹1,658 cr | ₹1,565 cr | +5.91% | +13.17% |
| Depreciation | ₹3,074 cr | ₹2,970 cr | +3.50% | +16.42% |
| Profit before tax | ₹-1,877 cr | ₹-238 cr | -687.12% | +24.39% |
| Tax | ₹3 cr | ₹-0 cr | — | -97.41% |
| Net profit | ₹-1,879 cr | ₹-238 cr | -689.54% | +27.23% |
| EPS (₹) | ₹-48.58 | ₹-6.15 | -689.92% | +27.26% |
Operating margin of 8.16% compares with a Services sector median of 22.81% across 16 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- IndiGo had 97 domestic destinations, three more than in Q2'26.
- IndiGo had 42 international destinations, one more than in Q2'26.
Expansion
- IndiGo's closing aircraft count was 442, up by 25 from Q2'26.
New initiatives
- IndiGo provided services to 98 additional international destinations through strategic partnerships during Q2'27.
What to watch
- Whether operating margin recovers from 8.16% toward the 13.29% recorded in Q1FY27.
- Whether expenses stop growing faster than revenue, after revenue declined -4.96% QoQ while expenses rose +0.65%.
- Whether interest costs and depreciation moderate from Rs 1,657.8 cr and Rs 3,074.2 cr respectively.