IndiGo Q4 operating margin drops 23.88 points as costs rise 34.65%
Revenue was nearly flat YoY, but higher expenses, interest and depreciation pushed the consolidated result into a Rs 2,536.9 cr net loss.
Filed 29 May 2026, 16:12 IST · after market close · Interglobe Aviation Ltd (INDIGO)
Key takeaways
- Revenue grew only +1.29% YoY while expenses rose +34.65%, cutting operating margin by 23.88 percentage points.
- InterGlobe Aviation reported a consolidated net loss of Rs 2,536.9 cr as interest and depreciation outweighed Rs 810.0 cr of operating profit.
- At 3.61%, operating margin was 27.54 percentage points below the 31.15% median of 12 reported Services peers.
Price around the results
Costs erased IndiGo’s operating recovery
On a consolidated basis, revenue fell -4.40% sequentially while expenses rose +19.46%, reducing operating profit by -84.91% and narrowing operating margin by 19.26 percentage points. Interest fell -3.92% QoQ, but depreciation rose +1.34%; together, they left the company with a pretax loss of Rs 2,351.7 cr. Other income of Rs 1,142.4 cr was not enough to offset these charges.
Q4 margin remained far below the prior year
Operating margin fell from 27.49% in Q4FY25 to 3.61% in Q4FY26, after moving from 3.12% in Q2FY26 to 22.87% in Q3FY26. The latest margin was 27.54 percentage points below the 31.15% median for 12 Services peers that had reported the quarter, placing the company third from the bottom. The -7.88% tax rate reflects a tax charge alongside a pretax loss, so tax did not flatter net profit.
Management highlighted a larger aircraft and network base
The company’s presentation said it closed FY26 with 441 aircraft, seven more than in FY25. Management also said the airline served 97 domestic and 45 international destinations, up six and seven respectively, while strategic partnerships added services to 94 further international destinations. These disclosures point to network expansion even as Q4 operating profitability weakened.
The initial stock reaction was within its usual range
After the results were filed after market close, the stock opened with a +2.72% gap and ended the first session +1.10%, while its fifth-session return was -1.03%. The initial move was smaller than the stock’s median absolute post-results move of 2.97% across eight occasions, with four rises and four falls.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹22,438 cr | ₹23,472 cr | -4.40% | +1.29% |
| Other income | ₹1,142 cr | ₹-478 cr | — | +20.81% |
| Expenses | ₹21,628 cr | ₹18,105 cr | +19.46% | +34.65% |
| Operating profit | ₹810 cr | ₹5,367 cr | -84.91% | -86.70% |
| Operating margin (%) | 3.61% | 22.87% | — | — |
| Interest | ₹1,485 cr | ₹1,545 cr | -3.92% | +8.03% |
| Depreciation | ₹2,820 cr | ₹2,782 cr | +1.34% | +13.17% |
| Profit before tax | ₹-2,352 cr | ₹562 cr | — | — |
| Tax | ₹185 cr | ₹13 cr | +1313.74% | +81.75% |
| Net profit | ₹-2,537 cr | ₹549 cr | — | — |
| EPS (₹) | ₹-65.62 | ₹14.22 | — | — |
Operating margin of 3.61% compares with a Services sector median of 31.15% across 12 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.10% | +1.80% |
| Next session | +1.39% | — |
| 5 sessions | -1.03% | +0.78% |
| 15 sessions | +13.99% | — |
| 30 sessions | +15.96% | — |
Volume on the results session was 1.35× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company closed FY26 with 441 aircraft, an increase of seven from FY25.
- The company served 97 domestic destinations in FY26, six more than FY25.
- The company served 45 international destinations in FY26, seven more than FY25.
New initiatives
- Strategic partnerships enabled services to 94 additional international destinations during FY26.
What to watch
- Whether expense growth moderates from +34.65% YoY.
- Whether operating margin recovers from 3.61% toward the 22.87% recorded in Q3FY26.
- How interest of Rs 1,484.6 cr and depreciation of Rs 2,819.5 cr affect the next pretax result.