IndiGo posts Rs 2,537 crore loss in Q4 as rupee depreciation and cost pressures bite

India's largest airline, IndiGo, reported a net loss of Rs 2,536.9 crore for the quarter ended March 31, 2026, as a sharp depreciation in the rupee and rising operational costs weighed heavily on profitability.

The airline had posted a net profit of Rs 3,067.5 crore in the corresponding quarter of the previous financial year, marking a significant reversal in earnings despite continued growth in revenue and capacity.

According to the company's earnings statement released on Friday, total income rose more than 3 per cent year-on-year to Rs 23,830.7 crore in the fourth quarter of FY26, compared with Rs 23,097.5 crore in the same period a year earlier.

IndiGo said an "exceptionally sharp rupee depreciation," changes in labour laws and a challenging operating environment offset its operational gains and pushed the airline into the red. The company reported a net loss of Rs 23,936 million during the quarter.

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Commenting on the results, Managing Director Rahul Bhatia said FY26 was marked by an exceptionally challenging operating environment that materially impacted the airline's profitability.

"During the year, our capacity grew by 9.5 per cent, and total income increased by over 6 per cent. Excluding the impact of foreign exchange and exceptional items, IndiGo delivered a profit of Rs 75 billion," Bhatia said.

The results highlights the impact of currency fluctuations on airlines, which incur substantial expenses in foreign currencies, including aircraft leasing, maintenance and fuel-related costs. A weaker rupee increases these expenses, putting pressure on margins even when passenger demand remains strong.

Despite the quarterly loss, IndiGo maintained its dominant position in India's aviation market. The airline's domestic market share stood at 63.3 per cent in March, reinforcing its status as the country's largest carrier by a wide margin.

Investor sentiment remained cautious following the earnings announcement. Shares of IndiGo declined 3.27 per cent to close at Rs 4,418.40 apiece on the BSE on Friday.

The latest results highlight the challenges facing airlines as they navigate currency volatility, regulatory changes and rising costs while continuing to expand capacity in a fast-growing aviation market.