Archive · 6 Nov 2025
IndiGo Shares Rise Despite Wider Net Loss on Strong Guidance
IndiGo is a big airline in India.
Recently, they announced their financial results for a three-month period called Q2.
Even though they lost more money than last year (about ₹2,582 crore), their stock price went up!
This might seem strange, but it's because investors are looking at the future.
IndiGo told everyone they plan to fly more planes and add more routes in the coming years, which is good news for growth.
The big reason they lost more money this time was a very large cost related to the exchange rate of different money, called foreign exchange costs.
Despite this expensive problem, the airline did a good job flying its planes and carrying passengers, and its revenues went up a little.
Many experts who study stocks think IndiGo is still a good company to invest in because they see a lot of potential for it to grow, especially by flying to more places outside of India.
IndiGo's share price rose 3.5% to ₹5,833 on November 6, despite reporting a Q2 net loss of ₹2,582 crore, a significant increase from the previous year's loss of ₹987 crore.
The company's revenue from operations increased by 9.3% year-on-year to ₹18,555 crore, driven by strong operational execution and capacity deployment.
A major factor contributing to the widened net loss was a sharp 1,102% increase in foreign exchange costs, totaling ₹2,892 crore.
IndiGo upgraded its FY26 capacity growth guidance to mid-teens and expanded its operational plans for the second half of the year, signaling future growth.
Brokerages maintained bullish ratings on IndiGo, citing robust operational performance, strong growth prospects, and strategic execution despite near-term financial challenges.
- Who
- IndiGo (InterGlobe Aviation)
- What
- IndiGo's share price jumped 3.5% despite a significant increase in its net loss for Q2, driven by positive investor sentiment towards its upgraded future capacity guidance and operational plans, overshadowing the financial setbacks caused by foreign exchange costs.
- When
- Early trade on Thursday, November 6. Q2 results announced post-market hours on Tuesday.
- Where
- India
- Why
- Upgraded FY26 capacity guidance, expanded H2 operational plans, and strong operational execution and growth prospects cited by brokerages, despite a substantial foreign exchange loss impacting net profit.
Investor Optimism & Growth Prospects
Q2 Financial Performance & Challenges
Share Price Movement & Future Outlook
Investor Optimism & Growth Prospects
Investors are cheering IndiGo's upgraded FY26 capacity guidance and expanded H2 operational plans, leading to a share price jump, with brokerages retaining bullish outlooks based on strong operational execution and growth prospects.
Q2 Financial Performance & Challenges
Despite the positive market reaction, IndiGo reported a wider-than-expected net loss of ₹2,582 crore in Q2, impacted by significant foreign exchange costs.
Financial Performance Metrics
Investor Optimism & Growth Prospects
Brokerages like Jefferies highlight operational beats and yield improvements, and note that while forex volatility affected near-term earnings, the company’s long-term fundamentals remain intact. Motilal Oswal anticipates healthy profitability due to capacity growth, rising demand, stable yields, and an increasing international mix.
Q2 Financial Performance & Challenges
The net loss widened from ₹987 crore in the same quarter last year. Revenue from operations rose 9.3% year-on-year to ₹18,555 crore, but was overshadowed by a massive 1,102% increase in foreign exchange costs, reaching ₹2,892 crore.
- Q2 Net Loss
- ₹2,582 crore
- Q2 Net Loss (Previous Year)
- ₹987 crore
- Q2 Revenue from Operations
- ₹18,555 crore (up 9.3% YoY)
- Q2 Foreign Exchange Loss
- ₹2,892 crore (up 1,102% YoY)
- Q2 Capacity Increase
- 7.8%
- Q2 Passenger Numbers
- 28.8 million (up 3.6%)
- FY26 Capacity Growth Guidance
- Mid-teens (upgraded from low double digits)
- IndiGo A350 Aircraft Order
- Doubled from 30 to 60
Sources
Indigo to own, financially lease more planes—a shift from its moneyspinner sale-and-leaseback past
IndiGo Q2 results: Spotlight on international transfers as potential cushion against forex losses
IndiGo opts for additional damp leases as Pratt & Whitney engines stutter
