IndiGo Shares Fall Nearly 2% Despite 62% YoY Surge In Q4 PAT; Key Points For Investors

SOURCE : NEW18 NEWS

Last Updated:May 22, 2025, 10:27 IST

Shares of InterGlobe Aviation-owned IndiGo slipped 1.6% to a day’s low of Rs 5,375.75 on the BSE, despite reporting a 62% net profit

IndiGo Share Price: Shares of InterGlobe Aviation-owned IndiGo slipped 1.6% to a day’s low of Rs 5,375.75 on the BSE on Thursday, despite reporting a 62% year-on-year surge in net profit to Rs 3,067 crore for the March quarter. The profit boost was largely driven by robust travel demand during the Maha Kumbh Mela and wedding season, marking the airline’s second-highest quarterly profit ever.

Revenue from operations stood at Rs 22,152 crore, up 24% from Rs 17,825 crore in the same period last year. However, IndiGo’s full-year net profit for FY25 fell 11% year-on-year to Rs 7,258 crore. The board has announced a dividend of Rs 10 per share.

“This was an exceptionally strong fourth quarter with solid demand, strong execution of strategy, and tailwinds from events like the Maha Kumbh,” said CEO Pieter Elbers, adding that operational efficiency and record passenger volumes contributed to the strong performance.

Profitability metrics also improved, with yields rising 2.4% year-on-year to Rs 5.32 per kilometre, and the passenger load factor increasing by 1.1 percentage points to 87.4%.

However, the airline was affected by geopolitical tensions between India and Pakistan, which led to large-scale ticket cancellations when 32 Indian airports were shut earlier this month. CFO Gaurav Negi noted that the cancellation trend has begun to reverse, and summer holiday travel is expected to drive demand.

IndiGo also announced a significant expansion into long-haul international routes, with flights to Amsterdam and Manchester starting in July using Boeing 787 aircraft leased from Norse Atlantic. These new routes mark IndiGo’s first foray into long-haul flying. The onboard experience will be an upgrade from the airline’s typical low-cost offering, featuring two complimentary hot meals for all passengers and lounge access for those in the IndiGo Stretch premium cabin.

Elbers emphasized the airline’s intent to expand further into longer routes, noting that Indian carriers’ international market share has risen from the mid-30% range a few years ago to 45–46% currently.

On the fleet front, IndiGo has been addressing capacity constraints caused by grounded aircraft due to Pratt & Whitney engine issues. The number of grounded planes has come down from the mid-70s in Q2FY25 to the 40s currently, allowing the airline to phase out aircraft on high-cost leases and improve cost efficiency.

According to Trendlyne, 21 analysts rate the stock ‘Buy’ and suggest a 3% upside from current levels. The average target price is Rs 5,608.

First Published:

May 22, 2025, 10:24 IST