IndiGo cuts growth outlook as Q3 profit sinks to 4-yr low

Net profit slipped to 549 crore in Q3, hit by a one-time exceptional cost of 1,546.5 crore

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Despite the losses, Indigo's revenue from operations rose 26.5% sequentially and 6.2% from the year-ago period to ₹23,472 crore.

(REUTERS)

IndiGo scaled back its near-term growth expectations significantly after its October-December quarter earnings came under pressure from a combination of new labour codes, regulatory action, and severe operational disruptions in December.

India’s largest carrier reported a 78% year-on-year (yo-y) drop in consolidated profit to ₹549 crore for the third quarter of fiscal year 2026 (FY26), its weakest performance in four years, even as its top management remained positive on normalisation of operations and visible headwinds.

The Q3 slump was driven by exceptional costs of ₹1,546.5 crore stemming from the implementation of the new labour codes, and compensation paid to passengers during a week-long bout of flight cancellations in December.

The disruptions had led the civil aviation regulator to temporarily curb IndiGo’s flight operations in the first week of December, reducing its daily domestic flight departures by 10% to about 2,000 a day.