IndiGo Reports Record Q4 Profit of Rs 30,675 Million

InterGlobe Aviation Ltd (IndiGo), India’s leading airline by market share announced its Financial Report or the period ending March 2025, has achieved a landmark milestone by posting its highest-ever fourth quarter net profit of Rs 30,675 million f driven by robust demand, increased passenger traffic, and enhanced operational efficiency.

This performance marks a 61.9 per cent surge compared to Rs 18,948 million in Q4 FY2024. Capacity grew by 21.0 per cent, carrying 31.9 million passengers, while revenue from operations soared to Rs 221,519 million — a 24.3 per cent increase year-on-year.

The airline’s full-year net profit stood at Rs 72,584 million. Although this reflects a decline of 11.2 per cent from the previous year due to forex impact, the profit excluding foreign exchange adjustments was stable at Rs 88,676 million, showing remarkable consistency amid global headwinds.

Global Recognition: Moody’s Assigns Baa3 Rating

In a vote of global confidence, Moody’s Ratings assigned IndiGo a Baa3 long-term issuer rating, marking its debut into the global investment-grade arena. The outlook is “stable,” reflecting confidence in the airline’s solid fundamentals, prudent financial management, and liquidity.

According to Moody’s, IndiGo holds a 63 per cent share of the domestic Indian aviation market and maintains excellent liquidity, backed by a cash balance of over Rs 481,705 million. Despite an aggressive fleet expansion strategy (over 925 aircraft on order), the airline’s net leverage is projected to stay under 2.0x through FY2028 — a key indicator of financial health.

Operating Strengths Fuel Growth

The carrier reported a load factor of 87.4 per cent for Q4 FY2025 and maintained its market lead through punctual operations and route expansion. Total income grew 24.8 per cent in the quarter, reaching Rs 230,975 million. IndiGo's EBITDAR margin also improved to 31.4 per cent, up from 24.8 per cent a year earlier.

Cost-wise, the airline managed a 6.6 per cent reduction in fuel CASK, while maintaining a steady non-fuel CASK of Rs 2.90, showing the impact of ongoing cost-efficiency initiatives.

Pieter Elbers, CEO, said, “We are proud to report healthy financial performance for this quarter and the financial year 2025 as we reported a net profit of Rs 72,584 million. Our sustained performance is the result of record passenger volumes, operational efficiencies, agility and commitment demonstrated by IndiGo employees. A big thank you to our 118.6 million customers in FY25 for placing their trust in us and to all my IndiGo colleagues for their great work and relentless dedication. As we build on this momentum, we will continue to focus on cost leadership and further Internationalisation with the start of our European operations. I am very pleased that the trust and continued support of our shareholders during the challenging covid

period and beyond can now be rewarded with a recommended dividend of 10 rupees per share. Further, our continued performance and strong balance sheet has also been recognised by a leading International credit rating agency by assigning an Investment grade credit rating”

To reward shareholder support through challenging periods, IndiGo also announced a Rs 10 per share dividend, pending AGM approval.

Strategic Outlook and Expansion Plans

Looking ahead, IndiGo expects ASK capacity to grow by “mid-teens” in Q1 FY2026. The airline continues to prioritise expanding international services — including the launch of European routes — and strengthening operational resilience.

Moody’s analysts also noted that while challenges persist, including fuel volatility and geopolitical factors, IndiGo’s modern, fuel-efficient fleet, absence of labour unions, and strong governance support its investment-grade status.

ESG and Governance Considerations

IndiGo’s investments in sustainable aviation through fuel-efficient aircraft, data-driven route optimisation, and low average fleet age (4.9 years) position it well amidst growing environmental scrutiny.

Moody’s recognised the airline’s strong governance framework, noting that board oversight and minimal related-party transactions help mitigate risks often associated with concentrated ownership.