Did IndiGo’s Net Profit Decline by 11.19% to Rs 7,258.4 Crore for FY25?
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Synopsis
IndiGo's parent company, InterGlobe Aviation, has revealed a notable decrease in net profit for FY25. Despite challenges, the airline showcases strong growth in Q4 with significant increases in profit and revenue. Read on to uncover the details behind the numbers and insights from leadership on future strategies.
Key Takeaways
- IndiGo reported a 11.19% drop in net profit for FY25.
- Q4 FY25 saw a 61.89% increase in net profit compared to the previous year.
- Revenue from operations in Q4 rose by 24.3%.
- Load factor increased to 87.4% in Q4 FY25.
- IndiGo plans to expand its international presence.
Mumbai, May 21 (NationPress) InterGlobe Aviation, the parent company of IndiGo, announced a drop of 11.19 percent in its net profit, reporting Rs 7,258.4 crore for the financial year FY25, compared to Rs 8,172.5 crore in FY24.
However, during the January-March quarter (Q4 FY25), IndiGo experienced a remarkable 61.89 percent year-on-year (YoY) increase in its consolidated net profit, reaching Rs 3,067.5 crore.
This was a significant rise from Rs 1,894.8 crore in Q4 FY24. When excluding foreign exchange effects, the profit surged by 44.7 percent to Rs 2,981.1 crore in Q4, compared with Rs 2,060 crore in the same quarter of the previous fiscal year.
Q4 operational revenue climbed 24.3 percent to Rs 22,151.9 crore, up from Rs 17,825.3 crore in the same period last year.
The airline's EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) also saw a significant increase of 57.5 percent to Rs 6,948.2 crore during the quarter.
The EBITDAR margin improved to 31.4 percent, compared to 24.8 percent in the same quarter last financial year.
IndiGo recorded a 21 percent increase in capacity and a 19.6 percent rise in passenger numbers during the quarter, totaling 3.19 crore travellers.
The load factor also saw a slight increase to 87.4 percent, compared to 86.3 percent in Q4 FY24.
CEO Pieter Elbers commented on the airline's performance, stating that the company achieved a ‘healthy financial performance’ for both the fourth quarter and the full year.
He attributed this success to record passenger volumes, operational efficiencies, and the hard work of IndiGo employees.
However, Elbers acknowledged some challenges, such as the closure of Pakistan’s airspace and 32 airports, which affected operations in May.
Among those, 11 airports were served by IndiGo, resulting in the cancellation of approximately 170 flights daily.
Elbers noted that while April began positively, May is anticipated to be weaker, but traffic is expected to recover starting in June.
He also announced that IndiGo shareholders would receive a recommended dividend of Rs 10 per share.
Additionally, a prominent international credit rating agency has given IndiGo an investment-grade rating, acknowledging its robust balance sheet and ongoing performance.
Looking forward, the airline intends to maintain its focus on cost leadership and expand its international footprint, including the initiation of operations in Europe.
Point of View
It's crucial to recognize both the achievements and challenges faced by IndiGo. While the drop in annual net profit is concerning, the significant growth in the fourth quarter demonstrates resilience. The airline must navigate external challenges, such as the closure of airspace, while capitalizing on its strengths to ensure sustained growth.
NationPress
21/07/2025
