InterGlobe Aviation Limited (IndiGo) on Thursday reported a sharp 77.5% year-on-year (YoY) decline in its consolidated net profit for the third quarter ended December 31, 2025. The airline’s profit (attributable to owners) plummeted to ₹549.8 crore, down from ₹2,448.8 crore in the same period last year.

The drop in profitability was largely attributed to two massive exceptional charges totalling ₹1,546.5 crore. These included a ₹969.3 crore provision for increased social security benefits under India’s new labour codes and a ₹577.2 crore hit related to massive operational disruptions in early December 2025, covering regulatory compensation, travel vouchers, and associated penalties.

Revenue and operational performance

Despite the profit slump, IndiGo’s top line remained resilient. Revenue from operations grew by 6.2% YoY to reach ₹23,471.9 crore. Total income, including other income, rose 6.7% to ₹24,540.6 crore.

Operational metrics showed a mix of growth and pressure. The airline increased its capacity (ASK) by 11.2% to 45.4 billion, but its passenger load factor dipped by 2.4 percentage points to 84.6%. Yields also saw a marginal compression of 1.8%, standing at ₹5.33 compared to ₹5.43 in the previous year.

Fleet expansion and financial position

IndiGo continued its aggressive fleet expansion, ending the quarter with 440 aircraft, a net addition of 23 planes since the previous quarter. The fleet now includes the airline's first A321neo XLR.

The company maintains a strong liquidity position with a total cash balance of ₹51,606.9 crore, of which ₹36,944.5 crore is free cash. However, total debt rose by 18% to ₹76,858.3 crore, primarily driven by capitalised operating lease liabilities.

“While the bottom line was impacted by significant one-off items, our operational growth and capacity expansion remain on track,” the management noted during the earnings call. The airline has added 16 new destinations in the last year, bringing its total network to 140 stations.

The shares of IndiGo ended 1.47% higher at ₹4,929 apiece on the national stock exchange on Thursday. The company's stock price has risen close to 23% in the past one year, outperforming the benchmark Nifty 50 index which has risen nearly 10% during the same period.