IndiGo injects ₹7,294 cr into aviation finance arm IFSC to boost fleet ownership strategy

India’s largest airline, IndiGo, has announced investment worth $820 million (₹7,294 crore) in its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Ltd (IndiGo IFSC), which will be made through a combination of equity shares and 0.01% non-cumulative Optionally Convertible Redeemable Preference Shares (OCRPS).   

The funds raised by IndiGo IFSC will be primarily deployed towards the acquisition of aviation assets, enabling ownership of aircraft. “IndiGo has historically maintained a fleet structure predominantly reliant on operating leases. In recent years, the organisation has undertaken a strategic development towards a more balanced ownership structure and diversified forms of financing,” the aviation major said in a statement.

IndiGo IFSC was incorporated on October 12, 2023, under the Companies Act, 2013, as a wholly owned subsidiary of the company. Its 2024-25 turnover stood at ₹290 crore. 

After a record profit in Q1 FY26, IndiGo parent’s net loss stood at ₹2,582 crore in the seasonally weak July-September quarter of FY2025-26, compared to a ₹986.7 crore loss during the same period last year. Its total revenue for the said quarter stood at ₹19,599.5 crore, a 10% growth on a year-over-year basis. 

For the quarter, passenger ticket revenues were ₹15,966.7 crore, an increase of 11.2%, and ancillary revenues were ₹2,141.1 crore, an increase of 14.2% compared to the same period last year. Total expenses for the quarter ended September 2025 were ₹22,081.2 crore, an increase of 18.3% over the same quarter last year. For the quarter, IndiGo recorded a capacity increase of 7.8% to 41.2 billion, and its total passengers increased 3.6% to 28.8 million.

IndiGo is India’s biggest domestic airline, with the highest market share, and a fleet of 417 aircraft, including 30 A320 CEOs (4 damp lease), 180 A320 NEOs, and 153 A321 NEOs.

Overall, the Indian aviation industry maintained steady momentum in October 2025, with domestic air passenger traffic for the month estimated at 142.8 lakh, a YoY growth of 4.5% and a sequential uptick of 12.9% from September 2025. This momentum in travel demand was supported by an expansion in capacity, with domestic departures reaching 99,816 during October, representing a sequential increase of 10.8% and a 1.7% rise year-on-year. 

Ratings agency ICRA has maintained a ‘stable’ outlook on the Indian aviation sector, projecting domestic passenger traffic to grow by 4-6% in FY2026, from a 7.6% growth in FY2025, when total passenger volumes reached 1,653.8 lakh. However, growth prospects for the current fiscal year are expected to remain moderate due to cross-border tensions, global disruptions, travel hesitancy post the June 2025 aircraft tragedy and recent disruptions related to Air Traffic Control operations.

Shares of IndiGo are trading 1.37% up (3.08 pm) at ₹5,866.00 on the BSE today.