Interglobe Aviation Ltd Management Discussions

Economic review

Global economy

The global economy recorded GDP growth of about 3.4% in Calendar Year (CY) 2025 broadly maintaining the growth momentum seen in CY 2024, according to the IMF. This growth has been supported by accommodative financial conditions and steady investment, especially in technology-driven sectors. However, outcomes continue to vary across regions, and growth continues to be exposed to risks from macroeconomic pressures, geopolitical tensions, and ongoing uncertainty around trade and tariffs.

In this evolving environment, shifting trade dynamics have played an important role in shaping regional outcomes, even as recent trade developments involving the United States have provided some temporary relief from tariff pressures. The United States continues to demonstrate relatively strong momentum compared to many of its peers, while India remains a key driver of global growth, supported by robust domestic demand and improving economic conditions towards the latter part of CY 2025.

Global conditions have tightened as the recent West Asia geopolitical tensions drive a sharp rise in energy prices, intensifying global inflationary pressures. Damage to key energy infrastructure has disrupted oil and gas supplies, raised concern over the stability of global energy markets and weighed on economic activity through higher input costs, supply chain disruptions, and elevated uncertainty. Based on the IMF estimates, headline inflation is now projected to rise to 4.4% in CY 2026 before easing to 3.7% in CY 2027, driven by a rebound in commodity prices, with energy prices up by 19% and oil prices rising 21.4% due to production and logistics disruptions. The situation remains highly dynamic, with inflation and growth outlook continuing to hinge on evolving geopolitical developments, energy supply disruptions, and volatility in global commodity prices.

As per the IMF, fiscal pressures are mounting as defense spending accelerates. During defense buildups, fiscal deficits get worse by about 2.6% of GDP and public debt increases by roughly 7% within three years of the start of the buildup. Downside risks remain significant, particularly under an adverse scenario of sustained energy price shocks, where global growth could slow down to 2.5% in CY 2026 with inflation reaching 5.4%. In a more severe scenario involving deeper infrastructure damage, growth could decline to around 2% and inflation could rise above 6% by CY 2027, with emerging and developing economies experiencing impacts nearly twice the magnitude faced by advanced economies. Rising public debt further compounds vulnerabilities, with global sovereign debt projected to approach 100% of GDP by the end of the decade.

Despite these challenges, there are meaningful potential upsides that could help offset the risks. A faster pace of AI adoption could lift global growth by up to 0.3% in FY 2026 with annual gains in medium term ranging between 0.1% and 0.8%. However, the IMF cautions that these gains may be uneven and uncertain, with risks including transitional job displacement, potential capital misallocation if productivity gains fall short, and heightened exposure to financial market volatility should AI driven expectations prove overly optimistic.

To secure future growth, Emerging Markets and Developing Economies (EMDEs) need to diversify trade, rebuild fiscal buffers, modernise fiscal rules, strengthen institutions, and place greater emphasis on job creation, particularly considering the 1.2 billion young people expected to enter the global workforce by 2035, as per the World Bank. Sectors such as infrastructure, manufacturing, agribusiness, tourism, healthcare, and digital industries offer strong potential to generate employment on a scale. However, in low-income countries (LICs), growth has yet to translate into sufficient jobs and income opportunities, limiting poverty reduction amid declining external aid and rising climate-related risks.

As per the IMF, Global growth is projected to remain broadly stable over 2025–27, reducing from about 3.4% in 2025 to 3.1% in 2026 before edging up to around 3.2% in 2027. EMDEs are projected to maintain relatively strong growth, though with some moderation from the elevated pace of about 4.4% in 2025 to 3.9% in 2026, before rebounding to about 4.2% in 2027. In contrast, growth in advanced economies is projected to soften gradually, declining from around 1.9% in 2025 to 1.7% by 2027. This divergence highlights both the resilience and the growing systemic importance of EMDEs amid heightened geopolitical risks, elevated uncertainty, and shifting trade and financial conditions.

Indian economy

Amid a challenging global trade environment marked by tariff actions and heightened uncertainty, Indias exports have continued to demonstrate relative stability. While disruptions to global supply chains and softer demand have created challenges worldwide, India has drawn strength from its diversified export base and the continued momentum in services exports. As per Ministry of Commerce & Industry, the goods and services exports during FY 2026 are estimated at USD 860 billion, as compared to USD 825 billion in FY 2025, a growth of 4.2%, reflecting the economys ability to adapt and stay engaged with global markets even as external conditions remained volatile.

India significantly strengthened its external trade architecture over the past year, making it a landmark period for its trade diplomacy by concluding several major economic agreements across key regions. The India–European Union Free Trade Agreement stands out as a pivotal milestone, expected to improve market access, enhance export competitiveness, and support higher trade, business travel, and cargo flows along India–Europe corridors. Complementing this momentum, Indias agreements with New Zealand and the United Kingdom (UK) are expected to further strengthen the countrys global economic footprint by strengthening supply chain integration, expanding services trade and enhancing cross-border mobility, reflecting a decisive shift towards stronger global economic integration.

Building on this external stability, Indias broader economic story remains well balanced and firmly anchored. These underlying strengths have been sustained by a stable and supportive economic environment. Prudent fiscal management, steady growth, and a relatively benign inflation environment - supported by structural reforms, rising public investment, and improving household purchasing power, have helped the economy to expand at around 6.5% in real terms during FY 2026 as per the IMF. The Union Budget FY 2027 builds on this progress by sharpening the focus on long-term competitiveness, strengthening domestic capabilities, and improving productivity across key sectors.

Indias growth outlook has been reinforced by a broad set of policy and institutional reforms aimed at improving demand conditions and reducing structural frictions. GST rationalisation and compliance simplification through fewer slab rates, improved input-tax credit flows, and greater digital enforcement have eased inter-state trade, strengthened supply chains, and improved the overall ease of doing business. This has been complemented by income-tax reforms under the new regime, where expanded tax exemptions are expected to boost household disposable incomes and strengthen consumption-led domestic demand.

These reforms have been supported by the labour market and monetary policy measures that further strengthen the growth ecosystem. The implementation of the four Labour Codes has streamlined compliance by consolidating 29 legacy laws and expanded social security coverage including for gig and platform workers.

As per Economic Survey FY 2026, Private Final Consumption Expenditure (PFCE) reached 61.5% of GDP, its highest share since FY 2012, reflecting rising real incomes, low inflationary environment, and a broad based improvement in spending.

Gross Fixed Capital Formation (GFCF) remained solid at 30% of GDP, boosted by record public capital expenditure and a visible pickup in private investment, as indicated by higher capacity utilization and strong new project announcements.

At the same time, the RBI adopted a calibrated easing cycle in FY 2026, cutting the policy repo rate by cumulative 100 basis points as inflation eased, providing additional support to investment, liquidity and disposable income amid global tariff-related and geopolitical uncertainties.

The fiscal deficit for FY 2026 is held at 4.4% of GDP, consistent with the level announced in the Union Budget. In line with the governments fiscal consolidation framework, the deficit is projected to moderate further to 4.3% of GDP in FY 2027. Alongside this gradual improvement, Indias debt-to-GDP ratio is expected to decline to 55.6% in FY 2027 from 56.1% in FY 2026, reflecting a steady strengthening of macroeconomic fundamentals.

The government continues to place strong emphasis on strengthening domestic manufacturing and becoming more self-sufficient. As per Union Budget FY 2027, public capital expenditure remains a cornerstone of Indias growth strategy and has increased significantly from Rs. 2 lakh crore in FY 2015 to Rs. 12.2 lakh crore in FY 2027. This sustained infrastructure-led approach has improved connectivity, logistics efficiency, and long-term productive capacity. Supported by public capex and targeted policy interventions, domestic manufacturing has scaled up across priority sectors, reinforcing Indias Atmanirbhar Bharat objectives.

The budget further advances competitiveness by improving the operating environment for MSMEs. Measures such as the Rs.10,000 crore SME Growth Fund, streamlined compliance processes, and liquidity-support initiatives aim to enhance productivity, expand operations, and connect more effectively with both domestic and global supply chains. Alongside this, major logistics and connectivity projects including new dedicated freight corridors, additional national waterways, and an expanded coastal shipping network are expected to reduce transport costs and make supply chains more efficient.

Indias Purchasing Managers Index (PMI) indicators show resilient but moderating growth. The Services PMI eased from its FY 2024 high and then stabilised in FY 2026, reflecting steady expansion despite cost pressures and global uncertainty. The Composite PMI followed a similar pattern, softening from FY 2024 before posting a mild improvement in FY 2026, indicating balanced private-sector momentum. Manufacturing PMI remained broadly stable throughout, pointing to steady industrial activity even as external headwinds persisted.

Geopolitical tensions remain a key external risk for the Indian economy, influencing trade flows, energy prices, supply chains, and financial markets. Conflicts in West Asia have raised crude oil prices, increased freight and insurance costs, and contributed to volatility in capital flows, all of which carry implications for inflation and the current account.

During FY 2026, the Indian rupee depreciated by around 11% against the US dollar on closing-to-closing basis, largely driven by external factors. Persistent foreign portfolio outflows, tariff related uncertainty, elevated crude oil prices amid geopolitical tensions in West Asia, and a strong US dollar exerted sustained pressure on the Indian rupee.

As per the Economic Survey 2026, the current account deficit is 0.8% of GDP in first half of FY 2026 and it could widen in the event of elevated fuel prices. Such events tend to raise import costs and external financing requirements, underscoring the importance of maintaining adequate external buffers. India maintains comfortable buffer of forex reserves of around USD 700bn, sufficient to provide 10-11 months of import cover. Together with prudent macroeconomic management and continued reforms, these internal strength indicators provide India with a strong cushion against global volatility, reinforcing confidence in its ability to absorb external shocks while sustaining stable growth.

Overall, while the macroeconomic outlook remains broadly positive, downside risks cannot be ignored and if these external headwinds persist, growth outcomes could fall below baseline expectations.

Industry overview

Global aviation

Global air travel recorded steady expansion during CY 2025, supported by resilient passenger demand and gradual capacity augmentation across major markets. International travel remained a vital contributor to industry expansion as airlines broadened connectivity across long-haul and regional routes. Growing tourism activity, improving air connectivity and rising disposable incomes across emerging economies supported travel demand across both leisure and corporate segments.

As per IATA, the Industry demand measured in terms of Revenue Passenger Kilometers (RPK) for CY 2025 rose by 5.3% compared to CY 2024. Passenger load factors reached 83.6% for the year, marking the highest level recorded by the industry for any year.

On the supply side, the industry capacity measured in terms of Available Seat Kilometer (ASK) across all regions increased by 5.2% on a YoY basis. Capacity expansion across the aviation sector remains constrained by supply-side challenges, engine reliability issues, and large order backlogs. This continues to limit airlines expansion plans across the globe.

Growth by market (CY 2025)

% Change (year-over-year)	Domestic	International
ASK	2.5%	6.8%
RPK	2.4%	7.1%

Source: IATA air passenger market analysis report for December 2025

Passenger demand strengthened across all major markets, although the pace of expansion differed across geographies. Africa region recorded the strongest growth, with passenger traffic rising by 9.4% year-on-year owing to the regions lower base. Asia Pacific region reported a 7.8% increase, buoyed by rising travel demand across key markets in the region. While North America region recorded the slowest expansion at 0.4% reflecting the regions large base.

Moving to CY 2026, geopolitical developments remain a key external variable influencing global aviation markets. Protracted military conflicts in West Asia and broader regional security concerns have created uncertainty across select travel corridors, impacting travel demand, tourism flows, and prompting shifts in transit traffic patterns. These factors continue to influence airline network planning, capacity deployment and route economics.

Concurrently, geopolitical-driven volatility in global energy markets has led to fluctuations in aviation turbine fuel prices and supply conditions. Fuel remains a significant component of airlines operating costs and an important margin driver. In response, airlines have pursued multiple mitigation measures, including calibrated fare increases, introduction of fuel surcharges and capacity rationalization on underperforming routes, aimed at protecting profitability and balance sheet strength.

Global passenger demand is expected to have a negative bias due to geopolitical uncertainties and ongoing supply chain challenges. Against this backdrop, global passenger traffic is expected to increase by 2.1% year-on-year in CY 2026, with Africa region leading the expansion at 10%.

Cargo

Global air cargo demand measured in Cargo Tonne Kilometers (CTK), increased by 3.4% in CY 2025, with international traffic growing by 4.2%, indicating a gradual return to more normalised growth trends. Demand remained selective, driven primarily by e-commerce expansion, ongoing supply-chain reconfiguration, and a sustained preference for time-critical transportation.

Air cargo demand is expected to continue growing in CY 2026, though at a more moderate rate compared with CY 2025, in line with softening global trade. The CY 2026 outlook reflects a more balanced market, with growth increasingly driven by volume rather than price, particularly in Asia and Europe, where traffic remains strong in the wake of tariffs.

Indian aviation

Indias aviation sector has emerged as one of the fastest-growing sectors globally, making it the third-largest domestic aviation market in the world. The aviation sector plays an indispensable role in facilitating economic activity across sectors, such as tourism, trade and logistics. Increasing air travel penetration and the steady expansion of airline networks have also enhanced connectivity across metropolitan centres, as well as tier-II and tier-III cities. Passenger traffic across the country continues to grow as domestic travel demand rises and international connectivity broadens.

In FY 2026, the Indian aviation industry witnessed a phase of moderate growth owing to multiple external factors. Domestic passenger traffic increased by 1.1% against seat growth of 2.6%. Similarly, International passenger traffic increased by 3.3% compared to seat growth of 4.6%.

During the year, Indian aviation industry was affected by a series of events which collectively impacted airlines capacity deployment, network connectivity, and passenger demand. Escalating geopolitical tensions in certain parts of North India in Q1 FY 2026, and the continuing conflict in West Asia, led to the closure of certain airspaces, compelling Indian carriers to reroute certain international flights. These diversions resulted in longer flight durations, elevated fuel consumption, higher operating costs, and, in some cases, service cancellations. Airline operations were further impacted due to unfortunate incident in Indian aviation industry, leading to temporary disruptions across certain domestic & international routes. Further, airlines have started aligning their capacity deployment measures in line with seasonal trends.

Furthermore, the implementation of and operations under the revised crew rostering rules (Flight Duty Time Limitation Phase II) for flight operations presented execution challenges during a peak travel period, contributing to flight delays, service disruptions, and cancellations. Taken together, these factors reinforced the dynamic and complex operating environment faced by the airline industry.

The outlook for Indian aviation in FY 2027 remains highly sensitive to geopolitical uncertainties. Ongoing conflicts in West Asia have resulted in intermittent airspace restrictions, leading to higher operating costs on certain international routes. These challenges may also cause schedule disruptions or temporary suspension of services. Additionally, volatility in global crude oil prices and foreign exchange rates continue to pose a significant risk to airline cost structures.

Indian aviation long-term structural growth drivers

Underpenetrated aviation market

India is the worlds sixth largest economy and is expected to witness sustained growth, supported by a rapidly expanding disposable income and increasing propensity to travel. Despite this growth, the Indian aviation sector remains significantly underpenetrated compared with other economies. Indias domestic seats per capita is 0.14 versus 3.1 in the US and 0.45 in Vietnam. The gap is even wider in international travel, with India at 0.07 seats per capita compared to 0.98 in the US and 0.56 in Vietnam. According to the Ministry of External Affairs, only around 8.7% of Indians hold passports. These gaps highlight the substantial headroom for growth in Indian aviation.

Expanding middle-class population and travel demand

The steady expansion of the middle-class population is structurally strengthening demand for air travel. Rising urbanisation, growing preference for time-efficient travel and improving affordability are driving increased passenger traffic across both leisure and business segments. This shift is also expanding the base of frequent flyers from Tier-II and Tier III-cities, supporting sustained growth in domestic aviation and improving capacity utilisation across the sector.

Growing diaspora

International travel has witnessed a sharp surge, with Indian citizens venturing to more destinations, supported by a growing global diaspora of over 35 million as per UN Migration Report. The expanding Indian diaspora remains a key structural driver of international air travel demand. A large and growing expatriate base across North America, Europe, the Middle East and Asia-Pacific support strong VFR traffic, supplemented by business, education and leisure travel. This diaspora-led demand provides year-round resilience, enables higher frequencies across long-haul and regional routes, and strengthens network viability beyond seasonal peaks.

Demographic dividend

Indias favorable demographic profile remains a significant long-term growth driver for the aviation industry. A young and expanding working-age population, combined with rising disposable incomes and increasing urbanisation, continues to support strong growth in domestic air travel. Working class population (between the age of 20 and 59) is expected to increase from 53% in 2015 to 57% in 2030.

As per World Economic Forum, by 2036, Indias middle class and affluent consumers will account for 93% of all spending, up from 80% in 2026. By 2035, over 20% of each key generation in India (baby boomers, Gen X, millennials and Gen Z) will spend $45 or more per day.

Increasing ease of international travel for Indian citizens

The rising ease of international travel for Indian citizens remains a key structural driver of outbound aviation demand. Progressive relaxation of visa regimes, wider adoption of e-visa and visa-on-arrival facilities, improved bilateral air service agreements, and streamlined digital processes have significantly reduced travel frictions. As barriers ease and global connectivity strengthens, Indian carriers are well positioned to benefit from sustained growth across short, medium and long-haul international markets.

Rise of spiritual and wellness tourism

Indias rapidly expanding medical and wellness tourism is emerging as a structural demand driver for international aviation. Medical tourism revenues are projected to grow from USD 18.2 billion in 2025 to USD 58.2 billion by 2035 at a CAGR of 12.3%. India ranks 10th in the Medical Tourism Index and 7th in Wellness Tourism, attracting nearly 2 million international patients from 75 countries every year.

Spiritual and religious tourism is a cornerstone of Indias tourism economy. The segment benefits from non-cyclical demand characteristics, deep cultural significance, and year-round travel patterns, making it a consistent and resilient driver of domestic tourism activity.

Large-scale airport infrastructure development

Infrastructure development remains a critical enabler of aviation growth in India. Over the past decade, the country has substantially expanded its airport network (74 operational airports in 2014 to over 160 operational airports in 2025) to accommodate rising passenger traffic and enhance regional connectivity. Government initiatives have focused on expanding airport capacity, the construction of new terminals and modernising existing facilities.

Further, the Airports Authority of India (AAI) will invest Rs.15,000 crore by 2028 to upgrade air traffic control (ATC) tower automation, navigational systems and other critical infrastructure aimed at making Indias air navigation infrastructure future-ready and aligned with global standards.

Secondary airports

Secondary airports are emerging as critical growth drivers for Indian aviation by decongesting saturated metro hubs like Delhi and Mumbai while unlocking demand from fast-growing catchment areas. These airports enable capacity expansion, support point-to-point domestic connectivity, and create new international gateways. By catalysing airline fleet induction, route diversification, cargo growth, and aviation-linked development, secondary airports strengthen network resilience and provide a scalable foundation for Indias long-term air traffic growth.

Regional connectivity via UDAN scheme

The Union Cabinet has approved the Modified UDAN Scheme for FY 2027 to FY 2036 with an outlay of Rs. 28,840 crore to deepen regional air connectivity and expand affordable aviation across India. The scheme aims to develop 100 airports, support operations at ~441 aerodromes, build 200 helipads in remote regions, and provide Rs. 10,043 crore in viability gap funding to airlines for 10 years.

As of March 2026, 663 routes have been made operational across 95 airports, heliports, and water aerodromes under the scheme. More than 3.44 lakh flights have been operated, facilitating travel for more than 163 lakh passengers.

Expansion of long-haul international routes

Indian airlines are progressively expanding long-haul connectivity to key global destinations. Deployment of wide-body aircraft allows airlines to operate direct services to markets across North America, Europe and Australia. Direct connectivity reduces dependence on foreign hubs and improves the competitiveness of Indian carriers in international travel corridors.

India emerging as strategic transit hub

Indias geographic position between Europe, Southeast Asia and Australia presents a strategic opportunity to develop hub-based aviation networks. Airlines can connect passengers travelling across multiple regions through hub airports in India. Expansion of international terminals and improvements in airport capacity are expected to support the development of transit traffic through the country.

Expansion of maintenance, repair and overhaul (MRO) ecosystem

The aviation sector is witnessing a steady increase in demand for maintenance, repair and overhaul (MRO) services, driven by rapid expansion of airline fleet. The Government of India has introduced policy measures aimed at strengthening the domestic MRO ecosystem and encouraging investment in the segment. The development of domestic MRO capabilities can help airlines reduce maintenance costs and improve operational efficiency by reducing reliance on foreign MROs. In this direction, Safran Aircraft Engine Services India (SAESI) is setting up its first aircraft engine OEM MRO facility in India. This is a dedicated MRO facility for LEAP engines, which powers the Airbus A320 family and Boeing 737 MAX aircraft.

Development of aviation financing ecosystem

D

India is strengthening its aircraft financing and leasing ecosystem to support airline fleet expansion. The International Financial Services Centre (IFSC) at GIFT City in Gujarat is emerging as a growing hub for aviation leasing and financing activity. The development of a domestic aircraft leasing ecosystem is foreseen to improve access to capital and facilitate fleet expansion by Indian airlines with over 200 aircraft already leased through GIFT City as per Ministry of Civil Aviation (MoCA).

The government has taken significant steps to develop a robust aircraft leasing and financing ecosystem which seeks to reduce reliance on overseas leasing markets while strengthening domestic financing capabilities for airlines.

Skill augmentation

The expansion of Indian aviation sector necessitates a highly skilled workforce, and investment in training, skills, and human resource development is essential to enable the sectors growth.

Recognising this, India has seen a renewed push on aviation skilling through a combination of policy support and industry-led initiatives. Recent measures include the governments reforms to ease the setting up of Flying Training Organisations (FTOs) in India, expansion of the Aviation Sector Skill Council under NSDC to standardise training and certification, and increased use of simulator-based and competency-based training aligned with global best practices.

These initiatives aim to reduce Indias dependence on overseas training, improve employability, and support safe and efficient growth of one of the worlds fastest-growing aviation markets.

Company overview

IndiGo is Indias largest airline and the worlds 8th largest by daily departures, operating more than 7.85 lakhs flights annually supported by an extensive and unmatched network spanning more than 95 domestic and 45 international destinations. With a strong focus on connectivity and operational efficiency, the airline has scaled a strong presence across key markets, reinforcing its position as the carrier of choice for millions of travelers. IndiGo remains committed to its purpose of Giving wings to the nation, by connecting people and aspirations.

During FY 2026, IndiGo served over 123 million passengers, including a landmark of serving 100 million domestic passengers in a single year. With a fleet exceeding 400 aircraft and order visibility for the next decade, IndiGo also ranked as the largest global recipient of aircraft deliveries for two consecutive years (CY 2024 and CY 2025), reinforcing its scale, growth momentum, and long-term commitment to fleet modernization.

IndiGo has four key customer promises: affordable fares, on-time performance, courteous and hassle-free service, and unparalleled network, making it one of the most reliable airlines globally with the highest completion rate.

During the financial year, IndiGo marked a significant milestone by hosting the 81st IATA Annual General Meeting in Delhi after four decades. The event brought together the global aviation community and highlighted Indias rising prominence in the international aviation landscape.

IndiGo continued to strengthen its leadership position through network expansion, strategic partnerships, fleet growth, and customer-centric initiatives. The airline made significant strides in internationalisation, marking its long-haul debut with non-stop services to Manchester, Amsterdam, London, followed by expanded connectivity to Greece with the introduction of Indias first A321XLR aircraft. Further strengthening its global footprint, the Company entered into strategic partnerships through new codeshare and alliance agreements with leading global airlines including Garuda Indonesia, British Airways and AEGEAN, enhancing its international network connectivity and enabling broader, seamless customer access.

Fleet and infrastructure investments remain central to IndiGos long-term capacity and resilience strategy. During FY 2026, IndiGo doubled its A350 900 order to 60 aircraft and allocated USD 820 million towards aircraft purchases through its GIFT city entity. The Company also became the first Indian carrier to secure financing through a Japanese Operating Lease with Call Option (JOLCO). Complementing fleet growth, the Company is further strengthening its engineering ecosystem through the development of a world class in-house MRO facility in Bengaluru.

The IndiGo BluChip loyalty programme was further strengthened through key initiatives including expansion of co-branded credit card partnerships with SBI Cards, IDFC First Bank, Kotak Mahindra Bank and Axis Bank. Further, strategic collaborations with ecosystem partners such as Adani Duty Free, EazyDiner, and more, will enable members to earn and seamlessly redeem BluChips on IndiGo flights. These initiatives broaden the programmes capabilities, drive higher member engagement, and support increased frequency of travel and customer retention for the airline.

The Company plans to develop an integrated campus on a 4.5 acre land parcel in Gurugram, aimed at consolidating teams under a single location to foster greater collaboration, strengthen organisational cohesion, and support IndiGos long-term growth objectives. Currently, the Letter of Intent (LOI) has been received for the said land and is subject to allotment.

Company outlook

The growth drivers, such as rising air travel demand, expanding airport infrastructure and increasing international connectivity, is shaping the next phase of growth for the Indian aviation industry. IndiGo is well positioned to benefit from these structural trends through its extensive domestic network, growing international presence and disciplined operating model. The Companys strategy remains focused on strengthening network reach, maintaining operational reliability and delivering cost-efficient operations.

IndiGo has pursued a multi-pronged growth strategy, aimed at evolving from a domestic airline to a global player, with a carefully crafted service offering suited to the needs of all sections of passengers including todays new age aspirational travelers. The pursuit of this strategy has seen IndiGo push for international expansion, fleet diversification, expand business product- IndiGoStretch, and forge multiple global partnerships.

International expansion remains a key driver of the Companys long-term growth. IndiGo continues to strengthen its global presence through network expansion, strategic codeshare partnerships and the induction of longer-range aircraft. The introduction of aircraft such as the A321XLR, along with the planned addition of A350 aircraft, will enable access to new international markets and support the gradual expansion of long-haul operations, enhancing connectivity from India.

The Company remains well positioned for sustained growth, backed by an order book exceeding 900 aircraft, including A321 XLRs and A350s, providing clear long-term capacity visibility. The delivery schedule is aligned with the Companys domestic and international expansion strategy, while growing in-house MRO capabilities are set to improve turnaround times, drive cost efficiencies, and reduce dependence on foreign MROs.

Macroeconomic uncertainties, including geopolitical tensions, oil price volatility and currency depreciation, continue to impact the airline industry. Ongoing conflicts in West Asia have led to intermittent airspace restrictions, resulting in flight rerouting, higher fuel consumption, increased operating costs and potential schedule disruptions on international routes. The Company continues to mitigate these risks through its focus on a fuel-efficient fleet, proactive currency risk management through hedging, and a diversified network strategy.

Operational highlights

Particulars	Year ended March 31, 2026	Year ended March 31, 2025	% Change
ASK (in million)	172,443	157,474	+9.5%
Domestic	117,955	113,104	+4.3%
International	54,488	44,370	+22.8%
RPK (in million)	145,533	135,378	+7.5%
Domestic	101,020	98,117	+3.0%
International	44,513	37,260	+19.5%
Passenger load factor (%)	84.4%	86.0%	-1.6 pts
Domestic	85.6%	86.7%	-1.1 pts
International	81.7%	84.0%	-2.3 pts
Number of passengers (in thousand)	123,368	118,588	+4.0%
Domestic	107,009	104,356	+2.5%
International	16,359	14,232	+14.9%
Block hours	1,619,570	1,546,666	+4.7%
Domestic	1,220,966	1,210,424	+0.9%
International	398,604	336,242	+18.5%
Number of destinations served as of the period end*	142	128	+10.9%
Domestic	97	91	+6.6%
International	45	37	+21.6%
Total number of flights	787,741	772,229	2.0%
Domestic	686,941	684,559	+0.3%
International	100,800	87,670	+15.0%
Number of aircraft at period end	441	434	1.6%

* Operational destinations

Financial highlights

Particulars	Year ended March 31, 2026	Year ended March 31, 2025	Change
Revenue from operations (in million)	849,619	808,029	+5.1%
EBITDAR Margin	17.8%	26.3%	-8.5 pts
Net Profit Margin	-2.8%	9.0%	-11.8 pts
Net Profit Margin*	-0.7%	9.0%	-9.7 pts
RASK (Rs.)	4.99	5.14	-3.0%
CASK* (Rs.)	5.00	4.66	+7.2%
CASK Ex-Fuel* (Rs.)	3.52	3.00	+17.6%
CASK Ex-Fuel Ex-Forex*# (Rs.)	3.00	2.89	+3.8%
Return on Net Worth* (%)	-7.3%	127.7%	-135 pts
Debt Equity Ratio (x)	11.2	7.1	56.4%
Net Debt to EBITDAR (x)	2.8	1.6	74%
ROCE* (%)	2.7%	14.9%	-12.2 pts

* Excluding exceptional items

# Excluding Foreign exchange loss of Rs. 89,757 million for FY 2026 and Rs. 16,179 million for FY 2025

Financial performance analysis

Income

Passenger ticket revenue: Passenger ticket revenue increased by 5.7% from Rs. 696,962 million in FY 2025 to Rs. 736,482 million in FY 2026.

Revenue from ancillary products and services: Revenue from ancillary products and services primarily include cargo, excess baggage, convenience fees, ticket modification and cancellation, special service requests and in-flight sales. Revenue from ancillary products and services increased by 14.5% from Rs. 79,440 million in FY 2025 to Rs. 90,922 million in FY 2026.

Other income: Other income primarily includes finance income on cash, gain on forex hedging and other non-operating income Other income increased by 38.1% from Rs. 32,953 million in FY 2025 to Rs. 45,515 million in FY 2026.

Revenue per Available Seat Kilometer (RASK): RASK decreased by 3.0% from Rs. 5.14 in FY 2025 to Rs. 4.99 in FY 2026, primarily due to lower load factors and passenger yields impacted by various factors including geopolitical tensions, airspace restrictions and December 2025 operational disruption.

Expenses

Total expenses increased by 17.2% from Rs. 765,048 million in FY 2025 to Rs. 896,775 million in FY 2026.

Aircraft fuel expenses: Aircraft fuel expenses decreased by 3.1% from Rs. 261,973 million in FY 2025 to Rs. 253,892 million in FY 2026, despite a 9.5% increase in capacity offset by benign fuel prices during FY 2026 and benefit of contract negotiations with OMCs.

Aircraft ownership cost: Aircraft ownership cost comprises of aircraft and engine rentals, supplementary rental and aircraft maintenance cost, depreciation and amortization, and net interest expense. Aircraft ownership cost increased by 13.2% from Rs. 248,771 million in FY 2025 to Rs. 2,81,654 million in FY 2026.

Employee benefits expense: Employee benefits expense increased by 10.7% from Rs. 74,725 million in FY 2025 to Rs. 82,722 million in FY 2026 primarily due to annual increments and headcount growth.

Foreign exchange (gain)/loss: Foreign exchange losses increased from Rs. 16,179 million in FY 2025 to Rs. 89,757 million in FY 2026 primarily driven by mark to market losses on net dollar denominated liabilities which are payable over 8-10 years.

Other expenses: Other expenses increased by 17.1% from Rs. 70,918 million in FY 2025 to Rs. 83,015 million in FY 2026.

Cost per Available Seat Kilometer (CASK): CASK increased by 7.2% from Rs. 4.66 in FY 2025 to Rs. 5.00 in FY 2026, primarily due to steep currency depreciation impact on dollar denominated expenses and annual escalation in various line items.

Exceptional items: Exceptional items comprise of

Provision of Rs. 12,192 million towards incremental impact of increase in social security benefits due to implementation of Indias New Labour codes which consolidated multiple existing labour legislations into a unified framework comprising four labour codes, and

Provision of Rs. 5,772 million for compensation as per the regulatory requirements, travel vouchers as a Gesture of Care, one-time penalty imposed by the Directorate General of Civil Aviation (DGCA) and other associated costs related to operational disruptions during December 2025.

The Company reported a net loss of Rs. 23,936 million in FY 2026, against a profit of Rs. 72,584 million in FY 2025.

Balance sheet

IndiGos total cash increased by 7.2% to Rs. 516,506 million as of 31st March 2026, comprising of free cash of Rs. 362,163 million and restricted cash of Rs. 154,343 million. Total debt for the Company was Rs. 777,492 million, including capitalized operating lease liability of Rs. 534,608 million, as of 31st March 2026.

Credit rating

Reflecting the strength of Balance sheet and competitive positioning in the Indian aviation sector, the Company has been assigned an investment-grade long-term issuer rating of Baa3 (Stable outlook) by Moodys, at par with their Indias sovereign credit rating. The rating recognises IndiGos strong operating franchise, superior cost efficiency, healthy financial profile and the favorable long-term growth prospects.

CRISIL Ratings has assigned CRISIL AA- / CRISIL A1+ ratings to the Companys long-term and short-term bank facilities and has currently placed the outlook on watch with developing implications due to geopolitical tensions in West Asia, which led to international airspace disruptions, elevated ATF prices and currency volatility. CRISIL rating continues to factor in IndiGos strong domestic market leadership, cost competitiveness, consistently high load factors and substantial liquidity buffer.

Further, ICRA Limited has assigned an [ICRA] AA to the Companys long-term banking facilities and [ICRA] A1+ to short-term facilities. Following the West Asia conflict, the outlook on long-term banking facilities has been put on Watch with negative implications. The watch reflects potential near-term pressure from elevated fuel prices, airspace restrictions and currency depreciation. Nonetheless, ICRA continues to draw comfort from IndiGos dominant market position, strong liquidity, modern and fuel-efficient fleet, sustained cost competitiveness, proven execution capability, track record of managing external shocks and healthy demand environment, particularly in the domestic market.

Risk management

IndiGos Risk Management Policy and Enterprise Risk

Management (ERM) framework provide a structured mechanism for the ongoing identification, evaluation, and management of risks. This enables timely implementation of appropriate mitigation measures. Our structured and well-defined approach ensures effective oversight of risks that could impact our business and support sustainable long-term growth.

Set forth below are some of the risks that may potentially have an adverse impact on business, financial results, and performance outlook along with the initiatives taken by IndiGo to mitigate their impact.

Geopolitical risk

The Company is exposed to risks arising from international geopolitical developments, including wars, trade tensions, sanctions, political instability and social unrest. Such events can disrupt airspace access, lead to route closures or rerouting, impact passenger demand, and increase operating costs due to higher fuel consumption and longer flight durations.

The Company mitigates risks arising from geopolitical developments through a combination of network flexibility, geographic diversification and proactive capacity management, enabling it to adjust routes, redeploy capacity and optimise operations in response to evolving conditions. It undertakes continuous monitoring of geopolitical developments and maintains contingency plans to address potential disruptions, including airspace restrictions and route closures.

Managing foreign exchange volatility

IndiGo has significant foreign currency exposure arising from aircraft lease rentals, maintenance cost, airport charges and insurance obligations, movements in foreign exchange rates may impact profitability.

The Company manages this risk through a multi-layered foreign exchange risk management framework. IndiGo benefits from a natural hedge through its expanding international operations and strategic global partnerships, which generate foreign currency revenues that help offset its dollar-denominated cash outflows. In addition, the Company maintains foreign currency deposits that partially offset foreign currency-denominated liabilities on the balance sheet.

To mitigate residual exposure, IndiGo uses financial hedging instruments, in accordance with the approved Risk Management Policy, to hedge a certain portion of its foreign currency cash outflows. The Company has also enhanced its hedging strategy to expand coverage across both near-term foreign currency cash outflows over the next twelve months and longer-tenor lease liability exposures beyond one year.

Adverse movement in fuel prices

Aircraft fuel expenses are one of the largest components of IndiGos operating cost. The Company is exposed to fluctuations in global oil prices and geopolitical disruptions which directly impacts aviation turbine fuel (ATF) prices and supplies. Any sustained increase or heightened volatility in fuel prices may adversely impact its network, operating margins, ticket pricing competitiveness, and overall financial performance.

IndiGo maintains a young fleet with an average age of around 4.9 years as of 31st March 2026, resulting in lower fuel consumption. Around 79% of IndiGos fleet are NEOs as of 31st March 2026, which are ~15% more fuel efficient compared to the A320ceo. The high-density seating configuration of NEO aircraft also helps reduce fuel CASK. In addition, IndiGo continues to invest in data driven operational tools, and targeted initiatives that reinforce operational discipline and optimise fuel sourcing, consumption, and overall efficiency. The Company also undertakes calibrated pricing measures, including the introduction of fuel charge, as a lever to mitigate the impact of elevated and volatile fuel costs and partially offset cost inflation.

Climate change related risks

IndiGo is subjected to two principal risks arising from the evolving climate related regulatory landscape, which are expected to impact our international operations from FY 2027 onwards. These relate to (i) compliance with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), and (ii) incremental costs associated with Sustainable Aviation Fuel (SAF) mandates across key jurisdictions, including the EU, the UK, and India. The financial impact primarily stems from higher input costs due to the current price premium of SAF over conventional jet fuel, along with the cost of procuring eligible emissions offset units to meet CORSIA obligations.

Our mitigation approach remains focused on structural efficiency improvements and proactive stakeholder engagement. Continued investment in fuel efficient, next generation A320neo family aircraft supports lower fuel burn and reduced greenhouse gas emissions intensity, thereby moderating exposure to both SAF and offset related costs. During FY 2026, we inducted 51 A320neo family aircraft, increasing the share of ‘NEO aircraft to 79% of the fleet as of 31st March 2026, positioning the Company among the most fuel-efficient operators globally. In parallel, we maintain ongoing engagement with regulators on CORSIA, SAF, and related policy developments, and with oil marketing companies in India on SAF availability and supply side readiness.

Employee-related challenges

The Company is exposed to risks arising from labour related disruptions, including workforce shortages, employee unrest, industrial actions, and regulatory changes. A competitive labour market, and high cost of living may heighten the risk of attrition. Any material disruption could adversely affect operations, service quality, cost structure, employee relations, and morale, and may have a negative impact on profitability and long-term organizational stability.

IndiGo promotes a strong culture of employee engagement and well-being through structured initiatives designed to foster connectivity and inclusiveness. The anonymous ‘6E Speaks employee survey provides actionable feedback to leadership teams, enabling timely interventions to address identified concerns. The ‘6E Recognize rewards and recognition programme supports talent motivation and retention by acknowledging employee contributions.

Employee wellness programmes have been consolidated under ‘IndiGo Cares, encompassing preventive healthcare initiatives such as executive health check-ups, ambulance services, mental health support, childcare assistance, nutrition programmes, and wellness workshops. Transparent and continuous communication is facilitated through platforms such as ‘6E Voice, helplines, town halls, and interactive forums.

Regular compliance reviews and engagement with legal experts ensure adherence to applicable labour laws and effective management of external labour-related risks.

Commitment to airline safety

Aviation incidents or accidents resulting in injury, loss of life, or damage to aircraft can lead to significant operational disruption, financial impact, and reputational consequences.

IndiGos robust Safety Management System (SMS) is built on a strong culture of proactive safety reporting and systematic risk management. Safety engagement extends across all levels of the organisation, from leadership to frontline employees. The Company conducts regular audits, continuously monitors key safety performance indicators, and participates in global benchmarking initiatives such as the IATA Safety Data Exchange Program, reinforcing its commitment to maintaining high safety standards.

Comprehensive airline security measures

IndiGo operates in an environment that presents diverse security challenges, including external threats such as aircraft hijacking, bomb threat and internal risks related to fraud, sabotage, and the handling of hazardous goods.

The Company maintains close coordination with regulatory and security authorities, including the Bureau of Civil Aviation Security (BCAS), Central Industrial Security Force (CISF), and National Security Guard (NSG). Security protocols include stringent passenger and baggage reconciliation procedures, anti-sabotage checks, and regular mock drills. Random employee screenings, periodic background verifications, and surprise inspections further enhance security preparedness. A dedicated emergency response team ensures effective crisis management in line with established procedures.

Cybersecurity and IT infrastructure resilience

IndiGos operations are supported by complex IT systems, exposing the Company to potential risks from cyberattacks, system disruptions, and data breaches that could have operational, regulatory, and reputational implications.

The Company employs a multi-layered ‘Defense in Depth cybersecurity framework, incorporating firewalls, intrusion detection systems, encryption, and periodic security audits. IT business continuity plans and tabletop exercises are conducted to minimise operational disruption and data loss in the event of incidents.

Ongoing investments are made to strengthen cybersecurity processes, systems, and policies, in coordination with the Data Protection Officer. Employee awareness programmes, collaboration with external cybersecurity experts, penetration testing, and timely application of security patches further strengthen resilience. Compliance with international standards such as NIST and ISO/IEC 27001 demonstrates IndiGos commitment to information security and data protection.

Evolving landscape of government regulations

The Indian aviation sector operates within an extensive regulatory framework governed by multiple authorities and regulators – sectoral and non-sectoral (e.g. Ministry of Civil Aviation, Bureau of Civil Aviation Security, Directorate General of Civil Aviation, Airports Authority of India, Airports Economic Regulatory Authority, Competition Commission of India and Securities Exchange Board of India etc.) overseeing safety, security, operational, financial, and customer-related aspects. Changes to existing regulations or the introduction of additional requirements may impact IndiGos operations and financial performance. Similarly, with expansion in international operations, IndiGo is required to assess and evaluate jurisdiction-specific laws and regulations to ensure timely preparedness and compliance.

IndiGo maintains proactive and ongoing engagement with regulatory and government bodies to ensure readiness and seamless compliance with evolving requirements. As a member of the Federation of Indian Airlines (FIA) and the International Air Transport Association (IATA), the Company actively participates in industry dialogue to support policies conducive to the growth of the aviation sector. Where required, IndiGo engages global experts and advisors to implement best-in-class practices and effective risk management frameworks.

Operational challenges related to aircraft engines

IndiGo continues to experience operational challenges arising from the prolonged unavailability of spare engines and critical components due to global supply chain constraints. Extended maintenance turnaround times and delays in procuring spare engines have adversely affected fleet availability and utilisation. These constraints could negatively impact operational efficiency, capacity deployment, operating costs, and financial performance.

To address these challenges, IndiGo has implemented a range of strategic measures, which include steady inflow of new aircraft deliveries, extension of existing aircraft leases, and induction of aircraft under damp lease arrangements. Also, operationally, the Company has worked closely with the original equipment manufacturers (OEMs) to prioritize engine shop visits, adjust maintenance planning, and sequence removals to minimize disruption and increase availability and allocation of spare engines.

Operational risk

IndiGo may face operational disruptions (IROPS) for its flight network on account of several factors including but not limited to weather or technical issues.

IndiGo has constituted a Crisis Management Group (CMG) to timely pre-empt and manage operational disruptions involving the airline. It has clearly defined roles, SOPs, and established monitoring mechanisms, escalation matrix, and availability protocols to enable timely and coordinated response to any disruption which may affect the airline.

Reputation risk

IndiGo continues to focus on preserving its reputation and brand image, which are vital to its business success. Any damage to these could negatively impact our business and financial results.

IndiGo mitigates reputation risk through a comprehensive communication led approach that emphasises proactive brand engagement, narrative control, misinformation containment, and effective crisis response. The Company continuously monitors public sentiment to manage perceptions, shape accurate narratives and build brand reputation by maintaining transparent, timely, and consistent engagement with stakeholders. Robust monitoring systems enable early identification and swift correction of misinformation through verified, fact-based communication across channels.

In parallel, IndiGo maintains a well-defined advocacy and crisis response framework, ensuring empathetic, accountable, and coordinated engagement during adverse events, supported by clear escalation protocols and designated spokespersons to safeguard stakeholder confidence and brand credibility.

disruption which may affect the airline. Competitive dynamics in the airline industry

The airline industry remains intensely competitive, driven by capacity expansion, pricing pressures, heightened customer expectations, and increasing international connectivity, all of which may affect yields, market share, and operating margins.

IndiGo navigates this environment through a sustained focus on cost leadership, superior customer experience, and industry-leading on-time performance. Network expansion through the introduction of new routes, markets and frequencies enhances connectivity, while optimized scheduling improves asset utilization. The Company continues to strengthen its competitive positioning through calibrated international expansion into mid-haul / long-haul operations through A321 XLRs and wide-body aircraft, enhancing international reach in line with evolving customer preferences.

Expanded codeshare partnerships with leading global airlines provide customers with broader network access and increased flexibility. Innovative offerings such as IndiGoStretch, loyalty programme, enhanced hospitality services, and continued internationalisation initiatives further reinforce IndiGos competitive position in a dynamic aviation landscape.

Internal control systems and their adequacy

IndiGo has put in place adequate internal control systems commensurate with its size, nature and complexity of business. IndiGos internal control procedures are frequently reviewed and updated to ensure compliance with various policies, practices, and statutes in keeping with the organisations pace of growth and increasing complexity of operations. IndiGo maintains a system of internal controls designed to provide reasonable assurance regarding the following.

Further, an independent internal audit (employing a globally acclaimed auditor) is carried out to ensure the adequacy of the internal control systems, and adherence to policies and practices. The scope of the internal audit activity is guided by the annual audit plan, which is approved by the Audit Committee of the Board. The Audit Committee of the Board of Directors regularly reviews the reports submitted by the independent internal auditor, and the adequacy and effectiveness of internal controls.

Capital allocation and liquidity management

IndiGos capital allocation strategy is focused on strengthening its operational capabilities and supporting long-term growth. The Company prioritises investments in fleet expansion, network development and infrastructure to augment capacity and improve connectivity across its domestic and international markets. Investments are also directed towards technology platforms, digital capabilities and human capital to support operational efficiency and passenger experience.

The Company maintains its focus on diversifying funding sources to support its ongoing fleet expansion, enhance capital efficiency and actively manage its cost of capital as it scales its operations. In line with this approach, IndiGo has progressively increased aircraft ownership through financial leases and purchase of assets, supplementing its historically operating lease led fleet structure. The Company also undertook strategic investments in development of maintenance and operational capabilities and has planned investments in an integrated campus to further strengthen technical, training and operational support infrastructure to support its expanding fleet.

Given the inherent cyclical nature of the aviation industry and its exposure to external factors, such as fuel price volatility, currency movements and geopolitical developments, IndiGo follows a prudent liquidity management framework. This includes maintaining adequate high-quality liquid investments to meet operational requirements, service obligations and planned capital commitments, even under stressed conditions. The Company manages its surplus cash with an investment policy oriented towards capital preservation.

A strong balance sheet and disciplined financial practices enable the Company to meet its financial obligations, pursue growth opportunities and maintain resilience in a dynamic operating environment while also rewarding shareholders thereby supporting sustainable value creation for all its stakeholders.

Driving growth through digital transformation

IndiGo continues to advance its digital transformation agenda across customer experience, commercial platforms, operations, employee productivity, data-led decision-making, and enterprise resilience. The Companys digital priorities remain focused on building scalable, future-ready platforms that simplify customer journeys, improve reliability across operations, strengthen business continuity, and support long-term growth. During the year, the Company continued to progress in modernising core systems, expanding digital retailing capabilities, introducing AI-led use cases, and strengthening governance and security foundations across the enterprise.

Enhancing digital platforms

During the year, IndiGo strengthened its digital transformation efforts, reinforcing its customer-facing digital ecosystem by implementing enhancements designed to elevate customer engagement across booking, post-booking, loyalty, and adjacent travel journeys. Key customer-facing features introduced or scaled during the year included post-booking upgrade journeys for IndiGoStretch, fare lock functionality that gives customers greater flexibility when planning travel, and continued improvements across web and mobile channels to make journeys more intuitive and convenient.

IndiGo also broadened its digital travel ecosystem beyond flight bookings by strengthening the integration of adjacent travel services, including cabs, hotels, sightseeing, experiences, and retail offerings. In addition, the integration between the 6E App and Digi Yatra further improved customer convenience by enabling a more seamless airport experience.

IndiGo deepened its digital readiness to strengthen operational resilience, continuity, and responsiveness. Digital initiatives across operations further improved day-to-day robustness. The rollout of SkyGo provided a resilient backup solution for airport operations, ensuring continuity during system disruptions. Crew reconciliation processes were streamlined through the digital Passenger Reconciliation System, strengthening operational control for cockpit and cabin crew. Compliance requirements were reinforced with the implementation of GovSec PNRGov, aligning with government-mandated security and immigration standards. Additionally, IATA Direct Data Solutions enhanced visibility into passenger traffic and sales trends, supporting more informed planning and revenue optimization.

As IndiGo expanded its operating footprint, digital platforms evolved to support new operating models. Updates to operational applications facilitated the induction of new aircraft variants and long-range operations, including the A321XLR and Boeing 787-9, ensuring technology infrastructure remained aligned with network growth and product innovation.

IndiGo BluChip

IndiGo BluChip Loyalty programme continued to strengthen its role as a key driver of customer engagement and loyalty. The programme has a total membership base of around 11 million members as of 31st March 2026, underscoring its rapid scale-up since launch and reflecting strong adoption across IndiGos expanding customer base. The loyalty proposition was further strengthened through the continued expansion of lifestyle and financial partnerships, and by growing the co-branded card ecosystem with banking partners to deepen engagement and drive everyday spend benefits beyond travel.

IndiGo Ventures

With IndiGo Ventures, IndiGo adds a new dimension to its commitment to fostering innovation, giving wings to aspirations, in aviation and beyond. IndiGo Ventures, the venture capital arm of IndiGo, made steady progress during the year by investing in 3 companies. Jeh Aerospace, a fast-growing Indian aerospace manufacturing startup focused on high-precision aerospace and defense manufacturing, Escape Plan, an omni-channel travel platform, and Sarla Aviation, manufacturer of electric vertical take-off and landing aircraft (eVTOL)

Digital distribution and partner enablement

IndiGo made further progress in modernising its sales and distribution infrastructure during the year. The Companys B2B booking platform ‘IndiGo Access was enhanced with streamlined workflows, automated PNR management and stronger backend support, improving efficiency and reliability for agency partners across domestic and international markets.

IndiGo also strengthened its distribution architecture through continued advancement of New Distribution Capability (NDC) and related partner-facing systems. The Company became the first airline in India to achieve Level 4 IATA Airline Retailing Maturity Index certification under NDC standards. This was complemented by the launch of an enhanced NDC developer portal, which helps developers and travel sellers integrate more easily with IndiGos next-generation retailing APIs.

AI automation and data-led decision making

IndiGo remains focused on leveraging artificial intelligence and automation across both customer-facing and operational use cases. The Companys AI-led ancillary engine further strengthened personalization capabilities, helping deliver more relevant offers to customers. Further, 6Eskai, IndiGos conversational platform, remained an important part of this AI-first approach by enabling frictionless booking experience, automating a large share of customer interactions and enabling more scalable digital support.

Communities and connections

IndiGo strengthens its digital footprint through brand engagement and community presence across platforms. The Companys social media following reached 13 million across all social handles. IndiGos YouTube channel grew to 5.89 million subscribers, making it the second-largest airline community on YouTube globally. Similarly, #Nofilter a community-led programme, wherein participants across the country shared their unique and mesmerizing photographic walkthroughs of India has reached 147,000 members.

Human Resource

At IndiGo, people form the foundation of its operational excellence and customer service. The Companys workforce plays an indispensable role in ensuring safe, reliable and efficient operations across its broadening domestic and international network.

IndiGos people philosophy is built on attracting capable talent, strengthening professional capabilities and cultivating a workplace culture based on collaboration, accountability and customer focus. Employees across functions work together to deliver the IndiGo experience to millions of customers every year.

Talent development at IndiGo follows a lifecycle approach that commences with recruitment and extends through training, leadership development and career progression. The Company works with aviation academies and training institutions to build a steady pipeline of pilots and skilled aviation professionals who support IndiGos expanding operations.

In parallel, internal job posting mechanisms play a key role in strengthening retention by enabling structured career progression, cross-functional mobility, and targeted capability development, thereby reducing reliance on external hiring and reinforcing long-term talent sustainability.

Employee engagement and well-being remain a strategic priority, reflecting the Companys commitment to creating a resilient, inclusive, and high-performing workforce.

In a significant milestone, IndiGo became the first and only airline in India to surpass 1,000 women pilots, with women now representing 17.5% of the total pilot workforce—more than three times the global average.

As of 31st March 2026, IndiGos workforce comprised 41,907 employees, including 5,786 pilots and 11,203 cabin crew.

Additionally, headcount for subsidiary Agile stood at 26,271 as of 31st March 2026. During FY 2026, IndiGo employed 59 people with disabilities (PwD), taking the total PwD headcount to 253 as of 31st March 2026.

In May 2026, IndiGo was recognised as the winner in the ‘Emerging Category at the CII Award for Excellence in Disability Inclusion 2026 for its commitment to fostering an inclusive and accessible workplace through progressive policies, enabling infrastructure, and a culture of belonging, while reinforcing its focus on embedding inclusion within core people practices.

IndiGo Cares

IndiGo Cares is our flagship, integrated health and wellness programme that brings together employees well-being initiatives under a unified framework. The program reflects our commitment to embedding wellness into employees daily lives through preventive care, timely intervention, and access to essential resources for employees and their families.

IndiGo Cares includes

6E SOS: This is our 24x7 free intra-city ambulance service for domestic employees and their families ensuring they are never without help in critical situations.

Health goals: Programme designed to support employee well-being through personalised health goals, with dedicated sessions and one-on-one interactions with in-house doctors from Flight Safety across identified health priority areas.

6E Mind care: This covers mental health initiatives such as one-on-one psychological counselling services to support the emotional needs of employees, sessions on mental health well-being by in-house clinical psychologists, various online webinars with clinical experts to bring awareness and de-stigmatise mental illness.

Free doctors consultation: Employees have free 24x7 access to qualified physicians, including trained emergency doctors, available to provide real-time guidance at any time.

6E Lil League: This includes childcare support for women colleagues and single fathers by providing a network of dedicated daycare centers across India.

6e Diet & Nutrition guidance: Expert dietary advice from in-house nutritionists who are available in person as well as online for consultations.

Fit to Fly: A video library which has videos on yoga and tips to manage various kinds of issues emerging from incorrect body posture, long standing work hours etc.

Wellness webinars and camps: Regular sessions on wellbeing topics such as heart health, lung health, ergonomics, cervical cancer and more. Camps such as eye-checkups, dental health, pulmonary function test etc. are also conducted from time to time.

6E Recognize

At IndiGo, we strive to create an environment where every employee feels valued and acknowledged for their hard work, we celebrate their dedication and exceptional performance through 6E Recognize, our rewards and recognition platform. This comprehensive system acknowledges the outstanding contributions of our team members across all departments, reinforcing our commitment to a culture of appreciation and motivation.

Understanding that each department plays a unique role in our success, 6E Recognize categorises awards tailored to the specific contributions of various teams. From the exceptional service of our cabin crew, to the diligent efforts of our operations staff, each department is celebrated for its unique strengths and achievements.

Made in IndiGo (Internal Mobility Programme)

Internal Job Postings (IJP) are actively encouraged across the organisation to facilitate career progression and workforce agility. These postings enable employees to pursue their career aspirations by transitioning across functions or assuming new roles within the same function.

Over the years, the IJP channel has been institutionalized as a key enabler of internal mobility and talent development, providing employees with meaningful opportunities to grow their careers across businesses. Numerous employees have leveraged this platform to achieve significant career progression through lateral movements and role transitions into diverse functions. These success stories are regularly showcased to inspire and encourage employees to actively engage with internal opportunities, fostering a culture of continuous learning, career ownership, and professional excellence.

Learning and Development

IndiGo places strong emphasis on continuously strengthening organizational capability by aligning learning initiatives with evolving business priorities. The Company proactively equips its workforce with contemporary skills, operational knowledge, right mindset and enabling tools to consistently deliver on rising customer expectations. Learning is delivered through an integrated approach that combines digital modules, structured classroom interventions and hands-on exposure at airports, ensuring relevance and real-world application.

The cornerstone of this ecosystem is iFly, IndiGos learning academy, which plays a pivotal role in shaping the IndiGo ethos, reinforcing organizational culture and preparing employees for future leadership. iFly anchors learning around four core principles—timely access, practical applicability, short and focused modules, and continuous reinforcement through assessment—helping employees learn efficiently without disrupting frontline operations.

Technology-enabled platforms provide engaging and interactive content, while in-person sessions and on-the-job training enable immersive learning and skills. Together, these initiatives foster a culture of continuous development, agility and performance excellence, supporting IndiGos long-term growth and its ambition to redefine standards across the aviation industry.

AME Cadet Program

During the year, the Company announced its Cadet AME program for engineering, a structured talent development initiative aimed at creating a strong pipeline of future-ready aircraft maintenance engineers.

In collaboration with top AME training institutions across India, the program blends immersive classroom learning with real-world aircraft exposure—giving cadets the thrill of hands-on experience right from the start. This dynamic, partnership-driven model reflects IndiGos passion for developing exceptional engineering talent and strengthening in-house capabilities to fuel the airlines continued expansion.

Take-Off 2.0

Take-Off 2.0 reflects IndiGos commitment to enabling women to re-enter the workforce through structured career restart opportunities. By fostering an environment where career breaks do not limit potential, Take-Off 2.0 strengthens IndiGos talent pipeline and supports women in resuming their professional journeys with confidence and purpose.

6E Edugogy

IndiGos employee education program, 6E Edugogy, supports employees in pursuing undergraduate and postgraduate qualifications alongside active employment through structured academic partnerships with leading institutions such as Amity University Online and Manipal University Jaipur. Governed by a defined framework, the program reflects IndiGos continued focus on capability building, fostering a future-ready talent pipeline and strengthening long-term organizational resilience through sustained investment in employee development.

IndiGo Aspiring Leader Program

IndiGo Aspiring Leader Program is a flagship program designed to build a strong pipeline of future leaders through an accelerated growth pathway.

It serves as a launchpad for talent from management, engineering, and finance institutes, offering the right blend of exposure, experience, and learning. Participants engage in structured rotations across multiple functions, working on cross functional, strategic, and transformation projects that enable them to create meaningful impact across domains while progressing on a faster career trajectory.

Cadet hiring program for women

Women constitute 25% of our cadet intake, reflecting our commitment to building a more balanced and inclusive pilot workforce. To ease access further, select cadet schools offer screening cost relaxations for lady cadets, helping reduce financial barriers at the joining stage.

Recognizing the evolving needs of women pilots, flexible pilot agreements allow young mothers to opt for reduced flying schedules until their child turns five. This enables continuity of careers while supporting early motherhood.

Together, these initiatives reflect our belief that inclusive policies create confident professionals - allowing talent to thrive, at every stage of life.

Cautionary statement

Certain statements in the Management Discussion and Analysis section concerning prospects may be forward-looking statements which involve several underlying identified/non-identified risks and uncertainties that could cause actual results to differ materially.

In addition to the foregoing changes in the macro-environment and geopolitical landscape may pose an unforeseen, unprecedented, unascertainable and constantly evolving risk(s), inter alia, to the Company and the environment in which it operates. The results of these assumptions made, relying on available internal and external information, are the basis for determining certain facts and figures stated in the Report.

Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based are also subject to change accordingly. These forward-looking statements represent only the Companys current intentions, beliefs or expectations and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise.