Interglobe Aviation Ltd Management Discussions

<dhhead>Management Discussion and Analysis </dhhead>

Global economic review

During the calendar year 2024, the global economy grew at 3.3%, showing resilience despite the economy being in the forefront of several changes including uncertainties around elections across major economies including US and India, change in monetary policies across many countries leading to interest rate revisions, ever evolving geopolitical situation and associated risks. In CY 2024, average crude oil price fell by 2.9% year-over-year, touching $74.6 per bbl in Dec 2024.

However, heading into CY 2025, the landscape has changed as governments of different economies need to reorder policies amid uncertainties around tariffs implementation. According to IMF, global growth is now projected to grow at 2.8% for CY 2025 and 3.0% for CY 2026, which is below the historical (CY 2000–19) average of 3.7%. Global headline inflation is expected to decline at a pace that is slightly slower than what was expected in January 2025, to 4.3% in CY 2025 and 3.6% in CY 2026, from 5.7% in CY 2024, with notable upward revisions for advanced economies and slight downward revisions for emerging market and developing economies in CY 2025.

According to IMF, advance economies have shown diverging trends. Growth in the US economy is expected to expand slowly by 1.8% in CY 2025 (0.9% below January 2025 forecasts) largely reflecting softer demand, policy uncertainties and trade tensions. The US Fed also announced its third interest rate cut during CY 2024 to boost consumption. Meanwhile, other advanced economies are still on path of cyclical recovery in consumption offset by uncertainties around trade policies.

Emerging markets and developing economies are also expected to bear the brunt of trade war as the growth is expected to be slower than CY 2024. For CY 2025, GDP growth in China is expected to witness significant downgrade due to recent trade measures. China is expected to grow by 4.0%, whereas, growth in the Middle East and Central Asia is projected to pick up, though less than previously expected in January 2025. India continues to be the fastest growing economy in the world with growth projected to be solid at 6.2% in FY 2026 and 6.3% for FY 2027, as per IMF estimates.

Overall, Emerging and Developing economies have managed to outpace the advanced economies in CY 2024. According to IMF, global growth is stabilising as inflation returns closer to target and monetary easing supports activity in both advanced economies, and emerging market and developing economies (EMDEs). This should give rise to a broad-based, moderate global expansion over CY 2025-26 amidst pick up in manufacturing activities and investments.

As inflation eased, major central banks began shifting away from tight monetary policies, implementing gradual interest rate cuts to boost liquidity and stimulate private investment. With easing inflation, more accommodative interest rate regimes and improving consumer sentiment, businesses operating in demand-sensitive sectors such as travel and mobility stand to benefit from renewed consumer spending and increased investment flows.

However, trade tensions are likely to remain a significant factor in the economic landscape, as economies adjust to ongoing policy shifts and potential tariff adjustments.

Indian economic review

The Indian economy sustained its strong performance during last year and outperformed other economies. India established its position as one of the worlds fastest-growing major economies in a challenging global environment. As per IMF, India’s GDP grew by 6.5% in FY 2025 which was supported by stronger demand, pick up in government spending and exports during second half of last year, despite being impacted by monsoons leading to slowdown in construction activities during first half of the year.

India’s economic growth is being driven by favourable demographics, including a growing middle class and a young population with increasing disposable income and purchasing power. This growth is supported by sustained public investment in infrastructure. Capital expenditure by the government, particularly in transportation, digital infrastructure and green energy, easing of monetary policy, high-capacity utilisation, and higher corporate profits continue to stimulate economic activity. Meanwhile, to boost consumption, RBI reduced interest rates in February 25, followed by another rate cut in April 25.

Private consumption growth has remained resilient, primarily driven by improved rural incomes accompanied by a recovery of agricultural output. According to IMF report, India is expected to grow by 6.2% in FY 2026 and 6.3% in FY 2027, marking it as one of the fastest growing economies in the world.

Capital expenditure (capex), as a percentage of the total expenditure of the union, has continuously improved from FY 2021 to FY 2025. After the general elections, union government capex has grown by 8.2% during July – November 2024 year-on-year, according to the Economics Survey report FY 2024-25.

Manufacturing Purchasing Managers’ Index (‘PMI’) remained robust and accelerated to 58.2 in April after touching 58.1 in March 2025, which is tracking ahead from FY 2024-25 average of 57.4. Much of this was fuelled by higher sales and new international orders. Private sector firms noted a record increase in new export orders. India’s Services PMI also remained in the expansionary stage and accelerated to 58.7 in April from a reading of 58.5 in March 2025, indicating positive momentum.

India has also witnessed a strength in labour force that is driving economic activity. According to MoSPI, Worker Population Ratio (15 years and above) grew to 58.2% for year ending June 2024 up from 56% in June 2023 with growth observed among both in males and females. Contribution from the rural sector continues to be higher than the urban sector.

India continues to maintain its position as one of the fastest growing economies and to become the 3^rd largest economy by 2027. The Government’s initiatives in many ways are helping boost consumption in the economy that includes easing of tax liabilities for consumers, reliefs in form on interest rates cut which is in line with expectations of many economies, and driving higher agriculture output. The RBI maintained a balanced policy approach, effectively managing inflation while supporting economic growth. Headline inflation moderated during January-February 2025, paving the way for the Reserve Bank of India (RBI) to cut its policy rate during February 2025 for the first time in five years, from 6.5% to 6.2%. Further to support demand and evaluating the prevailing global macroeconomic situation, RBI reduced the interest rate by 25bps to 6% in April 2025. According to the Monetary Policy Committee (MPC), CPI is now projected to be at 4% for FY 2025-26. Importantly, the monitory policy stance has moved to "accommodative" from "neutral", implying the MPC may consider two options including – status quo or a rate cut going forward. The Government took necessary steps to reduce fiscal deficit and continue to reduce its debt burden on economy. India’s debt to GDP ratio has continuously declined during the previous fiscal year and targets to bring down to 50% by FY 2031.

Industry overview

Global aviation industry

Demand for global aviation has remained strong over the past year, and marked a new high in CY 2024. Demand was fuelled by various factors including falling global inflation rates and moderating ticket prices. The year was marked by the expansion of Indian and Chinese domestic markets.

Industry total Revenue Passenger-Kilometer (RPK) grew 10.4% year-on-year in CY 2024, surpassing the CY 2019 threshold by 3.8%, wherein all regions surpassed its pre-covid levels. Asia Pacific airlines led by a large margin, achieving a 16.9% year-on-year increase in RPK, followed by Africa that grew 13.2% year-on-year. This growth is an evidence of strong demand despite CY 2024 faced significant uncertainties that stemmed from declining yields, significant cost pressures, and change in geopolitical landscapes.

On the supply side, except for North America, Available Seat-Kilometer (ASK) increased in all regions (+8.7% year-on-year in CY 2024), and were lower than the rise in RPK, leading to higher Passenger Load Factors (PLF) across the board. Lower new aircraft deliveries and engine issues in some markets that have pressured airlines this year have likely contributed to this outcome to some extent.

International passenger demand grew 13.6% year-on-year, wherein traffic surpassed CY 2019 levels by 0.5% despite conflicts and strained airspace that impacted the free flow of air traffic in some parts of the world.

According to International Air Transport Association (IATA), passenger demand (RPKs) is expected to grow by 5.8% year-on-year in CY 2025, outpacing capacity (ASK) growth of 5.2%. Asia-Pacific will be the fastest-growing region, with a 9% YoY increase in RPK, contributing 52% of the industry’s RPK growth in 2025.

Cargo

Cargo performance was also impressive as demand, measured in cargo tonne-kilometers (CTK), increased 11.3% (12.2% for international operations) compared to CY 2023. According to IATA, cargo yields during CY 2024 was 39% higher than CY 2019 levels. Capacity measured in available cargo tonne-kilometers (ACTK), increased by 7.4% compared to CY 2023 (9.6% for international operations). Broader supply chain normalisation and e-commerce continued to anchor the role of air cargo as a strategic enabler of global trade. Overall, global cargo volumes are expected to be moderate amidst ongoing trade war and projected to reach around 69 million tonnes in CY 2025, a 0.5% increase from CY 2024.

Indian aviation sector

India’s passenger traffic is expected to grow at a faster rate outpacing other economies in the world with a CAGR of 6.4% from 2023-43E, as per IATA.

With the thriving aviation market, rapid infrastructure development, and a young and skilled workforce, India is poised to shape the future of the aviation industry. According to IATA, the Indian aviation sector contributes approximately 1.5% to the GDP and generates around 8 million jobs directly and indirectly. India has huge opportunities ahead, which are reflected in the orders placed by the Indian carriers. Currently, India accounts for around 12% of worldwide pending order book. With this growing presence on the world stage, India hosted the 81st IATA AGM and World Air Transport Summit in Delhi in June 2025.

In FY 2025, overall demand continued to be strong, both in domestic as well as in the international market. Most of this was driven by increase in MICE events, an extended wedding season and festivities, rise in disposable income and increasing international travel. India’s consumption spending is on the rise largely led by the Gen-Z, which accounted for nearly 43% of the total spends in CY 2024. India’s total spending is expected to double to around $4 trillion by CY 2035, with Gen-Z estimated to account for around 50% of it (Source: BCG).

Domestic passenger traffic increased by approximately 8.7% year-on-year during FY 2025, surpassing pre-Covid levels by around 20%. This growth was not limited to major cities as Tier 2 and 3 cities are also increasingly driving the trend. This was largely reflective of the scale of operations of the Indian carriers that enabled India to be the third largest domestic aviation market in the world. International air traffic for Indian carriers also showed robust growth, reaching 35 million passengers during FY 2025, up around 20% year-on-year and 35% higher than FY 2019 (pre-Covid) figures. Total passengers are up around 20% from pre-covid levels. Internationalisation has become a growing theme in Indian aviation and citizens are exploring more destinations than ever before. Over 50 countries are offering Visa Free/ Visa on arrival to Indian citizens that is boosting international travel. As per IATA’s CY 2024 data, India is now the 3^rd largest aviation market in the world.

Indian aviation growth drivers

As India expands its wings on the global stage, there are various drivers that will fuel India’s growth as highlighted below:

Underpenetrated aviation market

The domestic market registered a strong growth of 25% CAGR over FY 2022-FY 2025 and is expected to continue to grow, supported by rise in disposable income with a strong demographic footprint and higher share of working-class population. Despite India’s geographical advantage with large part of world population residing around India, it yet remains underpenetrated in the international market. India’s international seats per capita is at 0.06, compared to 0.88 in the U.S. and 4.42 in the U.K. for CY 2024, implying significant opportunities to grow. Further, around 8.7% of Indians currently have passports, as per the Ministry of External Affairs. This itself underlines the potential of growth in the Indian aviation market and an opportunity to make international travel more affordable.

Growing diaspora

Similarly, there has been a strong surge in international travel and citizens are exploring more destinations than ever before paired with a growing diaspora of around 35 million as per United Nations. This is further supported by the growing volumes of connecting traffic where India is emerging as a strategic transit hub, facilitating connecting traffic between the East and the West.

Rising middle class and demographic advantage

India has one of the youngest populations in the world, with over 65% of citizens under the age of 35. This young, aspirational, and digitally connected demographic is prioritising travel as a lifestyle choice. Increased disposable income and a cultural shift towards experience-led spending are pushing more Indians from Tier 2 and Tier 3 cities to choose air travel for work, leisure, and education.

Expansion of infrastructure

The Indian government has been focused on building infrastructure to boost the aviation sector. According to the latest Union Budget 2025, the government announced its plans to enhance regional connectivity under the UDAN (Ude Desh ka Aam Nagrik) scheme. Around 120 new destinations will be added that will be equipped to carry 4 crore passengers over the next 10 years. New brownfield and greenfield airports are planned to be developed to strengthen air connectivity to underserved regions. Meanwhile, US$27 billion worth of investments in airport infrastructure have been announced and to be spent by 2027.

Over the past decade, the number of airports has more than doubled in India. In addition, the government plans to increase the number of airports to 220 by 2025 from around 150 airports currently.

Regional connectivity

The UDAN scheme was launched in 2016 to make air travel affordable and accessible by connecting unserved and underserved airports. As of 2025, the scheme has operationalised 619 routes connecting 88 airports. The scheme has enabled over 148 lakh domestic passengers to travel through nearly 3 lakh RCS (Regional Connectivity Scheme) flights. The government has extended the scheme for another 10 years, aiming to connect 4 crore more passengers and create 120 new destinations.

Source: (PIB, Civil aviation).

Increasing commercial pilots

India in issuing of commercial pilots’ licenses. During 2024, the government issued licenses to 1,342 pilots, which is 80% more than 2019.

Growing demand for Widebody

In terms of order book, India has positioned itself as a dominant player with highest percentage of world order book. India currently has over 1000 total aircraft order book in place. But, given the expansion of airports and need for internationalisation, India needs more widebodies than ever. Currently, India’s widebody order book accounts for only around 6% of its current order book which is lower than other economies like the UK, the US and China, implying significant opportunity to increase widebodies in the fleet and penetrate into long-haul markets across globe.

Tourism

In the latest Union Budget FY 2025-26, the government identified the tourism sector as a sector for employment growth. As part of the initiative, 50 tourist destination sites in the country will be developed in partnership with states wherein spiritual and religious significance will be given to those destinations. Conservation of over 1 crore manuscript heritage will be undertaken. By strengthening spiritual tourism, the government aims to position India as a global cultural hub while driving economic growth and employment generation in the sector.

Focus on MRO

The government is also focused on building the Maintenance Repair Overhaul (MRO) industry in India that will provide significant opportunities for the Indian aviation market. The Indian MRO industry is expected to become a US$4 billion industry by 2028, as per the Ministry of Civil Aviation. The government has also announced a uniform 5% IGST rate on imports of aircraft parts, components, testing equipment, tools and tool-kits, regardless of HSN classification, which should boost the domestic sector and ensure sustainable growth.

Aircraft financing

To reduce dependence on foreign lessors and strengthen domestic leasing capabilities, the government has taken significant steps to develop a robust aircraft leasing and financing ecosystem. A key initiative is the promotion of the International Financial Services Centre (IFSC) at GIFT City in Gujarat as an emerging hub for aviation leasing. This will provide significant access to an international pool of lessors as well as provide tax benefits including exemption from withholding tax to entities.

InterGlobe Aviation Financial Services IFSC Private Limited (GCE), a wholly-owned subsidiary of IndiGo received its captive finance company license from the International Financial Services Centre’s Authority (IFSCA) on June 26, 2024, and commenced operations on July 15, 2024. GCE has already successfully financed over 30 Airbus A320neo family aircraft, as of 31st March 2025 and acquired few ATR aircraft which have been leased to IndiGo. In future, GCE will finance majority of the aircraft for IndiGo.

E-Commerce driving Cargo business

The Indian e-commerce market is projected to grow from US$123 billion in CY 2024 to US$292.3 billion in CY 2028, as per IBEF. With growth exports (merchandise exports estimated to grow by 6% year over year in FY 2024-25) and favourable policies (100% FDI investments), India is well positioned to exploit the opportunities from the cargo business. The surge in e-commerce and demand for faster delivery is reinforcing the role of air cargo as a critical logistics enabler.

Company overview

Incorporated in 2006, IndiGo is the largest airline in India with over 2,200 daily flights covering 91 domestic destinations and 40 international destinations. IndiGo’s purpose is giving wings to the nation, by connecting people and aspirations. Within a short span of 18 years, IndiGo has become the 7th largest airline in the world in terms of daily departures and the first Indian airline with a large fleet of over 430 aircraft. IndiGo marked a significant milestone by welcoming over 118 million passengers in FY 2025.

With its four pillars of service – on time performance, courteous, and hassle-free service, affordable fares, and an unparalleled network, IndiGo is one of the most reliable airlines in the world. During FY 2025, IndiGo expanded its product offering that included the introduction of business class seats ‘IndiGoStretch’ to cater to the growing demand for premium services. We have launched Stretch on 6 domestic routes and one international route so far. The ‘BluChip’ loyalty programme was also introduced for the customers, enabling them to take advantage of flying frequently with IndiGo. Nearly 3 million members are already part of the programme.

IndiGo has also launced a new product offering where customers can book Hotels on its website and mobile app. This will enable customers to book their accommodation along with their air travel needs. These product offerings will allow IndiGo to meet the extended travel needs of its customers and ties up with IndiGo’s brand promise of enabling affordable and hassle-free experience for its customers. Meanwhile, IndiGo also announced its launch of Venture Capital Fund arm that aims to invest in startups that have the potential to redefine the future of aviation and beyond. As part of our CSR initiatives, IndiGo initiated towards conservation and maintenance of heritage sites last year.

In FY 2025, IndiGo accelerated its growth strategy with a focus on fleet expansion, global network development and customer experience innovation. IndiGo continues to execute its strategic vision of becoming an airline with over 600 aircraft by the end of the decade, while expanding its international footprint across Europe, the UK, Asia, Africa, and the Middle East. Aspiring to be the world’s leading airline, IndiGo continues to build on its success story with its three strategic pillars of Reassure, Develop and Create.

Strengths	Opportunities	Growth strategy
Extensive domestic network with over 2,200 daily flights across 91 domestic destinations	Rising demand from Tier 2/3 cities	Strengthen regional presence by launching new domestic routes, improving frequency to enable last-mile access
Global connectivity through 40 international destinations and 10 codeshare partners	Rising demand for India-outbound travel and connecting traffic	Expand international reach by adding new mid- and long-haul routes, deepening codeshare partnerships and leveraging India’s geographic advantage
Fleet of 434 aircraft and over 920 on order with deliveries till 2035	Industry-wide transition to next-gen, low- emission aircraft	Scale capacity through steady induction of A321XLRs and A350s while aligning fungible fleet with network demand
One of the lowest-cost structures globally with high aircraft utilisation	Maintain low-cost leadership amid global cost inflation environment and mitigate fuel price volatility	Continue driving efficiencies across operations, route economics and engineering, enhancing in-house capabilities to reduce external dependencies
Trusted brand with growing customer offerings like BluChip, IndiGoStretch and refreshed digital platforms	Premiumisation of air travel and evolving customer preferences	Deliver superior value with tailored products, loyalty programmes and digital-first customer journeys across web and mobile
Young, fuel-efficient fleet and clear ESG emitting roadmap. Amongst lowest CO2 airline globally.	Growing expectations from investors and regulators on sustainability	Enhance operational carbon efficiency
Building Human Capital by inducting right talent pool including of pilots and crews	Need for more training centres to train pilots and crew with respect to the growing order book of fleet	IndiGo has 9 partnerships with world class Flying Training Organisations across the world enabling more pilot training and hired more than 1,000 pilots through the Cadet Pilot Programme

Company outlook

The Indian economy is expected to continue to grow strongly in the coming years, and aviation will play a pivotal role in this growth. IndiGo’s future is full of attractive opportunities that includes its expansion in the international market with induction of XLR and widebody aircraft. Along with that, IndiGo also plans to explore new opportunities in the MRO space as India’s infrastructure development is picking up. While India is set to become the 5^th largest outbound tourism market by 2027, IndiGo plans to expand its capabilities in the international market where it targets its capacity share to be 40% by 2030 from around 28% during FY 2025.

IndiGo serves over 130 destinations and connects over 600 city pairs. IndiGo provides an unparalleled reach connecting people and aspirations. In addition to being a leading player in the domestic market, IndiGo has an increased focus on international markets. Going forward, IndiGo will leverage its simple yet well-executed products and an unparalleled network to make international expansion as the next leg of its growth. IndiGo announced the addition of two new international destinations, Amsterdam and Manchester in its network, which started operations from July 2025 as part of the international expansion plan. Further, IndiGo has strategic partnerships with ten international airlines that has enabled us to reach over 58 destinations and continues to collaborate with more global airlines.

The Company’s outlook remains promising, supported by a healthy demand environment and firm capacity growth. While macroeconomic uncertainties and operating headwinds such as aircraft groundings and fuel cost volatility remain, IndiGo continues to proactively manage these challenges through fleet diversification, damp leasing strategies and strategic agreements with OEMs. Upcoming aircraft inductions, including Airbus A321XLRs in FY 2026 and A350-900s from 2027, will enable the airline to tap into long-haul markets across the world.

IndiGo will continue to focus on its newly launched product offerings such as "IndiGoStretch" (business class seats) & "BluChip" (loyalty programme) to enhance customer experience. The newly established entity in GIFT city should also help support IndiGo’s aircraft financing opportunity. The Company is further building its venture arm by allocating Rs. 3 billion that will provide diverse geographical imprints, direct market access, technical expertise and strategic collaborations with various start-ups.

IndiGo remains conscious that low operating costs complemented with a well-executed product and fleet strategy are fundamental to success in the airline business. IndiGo will continue to keep these at the core of its strategy while building capabilities to serve more customers year on year, with seamless connections across India and the world living upto its motto of "Towards New Heights and Across New Frontiers". With a large order book of around 500 aircraft including XLRs and investments in people, processes and technology, IndiGo aspires to grow in scale and size for years to come. By the end of this decade, IndiGo plans to have over 600 aircraft with clear visibility of order book till 2035. IndiGo intends to play a leading role in India’s aviation growth story, while delivering efficient, reliable and inclusive air travel to millions across India and the world.

Operational highlights

Particulars	Year ended March 31, 2025	Year ended March 31, 2024	% Change
ASK (in million)	157,474	139,281	+13.1%
RPK (in million)	135,378	119,703	+13.1%
Passenger load factor (%)	86.0%	85.9%	+0.0pts
Number of passengers (in thousand)	118,588	106,728	+11.1%
Block hours	1,546,668	1,353,475	+14.3%
Number of destinations served as of the period end*	128	118	+8.5%
Total number of flights	772,229	697,500	+10.7%
Number of aircraft at period end	434	367	+18.3%

*Operational destinations

Financial highlights

Particulars	Year ended March 31, 2025	Year ended March 31, 2024	Change
Revenue from operations (in million)	808,029	689,043	+17.3%
EBITDAR Margin	26.3%	25.5%	+0.8pts
Net Profit Margin	9.0%	11.9%	-2.9pts
RASK (Rs.)	5.14	4.96	+3.7%
CASK (Rs.)	4.66	4.38	+6.4%
CASK Ex-Fuel (Rs.)	3.00	2.66	+12.5%
CASK Ex-Fuel Ex-Forex (Rs.)	2.89	2.61	+10.8%
Return on Net Worth*(%)	127.7%	NA	NA
Debt Equity Ratio (x)	7.1	25.7	+18.6
Net Debt** to EBITDAR (x)	1.6	1.7	+0.1
ROCE (%)	14.0%	21.3%	-7.3pts

*This ratio is non-determinable for the year ended 31 March 2024 due to negative average shareholder’s equity on account of losses of previous years. The closing shareholder’s equity is Rs. 19,319 million as at 31 March 2024.

**total debt includes lease liabilities

Financial performance analysis

Income

Passenger ticket revenue: Passenger ticket revenue increased by 14.6% from Rs. 608,228 million in FY 2024 to Rs. 696,962 million in FY 2025.

Revenue from ancillary products and services: Revenue from ancillary products and services primarily include cargo, excess baggage, special service requests, ticket modification and cancellation, in-flight sales and tours. Revenue from ancillary products and services increased by 20.7% from Rs. 65,789 million in FY 2024 to Rs. 79,440 million in FY 2025.

Other income: Other income is primarily comprised of financial income on cash and other non-operating income. Other income increased by 41.6% from Rs. 23,269 million in FY 2024 to Rs. 32,953 million in FY 2025.

Revenue per Available Seat Kilometre (RASK): RASK increased by 3.7% from Rs. 4.96 in FY 2024 to Rs. 5.14 in FY 2025, largely driven by increase in yields.

Expenses

Total expenses increased by 21.1% from Rs. 631,819 million in FY 2024 to Rs. 765,048 million in FY 2025. Aircraft fuel expenses: Aircraft fuel expenses increased by 9.6% from Rs. 239,046 million in FY 2024 to Rs. 261,973 million in FY 2025, against 13.1% increase in capacity, offset by decrease in ATF prices. 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 28% from Rs. 194,270 million in FY 2024 to Rs. 248,771 million in FY 2025. Employee benefits expense: Employee benefits expense increased by 15.6% from Rs. 64,618 million in FY 2024 to Rs. 74,725 million in FY 2025.

Foreign exchange (gain)/loss: Foreign exchange losses increased from Rs. 7,174 million in FY 2024 to Rs. 16,179 million in FY 2025. Other expenses: Other expenses increased by 28.2% from Rs. 55,300 million in FY 2024 to Rs. 70,918 million in FY 2025. Cost per Available Seat Kilometer (CASK): CASK increased by 6.4% from Rs. 4.38 in FY 2024 to Rs. 4.66 in FY 2025, primarily driven by annual escalation in maintenance charges, increased airport charges, higher depreciation related to finance lease offset by decline in fuel prices.

The Company reported a net profit of Rs. 72,584 million in FY 2025, 11.2% lower than Rs. 81,725 million profit in FY 2024

Balance sheet

IndiGo’s total cash increased by 38.7% to Rs. 481,705 million as of March 31, 2025, comprising of free cash of Rs. 331,531 million and restricted cash of Rs. 150,174 million. Total debt for the Company was Rs. 668,098 million, including capitalised operating lease liability of Rs. 650,098 million, as of March 31, 2025.

Credit rating

Based on IndiGo’s solid balance sheet position, IndiGo has been assigned a long-term investment grade rating by Moody’s with a stable outlook at par with India’s sovereign credit rating.

• Long term investment rating: Baa3 with Stable outlook

Moody’s highlighted several strengths behind the rating, including India’s robust economic growth, IndiGo’s dominant market position, healthy financials, and industry-best cost efficiency.

IndiGo also received acknowledgement from CRISIL & ICRA that defines the company’s creditworthiness and strong balance sheet position:

• Long term rating: AA- with Stable outlook

• Short Term Rating: A1+

CRISIL in its rating rationale has acknowledged the Company’s focus on cost leadership which has given it a competitive edge, facilitating resilience demonstrated by it during the downturns witnessed by the industry in the past. The rating factors in the strong and established position of the Company in the aviation sector.

Further, ICRA Limited ("ICRA") has assigned following credit rating to banking facilities of the Company:

• Long term rating: AA- with stable outlook (upgraded from A+ with stable outlook)

• Short-term rating: A1+ (Reaffirmed)

ICRA in its rating upgrade factored in the sustenance of a healthy demand environment and consequent improvement in Company’s operational and financial performance. ICRA, in its rating rationale, has acknowledged Company’s scale, extensive network, low-cost positioning, steady yields and strong liquidity position.