1. Opening Hook
When your planes take off smoothly but your profits nosedive due to forex, you know you’re IndiGo. Q2 FY26 had everything — record passenger numbers, new routes to Europe, widebodies arriving on lease, and then… the rupee decided to play kamikaze. CFO Gaurav Negi’s forex math sounded more like a horror script — ₹900 crore wiped for every ₹1 depreciation. But hey, operational profits are back, and the CEO’s vision now extends beyond Delhi toDelphi. ✈️Keep reading — from Athens dreams to forex nightmares, this flight’s turbulence gets deliciously financial.
2. At a Glance
- Revenue ₹19,600 crore:+10% YoY — passengers kept flying, rupee kept crying.
- Operational profit ₹104 crore:First positive Q2 in years — before FX hit the engines.
- Net loss ₹2,580 crore:Rupee fell faster than ticket discounts.
- EBITDAR ₹3,800 crore (20% margin):Fuel savings and smart deployment worked.
- Cash balance ₹53,500 crore:The “rainy day fund” now a monsoon pool.
- Fleet 417 aircraft:CFO calls it “optimized”; pilots call it “packed schedule.”
3. Management’s Key Commentary
“We reported an operational profit of ₹104 crore excluding forex.”(Translation: Without the rupee tantrum, we actually made money.)😏
“With ₹25.8 billion forex loss, we reported a net loss this quarter.”(So technically, we’re profitable in an alternate currency reality.)
“We’re launching Athens soon — a step into long-haul.”(Because India needed another reason to fly to Greece other than Santorini photos.)
“BluChip loyalty program has 7 million members.”(Everyone loves points — especially when profits don’t have any.)
“AOGs stable in the 40s; OEM claims will partly offset costs.”(Basically, fewer grounded planes, same amount of blame.)
“We’re doubling A350 orders from 30 to 60.”(Because nothing says ‘cost control’ like buying twice as many widebodies.)
“We will invest ₹1,000 crore in an MRO at Bengaluru.”(Fixing planes cheaper — before fixing forex costlier.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | Change (YoY) | Commentary |
|---|---|---|---|---|
| Total Income (₹ Cr) | 19,600 | 17,800 | +10% | Topline flying high. |
| Operational Profit (ex-FX) (₹ Cr) | 104 | -750 | — | The comeback flight. |
| Net Profit/Loss (₹ Cr) | -2,580 | -990 | — | Rupee hit autopilot. |
| EBITDAR (₹ Cr) | 3,800 | 2,700 | +41% | Fuel & efficiency wins. |
| Load Factor | 83% | 82% | +1% | Full flights, empty margins. |
| Yield (₹/RPK) | 4.69 | 4.55 | +3% | Pricing steady in turbulence. |
| Cash & Cash Equivalents (₹ Cr) | 53,500 | 47,000 | +14% | Cash cushion = comfort class. |
| Fleet Size | 417 | 330 | +26% | Expansion in full throttle. |
Forex: ₹900 crore hit per ₹1 rupee depreciation — the most expensive math in aviation.
5. Analyst Questions
Q:Are yields holding up with so much capacity coming in?A:“October was very strong; Q3 PRASK flat to slightly better.”(Translation: Diwali saved our spreadsheet.)
Q:CASK ex-fuel up despite stable ops?A:“FX, damp leases, and AOGs.”(Every airline CFO’s holy trinity of excuses.)
Q:International expansion — profitable or patriotic?A:“We’re building India’s global aviation footprint.”(Read: still work-in-progress, but sounds grand.)
Q:Widebody wet lease — profitable?A:“Too early, but cargo loads are good.”(If passengers don’t fill it, cargo will.)
Q:Loyalty program monetization?A:“7 million members and growing.”(Translation: points now, profits later.)
6. Guidance & Outlook
Management upgraded FY26 capacity growth guidance from “early double
