IndiGo Q4 Profit Rises 62% to ₹3,067 Crore Amid Strong Passenger Demand
| 2025-05-22
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IndiGo reports 62% year-on-year profit growth in Q4 FY25 to ₹3,067 crore, driven by record passenger traffic and domestic demand; dividend of ₹10 per share proposed.
IndiGo Reports Sharp Rise in Quarterly Profit, Proposes Dividend
India’s largest airline, IndiGo, has reported a 62% rise in consolidated net profit for the fourth quarter of the 2024–25 financial year, reaching ₹3,067.5 crore. The airline, operated by InterGlobe Aviation Ltd, attributed the strong performance to robust passenger demand and improved operational metrics. The board also recommended a dividend of ₹10 per equity share, subject to shareholder approval.
Surge in Revenue and Profitability Metrics
Revenue from operations during the January–March quarter grew by 24% year-on-year to ₹22,151.9 crore, up from ₹17,825.3 crore in the same period last year. The airline’s earnings before interest, tax, depreciation, amortisation, and rent (EBITDAR) rose to ₹6,948.2 crore, with the margin improving to 31.4% from 24.8% a year earlier.
Passenger ticket revenue increased by 25.4% to ₹19,567.3 crore, supported by continued growth in domestic air travel. Ancillary revenue also rose by over 25%, reaching ₹2,152.5 crore. IndiGo’s passenger yields—a measure of average fare per kilometre flown—rose to ₹5.32, reflecting a 2.4% year-on-year increase.
The airline carried 27.77 million passengers during the quarter, a nearly 18% increase compared to the previous year, raising its domestic market share to 64.3%. Load factor, which measures seat occupancy, also improved slightly to 87.4%.
Fleet and Operational Capacity
IndiGo operated up to 2,304 daily flights, including non-scheduled services, during the quarter. However, its total fleet marginally declined to 434 aircraft from 437 in the previous quarter. Despite this, available seat kilometre (ASK) capacity rose by 21% year-on-year, highlighting better fleet utilisation.
Annual Performance: Revenue Up, Profit Down
Despite the strong quarterly results, IndiGo reported an 11% decline in net profit for the full financial year ending 31 March 2025. Annual net profit stood at ₹7,258.4 crore, down from ₹8,172.5 crore in the previous year. This decline came despite a 17% increase in annual revenue to ₹80,802.9 crore.
The drop in yearly profit was attributed to a surge in operating expenses, which rose 17% to ₹76,505 crore. Rising fuel costs, aircraft and engine rentals, and airport-related charges were among the main contributors to this increase. The airline also recorded foreign exchange losses amounting to ₹137 crore during the fourth quarter.
IndiGo’s Financial Position and Shareholder Payout
The airline’s financial position remained strong despite higher debt. Total debt rose by over 30% year-on-year to ₹66,809.8 crore. However, cash reserves grew 38.7% to ₹48,170.5 crore, including ₹33,153.1 crore in free cash, providing a cushion for future expansion and operational needs.
Earnings per share (EPS) for Q4 stood at ₹79.38 on a basic basis and ₹79.27 on a diluted basis. For the full financial year, EPS was ₹187.93 basic and ₹187.67 diluted.
The proposed dividend of ₹10 per share marks a significant return to shareholders, subject to approval at the upcoming Annual General Meeting. The payout is expected within 30 days of declaration.
CEO Comments on Strategic Outlook
Commenting on the results, IndiGo Chief Executive Pieter Elbers said the quarter reflected "healthy financial performance" driven by record passenger volumes and operational efficiency.
"As we build on this momentum, we will continue to focus on cost leadership and further internationalisation with the start of our European operations," Elbers added.
Context: India’s Aviation Market and Competitive Landscape
India's aviation sector has seen a sharp recovery post-pandemic, driven by rising domestic travel and a return of business and leisure flyers. IndiGo, known for its budget offerings and expansive domestic network, has consistently retained a leading market share amid competition from full-service carriers and newer entrants.
With an eye on international growth, the airline has been expanding its global footprint. The launch of services to Europe, as hinted by Elbers, marks a strategic shift as IndiGo seeks to diversify its route network and revenue streams.
While elevated fuel prices and currency volatility remain challenges, the airline’s strong liquidity and scale position it well for future growth in both domestic and international markets.
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