InterGlobe Aviation Ltd, the operator of budget airline IndiGo, reported a sharp decline in its consolidated net profit for the third quarter of FY26 as operational disruptions and regulatory changes weighed heavily on earnings. The airline’s profit for the quarter ending December 31, 2025, fell by about 77–78% year-on-year to around ₹550 crore, compared with ₹2,448.8 crore in the same period a year earlier.

Key Highlights

• IndiGo’s Q3 FY26 net profit declined sharply due to labour code provisions and operational disruptions.
• Airline posted steady revenue growth on resilient passenger demand despite margin pressure and higher costs.

Despite the significant drop in the bottom line, IndiGo’s revenue from operations grew modestly, rising approximately 6% year-on-year to around ₹23,472 crore as passenger demand remained resilient.

The steep fall in profit was largely driven by exceptional items, including provisions related to the implementation of new labour codes, costs from widespread operational disruptions in December 2025, and foreign exchange impacts tied to dollar-based obligations. These one-time charges, which included a substantial provision toward enhanced employee benefits under the new labour laws, significantly eroded earnings for the quarter.

Also Read: IndiGo Faces Financial Strain as DGCA Acts on Flight Disruptions

While core operations showed some stability with modest growth in revenue and passenger capacity, the airline’s overall performance in Q3 reflected the strain from regulatory and operational headwinds, highlighting the ongoing challenges facing India’s aviation sector.