Home / Business and Economy / IndiGo Shares Tumble on Q1 Loss Amidst Rising Costs
IndiGo Shares Tumble on Q1 Loss Amidst Rising Costs
24 Jul
Summary
- InterGlobe Aviation reported a net loss of Rs 238 crore in Q1 FY27.
- High fuel costs surged 86% to Rs 10,833 crore, impacting profitability.
- Brokerages maintain positive outlooks despite near-term challenges.
InterGlobe Aviation, operating as IndiGo Airlines, incurred a net loss of Rs 238 crore in the first quarter of FY27. This marks a significant shift from the Rs 2,176 crore profit recorded in the same quarter last year. The primary factor contributing to this loss was a substantial surge in operating costs. Fuel expenses alone escalated by 86% year-on-year, reaching Rs 10,833 crore from Rs 5,833 crore. Total expenses rose by 34% to Rs 25,853 crore, outpacing the 20% revenue growth. Despite these challenges, brokerage firms like Motilal Oswal Financial Services and JM Financial maintain positive outlooks. They cite India's robust domestic demand, strategic capacity rationalization, and potential for easing operational issues as reasons for retained 'Buy' or 'Add' ratings, with price targets suggesting significant upside.
