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Earnings Call Transcript

InterGlobe Aviation Earnings Call Transcript: Key Takeaways

Indigo reported a 2 billion INR loss for Q1 FY27, as massive 80% fuel cost surges and currency depreciation overwhelmed a 19% revenue growth and improved yields.

Guidance and delivery
Management target Revenue 25.0% FY27
Highlights
Revenue growth19% YoY growth supported by disciplined pricing and 21% yield increase.
MarginsMargins compressed significantly (15.6% vs 28%) due to massive fuel inflation.
Order bookMOU signed for 1,000+ Leap-1A engines; fleet reached 432 aircraft.
Demand visibilityStrong domestic demand; record 10 million passengers carried in May.
Management confidenceBalanced, emphasizing long-term structural growth despite severe near-term cost headwinds.

Growth

Revenue grew 19% YoY driven by 21% yield growth, but load factors dipped 1.3 points due to Middle East disruptions.

Outlook

Capacity growth guided to flat for Q2 FY27, with yield growth exceeding 25% to offset high costs.

Risks

Extreme fuel price volatility and Middle East airspace constraints threaten short-term profitability and capacity deployment.

Last quarter's promises, checked

Delivered

  • Guided Q1FY27 capacity +3-4% → delivered ~1% ASK growth (= PARTIAL)
  • Guided mid-teens unit revenue growth → delivered 21% yield growth (= BEAT)
  • Guided fleet ownership increase → delivered 36 unencumbered aircraft (= BEAT)

Partly delivered

  • Guided Middle East capacity recovery → delivered 90% pre-crisis levels (= PARTIAL)

Missed

  • Guided Q1FY27 net profit → delivered 2 billion INR loss (= MISS)
  • Guided margin protection via yields → delivered margin compression 15.6% vs 28% (= MISS)
  • Guided fuel cost calibration → delivered 80% fuel surge outpaced revenue (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: INDIGO. Summary written with AI assistance from the document.

Read the document ↗

InterGlobe Aviation Ltd: key numbers

Share price
₹5,665.00
Market cap
₹2,19,047 Cr
Revenue (annual)
₹84,962 Cr
Net profit (annual)
₹-2,392 Cr
P/E (TTM)
-53.4×Sector 32.3×
Promoter holding
41.57%+0.00% QoQ
FII holding
19.90%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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