The day after the airline revealed a significant year-over-year drop in net profit for the December quarter, shares of InterGlobe Aviation, the operator of IndiGo, fell by almost 2% in early trading on Friday.
The company was valued at approximately Rs 1.86 lakh crore, with the stock trading at Rs 4,813, down 1.96 percent. The drop came after the firm revealed that one-time extraordinary factors, such as expenses associated with the implementation of new labor laws and operational disruptions in early December, had a negative impact on reported profit.
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One-time charges weigh on headline numbers
InterGlobe Aviation said the exceptional charges materially impacted reported profitability for the quarter, even as revenue growth and operating performance remained steady. Management indicated that these were largely non-recurring in nature.
Despite the headline profit drop, brokerages largely maintained a positive view on the stock, focusing on underlying trends.
As per a report by Moneycontrol, UBS described the quarter as a “decent performance despite disruptions,” adding that the airline expects capacity growth of around 10 per cent year-on-year in Q4 FY26, led primarily by international expansion. The brokerage flagged higher cost guidance for the March quarter but said yields are likely to moderate gradually from a strong base.
Citi said the financial impact of the FDTL-related disruption was lower than its estimates, with yields coming in better than expected and operating metrics broadly in line.
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Goldman Sachs noted that profit before tax was above its estimates, helped by lower-than-expected costs excluding forex, particularly aircraft rentals. The brokerage also highlighted management’s reiteration of about 10 per cent ASK growth in Q4, driven mainly by international operations.
InterGlobe Aviation shares had closed at Rs 4,929 on Thursday ahead of the results. The stock is up over 19 per cent in the past one year, outperforming the Nifty 50.
