Latest news with #Elbers
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Business Standard
15 hours ago
- Business
- Business Standard
IndiGo stock up 2% despite Q1 profit dip; what's fueling investor optimism?
Shares of InterGlobe Aviation, the parent company of IndiGo, were surging higher in an otherwise weak market on Thursday, July 31. The company's shares rose 1.89 per cent to hit an intra-day high of ₹5,849 per share on the NSE, despite reporting a loss in its results for the first quarter of the financial year 2024–25. The upward movement in the company's share price followed brokerage firms Motilal Oswal Financial Services, and Elara Capital reaffirming their 'Buy' ratings on the stock. As of 11:34 AM on Thursday, IndiGo shares were trading at ₹5,824 per share, up 1.46 per cent from their previous close of ₹5,740. In contrast, the benchmark NSE Nifty was trading 48.20 points or 0.19 per cent higher at 24,806. Track Stock Market LIVE Updates IndiGo Q1FY26 results During the quarter under review, InterGlobe Aviation reported a 20.25 per cent year-on-year (Y-o-Y) decline in consolidated net profit to ₹2,176.3 crore, down from ₹2,728.8 crore reported in Q1FY25. The company's revenue from operations stood at ₹20,496.3 crore in Q1FY26, up 4.73 per cent Y-o-Y from ₹19,570.7 crore. On the flip side, total expenses in Q1FY26 rose 10.2 per cent Y-o-Y to ₹19,231.9 crore, up from ₹17,444.9 crore. IndiGo reported earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs (Ebitdar) of ₹5,738.6 crore, with a margin of 28 per cent, compared to ₹5,811.1 crore and a 29.7 per cent margin in Q1FY25. During the quarter, the company's capacity increased by 16.4 per cent to 42.3 billion available seat kilometres (ASKs). The number of passengers carried rose 11.6 per cent to 31.0 million. However, the company saw a 5.0 per cent decline in yield to ₹4.98, and the load factor dropped 2.1 percentage points to 84.6 per cent. Check List of Q1 results today Management commentary The June quarter, Pieter Elbers, CEO, IndiGo, said was shaped by significant external challenges that created headwinds for the entire aviation sector. 'Despite these industry-wide disruptions, we reported a net profit of ₹2,176.3 crore with a net profit margin of around 11 per cent for the quarter ended June 2025. While the revenue environment saw moderation, demand for air travel remained strong as we served more than 31 million passengers during the quarter, reflecting a Y-o-Y growth of around 12 per cent,' Elbers noted. Looking ahead, he added: 'We remain optimistic about the growth of air travel. With our scale, network, and fit-for-purpose fleet, we remain committed to serving the growing demand.' Brokerage on IndiGo shares Motilal Oswal Financial Services – Reiterate Buy, Target Price: ₹6,900 Analysts at Motilal Oswal reaffirmed their Buy rating on IndiGo shares, citing the company's resilience amid geopolitical disruptions and operational headwinds. The firm highlighted IndiGo's effective cost control, strong network execution, and consistent passenger growth. They expect stabilising fuel costs, the return of grounded aircraft to service, and improved demand to drive performance in upcoming quarters. 'Backed by early double-digit capacity growth, stable yields, a rising international mix (currently 30 per cent of ASKs), and improving operating leverage from reduced damp leases and expanding wide-body routes, IndiGo is well-positioned to sustain healthy profitability,' wrote the analysts in report. They added, 'We broadly retain our earnings estimates and expect revenue / Ebitdar/ Adjusted PAT to clock a CAGR of 9 per cent / 13 per cent / 18 per cent over FY25–27. We value the stock at 11x FY27E Ebitdar to arrive at our target price of ₹6,900. Reiterate Buy.' Elara Capital – Retain Buy, Target Price: ₹6,878 Analysts at Elara Capital also reiterated their Buy rating on IndiGo, driven by expectations of a weak crude oil price environment, stable aircraft deliveries from Airbus, airport capacity expansion, and the return of Pratt & Whitney (P&W) engines to service — while competitors face capacity constraints. They remain positive on the aviation sector, citing the anticipated launch of new airports in Delhi and Mumbai by Q2FY26, and a projected dip in oil prices to below $70 per barrel. Analyst noted that 'IndiGo's P&W engine-fitted fleet is already beginning to return to service, helping control non-fuel costs.' They raised the target price to ₹6,878 (from ₹6,531), based on FY27E EV/Ebitda, assuming a forward EV/Ebitda multiple of 10.5x (up from 10.0x). However, they cut FY26E EPS by 7 per cent due to lower-than-expected Q1 PAT. 'Key risks to our call are a jump in crude oil prices to above $ 90/bbl and higher capacity addition by competitor airlines,' said the analysts. About IndiGo InterGlobe Aviation Limited, operating as IndiGo, is India's leading low-cost airline, offering air transportation services, including both passenger and cargo. Founded in 2006 by Rahul Bhatia and Rakesh Gangwal, IndiGo operates primarily in the domestic air travel market. With over 1,800 daily flights, IndiGo serves 78 domestic and 26 international destinations. As of July 31, the company's market capitalisation stood at ₹2,25,110.34 crore on the NSE.
Time of India
20 hours ago
- Business
- Time of India
Entry into Europe marks beginning of a new chapter for IndiGo, says CEO Pieter Elbers
Advt IndiGo's own widebodies Advt Unfortunate quarter By , ETInfra NEW DELHI: For IndiGo 2025 will be marked as the year from when the country's largest airline's long-haul expansion started to take shape. While the airline had started operating to Istanbul utilising leased widebody Boeing 777 aircraft from Turkish Airlines on Delhi-Istanbul route from February of 2023, the experiences and services on those flights did not have much to write home then, the geopolitical fallout between India and Turkey has ensured that the damp lease agreement of Boeing 777 from Turkish Airlines comes to an end. The Directorate General of Civil Aviation has dictated IndiGo to terminate the Boeing damp lease agreement by August July, the airline inaugurated its first direct long-haul service connecting Mumbai to Manchester as well as Amsterdam, which the airline's Chief Executive Officer Pieter Elbers described as a moment of transition from a successful regional carrier to one with growing global relevance.'Touching down in Europe is a huge, huge thing for us,' said Elbers in a post-earnings conference call with analysts on Wednesday. Earlier in 2025, the airline executed a damp lease agreement with Norse Atlantic Airways for operating widebody Boeing 787-9 aircraft.'We have already inducted one widebody aircraft which is currently flying from Mumbai to Amsterdam and Manchester…we will be inducting the remaining five aircraft (damp lease from Norse Atlantic) during this financial year,' said Elbers.'It is much more than just two new destinations in Europe for us. It marks the start of a very new chapter in the book of Indigo.' he added. The airline will be launching new services to London and Copenhagen in the coming 2025, the next pivotal year for IndiGo will be 2027, the year from when it will start taking deliveries of its own widebody Airbus A350 aircraft. The airline signed an agreement for the purchase of 60 firm Airbus A350-900 aircraft, with the first 30 expected to be delivered between 2027 and 2032.'These widebodies will give us the reach, flexibility and scale to tap into the unserved global routes and position us as the preferred airline for long-haul journeys,' said to Airbus, the A350 is the world's most modern and efficient widebody aircraft in the 300-410 seater category with a clean sheet design including state-of-the-art technologies and aerodynamics delivering efficiency and 2027, the damp lease agreement with Norse Atlantic for six widebody aircraft is expected to ensure immediate capacity requirement for IndiGo's long-haul the exuberance of starting its long-haul chapter, the airline experienced an unsavoury Apr-Jun quarter with the bottomline taking a hit due to challenges posed by closure of Pakistani airspace and fallout from the crash of Air India's flight AI-171 in Ahmedabad on June 12.'The quarter started on a strong note but was later shaped by significant external challenges, geopolitical tensions and airspace restrictions, leading to increased block times on certain routes and an increase in cancellations across several key air corridors,' said Elbers.'In June, as the booking, and passenger cancellations were beginning to normalise, we had a tragic (Air India) AI171 accident. This led to a caution in travel sentiment, particularly on the international side and further conflict in the Middle East region led to airspace closures from mid June, which in turn led to cancellation of over 100 flights for a period of two days,' he the consolidated net profit for the airline in the quarter declined 20.2 per cent year-on-year to ₹2,176 crore, consolidated revenue from operations rose 4.7% per cent year-on-year to ₹20,496 of June end, the airline had a fleet of 416 aircraft and as per the management the airline's carrying capacity will further increase in the Jul-Sep quarter.
The Print
a day ago
- Business
- The Print
IndiGo Q1 profit skids 20 pc to Rs 2,176 cr; sees 12 pc passenger growth
In the first quarter of the current fiscal, total income climbed 6.4 per cent to Rs 21,542.6 crore. In the year-ago period, the same stood at Rs 20,248.9 crore. InterGlobe Aviation, the parent of IndiGo which had a domestic market share of 64.5 per cent in June, posted a profit after tax of Rs 2,728.8 crore in the year-ago period. New Delhi, Jul 30 (PTI) The country's largest airline IndiGo on Wednesday reported a 20 per cent decline in profit after tax at Rs 2,176.3 crore for the June quarter as airspace curbs and overall challenging operating environment crimped its bottom line even as the carrier flew 12 per cent more passengers during the period. IndiGo CEO Pieter Elbers said the June quarter was shaped by significant external challenges that created headwinds for the entire aviation sector. 'Despite these industry wide disruptions, we reported a net profit of Rs 21,763 million with a net profit margin of around 11 per cent for the quarter ended June 2025. 'While the revenue environment saw moderation, demand for air travel held strong as we served more than 31 million passengers during the quarter, reflecting a growth of around 12 per cent on a year-over-year basis,' he said in a release. The airline's total expenses shot up 10.2 per cent to Rs 19,231.9 crore in the three months ended June even as fuel cost dropped 9.1 per cent to Rs 5,832.6 crore during the same period. 'For the quarter, our passenger ticket revenues were Rs 177,917 million, an increase of 7.8 per cent and ancillary revenues were Rs 21,534 million, an increase of 22.1 per cent compared to the same period last year,' the release said. However, yield decreased 5 per cent to Rs 4.98 and load factor dropped to 84.6 per cent in the latest June quarter. During a virtual interaction with journalists post results, Elbers said the situation with respect to grounded aircraft has improved and the Aircraft on Ground (AOG) is now in the range of '40s'. With the improvement in AOG, he said the airline has reduced some of the aircraft leases which has helped from a financial perspective. While responding to a query, Elbers said the results would have been better without the airspace curbs. There has been an impact on the results, he noted. In the wake of the India-Pakistan conflict, there are airspace restrictions and as a result, the airline has suspended flights to two destinations in Central Asia while some of the flights are taking longer time. In the second quarter of 2025-26, IndiGo expects capacity in terms of ASKs (Available Seat Kilometre) to increase by mid to high single digit as compared to the year-ago period. At the end of the June quarter, IndiGo had a fleet of 416 planes, including A320 ceos, neos, A321 neos, ATRs, A321 freighters, B777s, B737s and B787. There was a 'net decrease of 18 passenger aircraft during the quarter,' the release said. Meanwhile, IndiGo will fly 6 times per week between Mumbai and Amsterdam, and the services will be made daily from October 13. Currently, the airline operates three weekly flights from Mumbai to Amsterdam with a leased Boeing 787 aircraft from Norway's Norse Atlantic. IndiGo will get the second leased Boeing 787 plane from Norse Atlantic in September. Also, there will be four weekly services between Mumbai and Manchester from September 22 as compared to three weekly flights now. IndiGo's services to Amsterdam and Manchester commenced this month. PTI RAM ANU ANU This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
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Business Standard
a day ago
- Business
- Business Standard
Insurance premium for aircraft expected to go up, says IndiGo CEO
The insurance premium for aircraft is expected to go up as there are elements of the geopolitical situation, inflationary pressures and accidents, IndiGo CEO Pieter Elbers said on Wednesday. The country's largest airline, which is in discussions on finalising the insurance premiums, has a fleet of over 400 planes, and the fleet is expanding. During a virtual interaction post announcing the June quarter results, Elbers said the insurance premiums always follow some of the trends in the market and "we do expect them to go up and we're still finalising some of the discussion in what magnitude that would be". Without mentioning the possible quantum of increase in premiums, he said there are different elements coming together, including the entire geopolitical situation, and there are overall inflationary pressures. "And then clearly, when accidents are happening, and not only the one which happened in India, but on the global scale, insurers operate on the global scale. They look at what's happening in the industry, and then it becomes a reflection...," he said. Elbers' response was to a query on whether the Air India plane crash would be a factor that would result in a higher insurance premium for IndiGo aircraft. On June 12, Air India's Boeing 787-8 plane enroute to London Gatwick crashed into a building soon after take off from Ahmedabad, killing 260 people. It was also the first time that Boeing's best-selling 787 aircraft suffered a hull loss. On the Aircraft on Ground (AOG) situation, Elbers said the airline has turned the corner in terms of high numbers, and the number was now "in the range of 40s". IndiGo had grounded many aircraft due to issues with Pratt & Whitney engines, and at the peak, the AOG count was in the 70s. "We are in a much better shape than we were, let's say, a year ago. We do expect them to continue to decline... we have turned the corner in terms of all these high numbers," the IndiGo chief said. When asked about US President Donald Trump's decision to impose 25 per cent tariffs on Indian goods, along with a penalty from August 1, Elbers said it would be too early for him to have a clear assessment about it. "We have a lot of our elements and planes coming from Europe, so it would be too early for me to have a very clear assessment of that. Again, we have our planes coming from Europe. We need to see what is the exact consequences of that overall equation. It's too early for me to have a precise number on that," he noted. On Wednesday, IndiGo reported a 20 per cent decline in profit after tax at Rs 2,176.3 crore for the June quarter as airspace curbs and overall challenging operating environment crimped its bottom line even as the carrier flew 12 per cent more passengers during the period.
Time of India
a day ago
- Business
- Time of India
IndiGo profit falls sharply on geopolitical tension, Air India crash
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's largest airline IndiGo reported a sharp 20% fall in profit as air travel was impacted due to a conflict between India and Pakistan followed by weak travel sentiment after the crash of an Air India aircraft in airline, which has 60% share of India's domestic market, posted a profit of Rs 2,176.3 crore for the April–June period, down 20% from Rs 2,728.8 crore a year ago despite revenue being up by 4.73% at Rs 20,496.30 briefly restricting flights from 32 airports in airports on the north and western border in May amid border skirmishes with Pakistan following a terrorist attack in April.'The June quarter was shaped by significant external challenges that created headwinds for the entire aviation sector. Despite these industry wide disruptions, we reported a net profit margin of around 11% for the quarter ended June 2025,' Pieter Elbers, CEO of indigo a metric for profitability for airlines also dropped by 5% as the airline had to reduce fares to fill aircraft which dropped by a little over 2%.The airline though gave optimistic note and outlined plans for expansion. Elbers said the airline has begun long-haul services to Europe, launching flights to Amsterdam and Manchester in early July. Given strong demand, IndiGo will double its frequency to Amsterdam and add a fourth weekly flight to Manchester. A reciprocal codeshare with KLM will also expand the airline's reach across Europe.'We remain firm on our full year capacity guidance of early double digit capacity addition. While we have taken a number of proactive steps as part of our plan to align capacity with the demand, we are using the downtime to conduct structural inspections on some aircrafts and implementing fleet upgrades, ensuring the fleet is fully prepared for the seasonally strong third quarter,' Chief Financial Officer Gaurav Negi said in a post-results call with debuting on the Delhi–Mumbai route late last year, IndiGo's business class product (called Stretch) has now been extended to flights to Bangkok and will soon launch on routes to Singapore and Dubai. Elbers said the market response has been encouraging, with load factors improving the domestic front, IndiGo recently began operations from Hindon airport in Delhi and is looking to expand its network further.
