Interglobe Aviation Ltd (INDIGO) Q1 FY27 Results Analysis: PAT Swings to Loss, Fuel Ratio Jumps 15.6 ppts

Interglobe Aviation Ltd's Q1 FY27 numbers came in mixed. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 20% YoY but fuel cost surge drove a PAT swing from Rs.2,176 Cr profit to Rs.238 Cr loss. Non-fuel costs were well-controlled, but the fuel/revenue ratio jumped 15.6 ppts. The company faces uncertainty on adopting the ATF price stabilisation fund.

Key Investment Insights

Key Positives

• Revenue grew 20% YoY to Rs.24,584 Cr despite 5-7% domestic capacity cuts.
• Non-fuel cost lines (airport fees, employee benefits, finance costs) compressed as % of revenue, showing cost discipline.
• Pre-IndAS 116 EBITDA recovered to Rs.2,727 Cr from negative Rs.203 Cr in Q4 FY26.
• Consolidated loss of Rs.238 Cr was lower than standalone loss of Rs.382 Cr, indicating positive subsidiary contribution.

Risk Factors

• Fuel cost surged 85.7% YoY, pushing fuel-to-revenue from 28.5% to 44.1% — the primary cause of the loss.
• EBITDA margin compressed 1220 bps YoY to 13.3%.
• Company swung from a PAT of Rs.2,176 Cr profit to Rs.238 Cr loss, a Rs.2,414 Cr deterioration.