What Drove Indigo Performance in Q4 FY25?
Indigo Performance in Q4 FY25, reported on May 22, 2025, was exceptional, with a 58% YoY EBITDAR increase to Rs 5,461 crore, driven by a record unit passenger rate.
A 110 bps YoY load factor rise, fueled by Mahakumbh and extended wedding season, boosted the EBITDAR margin by 661 bps.
International routes grew 30% YoY, with 40% of ASK targeted for FY26.
Despite resolved aircraft grounding issues, Q1 FY26 may see lower yields due to geopolitical cancellations.
Fleet expansion added 67 aircraft, totaling 434, with plans for wide-body and XLR additions.
Trading at 7.5x FY27 EV/EBITDAR, Indigo’s strong liquidity (Rs 48,171 crore) and market leadership make it a long-term buy, though oil price risks persist.
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