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InterGlobe Aviation Limited — Capital/Financing Update 2025
Dec 10, 2025
61901_rns_2025-12-10_2427c043-f98d-4d30-af34-6d7f027e555d.pdf
Capital/Financing Update
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December 10, 2025
IGAL/SECT/12-25/20
To To National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, C - 1, Block G BSE Limited Bandra Kurla Complex Phiroze Jeejeebhoy Towers Bandra - (E) Dalal Street Mumbai - 400 051 Mumbai - 400 001 Symbol: INDIGO Scrip Code: 539448
Symbol: INDIGO
Subject: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure “ ” – Requirements) Regulations, 2015 ( SEBI Regulations ) Credit Rating
Dear Sir/ Madam,
This is to inform you that ICRA Limited (“ICRA”), vide its letter dated December 10, 2025 has released an update on material event pertaining to the Company.
A copy of the update as published by ICRA is attached as Annexure.
We request you to please take the same on record.
For InterGlobe Aviation Limited
Digitally signed by: NEERJA SHARMA NEERJA DN: CN = NEERJA SHARMA C = IN O = Personal Date: 2025.12.10 17:30:46 + SHARMA 05'30' Neerja Sharma Company Secretary and Chief Compliance Officer
Encl: a/a
InterGlobe Aviation Limited
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Registered Office: Upper Ground Floor, Thapar House, Gate No. 2, Western Wing, 124 Janpath, New Delhi – 110 001, India. M +91 9650098905, F + 91 11 43513200 Email: [email protected] Corporate Office: Emaar Capital Tower-II, Sector-26, Sikanderpur Ghosi, MG Road, Gurugram-122002, Haryana, India. T +91 124 435 2500. CIN no.: L62100DL2004PLC129768
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December 10, 2025
InterGlobe Aviation Limited: Update on Material Event
Summary of rating action
| Instrument* | Previous Rated Amount (Rs. crore) |
Current Rated Amount (Rs. crore) |
Rating outstanding |
|---|---|---|---|
| Short Term Fund Based Limits- Overdraft | 4,351.50 | 4,351.50 | [ICRA]A1+ |
| Short Term Non-Fund Based Limits – Letter of Credit | 312.50 |
312.50 | [ICRA]A1+ |
| Long-Term Non-Fund Based- bank guarantee | 987.50 | 987.50 | [ICRA]AA (Stable) |
| Long Term/Short Term Non-Fund Based Limits – Standby Letter of Credit |
3,162.88 | 3,162.88 | [ICRA]AA (Stable)/ [ICRA]A1+ |
| Short Term - Interchangeable (LC) | (150.00) | (150.00) | [ICRA]A1+ |
| Long Term - Interchangeable (BG) | (773.38) | (773.38) | [ICRA]AA (Stable) |
| Short-Term - Interchangeable (Purchase Invoice financing) |
(500.00) | (500.00) | [ICRA]A1+ |
| Long-term- Unallocated | 185.62 | 185.62 | [ICRA]AA (Stable) |
| Total Bank Line Facilities | 9,000.00 | 9,000.00 | |
| Issuer Rating | NA | NA | [ICRA]AA (Stable) |
*Instrument details are provided in Annexure-I
Rationale
Material Event
InterGlobe Aviation Limited (IndiGo) faced severe disruptions to its operations last week[1] , resulting in widespread flight delays and cancellations. IndiGo performed a network reboot leading to the flight cancellations peaking on December 5, 2025, when around 1,600 flights were cancelled, representing around 70% of the total daily flights. The disruption stemmed from multiple factors, the most significant being the implementation of Phase II of the Flight Duty Time Limitation (FDTL)[2] norms primarily related to introduction of stricter night-duty definitions and limiting the landings post night-duty effective November 1, 2025, which evidently challenged IndiGo’s ability to maintain the integrity of its daily flight schedules. Additional challenges such as winter schedule enhancements, air traffic congestion, technical snags, and adverse weather conditions on some routes brought together the conditions for a perfect proverbial storm. IndiGo, long regarded for its operational efficiency, experienced the tail risks associated with running on thin operational buffers in a sector that has among the most complex and interdependent value chains.
1 IndiGo through a press release dated December 3, 2025, had acknowledged a material disruption to its network, resulting in widespread flight delays and cancellations.
2 The FDTL norms pertain to the implementation of the revised night definition (expanded from 00:00–05:00 am to 00:00–06:00 am, making early-morning flights count as night duty), night landings (reduced from 6 to 2 per duty period in select time slices), weekly rest for pilots, among other prescriptive rules aimed at reducing pilot fatigue and enhancing air travel safety.
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Impact of Material Event
ICRA notes that IndiGo was the worst affected by the revised FDTL norms, given its high aircraft utilisation and extensive nighttime operations, which meant limited operational buffers compared with peers. This stretched IndiGo’s ability to implement the new rules on night duty caps and pilot rest. While IndiGo’s lean cost structure has historically been a differentiator in a competitive market, the scale of disruption highlights gaps in resource planning.
For now, the Directorate General of Civil Aviation (DGCA) has granted temporary relief to IndiGo on compliance with the new norms related to night-duty (implemented in Phase II) until February 10, 2026, which should support near-term recovery. IndiGo, on its part, rebooted the network, systems, and rosters so that it could start afresh with higher number of flights and improved stability. This has enabled IndiGo to gradually progress towards achieving normalcy in operations over the coming week, while bearing a heavy financial and reputational cost in the interim.
IndiGo’s near-term financial performance is expected to be significantly impacted due to revenue loss from cancellations, refunds, higher operating costs to compensate affected passengers, and potential penalties following an ongoing regulatory inquiry. The reputational impact following the inconvenience caused to a large number of travelers, and the ensuing regulatory and media attention, is an area of concern, and the company’s ability to restore brand loyalty will be critical. While this episode has impacted IndiGo’s brand for now, it may not necessarily have a lasting impact. IndiGo offers competitively priced services and has a long and consistent record of providing reliable services across its large network. As its operations recover, these factors will outweigh the potential for sustained defection of travelers to other airlines. Importantly, IndiGo holds a commanding position in the Indian aviation market, with about 65% share in domestic passenger traffic, putting scale and statistics in its favour that will tend to make it the default choice for a large proportion of travelers.
Nevertheless, profitability for the current fiscal will remain under pressure, not only from operational disruptions but also from the depreciation of the Indian Rupee against the US Dollar. IndiGo’s financial leverage (Net debt, including lease liabilities, minus free cash/ EBITDAR) in FY2026 is likely to breach ICRA’s negative trigger of 2.5x. However, in its base case, ICRA does not expect the breach to persist in the next fiscal, implying that the medium-term credit impact of this event should be largely manageable. ICRA continues to take comfort from the company’s dominant market share in the Indian aviation industry, strong growth prospects supported by low air travel penetration in India, and the company’s strong balance sheet characterised by a healthy liquidity profile, marked by unencumbered cash and equivalents of around Rs. 38,500 crore as on September 30, 2025. The large liquidity buffers give IndiGo significant cushion to bear the near-term earnings pressure as well as meet its investment requirements, without raising new debt.
ICRA will continue to monitor developments related to:
-
The pace at which IndiGo’s operational metrics revert to the prior levels
-
The cost implications of implementing the new regulatory norms, which could increase pilot hiring expenses when no other efficiency levers are deployed
-
The ability to pass on these incremental costs to travelers
-
Continuity of senior leadership in the context of the show cause notices issued by the DGCA to IndiGo's Chief Executive Officer and Chief Operating Officer
Please refer to the following link for the previous detailed rationale that captures Key rating drivers and their description, Liquidity position, Rating sensitivities: Click here
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Analytical approach
| Analytical Approach | Comments |
|---|---|
| Applicable rating methodologies | Corporate Credit Rating Methodology |
| Parent/Group support | Not applicable |
| Consolidation/Standalone | The rating is based on the consolidated financial statements of the company; details are enlisted in Annexure II |
About the company
IAL is the operating company for IndiGo, India’s largest passenger airline in terms of domestic market share. The airline operates on a Low-Cost Carrier (LCC) business model, offering no-frills air-commute to passengers both in the domestic as well as international sectors. At present, the company commands nearly 63% of the domestic market in terms of passengers carried. It commenced operations in August 2006 with a single aircraft, and as on March 31, 2025, had a fleet of 434 aircraft (owned/finance lease- 62, operating lease- 345, damp lease-27). The airline is operating 2,300+ daily flights. The fleet comprises 40 Airbus A320 CEOs, 195 Airbus A320 NEOs, 135 Airbus A321 NEOs, 48 ATRs, 3 A321 freighters, 3 B777 (damp lease), 9 B737 (damp lease) and 1 B 787 (damp lease). As of March 2025, these connected 91 domestic and 40 international destinations.
Promoted by Mr. Rahul Bhatia, the company was originally incorporated in January 2004 as a private limited company and converted into a public limited company in June 2006 as InterGlobe Aviation Limited. Subsequently, IndiGo proceeded with its Initial Public Offering in FY2016, wherein its shares were listed on the BSE and the NSE. IndiGo is the key investee company of InterGlobe Group, which has diverse business interests across aviation, hospitality, real estate, travel commerce, airline management, pilot training, aircraft maintenance and IT&BPO spaces. As of March 31, 2025, it was owned 35.7% by InterGlobe Enterprises, 13.5% by Mr. Rakesh Gangwal/family trust and the remaining 50.7% by public (institutions and individuals).
Key financial indicators (audited)
| Consolidated | FY2024 | FY2025 |
|---|---|---|
| Operating income | 68,904 | 80,803 |
| PAT | 8,172 | 7,258 |
| OPBDIT/OI | 24% | 22% |
| PAT/OI | 12% | 9% |
| Total outside liabilities/Tangible net worth (times) | 40.0 | 11.3 |
| Total debt/OPBDIT (times)# | 3.1 | 3.7 |
| Net debt/EBITDAR** | 1.7 | 1.6 |
| Interest coverage (times) | 3.9 | 3.5 |
Source: Company, ICRA Research; All ratios as per ICRA’s calculations; Amount in Rs. crore PAT: Profit after tax; OPBDIT: Operating profit before depreciation, interest, taxes and amortisation
#debt includes operating lease liabilities; **Net debt = (total debt- free cash)
Status of non-cooperation with previous CRA: Not applicable
Any other information: None
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Rating history for past three years
| Current rating (FY2026) Chronology of rating history for the past 3 years |
Current rating (FY2026) Chronology of rating history for the past 3 years |
|---|---|
| FY2026 FY2025 FY2024 FY2023 |
|
| Instrument Type Amount rated (Rs crore) Dec 10, 2025 |
Date Rating Date Rating Date Rating Date Rating |
| Fund Based Limits- Overdraf Short Term 4,351.50 [ICRA]A1+ |
Jul 25, 2025 [ICRA]A1+ Jul 26, 2024 [ICRA]A1+ Jul 28, 2023 [ICRA]A1+ Apr 04, 2022 [ICRA]A1 |
| - - - - Nov 20, 2023 [ICRA]A1+ Mar 20, 2023 [ICRA]A1 |
|
| Non-Fund Based Limits – Leter of Credit Short Term 312.50 [ICRA]A1+ |
Jul 25, 2025 [ICRA]A1+ Jul 26, 2024 [ICRA]A1+ Jul 28, 2023 [ICRA]A1+ Apr 04, 2022 [ICRA]A1 |
| - - - - Nov 20, 2023 [ICRA]A1+ Mar 20, 2023 [ICRA]A1 |
|
| Non-Fund Based-bank guarantee Long Term 987.50 [ICRA]AA (Stable) |
Jul 25, 2025 [ICRA]AA (Stable) Jul 26, 2024 [ICRA]AA- (Stable) Jul 28, 2023 [ICRA]A+ (Stable) Apr 04, 2022 [ICRA]A (Negatve) |
| - - - - Nov 20, 2023 [ICRA]A+ (Stable) Mar 20, 2023 [ICRA]A (Stable) |
|
| Non-Fund Based Limits – Standby Leter of Credit Long Tem/ Short Term 3,162.88 [ICRA]AA (Stable)/ [ICRA]A1+ |
Jul 25, 2025 [ICRA]AA (Stable)/ [ICRA]A1+ Jul 26, 2024 [ICRA]AA- (Stable)/ [ICRA]A1+ Jul 28, 2023 [ICRA]A+ (Stable)/ [ICRA]A1+ Apr 04, 2022 [ICRA]A (Negatve)/ [ICRA]A1 |
| - - - - Nov 20, 2023 [ICRA]A+ (Stable)/ [ICRA]A1+ Mar 20, 2023 [ICRA]A (Stable)/ [ICRA]A1 |
|
| Interchangeable (LC) Short Term (150.00) [ICRA]A1+ |
Jul 25, 2025 [ICRA]A1+ Jul 26, 2024 [ICRA]A1+ Jul 28, 2023 [ICRA]A1+ Apr 04, 2022 [ICRA]A1 |
| - - - - Nov 20, 2023 [ICRA]A1+ Mar 20, 2023 [ICRA]A1 |
|
| Interchangeable (BG) Long Term (773.38) [ICRA]AA (Stable) |
Jul 25, 2025 [ICRA]AA (Stable) Jul 26, 2024 [ICRA]AA- (Stable) Jul 28, 2023 [ICRA]A+ (Stable) Apr 04, 2022 [ICRA]A (Negatve) |
| - - - - Nov 20, 2023 [ICRA]A+ (Stable) Mar 20, 2023 [ICRA]A (Stable) |
|
| Interchangeable (Purchase Invoice fnancing) Short Term (500.00) [ICRA]A1+ |
Jul 25, 2025 [ICRA]A1+ Jul 26, 2024 [ICRA]A1+ Jul 28, 2023 [ICRA]A1+ Apr 04, 2022 [ICRA]A1 |
| - - - - Nov 20, 2023 [ICRA]A1+ Mar 20, 2023 [ICRA]A1 |
|
| Unallocated limits Long Term 185.62 [ICRA]AA (Stable) |
Jul 25, 2025 [ICRA]AA (Stable) Jul 26, 2024 [ICRA]AA- (Stable) Jul 28, 2023 [ICRA]A+ (Stable) Apr 04, 2022 [ICRA]A (Negatve) |
| - - - - Nov 20, 2023 [ICRA]A+ (Stable) Mar 20, 2023 [ICRA]A (Stable) |
|
| Issuer ratng Long Term - [ICRA]AA (Stable) |
Jul 25, 2025 [ICRA]AA (Stable) Jul 26, 2024 [ICRA]AA- (Stable) Jul 28, 2023 [ICRA]A+ (Stable) Apr 04, 2022 [ICRA]A (Negatve) |
| - - - - Nov 20, 2023 [ICRA]A+ (Stable) Mar 20, 2023 [ICRA]A (Stable) |
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Complexity level of the rated instruments
| Instrument | Complexity Indicator |
|---|---|
| Short Term Fund Based Limits- Overdraft/ WCDL/ FCDL/STL | Simple |
| Short Term Non-Fund Based Limits – Letter of Credit | Very simple |
| Long-Term Non-Fund Based – Bank Guarantee | Very Simple |
| Long Term/Short Term Non-Fund Based Limits - Standby Letter of Credit | Simple |
| Short-Term Interchangeable limits (Fund/Non-Fund based) | Very Simple |
| Long Term Non-Fund Based Sub-Limits (interchangeable limits) | Very simple |
| Long-term- Unallocated | Not applicable |
| Issuer Rating | Not applicable |
The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated. It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's credit rating. It also does not indicate the complexity associated with analysing an entity's financial, business, industry risks or complexity related to the structural, transactional or legal aspects. Details on the complexity levels of the instruments are available on ICRA’s website: Click Here
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Annexure I: Instrument details
| ISIN | Instrument Name | Date of Issuance |
Coupon Rate |
Maturity |
Amount Rated (Rs. crore) |
Current Rating and Outlook |
|---|---|---|---|---|---|---|
| NA | Short Term Fund Based Limits- Overdraft | Multiple |
- | - | 4,351.50 | [ICRA]A1+ |
| NA | Short Term Non-Fund Based Limits – | |||||
| Letter of Credit | Multiple | - | - | 312.50 | [ICRA]A1+ | |
| NA | Long-Term Non-Fund Based- bank guarantee |
Multiple | - | - | 987.50 | [ICRA]AA (Stable) |
| NA | Long Term/Short Term Non-Fund Based Limits-SBLC |
Multiple | - | - | 3,162.88 | [ICRA]AA (Stable) / [ICRA]A1+ |
| NA | Short-Term Non-Fund Based (interchangeable-Limits) - LC |
Multiple | - | - | (150.00) | [ICRA]A1+ |
| NA | Long-Term Non-Fund Based (interchangeable-Limits) - BG |
Multiple | - | - | (773.38) | [ICRA]AA (Stable) |
| NA | Short Term Fund Based (interchangeable limits) |
Multiple | - | - | (500.00) | [ICRA]A1+ |
| NA | Unallocated limits | - | - | - | 185.62 | [ICRA]AA (Stable) |
| NA | Issuer Rating | - | - | - | - | [ICRA]AA (Stable) |
Source: Company
- Please click here to view details of lender wise facilities rated by ICRA
Annexure II: List of entities considered for consolidated analysis
| Company Name | IAL Ownership | Consolidation Approach |
|---|---|---|
| 100.00% | ||
| InterGlobe Aviation Limited | (Rated entity) | - |
| Agile Airport Services Private Limited | 100.00% | Full Consolidation |
| InterGlobe Aviation Financial Services IFSC Private Limited | 100.00% | Full Consolidation |
| InterGlobe Aviation Ventures LLP | 100.00% | Full Consolidation |
Source: Company; annual report
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ANALYST CONTACTS
Jitin Makkar +91 124 4545 368
Srikumar Krishnamurthy +91 44 4596 4318 [email protected]
Rohan Kanwar Gupta +91 124 4545 808 [email protected]
Astha Bansal +91 124 4545 342 [email protected]
RELATIONSHIP CONTACT
L. Shivakumar
+91 22 6114 3406 [email protected]
MEDIA AND PUBLIC RELATIONS CONTACT
Ms. Naznin Prodhani
Tel: +91 124 4545 860 [email protected]
HELPLINE FOR BUSINESS QUERIES
+91-9354738909 (open Monday to Friday, from 9:30 am to 6 pm)
ABOUT ICRA LIMITED
ICRA Limited was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency.
Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange. The international Credit Rating Agency Moody’s Investors Service is ICRA’s largest shareholder.
For more information, visit www.icra.in
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ICRA Limited
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Registered Office
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Branches
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© Copyright, 2025 ICRA Limited. All Rights Reserved.
Contents may be used freely with due acknowledgement to ICRA.
ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance, which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA’s current opinion on the relative capability of the issuer concerned to timely service debts and obligations, with reference to the instrument rated. Please visit our website www.icra.in or contact any ICRA office for the latest information on ICRA ratings outstanding. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable, including the rated issuer. ICRA however has not conducted any audit of the rated issuer or of the information provided by it. While reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. Also, ICRA or any of its group companies may have provided services other than rating to the issuer rated. All information contained herein must be construed solely as statements of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents.
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