InterGlobe Aviation Ltd

Regulatory Update

• Customs order confirms demand of additional customs duty on ATF imports.
• Company believes it deposited the duty correctly and will contest the order.
• Period covered: May 2024 to August 2025.
• Estimated financial impact: no significant impact.
• Penalty/fine involved: INR 3.5 crore.
• Company will contest and pursue legal remedies.
• Delay in disclosure was unintentional due to internal communication delay.

Action & ratings

• Long-term AA- and short-term A1+ ratings continue under Rating Watch Developing.
• Total bank facilities rated at Rs 9,000 crore.

Rationale & drivers

• Geopolitical conflict elevates ATF costs and forex volatility for profitability and debt metrics.
• Fuel surcharges introduced; pass-through remains monitorable due to price-sensitive demand.
• Domestic market share around 65%; Q1 FY2027 share 65.4%.
• Q1 FY2027 Ebitdar margin at 15.9%; fuel costs rose to 44% of operating income.
• Total debt Rs 81,531 crore as of 30 Jun 2026; liquidity strong with Rs 39,039 crore free cash.
• Net debt to EBITDA (ex-forex) 1.8x in FY2026; likely to ease for FY2027, remains monitorable.
• Exposure to a single aircraft family increases supplier concentration risk; ESG profile supportive.

Outlook & watch status

• Outlook under Rating Watch Developing; reassessment upon clarity on fuel, forex, and international operations.

Material changes since last rating

• Rating action unchanged; rating continues on Watch Developing.

Financial snapshot

• Q1 FY2027 operating income Rs 24,584 crore; ~20% YoY growth.
• Q1 FY2027 PLF 83.3%.
• Free cash Rs 39,039 crore; undrawn limit ~Rs 2,606 crore.
• Fleet 432 aircraft as of June 2026; order book ~900 aircraft through 2036.

InterGlobe Aviation Limited: Trading Window closed from Thursday, October 1, 2026 till 48 hours after the date of declaration of unaudited financial results for the quarter and half year ending September 30, 2026.

AGM Details

• AGM held on 20 August 2026 at 11:00 IST via video conferencing.

Resolutions Passed

• Resolution 1 (Ordinary): Adoption of standalone and consolidated financial statements; approved 99.92% assent.
• Resolution 2 (Ordinary): Appointment of Gregg Albert Saretsky as Director by rotation; approved 95.37% assent.
• Resolution 3 (Special): Increase in borrowing limits and creation of charge; approved 99.97% assent.

Director Changes

• Appointment of Gregg Albert Saretsky as Director, liable to retire by rotation.

Other Material Approvals

• Approval for increase in borrowing limits and creation of charge against borrowings.

AGM Details

• Date and time: 20 August 2026, 11:00 IST.
• Mode: conducted via video conferencing.

Regulatory update

• GST order imposes penalty of INR 19,65,736 for alleged document deficiencies in transport.
• InterGlobe disputes the order and will contest before the appropriate appellate authority.
• No significant impact expected on financials, operations, or other activities.
• Communication received on 18 August 2026 from Assistant Commissioner, State Tax, Noida.
• Period of applicability noted as August 2026.

CEO appointment and growth plan

• Willie Walsh assumed charge as IndiGo's Chief Executive Officer on August 3, 2026.
• Appointment announced in March 2026.
• Walsh to drive global growth and expanded network.
• IndiGo operates 430+ aircraft with ~2,200 daily flights.
• Serves 95 domestic and 40 international destinations; FY26 customers 123 million.

Operational update

• IndiGo will discontinue wide-body operations effective 25 October 2026.
• Damp lease with Norse Atlantic Airways will end effective 31 October 2026.
• Mumbai–Amsterdam service will transition to Airbus A321XLR from 25 October 2026.
• London Heathrow services will be temporarily suspended until A350-900 deliveries.

Strategic context

• Geopolitical tensions have raised costs; airspace constraints, fuel costs, and currency pressures reduce route efficiency.
• Six Boeing 787-9 aircraft were damp-leased in early 2025 to support long-haul services.
• IndiGo reaffirms long-term long-haul growth strategy and European network expansion via A321XLR.
• IndiGo will work with affected customers to offer alternatives and refunds, ensuring a smooth transition.

AGM details

• 23rd AGM on 20 August 2026 at 11:00 IST via VC/OAVM
• e-voting cut-off date: 13 August 2026

Resolutions put to vote

• Ordinary: Adoption of standalone and consolidated FY2026 financial statements
• Ordinary: Appointment of Mr Gregg Saretsky as Director, retiring by rotation
• Special: Increase borrowing limit to INR 1,100 billion; create charges; Board/Committee delegation

Governance and director details

• Annex: Saretsky re-appointment details; board attendance 20 meetings; tenure