InterGlobe Aviation Limited, which operates India’s largest airline IndiGo, said changes in labour laws significantly dented its profitability in FY26, contributing to a reported net loss even as the core business remained operationally profitable.
In its earnings statement for the year ended March 2026, the airline flagged an incremental provision linked to new labour laws as an exceptional item, reflecting a reassessment of employee-related obligations in line with evolving regulations. The provision, booked in the March quarter, added to cost pressures at a time when the carrier was already grappling with sharp rupee depreciation and a volatile operating environment.
For FY26, IndiGo reported a net loss of ₹23,936 million., compared with a net profit a year earlier. However, excluding the impact of foreign exchange movements and exceptional items such as labour-law provisions, the airline posted a profit of about ₹75,025 million, underscoring the strain that regulatory and compliance-related costs placed on the reported bottom line.
“Exceptional items for the quarter ended March 2026 were INR 2,499 million, reflecting an incremental provision for new labour laws, following a reassessment in line with latest developments during the quarter,” InterGlobe Aviation said in the press statement filed before the exchange filing.
Despite the hit from labour-related provisions, the airline said it continues to maintain a strong balance sheet and liquidity position, and remains focused on cost efficiency and disciplined execution amid regulatory changes affecting the aviation sector.
