IndiGo shares in focus ahead of Q2 results today

Shares of aviation major IndiGo will be in focus today as the company will announce its second quarter results on Friday. The airline is likely to report subdued numbers with the company likely slipping back into the losses in the second quarter ended September 2024.

While Kotak Equities and Motilal Oswal peg the loss for the company anywhere between Rs 236 and Rs 680 crore, Nuvama is expecting the budget airline to report a PAT of around Rs 107 crore.

IndiGo had reported a net profit of Rs 189 crore in the September quarter of last year and a profit of Rs 2728 crore in the preceding June quarter.


Net sales, meanwhile, are seen rising 5% year-on-year during the second quarter under review, according to an average estimate of four brokerages.

Kotak Equities expects a 8% YoY change in passenger count in the quarter and lower YoY load factor at 83%. It sess RASK less CASK (excludes other income and forex) at loss of Rs 0.26 per ASK, against loss of Rs 0.1 per ASK in 2QFY24.

The difference is based on lower fuel spreads (crude was falling through the base quarter), and continuation of large part of cost pressures seen in 4Q (P&W issues, employee cost).

Meanwhile, Nuvama is estimating EBITDAR to rise by 35% YoY due to continued compensation from OEM for breach of contractual obligations, marginally higher ASKMs, RPKMs, yields and lower CASK.

Investors could watch out for outlook on P&W engine-fitted aircraft (being grounded in FY25). Further, the commentary on impending competition would be keenly monitored.

"International expansion is the focus area for the management with the addition of new networks and code share agreements," said Motilal Oswal

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