InterGlobe Aviation Limited (IndiGo)

Strategic Capital Infusion of ₹7,294 Crore in Wholly Owned Subsidiary (IndiGo IFSC) Date: November 21, 2025 Executive Summary The Board of Directors of InterGlobe Aviation Limited has approved a significant capital investment of ₹7,294 crore into its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited ("IndiGo IFSC"). This capital allocation, scheduled for deployment in tranches during FY 2025-26, represents a strategic pivot towards asset ownership to optimize long-term operational costs. Transaction Structure The investment will be executed through a combination of instruments: Equity Shares: ₹6,849.2 crore Preference Shares: ₹444.8 crore (0.01% Non-Cumulative Optionally Convertible Redeemable Preference Shares) Strategic Rationale: Shift to Asset Ownership The primary utilization of these funds will be the acquisition of aviation assets. This move underscores IndiGo's strategy to transition from a model heavily reliant on operating leases to one that prioritizes direct ownership of aircraft and engines. By capitalizing its IFSC unit, the company aims to: Reduce exposure to volatile operating lease markets. Retain asset value within the group. Leverage the financial efficiencies offered by the GIFT City IFSC framework. Subsidiary Profile: IndiGo IFSC Incorporated in October 2023, IndiGo IFSC is engaged in aircraft and engine leasing services. The unit has demonstrated rapid operational scaling: FY25 Turnover: ₹289.9 crore FY25 Net Profit: ₹11.1 crore Net Worth (as of March 31, 2025): ₹413 crore Financial Context & Performance This investment decision follows the Q2 FY26 earnings report. While the company faced near-term headwinds with a reported net loss of ₹2,582 crore for the quarter ended September 2025, the core operational metrics remain robust: Revenue: ₹18,555 crore (+9.3% YoY) EBITDA: ₹3,472 crore (+85% YoY) EBITDA Margin: Expanded to 18.7% (up from 11% in the previous year)