IndiGo’s parent company, InterGlobe Aviation Limited, has approved a massive ₹7,294 crore investment into its fully owned subsidiary, InterGlobe Aviation Financial Services IFSC (IndiGo IFSC). This strategic funding will be infused in multiple tranches during FY 2025–26, combining ₹6,849.2 crore in equity shares and ₹444.8 crore through 0.01% optionally convertible redeemable preference shares.
The primary goal of this investment is to help IndiGo transition from a lease-heavy model to an ownership model by enabling IndiGo IFSC to directly acquire aircraft and aviation assets. This shift is expected to reduce long-term leasing costs, strengthen financial stability, and enhance operational flexibility.
IndiGo IFSC, incorporated in October 2023, is involved in aircraft and engine leasing services. In FY25, it posted a turnover of ₹289.9 crore and a net profit of ₹11.1 crore, showing steady growth.
Interestingly, this investment announcement comes shortly after InterGlobe Aviation reported a net loss of ₹2,582 crore in Q2 FY26, despite a 9.3% YoY revenue increase to ₹18,555 crore. However, the company's EBITDA surged 85% YoY, indicating improving operational efficiency.
As of 11:30 AM today, IndiGo’s stock traded at ₹5,813, up 0.48%, reflecting positive sentiment around the investment plan.
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