InterGlobe Aviation, which operates India's largest airline IndiGo, is expected to report a double-digit decline on a year-on-year basis in net profit for first quarter of FY2025 due to higher operating costs and slower revenue growth.

In Q1 FY2024, the company had registered its highest-ever quarterly revenue (₹17,160 crore) and net profit (₹3,090 crore. Growth in the first quarter of last fiscal was supported by a low base of pandemic-impacted FY23 and the grounding of Go First airline in May.

With triggers absent, the airline is expected to see slower revenue growth in Q1 FY2025 on a year on year basis.

While revenue from operations had increased 29.1 per cent in Q1 FY24 on a year-on-year basis, the airline had also benefited from a 22.5 per cent decline in fuel costs.

Brokerages estimate the airline's net profit to decline by 28-49 per cent in Q1 FY2025 on a year-on-year basis. While Elara Securities estimates adjusted net profit to decline by 28.2 per cent to ₹21,35 crore, Motilal Oswal expects a 49.1 per cent decline to ₹1,570 crore. Emkay Global Financial Services pegs the airline's net profit at ₹1,682 crore, a 45 per cent decline owing to higher employee expenses and lease costs.

"We expect IndiGo to report a load factor of 87.3 per cent with a yield of ₹5.3 (up 2.5 per cent year on year). IndiGo is expected to report revenue of ₹18,500 crore (up 10 per cent year on year) with an EBITDAR margin of 26.4 per cent (adjusted for forex impact)," brokerage Prabhudas Lilladher said in its Q1 preview. EBIDTAR refers to earning before interest tax depreciation amortisation and rentals.

"Outlook of Pratt & Whitney engine-fitted aircraft is a key monitorable," Motilal Oswal said in its results preview.

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