Interglobe Aviation Q1 Results Preview: Indigos Pat is likely to fall despite a revenue growth of up to 9%. This is why

Interglobe Aviation, which operates budget airline Indigo, will announce its Q1 income on Wednesday 30 July, where the company is expected to report a decrease in profitability in Q1FY26 according to estimates of leading brokers.

Although the income is expected to grow modestly on Jojbasis, higher base, weaker loading factors and stable-to-soft yields will probably drag Pat and Ebitdar down at a quarter-over quartal base.

The market will keep a close eye on the commentary of management on the thorough Pratt & Whitney (P&W) motor aircraft and international expansion strategies.

The estimates of Nuvama Institutional Shares, Motilal Oswal Financial Services (MOFSL) and JM Financial have been taken into account. This is what they have recommended:

To chatter

Nuvama: RS 2,773 Crore, an increase of 2% JOJ and a decrease of 10% QoQ

Motilal Oswal: RS 2,380 crore, a decrease of 12% Joykotak Shares: RS 2,173 crore, a decrease of 20.4% JoJ and a decrease 29.2% QOQ JM Financial: RS 2,513 crore, a decrease of 7.9% yoj and down 18.1% qoq

All brokers provided a successive decrease in profit, with reference to weak tax factors, press yields and increased operating costs.

Gain

Nuvama: RS 21,024 Crore JoJ, an increase of 7% yoj and a decrease of 5% QOQ

Motilal Oswal: RS 21,350 Crore, an increase of 9.1% yoj

Kotak -shares: RS 21,267 Crore, an increase of 8.7% yoj and a decrease of 4% QoQ

JM Financial: RS 20,947 Crore, an increase of 7% JOJ and a decrease of 5.4% QoQ

EBITDAR / EBITDA

Nuvama: EBITDAR Seen at RS 6,434 Crore with 11% JoJ and a decrease of 7% QOQ

Motilal Oswal: EBITDAR is linked to RS 6.140 Crore

Kotak shares: EBITDA expects on RS 5,244 Crore, an increase of 1.6% yoj and a decrease of 13.9% QoQ

JM Financial: EBITDA from RS 5,420 Crore expected, an increase of 5.1% yoj and decrease 11% qoq

The growth of the EBITDA/EBITDAR is expected to delay the QoQ despite the lower fuel vessel, because the transmission efficiency softened and loading factor from the previous quarters.

EBITDAR stands for income before interest, taxes, depreciation, amortization and rent (or restructuring) costs.

Ebbda / Ebdar Marin

While Motilal Oswal expects the eBitdar -margin at 28.8% versus 29.5% in the period of the year ago, Kotak Equities has estimated the EBITDAR -MARGE at 24.7%, purchased with 171 BPS YOY and 284 BPS QoQ).

Main monitorables

The brokers have proposed to monitor updates on Indigo’s grounded aircraft, together with clarity about P&W motor issues and their impact on fleet capacity.

Kotak keeps his watch on the yield trend and loading factor because the average rates remain flat. Updates about new routes, code shares agreements and market share profits in worldwide activities are important monitorables for MOFSL.

(Disclaimer: recommendations, suggestions, views and opinions of experts are their own. These do not represent the views of economic times)