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INDIGO Key Financial Ratios

NSE:INDIGO | AIRLINES

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Profitability Margins

2-year trend showing gross, operating, and net profit margins

FY 2024 - FY 2025

INDIGO's net profit margin of 8.6% in FY2025 reflects thin profitability, with operating margin at 15.1% and gross margin at 44.6%.

Understanding Profitability Margins

In FY 2025, INDIGO posted a gross margin of 44.6%, an operating margin of 15.1%, a net margin of 8.6%. Gross Margin = (Revenue - COGS) / Revenue; Operating Margin = EBIT / Revenue; Net Margin = Net Income / Revenue. Typical healthy ranges: Gross 20-40%, Operating 10-20%, Net 5-10%+. Consistent or improving margins indicate strong competitive positioning.

Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2024 - FY 2025

INDIGO's revenue grew 18.1% to 840.98B in FY2025, but net profit declined 11.2% to 72.58B — indicating margin compression.

Understanding Company Performance

In FY 2025, INDIGO's revenue grew by 18.1% year-over-year. Revenue is total income from operations. Gross Profit is revenue minus cost of goods. Net Profit is the bottom line after all expenses. Consistent growth across all three signals a healthy, expanding business.

Return on Equity (ROE)

2-year trend showing shareholder returns

FY 2024 - FY 2025

INDIGO's ROE of 77.5% in FY2025 indicates excellent capital efficiency.

Understanding Return on Equity (ROE)

In FY 2025, INDIGO reported an ROE of 77.5%. ROE = (Net Income / Shareholders' Equity) x 100. Measures how efficiently the company turns equity into profit. Above 15% is generally strong; above 25% is excellent. Very high ROE may signal high leverage — check alongside debt levels.

Net Income vs Free Cash Flow

2-year trend comparing profitability with cash generation

FY 2024 - FY 2025

INDIGO's FCF/NI ratio of 3.11x in FY2025 indicates high-quality, cash-backed earnings.

Understanding Net Income vs Free Cash Flow

In FY 2025, INDIGO's free cash flow exceeded net income. Free Cash Flow = Operating Cash Flow - Capital Expenditure. When FCF exceeds net income, it suggests high-quality, cash-backed earnings. Persistent gaps may indicate aggressive accounting or heavy capex needs.

Net Income vs Operating Cash Flow

2-year trend comparing profitability with cash from operations

FY 2024 - FY 2025

INDIGO's OCF/NI ratio of 3.33x in FY2025 indicates strong cash collection and working capital efficiency.

Understanding Net Income vs Operating Cash Flow

In FY 2025, INDIGO's operating cash flow exceeded net income. Operating Cash Flow is the actual cash from core operations. OCF exceeding net income signals strong cash collection. OCF trailing net income may indicate aggressive revenue recognition or working capital issues.

Leverage Ratios

Measure a company's financial leverage, liquidity, and ability to meet financial obligations.

Current Ratio Analysis

2-year trend showing short-term liquidity position

FY 2024 - FY 2025

INDIGO's current ratio of 1.48x in FY2025 indicates healthy short-term liquidity.

Understanding Current Ratio

In FY 2025, INDIGO reported a current ratio of 1.48. Current Ratio = Current Assets / Current Liabilities. Measures short-term liquidity. A ratio of 1.5-3.0 is generally healthy; below 1.0 signals liquidity risk; above 3.0 may indicate underutilized assets.

Interest Coverage Ratio Analysis

2-year trend showing ability to service debt

FY 2024 - FY 2025

INDIGO's interest coverage ratio of 2.5x in FY2025 indicates acceptable but limited debt servicing headroom.

Understanding Interest Coverage Ratio

In FY 2025, INDIGO reported an interest coverage ratio of 2.5x. Interest Coverage = EBIT / Interest Expense. Shows how many times operating profit covers interest payments. Above 5x is comfortable; below 1.5x signals potential difficulty servicing debt.

Debt-to-Equity Ratio Analysis

2-year trend showing financial leverage and capital structure

FY 2024 - FY 2025

INDIGO's debt-to-equity ratio of 7.13x in FY2025 reflects high leverage demanding close monitoring.

Understanding Debt-to-Equity Ratio

In FY 2025, INDIGO reported a debt-to-equity ratio of 7.13. Debt-to-Equity = Total Debt / Total Equity. Below 1.0 is conservative; 1.0-2.0 is moderate; above 2.0 indicates higher financial risk. Capital-intensive industries naturally carry higher ratios.

Total Debt Analysis

2-year trend showing total debt with year-over-year changes

FY 2024 - FY 2025

INDIGO's debt increased 30.3% YoY in FY2025 — rising leverage demands close monitoring.

Understanding Total Debt

In FY 2025, INDIGO's total debt increased by 30.3% year-over-year. Total Debt includes short-term debt, long-term loans, debentures, and capital leases. YoY changes (shown as percentages) reveal whether the company is leveraging up or deleveraging.

Shares Outstanding

Year-over-year change in diluted shares outstanding

INDIGO's diluted shares increased 0.1% YoY in FY2025 — share dilution.

Over 2 years (FY2024–FY2025), diluted shares increased 0.1% from 386.21M to 386.76M, indicating cumulative dilution.

Understanding Shares Outstanding

In FY 2025, INDIGO's diluted shares increased by 0.1% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2025