Business

IndiGo Co-Founder Rakesh Gangwal Sells 5.8% Stake Worth Rs 11,928 Crore

Interglobe Aviation, the operator of IndiGo Airlines, saw its shares slip nearly 3% on Tuesday after co-founder Rakesh Gangwal sold 2.26 crore shares in a block deal valued at approximately Rs 11,928 crore.

The sale represented 5.8% of Gangwal’s stake in the airline. Though he resigned from the InterGlobe Aviation board in 2022, Gangwal remains one of IndiGo’s largest shareholders.

Reports indicate the floor price for the transaction was set at Rs 5,260 per share, about 3% lower than the stock’s previous closing price.

Despite the initial dip, the share price recovered partially and was trading at Rs 5,318, down 1.88%, by 11 AM.

Strong Q4 Financial Performance Of IndiGo Boosts Confidence

IndiGo posted impressive financial results for the January-March quarter (Q4 FY25), reporting a 61.89% year-on-year increase in consolidated net profit to Rs 3,067.5 crore, up from Rs 1,894.8 crore in Q4 FY24.

Excluding foreign exchange impacts, net profit rose 44.7% to Rs 2,981.1 crore, compared to Rs 2,060 crore in the same quarter last year.

The airline’s revenue from operations surged 24.3% to Rs 22,151.9 crore, up from Rs 17,825.3 crore in the corresponding period last fiscal.

Operational Metrics Of IndiGo Show Positive Growth

IndiGo’s EBITDAR (earnings before interest, taxes, depreciation, amortisation, and rent) increased sharply by 57.5% to Rs 6,948.2 crore.

The EBITDAR margin improved to 31.4%, compared to 24.8% in Q4 FY24.

The airline expanded its capacity by 21% and carried 19.6% more passengers during the quarter, serving 3.19 crore travellers.

The load factor, an important measure of seat occupancy, also rose slightly to 87.4% from 86.3% in the previous year’s quarter.

Also Read: India’s PC Market Grows For Seventh Straight Quarter, AI-Powered Laptops Surge 185%

Purnima Mishra

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