IndiGo Trims Loss, But Turbulence Continues

IndiGo’s Loss Narrows, Masks Wider Trouble For Indian Airlines

By Pritha Pahari

IndiGo parent InterGlobe Aviation reported a smaller second-quarter loss on Thursday as India’s largest airline raised fares and fuel charges to offset higher operating costs.

The airline posted a loss of Rs 2,055 crore in the quarter ended September 30, compared with Rs 2,614 crore in the same period last year, according to Reuters.

What?

IndiGo’s revenue rose 26% year-on-year to Rs 23,364 crore, while expenses increased 19.2% to Rs 26,357 crore. Aircraft fuel accounted for 37.8% of total expenses, highlighting the pressure from higher fuel prices.

The airline increased fuel charges on domestic and international routes in October, following a similar move in April. It has also said it would evaluate fuel price hedging, although it has yet to announce a formal programme.

The September quarter is typically a weaker period for travel, falling between the summer holiday season and festive travel. Airlines have been relying on cost controls and higher fares to manage expenses during this period.

Why does it matter?

The pressure on IndiGo comes amid a broader slowdown in Indian aviation.

According to ICRA, domestic air passenger traffic fell 6.5% year-on-year to 118.2 lakh in September 2026, from 126.4 lakh a year earlier. Traffic also declined 2.5% from August.

Domestic passenger traffic in the first half of FY2027 fell 1.9% year-on-year to 786.1 lakh, following 1.2% growth in FY2026. Airlines reduced capacity deployment by 8.1% year-on-year in September, helping keep passenger load factors at 81.1%, compared with 81.4% a year earlier.

International operations have faced greater pressure. Passenger traffic for Indian carriers fell 19.3% year-on-year to 350 lakh in the first half of FY2027, as the West Asia conflict disrupted airspace and airline networks. Higher aviation turbine fuel prices have also pushed up fares, weighing on demand.

What next?

ICRA has a negative outlook on the Indian aviation industry, citing higher fuel costs, a weaker rupee and international airspace disruptions. It expects domestic passenger traffic to grow 3-6% in FY2027, while international traffic for Indian carriers could decline 3-6%.

The research agency estimates that Indian airlines could post combined net losses of Rs 36,000-38,000 crore in FY2027.

While IndiGo’s smaller quarterly loss offers some relief, the wider industry outlook suggests that higher fares and cost controls may not be enough to protect profitability if demand weakens further.

India Wants To Turn Assets Into Tokens. But Land May Be Off Limits

By Dev Chandrasekhar

India wants to tokenise its assets, and two most public commitments came in September.

At the Global Fintech Fest in Mumbai, Maharashtra Chief Minister Devendra Fadnavis announced the proposed DELTA Act, a legal framework for tokenising land and other immovable assets. 

In a television interview the same day, he said the state expected to introduce it within four to five months. Six weeks on, no draft is yet public.

The same week, market regulator SEBI announced the launch of Demat 2.0, its pilot for issuing corporate bonds as digital tokens, and published FAQs explaining how it works. The first phase has since closed. 

Three issuers raised Rs 1,025 crore in all. REC, the state-owned power-sector lender, took in Rs 500 crore from eighteen investors on September 7 in what has been billed as India's first tokenised corporate bond; Larsen & Toubro, India's largest engineering and construction group, raised another Rs 500 crore; and IIFL Finance, a listed non-bank lender, raised Rs 25 crore. Secondary trading is targeted for December, after a three-month lock-in.

Fadnavis has put the opportunity in property at around Rs 50 lakh crore. SEBI’s corporate bond market pilot is similar in size, close to Rs 52 lakh crore — the Rs 1,025 crore first phase is a toe in the water. 

The pilot's technical document is the most detailed official account yet of what a working token system in India requires.

Read side by side, the two initiatives show that tokenisation requires more than technology.  

Even if SEBI creates room for property tokens, land titles and a tangle of legal, legislative and technical hurdles will decide which assets can be tokenised and which cannot.

The Technology Stack 

A token is a digital receipt that proves ownership. It is recorded in a shared record book, called a blockchain, that several trusted institutions keep copies of. 

This way, every sale updates all copies at once, so that no one can quietly alter.

The base is the ledger, the shared record book itself. SEBI uses a private, permissioned network, meaning only approved institutions can keep copies and add entries. The depositories and stock exchanges operate it, with technology support from NPCI, which operates UPI, RuPay, and most of India's retail payment rails.

Above it come the tokens and smart contracts, which record holdings and pay interest to whoever holds the token on the record date.

Investors need no new account or fresh KYC, because the Demat 2.0 account extends their existing demat account. The depositories manage the private keys, the digital passwords that control each holding, on investors' behalf.

Payment runs in the RBI's digital rupee, so the bond and the money move together or not at all. 

Tokens connect to the exchanges' existing bidding and reporting platforms rather than a new exchange; a freeze or attachment on a demat account applies automatically to the tokenised holding.

The primary issuance in September cleared on the digital-rupee rail without reported incident. Secondary trading, due in December, will test the harder questions of liquidity, price discovery, and finality in a two-way market.

Land, though, needs one more layer that bonds do not. 

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Finance Ministry Sees 7.3% Growth

India’s economy is expected to grow 7.3% in the fiscal year ending March 2027, according to the finance ministry’s October economic review.

The estimate is slightly above the Reserve Bank of India’s 7.1% forecast earlier this month.

How We Got Here: The ministry warned that intensifying El Niño conditions could hurt growth by reducing soil moisture ahead of the winter sowing season.

Geopolitical tensions, volatile energy prices and tighter global financial conditions also remain key risks.

Near-term inflation will depend on domestic food supplies, global energy prices and liquidity conditions. The impact of the recent rate hike on broader price pressures will also depend on the RBI’s management of liquidity.

The rupee remains under pressure from high oil prices, foreign portfolio outflows and global uncertainty.

Projections: Recent RBI measures to supply dollars to state-run oil companies and curb currency speculation may help reduce exchange-rate volatility and imported inflation. Despite the risks, the ministry said India was “well-positioned” to sustain its growth trajectory.

Old Guard Plugs In

As electric scooters win over more Indian buyers, established automakers are racing to expand their production capacity. TVS Motor Company, the market leader in electric two-wheelers, plans to raise monthly production from 60,000-65,000 units to 80,000 by the end of March 2027, said chief executive KN Radhakrishnan. Its electric two-wheeler sales more than doubled in the second quarter to 1.86 lakh units.

Overview: The trend is spreading across the industry. Hero MotoCorp and Bajaj Auto are also adding capacity, as EVs start to make money. Bajaj said its electric scooters and three-wheelers now earn healthy profits, while Ather Energy posted its first-ever net profit in the quarter ended September 2026. Higher sales, better products and government subsidies are helping companies.

Setup: Demand is the main driver. EVs now make up over 11% of two-wheeler sales, up from about 6.5% in March. With returns becoming clearer, listed companies are becoming more willing to commit capital to further expansion.

Farm Anger Looms Over India-US Deal

Indian Trade Minister Piyush Goyal said on Thursday that India will not compromise the interests of its farmers or other stakeholders in a trade agreement with the United States, adding that the country will hold a strong advantage once the deal is sealed.

Context: The deal has drawn criticism from farmers who fear it is being rushed. Earlier this month, the Samyukt Kisan Morcha, a coalition of more than 100 farm groups, said it puts “farmers for sale” by removing India’s high tariffs on products such as maize, almonds, walnuts, apples and soybean oil.

The group fears subsidised US imports could depress domestic prices and hurt rural incomes, and it plans further demonstrations in November demanding the deal’s withdrawal.

Setup: New Delhi is nearly done finalising the first phase of the agreement. The two nations unveiled a framework in February, which lowered President Donald Trump’s punitive tariffs on most Indian goods, though the pact has not yet been signed.

The End Of Coding?

US colleges are seeing a sharp drop in computer science enrollments as artificial intelligence reshapes the technology job market. 

Fast Facts: Undergraduate enrollment in computer and information sciences fell more than 12% this autumn, while postgraduate enrollment declined over 10%, Bloomberg reported. Over two years, enrollment fell 18.4% among undergraduates and 27.1% among postgraduate students.

AI tools are automating routine coding and testing tasks, making it harder for fresh graduates to secure entry-level jobs. India is facing a similar shift, with IT companies cutting back on traditional fresher hiring while increasing demand for specialised skills in AI, data science and cybersecurity.

Pivot: Meanwhile, Indian interest in studying in the US is weakening. Applications from India to US colleges fell 15% in 2025-26 amid tighter visa rules and uncertainty over post-study work opportunities. Together, these trends are raising questions about the returns on technology degrees and overseas education.

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Oil Markets Worry About The Longer Term

On Episode 1020 of The Core Report, financial journalist Govindraj Ethiraj talks to Madhavi Arora, Chief Economist at Emkay Global. We also feature an excerpt from our recent Special Edition featuring Amit Agarwal, CEO at EAAA India Alternatives, part of the Edelweiss Group.

• Oil Markets Worry About The Longer Term

• Indian Markets Have A Good Run

• The Perils Of Trying To Fight The Dollar

• How Boring Investments In Roads And Solar Power Could Pay Off