(xi) Provisions and contingent liabilities
Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised as a finance cost.

The Company has in its fleet aircraft on lease. As contractually agreed under the lease contracts (except for leases where the
Company has a right to purchase the aircraft and the Company is reasonably certain to exercise that right at the commencement
date), the aircraft have to be redelivered to the lessors at the end of the lease term under stipulated contractual return conditions.
The redelivery obligations are determined by management based on historical trends and data, and are recorded under 'provision
for maintenance, redelivery and overhaul cost' at the present value of expected outflow, where effect of the time value of money
is material with the corresponding value capitalised under 'Right of use assets'.

Contingent liabilities

Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company, or a present
obligation that arises from past events where it is not probable that an outflow of economic benefits will be required, or the
amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of
economic benefits is remote.

(xii) Revenue recognition

Revenue is recognised upon transfer of control of promised goods or services to customers. Revenue towards satisfaction of a
performance obligation is measured at the transaction price that the Company receives or expects to receive as consideration for
goods supplied and services rendered, net of variable consideration (such as discounts etc.), amount collected on behalf of third
parties, applicable taxes etc. Revenue from bundled contracts is recognised separately for each performance obligation based on
stand-alone selling price. Revenue is recorded provided the recovery of consideration is probable and determinable.

Passenger services

Passenger revenue is recognised on flown basis i.e. when the service is rendered, net of variable consideration (such as
discounts etc.), amount collected on behalf of third parties, applicable taxes and airport levies such as passenger service fee,
user development fee, etc., if any. Fees charged for cancellation of flight tickets are recognised as revenue on rendering of
the said service.

The Company considers whether it is a principal or agent in relation to services by considering whether it has a performance
obligation to provide services to the customer or whether the obligation is to arrange for services to be provided by a third party,
such as another carrier or a third party.

The Company sells certain tickets with connecting flights with one or more segments operated by its other airline partners. For
segments operated by its other airline partners, the Company has determined that every partner airline is responsible for their
portion of the contract (i.e. transportation of the passenger). The Company recognises revenue for the segment operated by the
Company at the selling price of the ticket net of the amount transferrable to the other airline partner. The amount transferrable to
the other airline partner for its segment is recognised as a financial liability.

Tickets sold by other airlines where the Company provides the transportation are recognised as passenger revenue at the
estimated value to be billed to the other airline when the services are provided as per contract.

The consideration from sale of tickets not yet flown is credited to unearned revenue i.e. 'Forward Sales' disclosed under other
current liabilities. The unutilised balance in Forward Sales for more than an year is recognised as revenue based on historical
statistics, data and management estimates and considering the Company's cancellation policy.

Consideration payable to customers, including vouchers and credits, is treated as a reduction of revenue unless exchanged for
a distinct service received from the customer at fair value. Gesture of Care vouchers extended to severely impacted customers
and compensation payable to affected customers as per applicable regulatory requirements are accounted for as consideration
payable to customers and reduced from Revenue from Operations, unless such items are material and non-recurring in nature, in
which case they are presented as exceptional items in the Standalone Statement of Profit & Loss (Refer to Note 2 (xxiii) and 30).

Cargo services

Cargo revenue is recognised when service is rendered i.e. goods are transported, net of variable consideration (such as discounts
etc.), amount collected on behalf of third parties, airport levies and applicable taxes.

In flight sales

Revenue from sale of merchandise and food and beverages is recognised on transfer of goods to passengers, net of
applicable taxes.

Government grants

Grants including subsidies from the government are recognised where there is a reasonable assurance that the grant will be
received and the Company will comply with all attached conditions. The grant which is revenue in nature is recognised as other
operating income on a systematic basis over the period for which such grant is entitled.

Interest income

Interest income on financial assets (including deposits with banks) is recognised using the effective interest method on a time
proportionate basis.

Claims and other credits - non-refundable

Claims relating to reimbursement towards operational expenses such as lease rentals, aircraft repair and maintenance, etc.,
are adjusted against such expenses over the estimated period for which these reimbursements pertains. When credits are used
against purchase of goods and services such as lease rentals, aircraft repair and maintenance, etc, these are adjusted against
such expenses on utilization basis. The claims and credits are netted off against related expense arising on the same transaction
as it reflects the substance of transaction. Further, any claim or credit not related to reimbursement towards operational expenses
or used for purchase of goods and services are recognised as income in the Standalone Statement of Profit and Loss when a
contractual entitlement exists, the amount can be reliably measured and receipt is virtually certain.

Customer Loyalty Programme

The Company operates a frequent flyer program called IndiGo BluChip (the ""programme"") where members can earn travel award
points through:

a. Flights with the Company or its partner airlines.

b. Spends on co-branded cards issued in partnership with credit card companies.

c. Consumption of goods or utilisation of services offered by other non-airline partners.

Points earned by members are considered as a separate performance obligation and recognised as deferred liability and
presented under "Other current liabilities". The amount recognised as a deferred liability is measured based on the fair value
of the awarded points. The fair value is determined on the basis of the value of the awards for which they could be redeemed.
When estimating the deferred liability towards the loyalty points, the Company considers the likelihood that the customers will
redeem the points. The amount deferred is recognized as revenue on redemption of the points on a flown basis. Fees and other
incidental charges collected from partners associated with the programme is recognised under "Other Operating Revenue" by
allocating them to the separately identifiable performance obligations.

The Company used to operate a rewards programme in partnership with credit card companies referred to as '6C Rewards', which
has been migrated to IndiGo BluChip during the year. Under the erstwhile 6C Rewards programme, points were awarded to
members on spending from the card as per the agreement. Revenue against the award points was recognised when redeemed
by the members for travel with Company on flown basis. Unredeemed reward points as at the date of migration were migrated
to IndiGo BluChip as per the agreed conversion ratio.

(xiii) Borrowing costs

Borrowing costs consist of interest (including interest on lease liabilities) and other ancillary costs that the Company incurs in
connection with the borrowing of funds. Borrowing costs attributable to the acquisition or construction of a qualifying asset are
capitalised as part of the cost of the asset till such time the asset is ready for its intended use. A qualifying asset is an asset
that necessarily requires a substantial period of time to get ready for its intended use. Other borrowing costs are recognised as
an expense in the period in which they are incurred. Borrowing cost includes exchange differences to the extent regarded as an
adjustment to the borrowing costs.

(xiv) Supplementary rentals and aircraft repair and maintenance

Under certain aircraft and engine lease arrangements, the Company recognises monthly supplementary rental expenses at the
present value of the estimated contractual outflows, which are determined based on aircraft and engine utilisation, calculated
with reference to the number of hours flown or cycles operated during the period. Accrual of Supplementary rentals are made for
heavy maintenance visits, engine overhaul and landing gear overhaul for aircraft and engines taken on lease, except for leased
aircraft where the Company has a right to purchase the aircraft and the Company is reasonably certain to exercise that right at
the commencement date or for certain short term aircraft lease arrangements.

Aircraft repairs and maintenance includes additional accrual, beyond supplementary rentals, for the estimated future costs of
engine maintenance checks. These accruals are based on contracted terms, past trends for costs incurred on such events, future
expected utilization of engine, condition of the engine and expected maintenance interval and are recorded over the period of
the next expected maintenance visit.

Aircraft maintenance covered by third party maintenance agreements, wherein the cost is charged to the Standalone Statement
of Profit and Loss at a contractual rate per hour in accordance with the terms of the agreements. The Company recognises aircraft
repair and maintenance cost (other than major inspection costs) in the Standalone Statement of Profit and Loss on incurred basis.

(xv) Aircraft fuel expense

Aircraft fuel expenses are recognised in the Standalone Statement of Profit and Loss as uplifted and consumed, net of any discounts.

(xvi) Tax expense

Tax expense comprises of current tax and deferred tax. Current and deferred taxes are recognised in the Standalone Statement
of Profit and Loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in
which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity.

Current tax

Current tax comprises the expected tax payable on the taxable income or loss for the year and any adjustment to the tax payable
in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid. It is
measured using tax rates enacted for the relevant reporting period.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts,
and it is intended to realise the asset and settle the liability on a net basis.

The Company periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations
are subject to interpretation. The Company considers whether it is probable that a Taxation Authority or an Appellate Authority or
Court will accept an uncertain tax treatment. If the Company believes that it is probable that the Taxation Authority or Appellate
Authority or Court will accept an uncertain tax treatment, it determines its taxable income and tax bases consistently with the tax
treatment in its income tax filings.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the corresponding amounts used for taxation purposes.

Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for unused tax
losses, unused tax credits and deductible temporary differences to the extent it is probable that future taxable profits will be
available against which they can be used. Where the Company has a history of recent losses, deferred tax asset is recognised
only to the extent that the Company has sufficient taxable temporary differences or there is convincing evidence that sufficient
taxable profit will be available against which the unused tax losses or unused tax credits can be utilised. Deferred tax assets
unrecognised or recognised, are reviewed at each reporting date and are recognised / reduced to the extent that it is probable
/ no longer probable respectively that the related tax benefit will be realised. Significant management judgement is required to
determine the probability of deferred tax asset.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or liability is settled,
based on the laws that have been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects,
at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and deferred tax liabilities are offset only if there is a legally enforceable right to offset current tax liabilities
and assets levied by the same tax authorities.

(xvii) Earnings per share

The Company presents basic and diluted earnings per share (EPS) data for its equity shares.

Basic EPS is calculated by dividing the profit/(loss) attributable to equity shareholders of the Company by the weighted average
number of equity shares outstanding during the year.

Diluted EPS is determined by adjusting profit/(loss) attributable to equity shareholders and the weighted average number of equity
shares outstanding, for the effects of all dilutive potential equity shares, which comprise share based payment arrangements.

For the purpose of determination of diluted EPS, dilutive potential equity shares are deemed to have been converted at the
beginning of the period, unless issued at a later date.

(xviii) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker is considered to be the Board of Directors who makes strategic decisions and is
responsible for allocating resources and assessing performance of the operating segments.

(xix) Equity investment in subsidiaries

Equity investment in subsidiaries is carried at cost, less any impairment in the value of investment, in these separate standalone
financial statements.

(xx) Share capital
Equity share capital

Issuance of ordinary shares are recognised as equity share capital in equity. Incremental costs directly attributable to the
issuance of new equity shares are recognised as a deduction from equity, net of any tax effects.

(xxi) Current - non-current classification

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

• it is expected to be realised in, or is intended for sale or consumption in, the Company's normal operating cycle;

• it is held primarily for the purpose of being traded;

• it is expected to be realised within 12 months after the end of the reporting period; or

• it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months
after the reporting period.

Current assets include the current portion of non-current assets. All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

• it is expected to be settled in the Company's normal operating cycle;

• it is held primarily for the purpose of being traded;

• it is due to be settled within 12 months after the end of the reporting period; or

• the Company does not have an unconditional right at the end of reporting period to defer settlement of the liability for
at least 12 months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its
settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of non-current liabilities. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Operating cycle

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.
Based on the nature of operations and the time between the acquisition of assets for processing and their realisation in cash and
cash equivalents, the Company has ascertained its operating cycle being a period of 12 months for the purpose of classification
of assets and liabilities as current and non- current.

(xxii) Dividend distribution

Dividend to shareholders is recognised as a liability on the date of approval by the shareholders. However, Interim dividend is
recorded as a liability on the date of declaration by the Company's Board of Directors.

(xxiii) Exceptional items

Exceptional items refer to items of income or expense within the Statement of Profit and Loss from ordinary activities which
are non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the
performance of the Company.

Recent accounting pronouncements

The new and amended standards that are notified by the Ministry of Corporate Affairs (MCA), but not yet effective, up to the date
of issuance of the Company's financial statements are disclosed below.

(i) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants and
Ind AS 10 Events after the Reporting Period

Ind AS 10 has been amended to remove the previous treatment under which a lender's post reporting date waiver—
granted before the financial statements were approved for issue—of a breach of a material covenant in a long term loan
arrangement that occurred on or before the end of the reporting period, resulting in the liability becoming payable on
demand at the reporting date, was regarded as an adjusting event.

For annual reporting periods beginning on or after 1 April 2026, any breach of a covenant—whether material or immaterial—
occurring on or before the reporting date will, in accordance with Ind AS 1, require the related liability to be classified as
current, unless the lender has granted a waiver of the breach on or before the reporting date and has agreed not to demand
repayment for at least 12 months after the reporting date as a consequence of the breach. Such a waiver shall be treated
as an adjusting event.

The amendments are effective for annual reporting periods beginning on or after 1 April 2026 retrospectively in
accordance with Ind AS 8.

These amended standards and interpretations are not expected to have a significant impact on the Company's
financial statements.

6. Intangible assets under development (Contd..)

Projects whose completion is overdue or has exceeded its cost compared to its original plan are as follows:

There are no intangible assets under development whose completion is overdue or has exceeded its cost compared to original
plan as at 31 March 2026 and 31 March 2025. Accordingly, disclosure for projects whose completion is overdue or has exceeded
its cost compared to its original plan is not applicable.

Projects whose completion is overdue or has exceeded its cost compared to its original plan are as follows:

There is no capital work in progress whose completion is overdue or has exceeded its cost compared to original plan as at
31 March 2026 and 31 March 2025. Accordingly, disclosure for projects whose completion is overdue or has exceeded its cost
compared to its original plan is not applicable.

* The transfer of investment is restricted to airline members flying in Thailand.

** Mutual Funds include Rs. 23,619 (previous year Rs. 22,013) as mutual funds under lien to banks as security for availing various
non-fund based lines of credit.

*** Target Maturity Index Funds follow a passive buy and hold investment strategy to receive contractual cashflows except for
meeting redemption and rebalancing requirements. Investment in such funds are classified as FVTOCI as cash flows from these
investments are realised on maturity or upon sale.

8. Investments (Contd..)

Details on the Company's bank deposits, investments, cash and cash equivalents and bank balances other than cash and cash
equivalents, bifurcated into non-lien and under lien is included in Note 46.

Information about the Company's exposure to credit and market risks, and fair value measurement, is included in Note 31.

*Bank deposits include deposits under lien to banks as security for availing various fund and non-fund based lines of credit
amounting to Rs. 129,702 (previous year Rs. 121,041) and as security towards government authorities (refer to Note 33(iii))
amounting to Rs. 9 (previous year Rs. 9). Bank deposits also includes Rs. 116,209 (previous year Rs. 111,275) held in
foreign currency.

** Represents unclaimed dividend as at 31 March 2026 amounting to Rs. 0 (previous year Rs. 0).

Details on the Company's bank deposits, investments, cash and cash equivalents and bank balances other than cash and cash
equivalents, bifurcated into non-lien and under lien is included in Note 46.

Information about the Company's exposure to credit and market risks, and fair value measurement, is included in Note 31.

d. Terms / rights attached to the equity shares

The Company has one class of equity share having a par value of Rs. 10 per share. Cach holder of the equity share is entitled to
one vote per share and is entitled to dividend declared, if any. The paid up equity shares of the Company rank pari-passu in all
respects, including dividend. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders
in the ensuing Annual General Meeting. The interim dividend is declared by the Board of Directors. In the event of liquidation of
the Company, the holders of the equity shares will be entitled to receive the remaining assets of the Company, after distribution
of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

Retained earnings are the accumulated profits / (losses) earned by the Company till date, adjusted with impact of changes
in accounting pronouncements and amount transferred from other comprehensive income and equity component of compound
financial instruments, less transfer to general reserves, dividend (including applicable taxes) and other distributions made to
the shareholders.

*The Board of Directors at its meeting held on 21 May 2025 has recommended a final dividend of Rs. 10 per equity share (face
value of Rs. 10 each) for the financial year ended 31 March 2025 and the same was approved by the shareholders at the Annual
General Meeting held on 20 August 2025 and paid subsequently during the year.

As at 31 March 2026
Secured - Working capital loans

Working capital loans are repayable in 2 to 7 days from the reporting date. These loans are drawn under banking facilities that
are revolving in nature i.e., can be redrawn upon repayment.

Rate of interest on working capital loans is 7.90% per annum.

Working capital loans are secured through first pari passu charge by way of hypothecation on current assets (excluding cash and
cash equivalents, bank balances and investments of the Company) and credit / debit card receivables of the Company (present
and future) along with deposits with bank under lien.

There are no defaults as on reporting date in repayment of principal and interest.

The Company has been sanctioned working capital limits from banks during the year which in certain cases include security of
trade receivables and inventory of the Company. As per the respective loan agreements, details / statement pertaining to such
current assets may have to be provided on occurrence of certain events, however there are no such trigger event during the year
ended 31 March 2026. Accordingly, the Company was not required to file any quarterly returns/statements in relation to such
security with the respective banks.

Secured - Bank Overdraft

Overdraft facilities are drawn under banking facilities that are revolving in nature i.e., can be redrawn upon repayment.

Rate of interest on overdraft facilities are in the range of 6.35% to 6.85% per annum.

Overdraft facilities are secured with bank deposits under lien.

There are no defaults as on reporting date in repayment of principal and interest.

18. Financial liabilities (Contd..)

As at 31 March 2025

Secured - Working capital loans

Working capital loans are repayable in 2 to 4 days from the reporting date. These loans are drawn under banking facilities that
are revolving in nature i.e., can be redrawn upon repayment.

Rate of interest on working capital loans is 8.35% per annum.

Working capital loans are secured through first pari passu charge by way of hypothecation on current assets (excluding cash and
cash equivalents, bank balances and investments of the Company) and credit / debit card receivables of the Company (present
and future) along with deposits with bank under lien.

There are no defaults as on reporting date in repayment of principal and interest.

The Company has been sanctioned working capital limits from banks during the year which in certain cases include security of
trade receivables and inventory of the Company. As per the respective loan agreements, details / statement pertaining to such
current assets may have to be provided on occurrence of certain events, however there are no such trigger event during the year
ended 31 March 2025. Accordingly, the Company was not required to file any quarterly returns/statements in relation to such
security with the respective banks.

The Company's leased assets primarily consist of leases for aircraft and engines, equipment, leasehold land and buildings.

Certain lease liabilities amounting to Rs. 289,489 (previous year Rs. 170,257) are secured against the respective aircraft.
Remaining lease liabilities are secured to the extent of letter of credits issued / deposits given to lessors.

Short term leases represents leased aircraft and engines. The portfolio of other short-term leases to which the Company is
committed at the end of the reporting period is not materially different from the portfolio of other short term leases for which
expense has been recognised during the year.

18. Financial liabilities (Contd..)

The Company has several lease contracts that include extension and termination options. The management has included
termination options in determination of lease term for contracts having such option. Extension options have not been included
in determination of lease term since the management is reasonably certain not to exercise these options. Potential cash flows
in relation to such extension options cannot be ascertained since the cash outflow for the extended period will depend on the
negotiations with the lessors in the event of exercising the extension options.

Under certain lease arrangements of aircraft and engines, the Company incurs variable payments towards maintenance of the
aircraft which are disclosed under "Supplementary rentals and aircraft repair and maintenance (net)" in the Standalone Statement
of Profit and Loss.

Future cash outflows for leases not yet commenced amounts to Rs. 161,658 (previous year Rs. 61,251).

The maturity analysis of lease liabilities are disclosed in Note 31. Further, information about the Company's exposure to market
risks is disclosed in Note 31.

* Includes lease liabilities with related parties amounting to Rs. 326,101 (previous year Rs. 139,322). Refer to Note 37.

** Interest on lease liabilities for the year includes interest capitalised to Capital work-in-progress of Rs. 82 (previous year Nil) .

19. Provisions (Contd..)

Provision for maintenance, redelivery and overhaul cost

The schedule of provision as required to be disclosed in compliance with Ind AS 37 on 'Provisions, Contingent Liabilities and
Contingent Assets' is as under:

*It includes:

a. Provision for redelivery obligation: The Company has in its fleet, aircraft on lease. As contractually agreed under certain
lease contracts, the aircraft have to be redelivered to the lessors at the end of the lease term under stipulated contractual
return conditions. The redelivery obligations are determined by management based on historical trends and data, and are
capitalised at the present value of expected outflow, where effect of the time value of money is material.

b. Provision for overhaul expenses for certain aircraft held under lease are recorded at discounted value, where effect of the
time value of money is material.

c. Provision for engine maintenance which represents additional accrual, beyond supplementary rentals, for the estimated
future costs of engine maintenance checks. These accruals are based on past trends for costs incurred on such events, future
expected utilisation of engine, condition of the engine and expected maintenance interval and are recorded over the period
of the next expected maintenance visit.

The measurement of the provision for redelivery and overhaul cost includes assumptions primarily relating to expected costs and
discount rates commensurate with the expected obligation maturity schedules. An estimate is therefore made to ensure that
the provision corresponds to the present value of the expected costs to be borne by the Company. Judgement is exercised by
management given the long-term nature of assumptions that go into the determination of the provision. The assumption made in
relation to the current year are consistent with those in the previous year.

€xpected timing of resulting outflow of economic benefit is financial year 2026-27 to 2035-36 (previous year 2025-26 to 2034¬
35) and the Company calculates the provision using Discounted Cash Flow (DCF) method.

Sensitivity analysis for key assumptions used:

If expected cost differ by 10% from management's estimate, while holding all other assumptions constant, the provision for
maintenance, redelivery and overhaul cost may increase / decrease by Rs. 3,951 (previous year by Rs. 3,458).

If expected discount rate differ by 1%, while holding all other assumptions constant, the provision for maintenance, redelivery
and overhaul cost may increase by Rs. 77 (previous year Rs. 126) or decrease by Rs. 69 (previous year by Rs. 119).

* Others includes liabilities towards compensation in accordance with the applicable regulations to the affected customers and
Gesture of Care travel vouchers to severely impacted customers.

Contract balances

Contract assets comprise of trade receivables which are generally unsecured and are derived from revenue earned (including
applicable taxes and airport levies) from customers, primarily located in India and certain parts of Middle East and South Asia.
Trade receivables also includes credit / debit card receivables of the Company which are realisable within a period of 1 to
7 working days.

Contract liability is comprised of consideration from sale of tickets not yet flown, reported as forward sales disclosed under other
current liabilities.

Impact of New Labour Codes

effective 21 November 2025, The Government of India has consolidated multiple existing labour legislations into a unified
framework comprising four Labour Codes (collectively referred to as the 'New Labour Codes'). These legislative changes have
revised the definition of wages for the purpose of computation of employee benefits and expanded the scope and eligibility of
certain employee related social security benefits.

Based on a detailed assessment carried out by the Company, information available and consistent with the FAQs on key
accounting implications arising from the New Labour Codes issued by the Institute of Chartered Accountants of India, the Company
had evaluated the incremental impact arising from the implementation of the New Labour Codes. Considering the materiality,
regulatory-driven, and non-recurring nature of this impact, the Company has recognised an incremental impact of Rs. 11,393
(consisting of gratuity and compensated absences) as an exceptional item in the Standalone Statement of Profit and Loss.

The Company continues to monitor the developments, and clarifications from the Government pertaining to other aspects of the
New Labour Codes and would provide appropriate accounting effect on the basis of such developments, if required.

30. €xceptional items (Contd..)

Impact of operational disruptions

During the first week of December 2025, the Company experienced operational challenges that resulted in significant flight
cancellations and delays between 3 December 2025 and 5 December 2025. These disruptions led to a material reduction in
passenger revenue during the affected period. To restore operations, the Company undertook measures to reboot its network &
systems and reposition crews. These corrective actions subsequently enabled the Company to operate an increased number of
flights with improved stability.

The Company, in accordance with the applicable regulation, is compensating the affected customers and in addition as a Gesture
of Care also extending travel vouchers to the severely impacted customers. The estimated impact of these items, along with other
associated costs amounting to Rs. 5,550 has been recognised as an exceptional item in the Standalone Statement of Profit and
Loss. Revenue from operations under Ind AS 115, net of the exceptional item, for the year ended 31 March 2026 would have
been Rs. 844,272.

Further, on 17 January 2026, the Company received an order from the Directorate General of Civil Aviation (DGCA) imposing a
penalty of Rs. 222 in connection with the operational disruptions. The amount has been recognised as an exceptional item in
the Standalone Statement of Profit and Loss.

* Non-current investments excludes equity investment in subsidiaries which is carried at cost.

** The fair values for security deposits forming part of other financial assets were calculated based on discounted cash flows
using a current lending rate.

***The fair values of supplementary rentals and aircraft maintenance are based on discounted cash flows using a current
borrowing rate.

Other financial assets and financial liabilities

The carrying amounts of trade receivables, current financial assets (excluding security deposits and derivatives not designated
as hedges), cash and cash equivalents, bank balances other than cash and cash equivalents, trade payables, capital creditors,
short-term borrowings (including interest accrued but not due) and unclaimed dividend approximates the fair values, due to their
short-term nature.

Non-current financial assets (excluding security deposits) represents bank deposits (due for maturity after twelve months from
the reporting date) and interest accrued but not due on financial instruments, the carrying value of which approximates the fair
values as on the reporting date.

Valuation technique used to determine fair value

Specific valuation techniques used to value Level 2 and Level 3 financial instruments include:

• the use of NAV for mutual funds

• the use of quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable
in the marketplace

• the use of quoted forward exchange rates at the reporting date for derivatives not designated as hedges

• the fair value of the remaining financial instruments is determined using discounted cash flow method

Valuation processes

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required
for financial reporting purposes, including level 3 fair values.

b. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

• Credit risk ;

• Liquidity risk ;

31. Fair value measurement and financial instruments (Contd..)

• Market Risk - Foreign currency ; and

• Market Risk - Interest rate
Risk management framework

The Board of Directors of the Company has formed a Risk Management Committee to frame, implement and monitor the risk
management plan for the Company. The committee is responsible for reviewing the risk management policies and ensuring
its effectiveness.

The Company's risk management policies are established to identify and analyse the risks faced by the Company to set appropriate
risks, limits and controls and to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect
changes in market conditions and the Company's activities.

The Risk Management Committee oversees how management monitors compliance with Company's risk management policies and
procedures and reviews the adequacy of the risk management framework in relation to the risk faced by the Company.

(i) Credit risk

The maximum exposure to credit risks is represented by the total carrying amount of these financial assets in the
Standalone Balance Sheet

Credit risk is the exposure to the Company to potential financial losses from the risk of default on contractual obligations by a
customer or counterparty, the risk of deterioration of credit-worthiness of the customer or counterparty, as well as concentration
risks associated with financial assets.

Credit risk on cash and cash equivalents and other bank balances is limited as the Company generally invests in deposits with
financial institutions with high credit ratings assigned by credit rating agencies. Investments primarily include investment in debt
based mutual fund units, bonds, commercial paper and certificate of deposit with low risk. Other financial assets majorly includes
security deposits which primarily represents deposits given as pre delivery payments to aircraft manufacturers. Such deposits
will be returned to the Company on deliveries of the aircraft by the aircraft manufacturers as per the contract. The credit risk
associated with such security deposits is relatively low.

Trade receivables are generally unsecured and are derived from revenue earned (including applicable taxes and airport levies)
from customers primarily located in India and certain parts of Middle East and South Asia. Trade receivables also includes credit
/ debit card receivables of the Company which are realisable within a period of 1 to 7 working days.

The Company monitors the economic environment in which it operates to manage its credit risk. The Company manages its credit
risk through various measures including establishing credit limits and continuously monitoring credit worthiness of customers
to whom it extends credit in the normal course of business. The gross carrying amount of a financial asset is written off (either
partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company
determines that the receivables do not have assets or sources of income that could generate sufficient cash flows to repay the
amount due. Where the financial asset has been written-off, the Company continues to engage in enforcement activity to attempt
to recover the receivable due. Where recoveries are made, these are recognized in the Statement of Profit and Loss.

The Company sells majority of its air transportation services against advances made by agents / customers and through
online channels.

The Company uses expected credit loss model to assess the impairment loss. The Company uses a provision matrix to compute
the expected credit loss allowance for trade receivables. The provision matrix takes into account available internal credit risk
factors such as the Company's historical experience for customers. Based on the business environment in which the Company
operates, management considers that the trade receivables (other than receivables from government departments) are in default
(credit impaired) if the payments are more than 90 days past due, however, the Company based upon past trends determine an
impairment allowance for loss on receivables outstanding for more than 180 days past due.

Majority of trade receivables are from domestic customers, which are fragmented and are not concentrated to individual
customers. Trade receivables as at year end primarily includes Rs. 4,151 (previous year Rs. 5,486) relating to revenue generated
from passenger services and Rs. 2,190 (previous year Rs. 1,999) relating to revenue generated from cargo services.

* The Company believes that the unimpaired amounts that are past due by more than 90 days are still collectible in full, based
on historical payment behaviour.

# The Company based upon past trends determine an impairment allowance for loss on receivables outstanding for more than 180
days past due. Receivables more than 180 days past due primarily comprises receivables from government departments, which
are fully realisable based on historical payment behaviour and hence, no loss allowance has been recognised, and from agents
for which the impairment allowance has already been recognised on specific credit risk factor.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial assets. The Company's approach to manage liquidity is to have
sufficient liquidity to meet its liabilities when they are due, under both normal and stressed circumstances, without incurring
unacceptable losses or risking damage to the Company's reputation.

The Company believes that its liquidity position, comprising of total cash, bank deposits and investments (including amounts
under lien) of Rs. 510,550 as at 31 March 2026 (previous year Rs. 479,500), anticipated future internally generated funds
from operations, and its fully available, revolving undrawn fund and non fund based credit facilities will enable it to meet its
future known obligations in the ordinary course of business. As of 31 March 2026, the Company had received revolving fund
based credit line sanctions amounting to Rs. 44,126 (previous year Rs. 56,697), of which the Company has drawn Rs. 18,063
(previous year Rs. 18,000) and has undrawn revolving fund based credit facilities of Rs. 26,063 (previous year Rs. 38,697).

Additionally, the Company also has undrawn non fund based credit facilities amounting to Rs. 89,821 (previous year Rs. 64,895).
The Company does not believe a significant liquidity risk exist with regard to its current lease liabilities as the assets are
sufficient to meet those obligations. In addition to this, the Company has unencumbered assets as well as access to adequate
financing arrangements. Hence, in case a liquidity need were to arise, the Company believes it has sufficient means to meet its
ongoing capital, operating, and other liquidity requirements. The Company will continue to consider various borrowing or leasing
options to maximize liquidity and supplement cash requirements as necessary.

The Company's liquidity management process as monitored by management, includes the following:

• Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.

• Maintaining rolling forecasts of the Company's liquidity position on the basis of expected cash flows.

• Maintaining diversified credit lines.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The contractual cash flow
amounts are gross and undiscounted, and includes interest accrued but not due on borrowings.

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises two types of risks namely: currency risk and interest rate risk. The objective of market risk management is
to manage and control market risk exposures within acceptable parameters, while optimising the return.

A. Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest
rates. The Company's exposure to the risk of changes in market interest rates primarily relates to certain bank deposits and
certain lease liabilities carrying floating rate of interest.

Exposure to interest rate risk

The Company's interest rate risk arises from certain bank deposits and certain lease liabilities carrying floating rate of interest.
These deposits and obligations expose the Company to cash flow interest rate risk. The exposure of the Company to interest rate
changes as reported to the management at the end of the reporting period are as follows:

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange
rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial
position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other
currencies from the Company's operating, investing and financing activities.

Exposure to foreign currency risk

The summary of quantitative data about the Company's exposure to currency risk, as expressed in Indian Rupees, as at 31 March
2026 and 31 March 2025 are as below:

Sensitivity analysis

A reasonably possible strengthening / (weakening) of the Indian Rupee against below currencies as at 31 March 2026 and
31 March 2025 would have affected the measurement of financial instruments denominated in foreign currency and affected
Standalone Statement of Profit and Loss by the amounts shown below. This analysis is performed on foreign currency denominated
monetary financial assets and financial liabilities outstanding as at the year end. This analysis assumes that all other variables,
in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Others include:

GBP: Great British Pound, AED: Arab Emirates Dirhams, NPR: Nepalese Rupees, OMR: Omani Rials, THB: Thai Baht, CHF: Swiss
Franc, SGD: Singapore Dollar, EUR: Euro, QAR: Qatari Riyal, BDT: Bangladeshi Taka, LKR: Sri Lankan Rupee, HKD: Hong Kong
Dollars, KWD: Kuwaiti Dinar, MYR: Malaysian Ringgit, SAR: Saudi Riyal, TRY: Turkish Lira, CNY: Chinese Yuan, MVR: Maldivian
Rufiyaa, AUD: Australian Dollar, BHD: Bahraini Dinar, CAD: Canadian Dollar, IDR: Indonesian Rupiah, DKK: Danish Krone, GEL:
Georgian Lari, KES: Kenyan Shilling, KZT: Kazakhstani Tenge, MUR: Mauritian Rupee, MVR: Maldivian Rufiyaa, SCR: Seychellois
Rupee, SEK: Swedish Krona, UZS: Uzbekistani Som, AZN: Azerbaijani Manat, AMD: Armenian Dram, BGN: Bulgarian Lev, EGP:
Egyptian Pound, JPY: Japanese Yen, KGS: Kyrgyzstani Som, KHR: Cambodian Riel, NZD: New Zealand Dollar, VND: Vietnamese
Dong, ZAR: South African Rand

* The sensitivity analysis to foreign currency risk includes an exposure to foreign exchange fluctuations on long term foreign
currency loans that have been capitalised in the cost of the related right of use assets. 1% depreciation / appreciation in Indian
Rupees against USD, affects the adjustment to right of use assets by Rs. 5 (previous year Rs. 27). It is expected to impact the
Standalone Statement of Profit and Loss over the remaining life of the right of use assets as an adjustment to depreciation charge.

32. Capital management

The primary objective of the management of the Company's capital structure is to maintain an efficient mix of debt and equity in
order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to pursue business
opportunities and adequate access to liquidity to mitigate the effect of unforeseen events on cash flows.

Capital comprises total equity (equity share capital and other equity) and debt comprises working capital borrowings and
lease liabilities. The Company considers lease liabilities as part of debt for internal leverage monitoring because aircraft leases
represent a significant long-term financing commitment and are integral to fleet capacity planning and funding decisions. The
Company is not subject to any externally imposed capital requirements.

The Board of directors regularly review the Company's capital structure in light of the economic conditions, business strategies
and future commitments. The Board's overall strategy remains unchanged from previous year.

33. Contingent liabilities

(a) Claims against the Company not acknowledged as debt:

The Company is a party to various taxation disputes and legal claims, which are not acknowledged as debts. Significant
management judgement is required to ascertain that it is not probable that an outflow of resources embodying economic benefits
will be required to settle the taxation disputes and legal claims.

(i) Income tax

The income tax authority has assessed the return of income of the Company up to Assessment Year ("AY") 2022-23 and has
revised the taxable income for certain years on account of disallowance of certain expenses and in respect of the tax treatment
of certain incentives received from the manufacturer in respect of acquisition of aircraft and engines. The Company has not yet
received assessment order for subsequent years.

The Company has received favourable orders against such disallowances / additions from the Special Bench of Income Tax
Appellate Tribunal ("ITAT") for AY 2012-13 and Divisional Bench of ITAT for certain years till AY 2015-16. However, the income tax
authority's appeals against these orders are pending before the Hon'ble High Court of Delhi.

The Company believes, based on legal advice from counsels, that the view taken by ITAT Special Bench and Divisional Bench is
sustainable in higher courts and accordingly, no provision is required to be recorded in the books of account.

The tax exposure (excluding interest and penalty) for matters disallowed by income tax authorities up to AY 2022-23 i.e. the last
year assessed, amounts to Rs. 24,185 in case the incentives are held to be taxable. The above amount is net of Rs. 5,332, which
represents minimum alternate tax recoverable written off in the earlier years. Further, the above tax exposure will also impact
carried forward losses having a tax effect of Rs. 18,227.

(ii) The Company is in legal proceedings for various disputed legal matters related to Customs, Octroi, Service Tax, Integrated Goods
and Services Tax ('IGST') and Value Added Tax ('VAT'). The amounts involved in these proceedings, not acknowledged as debt, are:

(1) Service Tax- Rs. 55 (previous year Rs. 55),

(2) Value Added Tax - Rs. 31 (previous year Rs. 31),

(3) Octroi - Rs. 74 (previous year Rs. 74) and

(4) IGST on re-imports* - Rs. 22,028 (previous year Rs. 18,958).

The Company believes, based on advice from counsels/experts, that the views taken by authorities are not sustainable and
accordingly, no provision is required to be recorded in the books of account.

*During the current year, the Company has paid Integrated Goods and Services Tax ("IGST") amounting to Rs. 3,070 (previous
year Rs. 3,290) under protest, on re-import of repaired aircraft, aircraft engines and certain aircraft parts, to Customs authorities
and therefore as at 31 March 2026, cumulative amount paid under protest is Rs. 22,028 (previous year Rs. 18,958), against
which appeals have been filed or to be filed before the appellate authorities.

With respect to IGST paid on imports prior to 19 July 2021, the Company received three favourable orders from Customs €xcise
and Service Tax Appellate Tribunal ("C€STAT"), New Delhi, which were appealed by the Customs authorities before the Hon'ble
Supreme Court of India. The Hon'ble Supreme Court dismissed one of the departmental appeals on 14 July 2025, and subsequently
dismissed department's review petition on 17 February 2026. The remaining two departmental appeals are pending before the
Hon'ble Supreme Court and no stay has been granted on C€STAT orders.

Further, the Government vide Notification dated 19 July 2021 ("Amendment Notification") amended earlier Customs exemption
Notification to reiterate their position that IGST is applicable on re-import of goods after repair. The Company had filed a Writ
Petition before the Hon'ble High Court of Delhi challenging the constitutional validity of the Amendment Notification. In the month
of March 2025, Hon'ble High Court of Delhi pronounced its order, holding that repair and re-import transaction is a supply of
service and levy of IGST at the time of re-import of items repaired abroad is unconstitutional and invalid. On 29 August 2025,
department has filed an appeal against the said order before the Hon'ble Supreme Court, which is pending. No stay has been
granted by the Hon'ble Supreme Court on such appeal till date.

Based on favourable orders from Hon'ble Supreme Court of India and High Court of Delhi and advice received from the legal
counsels, the Company continues to believe that, IGST is still not payable on such re-import of repaired aircraft, aircraft engines
and certain aircraft parts. Accordingly, the above amounts paid under protest till 31 March 2026 have been shown as recoverable.

(iii) The Competition Commission of India ("CCI") passed an order dated 17 November 2015 against, inter alia, the Company, imposing
a penalty of Rs. 637 on the Company on account of cartelization for determination of fuel surcharge included in the component
of Cargo services. The Company filed an appeal against this order before the Competition Appellate Tribunal and it referred the
matter back to the CCI for fresh adjudication. CCI passed a final order dated 07 March 2018 reducing the penalty amount on the
Company to Rs. 95. The Company has filed an appeal before the National Company Law Appellate Tribunal ("NCLAT") against
the order imposing penalty which is currently pending. The penalty imposed by CCI on the Company was stayed by NCLAT upon
deposit of Rs. 9 (previous year Rs. 9) (10% of the penalty amount).

The Company based on legal advice from the external counsel, believes that the views taken by authorities are challengeable
and accordingly, no provision is required to be recorded in the books of account at this stage.

(iv) There may be certain withholding tax obligation that may arise in the future in respect of past transactions. Basis the management's
evaluation considering the facts, the management believes that further outflow is not probable.

(v) There are ongoing tax litigations for AY 2022-23, AY 2023-24 and AY 2024-25 relating to taxability of lease rentals earned by
non-resident aircraft lessors, the potential exposure from which may, based on contractual arrangements, be passed on to the
Company. The lessors have, thus far, received favourable orders from Income Tax Appellate Tribunal ("ITAT") for AY 2022-23.
However, the income tax authority's appeal against some of these orders is pending before the Hon'ble High Courts. The Company
believes that the position upheld by the ITAT is likely to be sustained at higher judicial forums and accordingly, no provision has
been recognised, as an outflow is not considered probable. The Company continues to monitor developments in the matter.

Further, the lessors had received reassessment notices for AY 2012-13 to AY 2018-19. The lessors have challenged the assumption
of jurisdiction for such notices by filing writ petitions before the Hon'ble Delhi High Court. The lessors have not received any
demand notices in such cases in view of the interim stay granted by the Hon'ble Delhi High Court.

(vi) In February 2019, Hon'ble Supreme Court of India in its judgement clarified the applicability of allowances that should be considered
to measure obligations under Employees Provident Fund Act, 1952. There are interpretative challenges on the application of
judgement retrospectively and as such the Company does not consider that there is any probable obligations for past periods.
Accordingly, based on evaluation the Company has made a provision for provident fund contribution on prospective basis.

(vii) Legal cases

As per the notification dated 1 January 2016, The Payment of Bonus (Amendment) Act, 2015 is applicable retrospectively w.e.f 1
April 2014. In view of the partial stay granted by Karnataka and Kerala High Court, the impact of this amendment for the period
1 April 2014 till 31 March 2015 amounting to Rs. 19 has not been acknowledged as debt.

(viii) Following the significant flight cancellations and delays between 3 December 2025 and 5 December 2025 (Refer Note 30), as
directed by the Directorate General of Civil Aviation (DGCA), the Company has furnished bank guarantees amounting to Rs. 500
for implementation of certain systematic reforms in accordance with the order. The bank guarantee is subject to phased release
linked to satisfactory outcome of the reforms by the Company.

Further, during the year ended 31 March 2026, Competition Commission of India vide it's order dated 4 February 2026, based on
prima facie alleged violation of imposition of unfair conditions and limiting or restriction of provision of services by the Company,
directed its Director General to undertake an investigation of the Company's domestic operations, following a passenger
information relating to flight cancellations during December 2025. Based on management's assessment, no provision is required
to be recognised in the Standalone Statement of Profit and Loss, as the outcome of the matter is awaited as on date.

The Company remains committed to regulatory compliance, continues to monitor developments and will assess any further
impact if needed.

(ix) Other legal proceedings for which the Company is contingently liable

The Company is party to various legal proceedings in the normal course of business and does not expect the outcome of
these proceedings to have any adverse effect on the standalone financial statements and hence, no provision has been set-up
against the same.

Notes:

Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows,
if any, in respect of the above as it is determinable only on receipt of judgements or decisions pending with various forums or
authorities. Accordingly, the above mentioned contingent liabilities are disclosed at undiscounted amount.

(b) Guarantees:

Corporate guarantees amounting to Rs. 13,452 (outstanding as of 31 March 2026 Rs. 13,396) (previous year Nil) have been
issued by the Company on behalf of its wholly owned subsidiary for certain aircraft under lease amounting to Rs. 10,840
(previous year Nil).

35. €mployee benefits

The Company contributes to the following post-employment benefit plans.

Defined contribution plan

The Company pays provident fund contributions to the appropriate government authorities at rate specified as per regulations.

An amount of Rs. 1,842 (previous year Rs. 1,599) has been recognised as an expense in respect of the Company's contribution
to Provident Fund and the same has been deposited with the relevant authorities. It has been shown under employee benefits
expense in the Standalone Statement of Profit and Loss.

Defined benefit plan

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days of total wages last
drawn for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of contractual
period of continuous years of service as defined in the Code on Social Security, 2020. Gratuity is payable to all eligible employees
of the Company on retirement, separation, death or permanent disablement, in terms of the provisions of the Code on Social
Security Act, 2020 which subsumed the Payment of Gratuity Act, 1972 w.e.f. 21 November 2025.

*Cffective 21 November 2025, The Government of India has consolidated multiple existing labour legislations into a unified
framework comprising four Labour Codes (collectively referred to as the 'New Labour Codes'). These legislative changes have
revised the definition of wages for the purpose of computation of employee benefits and expanded the scope and eligibility of
certain employee related social security benefits.

Based on a detailed assessment carried out by the Company, information available and consistent with the FAQs on key
accounting implications arising from the New Labour Codes issued by the Institute of Chartered Accountants of India, the Company
had evaluated the incremental impact arising from the implementation of the New Labour Codes. Considering the materiality,
regulatory-driven, and non-recurring nature of this impact, the Company has recognised an incremental impact of Rs. 11,894 for
defined benefit obligation as an exceptional item in the Standalone Statement of Profit and Loss.

The Company continues to monitor the developments, and clarifications from the Government pertaining to other aspects of the
New Labour Codes and would provide appropriate accounting effect on the basis of such developments, if required.

The sensitivity analysis is based on a change in above assumption while holding all other assumptions constant. The changes
in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant
actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit
method at the end of the reporting year) has been applied, as has been applied when calculating the provision for defined
benefit plan recognised in the Standalone Balance Sheet.

The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous years.
Risk exposure:

The defined benefit plan is exposed to a number of risks, the most significant of which are detailed below:

Change in discount rates: A decrease in discount yield will increase plan liabilities.

Salary growth risk: An increase in the salary of the plan participants will increase the plan liabilities.

Mortality table: The gratuity plan obligations are to provide benefits for the life of the member, so increase in life expectancy will
result in an increase in plan liabilities.

36. Segment reporting

The company publishes these Financial Statements along with the Consolidated Financial Statements. In accordance with Ind AS
108, 'Operating Segments', the Company has disclosed the segment information only in the Consolidated Financial Statements.

37. Related party disclosures

a. List of related parties and nature of relationship where control exists:

(i) Subsidiaries

Agile Airport Services Private Limited (wholly owned subsidiary)

InterGlobe Aviation Financial Services IFSC Private Limited (wholly owned subsidiary)

InterGlobe Aviation Ventures LLP

(ii) Controlled Trust
IndiGo Ventures Fund-I

b. List of related parties and nature of relationship with whom transactions have taken place during the current /
previous year

(i) Entity / person with direct or indirect significant influence over the Company
InterGlobe Enterprises Private Limited

(ii) Subsidiaries

Agile Airport Services Private Limited (wholly owned subsidiary)

InterGlobe Aviation Financial Services IFSC Private Limited (wholly owned subsidiary)

InterGlobe Aviation Ventures LLP

(iii) Controlled Trust
IndiGo Ventures Fund-I

(iv) Key managerial personnel of the Company and their close family members
Mr. Rahul Bhatia - Managing Director

Ms. Pallavi Shardul Shroff- Independent Woman Director
Mr. Anil Parashar - Non-Executive Director

Mr. Meleveetil Damodaran - Non-Independent Non-Executive Director

Mr. Petrus Johannes Theodorus Elbers - Chief Executive Officer (upto 10 March 2026)

Mr. Gaurav M. Negi - Chief Financial Officer

Dr. Venkataramani Sumantran - Independent Director and Chairman of the Board (upto 27 May 2025)

Mr. Gregg Albert Saretsky - Non-Independent Non-Executive Director
Ms. Neerja Sharma - Company Secretary and Chief Compliance Officer

# Net of reversals on account of employee stock options lapsed during the year.

** The Company has received or due to receive remittances of Rs. 3,242 (previous year Rs. 3,790) for sale of passenger tickets
through the agent for which the above commission was paid or payable.

*** Excludes applicable taxes

**** Lease payments in respect of above parties for the year is amounting to Rs. 60,641 (previous year 34,890).
d. Terms and Conditions

All transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions and within
the ordinary course of business. Outstanding balances at the year end are unsecured and settlement occurs in cash. Transactions
relating to subscriptions for new equity shares are on the same terms and conditions that are offered to other shareholders.

39. Corporate social responsibility

Under Section 135 of the Companies Act, 2013, the Company is required to spend, in every financial year, at least 2% of
the average net profits of the Company made during the three immediately preceding financial years on Corporate Social
Responsibility (CSR), pursuant to its policy in this regard.

40. Share-based payment arrangements
a. Description of share-based payment arrangements

(i) InterGlobe Aviation Limited Employees Stock Option Scheme - 2015 (ESOS 2015 - II)

On 23 June 2015, the Board of Directors approved the InterGlobe Aviation Limited Employees Stock Option Scheme - 2015 (the "ESOS
2015 - II"), which was subsequently approved in the Extraordinary General Meeting held on 25 June 2015. ESOS 2015 - II, comprises
3,107,674 options, which are granted to eligible employee[s] of the Company determined by Nomination and Remuneration
Committee, which are convertible into equivalent number of equity shares of Rs. 10 each as per the terms of the scheme. Upon
vesting, the employees can acquire one equity share of the Company for every option. The fair value of stock options granted were
estimated as per Black Scholes option pricing model. The options were granted on the dates as mentioned in table below.

40. Share-based payment arrangements (Contd..)

(ii) InterGlobe Aviation Limited Employees Stock Option Scheme - 2023 (ESOS - 2023)

On 12 June 2023, the Board of Directors approved the InterGlobe Aviation Limited Employees Stock Option Scheme - 2023, which
was subsequently approved by shareholders by way of special resolution in the Annual General Meeting held on 24 August 2023.
ESOS - 2023 scheme comprises 1,927,500 options, which are granted to eligible employee[s] of the Company determined by
Nomination and Remuneration Committee, which are convertible into equivalent number of equity shares of Rs. 10 each as per
the terms of the scheme. Upon vesting, the employees can acquire one equity share of the Company for every option. The fair
value of stock options granted were estimated as per Black Scholes option pricing model. The options were granted on the dates
as mentioned in table below.

The risk-free interest rates are determined based on current yield to maturity of Government Bonds with 5-10 years residual
maturity. Expected volatility calculation is based on historical daily closing stock prices of the Company using standard deviation
of daily change in stock price. The minimum life of stock option is the minimum period before which the options cannot be
exercised and the maximum life is the period after which the options cannot be exercised. The expected life has been considered
based on average sum of maximum life and minimum life and may not necessarily be indicative of exercise patterns that may
occur. Dividend yield has been calculated taking into account expected rate of dividend on equity share price as on grant date
basis past trend of three years. For the measurement of grant date fair value certain market conditions were considered in the
method of valuation.

c. Effect of share based payment arrangements on the Standalone Statement of Profit and Loss for the year and
Balance Sheet:

The share based payment expenses amounting to Rs. 1 (previous year Rs. 803) has been recognised as Employee benefits
expense (net off reversal of employee stock option scheme expense of Rs. 802 (previous year Nil) towards forfeiture / expiry of
employee stock options granted to certain employee[s]). The outstanding balance in Share based payments reserve is Rs. 647
(previous year Rs. 1,062).

d. Reconciliation of outstanding share options

The number and weighted-average exercise prices of share options under the share option schemes were as follows:

41. During the year ended 31 March 2025, the Company had finalized an amendment to existing agreement with International Aero
Cngines, LLC ("IAE"), an affiliate of Pratt & Whitney pursuant to which Ifl€ has provided the Company with a customized compensation
plan to mitigate the impact of the ongoing situation of Aircraft on Ground due to unavailability of engines. Consequently, Revenue
from operations for the year ended 31 March 2026 and 31 March 2025 includes compensation accrued by the Company. Further,
certain reimbursements have also been netted off against expenditure for the year ended 31 March 2026 and 31 March 2025.

42. Pursuant to amendment by Ministry of Corporate Affair (MCA) in the Companies (Accounts) Rules 2014, the Company has used
accounting software for maintaining its books of account which has a feature of recording audit trail facility and the same has
operated throughout the year for all relevant transactions recorded in the software at the application level. Also, there has not
been any instance where audit trail feature has been tampered with in respect of accounting software for the period audit
trail was enabled. The audit trail feature for direct changes to database in SAP and another software used for managing cargo
revenue, was enabled throughout the year. For the software used for managing passenger revenue, the audit trail feature at
database level was enabled during the year on 29 October 2025. Further, the Company has used software for managing loyalty
programme which is operated by third-party software service providers and has a feature of recording audit trail (edit log)
facility. Presently, the logs are enabled at the application level and no direct access to database is provided to the Company.
Availability of audit trail (edit logs) at database level is not covered in the ''Independent Service Auditor's Assurance Report on
the Description of Controls, their Design and Operating effectiveness' ('SOC Type 2 report').

The audit trail in respect of prior years has been preserved by the Company as per the statutory requirement for record retention,
to the extent it was enabled in those prior years.

43. In August 2025, the Ministry of Corporate Affairs (MCA) notified amendments to Indian Accounting Standard (Ind AS) 12, Income
Taxes, in response to the Organisation for Economic Co-operation and Development's ("OECD") Pillar Two Model Rules relating
to the Global Minimum Top-up Tax. The amendments introduce a mandatory temporary exception from the recognition and
disclosure requirements relating to deferred tax assets and liabilities arising from the implementation of the Pillar Two rules.
The amendments are applicable from financial year ("FY") 2025-26 onwards and require entities to provide certain disclosures
regarding their exposure to Pillar Two income taxes.

The OECD Pillar Two Law is applicable to multinational enterprises (MNEs) having consolidated revenues of at least EUR 750
million in two out four FYs immediately preceding the tested FY. The Company meets the revenue threshold of EUR 750 million in
two out of four FY immediately preceding the tested FY.

Based on the external advice, no Pillar Two top-up tax liability is expected for the Company as it does not have any Constituent
Entities in jurisdictions where Pillar two regulation is implemented.

44. The Company has established a comprehensive system of maintenance of information and documents that are required by the
transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information
and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the
international transactions entered into with the associated enterprises during the financial year and expects such records to be
in existence latest by due date as required under the law. The management is of the opinion that its international transactions
with the associated enterprises are at arm's length so that the aforesaid legislation will not have any impact on the financial
statements, particularly on the amount of tax expense and that of provision for taxation.

45. Additional regulatory information in accordance with Schedule III

a. No funds have been advanced or loaned or invested by the Company to or in any other person(s) or entity(ies), including
foreign entities ("Intermediaries") with the understanding, that the Intermediary shall lend or invest in party identified by or on
behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with
the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified
by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

b. The Company do not have any Benami property, where any proceeding has been initiated or pending against them for holding
any Benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

c. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961).

d. The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined
under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the
Reserve Bank of India.

e. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond
the statutory period.

f. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

g. The Company have not entered into any scheme of arrangement under Section 230 to 232 and other applicable provisions of
Companies Act, 2013 which has an accounting impact on the current or previous financial year.

h. The Company have complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.

i. The Company does not have any transaction with companies struck off under section 248 of the Companies Act, 2013 or section
560 of the Companies Act, 1956 as of and for the year ended 31 March 2026 and 31 March 2025.

^(Q) excluding lease liabilities of Rs. 834,400 as at 31 March 2026 and Rs. 652,884 as at 31 March 2025, the Debt-€quity ratio
would have been 0.28 for 31 March 2026 and 0.19 for 31 March 2025.

^(b) Inventories pertaining to stores, spares and loose tools have not been considered for the computation of the ratio as these
are in the nature of consumables used for aircraft maintenance.

^(c) excluding aircraft maintenance and supplementary rentals expense of Rs. 129,493 for the year ended 31 March 2026 and Rs.
112,227 for the year ended 31 March 2025 and liablities of Rs. 314,861 as at 31 March 2026 and Rs. 228,354 as at 31 March
2025, the Trade payable turnover ratio would have been 9.29 for 31 March 2026 and 11.43 for 31 March 2025.

(^d) Excluding lease liabilities of Rs. 834,400 as at 31 March 2026 and Rs. 652,884 as at 31 March 2025 and interest expense on
lease liabilities of Rs. 49,240 for the year ended 31 March 2026 and Rs. 41,173 for the year ended 31 March 2025, the ROCE
would have been (29.73)% for 31 March 2026 and 77.64% for 31 March 2025.

Including finance income of Rs. 35,240 for the year ended 31 March 2026 and Rs. 31,198 for the year ended 31 March 2025, the
ROCE would have been 6.73% for 31 March 2026 and 19.7% for 31 March 2025.

The calculation for above ratios (including restatement of prior year ratios, wherever necessary) is in accordance with formula
prescribed by Guidance note on Schedule III issued by the Institute of Chartered Accountants of India.

48. The figure "0" represents the amounts less than Rs. 0.50 million.

49. The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them comparable.
The impact of such reclassifications/regroupings is not material to the standalone financial statements.