IndiGo meltdown wipes out $5 bn in value, drags Rahul Bhatia’s net worth below $10 bn

IndiGo’s ongoing operational crisis is now rippling into the wealth of its promoters, with the airline’s sharp stock decline erasing nearly $5 billion in market value and knocking founder Rahul Bhatia’s net worth below the $10-billion mark for the first time in half a year.

InterGlobe Aviation shares have fallen in eight of the last nine trading sessions, dragging Bhatia’s current fortune down to an estimated $9.1 billion. The slump follows a week of large-scale flight cancellations and a regulatory directive from the Directorate General of Civil Aviation (DGCA) requiring IndiGo to cut 10% of its scheduled operations due to sustained operational strain.

Also read: IndiGo’s 10% winter capacity cut slows expansion but leaves fares steady

The stock’s brief rebound on Tuesday proved fleeting, with shares resuming their fall after the DGCA order. The airline’s market capitalisation now stands at around $20.7 billion, marking one of the steepest value drops for InterGlobe in recent years. Bhatia’s net worth, heavily tied to his 36% stake in the airline and additional holdings in InterGlobe Technology Quotient and InterGlobe Hotels, has slipped to 20th place among Indian billionaires, according to the Bloomberg Billionaires Index.

The turbulence comes at a challenging moment for IndiGo. The airline is struggling with the combined impact of stricter Flight Duty Time Limit (FDTL) norms and delays related to Airbus software upgrades that have constrained fleet availability. Analysts note that IndiGo’s lean, high-utilisation operating model has been especially affected by new rest-rule requirements that prevent airlines from substituting mandatory weekly rest periods with leave. The carrier is also facing higher crew expenses and currency-linked pressures.

Also read: Pilots body moves Delhi HC against DGCA for ‘wilful non-compliance’ of fatigue rules

Investor sentiment weakened further after Moody’s labelled the disruptions “credit negative,” flagging potential revenue loss from refunds, compensation payouts and possible regulatory penalties. The crisis also casts uncertainty over IndiGo’s aggressive expansion plans, which include large aircraft orders, an upcoming business-class product, and deepening partnerships with Delta Air Lines, Air France-KLM and Virgin Atlantic.

Despite the recent volatility, IndiGo has historically been a strong generator of shareholder returns. Since its 2015 listing, the stock has delivered double-digit annual gains in most years, barring 2016, 2018 and 2022. But the current decline has cut its year-to-date returns to around 5.5%, a stark contrast to the nearly 50% returns notched over the past two years.

Bhatia’s highest recorded net worth, $11.2 billion, came when IndiGo’s shares touched a record high in August. Promoter shareholding in InterGlobe Aviation stands at 41.6% as of September 2025, down from higher levels in previous years as public ownership has increased. More detailed assessments of the airline’s operational breakdown and its financial implications are expected once IndiGo completes internal reviews and engages with regulators.