IndiGo crisis erases $5 billion in market value, Rahul Bhatia’s net worth drops below $10 billion

IndiGo’s operational disruption has begun to affect the personal wealth of its promoters, with the airline’s sustained stock decline eroding almost $5 billion in market capitalisation and pushing founder Rahul Bhatia’s net worth reportedly below the $10-billion mark for the first time in six months.

InterGlobe Aviation shares have fallen in eight of the past nine trading sessions, bringing Bhatia’s current fortune to an estimated $9.1 billion, according to the Bloomberg Billionaires Index. The slide follows a week of widespread flight cancellations and a directive from the Directorate General of Civil Aviation (DGCA) asking IndiGo to cut 10% of its scheduled winter operations amid continued operational strain.

The stock’s brief recovery on Tuesday reversed quickly, and InterGlobe Aviation’s market value now stands at roughly $20.7 billion, marking one of the steepest short-term corrections for the airline in recent years. Bhatia, whose wealth is tied largely to his 36% stake in IndiGo along with holdings in InterGlobe Technology Quotient and InterGlobe Hotels, has slipped to 20th among Indian billionaires.

The airline is grappling with multiple pressures, including stricter Flight Duty Time Limit (FDTL) norms and delays in Airbus software upgrades that have affected fleet availability. Analysts note that IndiGo’s high-utilisation operating model has been particularly exposed to the new mandatory-rest requirements, which airlines can no longer substitute with accrued leave. The carrier is also contending with higher crew costs and currency-related headwinds.

Investor sentiment weakened further after Moody’s termed the disruptions “credit negative,” citing risks of revenue loss from refunds, increased compensation payouts and the possibility of regulatory penalties. The turbulence comes as IndiGo pursues an aggressive expansion plan involving major aircraft orders, a forthcoming business-class cabin, and deeper partnerships with Delta Air Lines, Air France-KLM and Virgin Atlantic.

Despite the current sell-off, IndiGo has historically generated strong shareholder returns, posting double-digit gains in most years since its 2015 listing except in 2016, 2018 and 2022. The recent correction has reduced its year-to-date returns to 5.5%, compared with nearly 50% returns over the previous two years.

Bhatia’s peak net worth of $11.2 billion was recorded in August when IndiGo’s stock hit an all-time high. Promoter shareholding in InterGlobe Aviation stood at 41.6% as of September 2025, reflecting gradual dilution as public shareholding increased. Further clarity on IndiGo’s operational breakdown and its financial impact is expected after internal assessments and regulatory reviews conclude.