Rupee's Slide Past 90 Hits IndiGo and HUDCO Hard, Forex Losses Shatter Quarterly Profits
Share market
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CNBC Awaaz•03/12/2025
Rupee's Slide Past 90 Hits IndiGo and HUDCO Hard, Forex Losses Shatter Quarterly Profits
- •The rupee has crossed 90 per dollar, impacting Indian companies differently; export-driven sectors like IT and pharmaceuticals are benefiting, while aviation and companies with dollar debt are struggling.
- •IndiGo reported a significant loss of ₹2,582 crore in Q2 due to heavy forex losses, primarily because over 60% of its expenses are dollar-denominated.
- •HUDCO also faced a loss of ₹176 crore in the first half of FY26 due to foreign exchange fluctuations, with significant ECBs and FCNR loans on its balance sheet.
- •Market experts attribute the rupee's weakness to continued FII outflows, increased dollar demand due to NDF expiries, and limited RBI intervention.
- •Some relief is expected in Q3 for the aviation sector as the rupee's decline has been limited and crude oil prices have fallen.
Why it matters: Rupee's sharp fall risks profits and stability for major Indian firms like IndiGo and HUDCO.
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