Embattled airline IndiGo’s operations are stabilising, while other airlines are functioning normally, said Civil Aviation Minister Ram Mohan Naidu on Tuesday.

Speaking in Lok Sabha, the minister said that IndiGo’s flights, which dropped to 706 on 5 December, have recovered to over 1,800 and are expected to rise further.

He pointed out that other airlines as well as airports are operating normally without crowding.

Accordingly, the minister informed the House that refunds, baggage tracing and passenger support measures remain under continuous supervision of the ministry.

Besides, he said accountability will be ensured, as the Directorate General of Civil Aviation (DGCA) has issued show-cause notices to IndiGo’s senior leadership and commenced a detailed enforcement investigation.

Furthermore, Naidu said that depending on the outcome of the investigation, strict and appropriate action as empowered under the Aircraft Rules and the Aircraft Act will be taken.

Civil Aviation Minister Rammohan Naidu briefs Lok Sabha on Indigo disruptions

Civil Aviation Minister Rammohan Naidu briefs Lok Sabha on Indigo disruptionsVideo Credit: Businessline

He reiterated that no airline, however large, will be permitted to cause hardship to passengers through planning failures, non-compliance or non-adherence to statutory provisions.

The minister said that safety in civil aviation is non-negotiable.

According to Naidu, India is a founding member of the International Civil Aviation Organisation and remains committed to the highest global safety standards.

Notably, he cited that the revised flight duty time limitations (FDTL) norms are scientifically designed to prevent pilot fatigue.

He added that DGCA has adopted a phased-wise implementation plan for FDTL in consultation with stakeholders.

IndiGo, Naidu said, had assured full compliance with these norms and confirmed its preparedness to undertake its winter schedule.

However, prima facie, it was observed that internal rostering disruptions led to large-scale cancellations, causing inconvenience to thousands of passengers, the minister said.

Consequently, IndiGo has been directed to restructure its operations, add reserve crew capacity, improve passenger handling and restore normal schedules without delay.

Apart from this, enhanced oversight on the ground continues, he said, adding that passengers’ interests have been at the centre of every decision taken by the Government.

Till now, the Centre has intervened to cap fares so that no passenger would be exploited due to sudden demand spikes and opportunistic pricing.

Meanwhile, the airline was ordered to issue refunds promptly, and more than Rs 750 crore has already reached passengers.

For passengers who opted for rebookings, the same were completed without any additional charges.

The Ministry of Civil Aviation (MoCA), he said, is monitoring each case of baggage handling and ensuring that communication with passengers is timely and dignified.

As per the minister, the process of refunds and baggage handling is in its final stages.

Going forward, the minister said the Centre is determined to build a more robust and competitive aviation ecosystem.

Notably, through its policies, the Centre is encouraging more new airlines to start and operate in India, ensuring fair access to airport capacity and eliminating any possibility of duopoly in connectivity and pricing.

More airlines, he said, mean more choice, more affordability and more resilience for passengers.

In the last decade, Naidu cited that Indian aviation has evolved to become more inclusive.

He pointed out that India has emerged as the world’s fastest growing aviation market, with year-on-year passenger growth of around 12 per cent.

India is already the third biggest domestic aviation market, with significant potential for future expansion, Naidu said adding that the Centre’s policies will ensure that this growth trajectory remains intact.

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Published on December 9, 2025

Shares of Kaynes Technology staged a recovery (gaining 7 per cent) on Tuesday after a steep and extended decline that saw the stock lose nearly 30 per cent over the past five trading sessions. The turnaround comes a day after the company issued a detailed clarification addressing concerns raised in recent analyst reports.

In its response, the integrated electronics manufacturing services (EMS) company stressed that the issues flagged were overstated and largely unfounded.

Kaynes Tech calls out report conclusions “factually incorrect”

Kaynes acknowledged only one error in its financial statements, described as a “small typographical omission” in the notes relating to a related-party transaction within a subsidiary. The discrepancy, the company said, has already been corrected and will be accounted for in future compliance processes.

The management further stated that several conclusions drawn in reports by Kotak Institutional Equities, BNP Paribas and Investec were “factually incorrect.” It reiterated that there were no inconsistencies or ambiguities in its books. All underlying financials, it said, remained accurate.

Clarifications on goodwill, asset capitalisation and accounting treatment

One of the major concerns raised in recent reports centered on goodwill recognition following Kaynes’ acquisition of Iskraemeco and Sensonic for ₹88.3 crore. The company reported recognising ₹114 crore in goodwill; however, analysts noted that the consolidated balance sheet did not reflect a corresponding rise.

Kaynes addressed this by explaining that the transactions were accounted for in accordance with Ind-AS 103 standards. The difference between consideration paid and net assets acquired was netted off to present the statements in what it termed a “relevant and reliable manner.” Additionally, intangible assets worth ₹115 crore —arising from customer contracts linked to smart metering technology—were classified under technical know-how.

The firm also dismissed claims of mismatches between fixed asset additions and cash flow reporting. It clarified that the ₹950 crore purchase of fixed assets recorded in the cash flow statement includes ₹780 crore worth of PPE, CWIP and intangibles, alongside ₹1.7 billion expended on right-of-use assets, adjusted for subsidies.

Receivables, working capital and business expansion

Addressing concerns around rising receivables and elongating working capital cycles, Kaynes noted that ₹687 crore of smart metering receivables as of September included longer-tenure contractual components which will be discounted and phased out. The company expects ₹240 crore of this amount to be cleared shortly.

The management attributed the broader working capital expansion to industry-standard EMS dynamics and its ongoing investment cycle. Long-term capex initiatives—including OSAT and PCB capacity expansions funded through QIP proceeds and subsidies—have temporarily inflated working capital requirements.

Strong revenue growth despite market volatility

Despite recent turbulence in its share price, Kaynes reported robust financial performance. FY25 revenue stood at ₹2,720 crore, marking a 51 per cent year-on-year rise. This growth was driven largely by the integration of Iskraemeco’s smart metering business.

Promoter holding also remains steady at around 63 per cent, with the company confirming that no dilution is planned.

Market Reacts to Clarity

Tuesday’s rebound suggested that investor sentiment may be stabilising as the company works to dispel doubts and reinforce confidence in its accounting and operational transparency. While the stock has yet to recover all of its recent losses, the immediate uptick reflects the market’s positive reception to the management’s detailed explanation.

As Kaynes continues to navigate scrutiny and expand its strategic capabilities in the EMS and smart metering segments, investors will be watching closely to see whether the clarification translates into sustained market recovery.

The stock traded at ₹4,033 on the BSE at 11.06 am, higher by 6.14 per cent, hitting an intraday high of ₹4,065 against the previous close of ₹3799.60.

Published on December 9, 2025

Crude oil futures traded lower on Tuesday morning as traders focussed on developments related to proposed peace talks between Russia and Ukraine to end the war.

At 9.57 am on Tuesday, February Brent oil futures were at $62.38, down by 0.18 per cent, and January crude oil futures on WTI (West Texas Intermediate) were at $58.74, down by 0.24 per cent.

December crude oil futures were trading at ₹5305 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹5334, down by 0.54 per cent, and January futures were trading at ₹5310 against the previous close of ₹5330, down by 0.38 per cent.

On Monday, Ukrainian President Volodymyr Zelenskiy met British Prime Minister Keir Starmer, French President Emmanuel Macron, German Chancellor Friedrich Merz in London to discuss the US-proposed peace plan with Russia.

Zelenskiy told reporters after the meeting that the revised plan included 20 points. However, there was no agreement on the issue of giving up territory that Russia has pushed for.

In their recent analysis, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist of ING Think, said the developments related to Russia-Ukraine peace talks will be important to watch in 2026, with any progress towards ending the war likely to put further pressure on energy markets.

“For 2026, we remain bearish towards energy markets, with the global oil market set to be in large surplus, following OPEC+ rapidly ramping up output as it shifts policy, while demand growth remains modest. There is plenty of uncertainty about Russian oil supply following US sanctions, but as we move through 2026, markets will get a clearer picture of the full impact. For now, we believe the impact will be limited in the medium to long term. However, there is potential for greater volatility, given that OPEC’s spare production capacity has shrunk as the group has increased output,” they said.

Meanwhile, Iraq’s plan to restore production at Lukoil’s West Qurna 2 oilfield also put pressure on oil prices. Quoting two unnamed Iraqi energy officials, a Reuters report said Iraq restored production at West Qurna 2 oilfield, one of the world’s largest, after a leak on an export pipeline slashed its output.

With output of around 460,000 barrels a day, this oil field accounts for about 0.5 per cent of world oil supply and 9 per cent of total output in Iraq, the Reuters report said.

December natural gas futures were trading at ₹438 on MCX during the initial hour of trading on Tuesday against the previous close of ₹448.90, down by 2.43 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), December jeera contracts were trading at ₹20870 in the initial hour of trading on Tuesday against the previous close of ₹20810, up by 0.29 per cent.

December dhaniya futures were trading at ₹10480 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹10638, down by 1.49 per cent.

Published on December 9, 2025