InterGlobe Aviation, parent of India’s largest airline IndiGo, saw its shares jump 3.5% to ₹5,833 in early trade on Thursday, November 6, as investors cheered the company’s upgraded FY26 capacity guidance and expanded H2 operational plans, despite a larger-than-expected drop in Q2 net profit.
Brokerages, including Jefferies, Citi, and Motilal Oswal, also retained their bullish outlooks on the stock, citing strong operational execution and robust growth prospects, which further supported the share price rally.
The company announced its Q2 numbers post-market hours on Tuesday, reporting a net loss of ₹2,582 crore in Q2 compared to a loss of ₹987 crore in the same quarter last year.
The airline’s performance was impacted by higher foreign exchange costs, even as revenue from operations rose 9.3% year-on-year to ₹18,555 crore, driven by strong operational execution and optimized capacity deployment.
The domestic carrier reported a forex loss of ₹2,892 crore, compared to just ₹204 crore in the same quarter last year, marking a massive 1,102% increase—the steepest rise among all cost components.
Capacity during the quarter increased 7.8% to 41.2 billion, while passenger numbers grew 3.6% to 28.8 million. The company also raised FY26 capacity growth guidance to mid-teens from low double digits and has expanded its operational plans to meet rising demand.
IndiGo inducted 15 aircraft in Q2 from the original order book and targets 30–40% of its fleet to be either owned or on finance lease by 2030. The company has doubled its order for A350 aircraft from 30 to 60 in order to increase its international reach.
Jefferies retains ‘Buy’ rating on IndiGo | Target price: ₹7,025
Jefferies has a ‘Buy’ rating on InterGlobe Aviation with a target price of ₹7,025, noting that the company delivered an operational beat in a seasonally weak quarter despite headline losses driven by forex mark-to-market (MTM) impact.
The brokerage highlighted yield improvement and robust international growth as indicators of the company’s strategic execution amid cost pressures.
Management also raised FY26 capacity guidance to early teens growth from the previous early double-digit projection. While forex volatility affected near-term earnings, Jefferies believes the company’s long-term fundamentals remain intact.
Citi maintains ‘Buy’ rating on IndiGo | Target price: ₹6,500
Similarly, Citi maintains a ‘buy’ rating on InterGlobe but cut its target price to ₹6,500. The brokerage observed that Q2FY26 EBITDAR and PAT fell below estimates due to high MTM forex losses, although operational performance, including yield and revenue, exceeded expectations.
Citi noted that management increased FY26 ASK growth guidance to early teens % YoY from early double digits, driven largely by rapid international expansion. The demand outlook remains steady, with 3QFY26 unit revenue guidance expected to be flat to slightly better YoY, despite a high base in 3QFY25.
Motilal Oswal retains ‘Buy’ rating on IndiGo | Target price: ₹7,000
The brokerage also retained its ‘Buy’ rating on the stock with a target price of ₹7,300 and expects its revenue, EBITDAR, and adjusted PAT to clock a CAGR of 11%, 18%, and 14%, respectively, over FY25–28.
“Backed by mid-teens capacity growth coupled with rising demand, stable yields, and a rising international mix, IndiGo is well-positioned to sustain healthy profitability,” said the brokerage.
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