Shares of InterGlobe Aviation, which operates IndiGo, climbed more than 4% on 9 June after several brokerages reaffirmed their positive outlook following the airline’s Investor Day presentation. Despite concerns around rising fuel costs and aircraft delivery delays, analysts remain optimistic about IndiGo’s long-term growth strategy.
According to JM Financial, the Investor Day focused less on near-term earnings and more on IndiGo’s vision for FY30. The airline aims to transform itself from a dominant domestic carrier into a globally significant aviation platform.
Key FY30 targets include carrying around 200 million passengers, up from 123 million in FY26; operating more than 3,000 daily flights, up from about 2,200 currently; expanding its fleet to over 550 aircraft from roughly 400; and increasing the international capacity mix to around 40% from the low-30% range today.
The brokerage noted that the strategy remains rooted in IndiGo’s traditional strengths of cost leadership, fleet commonality, and disciplined execution. However, the successful implementation of its international expansion and premiumisation plans will be closely watched by investors.
Management expects FY27 available seat kilometre (ASK) growth to remain in the single digits due to fleet constraints, with stronger mid-teen ASK growth projected between FY28 and FY30.
Meanwhile, Emkay highlighted India’s long-term aviation growth potential, driven by economic expansion, favourable demographics, and low air travel penetration. The brokerage retained its “Buy” rating and ₹5,200 target price, citing strong pricing power, international growth opportunities, and initiatives such as long-haul expansion, premium offerings, and potential fuel hedging for international operations.
According to a Moneycontrol report, global brokerages largely remain constructive on InterGlobe Aviation following the airline’s Investor Day, citing its strong growth outlook despite near-term industry challenges.
Goldman Sachs reiterated its Buy rating with a target price of ₹5,300, highlighting IndiGo’s robust 900-aircraft order book and expectations that international capacity will increase to 40% of total capacity by FY30 from around 30% currently. The brokerage expects passenger yields to remain resilient, although cost pressures could persist, according to Moneycontrol news report.
Jefferies also maintained a Buy rating and a target price of ₹5,380, noting that IndiGo’s focus is increasingly shifting from capacity expansion toward pricing discipline and profitability. The brokerage also highlighted plans to expand international operations, cargo business, hedging coverage, and aircraft ownership, as per Moneycontrol news report.
HSBC retained its Buy rating with a target price of ₹5,545, citing long-term earnings growth potential despite higher fuel costs.
In contrast, JPMorgan maintained a Neutral rating and a ₹4,610 target price, pointing to slower FY27 capacity growth before a stronger expansion phase from FY28 to FY30, the Moneycontrol report noted.
IndiGo – Q4 results
Low-cost airline IndiGo reported a net loss of ₹2,536 crore for the fourth quarter of FY26, a significant drop from the net profit of ₹3,067 crore reported during the same quarter the previous year. Revenue from operations increased by 1% to ₹22,438 crore.
The largest airline in the country indicated that capacity, as measured by available seat kilometres (ASKs), grew by 3.4% to 43.6 billion despite interruptions caused by the ongoing conflict in the Middle East. Passenger traffic decreased by 1.1% to 31.6 million, and the load factor declined by 1.7 percentage points to 85.8%.
Yield decreased by 2% year-over-year to ₹5.2. The operating profitability faced challenges during the quarter.
According to reports, EBITDAR, excluding the impact of foreign exchange, was ₹6,435 crore, down from ₹6,862 crore a year earlier. The EBITDAR margin fell to 28.7% from 31%.
Reported EBITDAR saw a significant decline to ₹2,228 crore, compared to ₹6,948 crore in the same quarter last year, while the margin decreased to 9.9% from 31.4%.
IndiGo share price today
IndiGo share price today opened at an intraday low of ₹4,380.35 apiece on the BSE, the stock touched an intraday high of ₹4,532.45 per share.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stock has been consolidating within a range over the past few weeks. However, Tuesday’s strong move, with the stock gaining more than 3%, indicates improving momentum.
Bhosale noted that the immediate resistance is placed around ₹4,600, which coincides with the 89-day Exponential Moving Average (EMA). A decisive breakout above this level could trigger an exit from the recent trading range and pave the way for a rally towards ₹4,800.
On the downside, the recent swing low near ₹4,350 serves as the key support level. As long as the stock holds above this zone, the near-term technical structure remains constructive, with traders closely watching the ₹4,600 mark for confirmation of a breakout.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
