Upgrade to BUY with a TP of Rs 935 (+5.8%) based on 8.0x Sep 20E EV/EBITDAR. Our TP has high sensitivity to crude/USD-INR and yield assumptions. Despite a 16.9% YoY increase in 2QFY19 revenue to Rs 61.9bn, INDIGOs adj. EBITDAR slumped to Rs 1.1bn (-92.9% YoY). Despite the 29.4% growth in RPKMs, revenues were hit as yield (Rs 3.33) fell 6.6% YoY. EBITDAR was impacted by higher fuel costs (rose 42.7% YoY to Rs 1.56/ASKM) and other operating expenses Rs 2.29/ASKM (+13.5% YoY). Forex loss at Rs 3.4bn further hit RPAT (Rs -6.5bn) vs. Rs 5.5bn in 2QFY18.