Seasonally strong 1QFY20, profitable expansion into international markets and strong focus on efficiency drive further upside. We have tightened our load factor and yield assumptions resulting in our EBITDAR for FY20/FY21E improving by 8.9/13.8% to Rs 105.1/144.2bn. In the medium term, we need to track impact of industry capacity addition on pricing and load factors. Oil remains a big variable. We continue to rate INDIGO a BUY post stronger than expected 4QFY19. Seasonally strong 1QFY20 at a time when industry capacity is low augurs well for the carrier. Profitable expansion into international markets and strong focus on efficiency drive further upside. Our TP is raised to Rs 1,846 (8x FY21E EV/EBITDAR).