InterGlobe Aviation Ltd. share price target

Crude prices (ATF) have been higher for longer now, with an impact likely in Q2FY27 extending into Q3 (basis Aug’27 trend). As such, there is a downgrade in our earnings estimates for FY27.

InterGlobe Aviation (INDIGO) is entering a pivotal phase in its evolution—from India's dominant domestic airline to a globally scaled aviation platform.

We believe IndiGo offers one of the best opportunities for investors to buy the long-term potential of India’s air travel, driven by continued strong fare outlook as evident from > 20% yield hike in Q1, a relatively high base of CASK ex-fuel in Q1 but already factored in future estimates.

InterGlobe Aviation (IndiGo) reported Rs245.8bn revenue (up ~20% y/y) in Q1FY27, which exceeded ours and street estimates by ~2.8% and 1.9%, respectively.

InterGlobe Aviation (INDIGO) reported a 34% decline in EBITDAR to INR37.5b, primarily due to high fuel costs (44.1% of sales vs. est. 37.8%), while EBITDA (excl. forex) declined 39% YoY to INR32.9b.

IndiGo’s FY26 result has underlined that demand remains strong, despite a host of challenges spanning internal/external disruptions and cost escalations throughout the year. The same has also been evident in the Q1FY27 yield outlook, based on trends in Apr/May’26.

Ownership model to form 30-40% of fleet mix by FY30E We attended INDIGO IN's analyst meet wherein the management highlighted plans to 1) reach ASKM of 300bn, 2) increase the share of owned and finance-leased aircraft to 30-40% of fleet mix, and 3) increase international ASKM share to 40% by FY30E. In addition, given excessive FX volatility witnessed in recent times, INDIGO IN aims to expand the hedge cover to 33% of net BS exposure by FY27E/FY28E. Despite a modest capacity addition growth guidance of single digit for FY27E, the long-term target to reach ASKM of 300bn by FY30E (15% CAGR over FY26-30E) is encouraging. We...

Indigo, at its CY26 Analyst Day, reiterated India’s aviation growth story, driven by the economy, demography, and under-penetration, with 2x jump in pax expected by FY35 from 246mn in FY26.

INDIGO expects strong industry tailwinds as air passenger traffic is expected to more than double over FY26-FY35, led by an increase in first-time international travels, growing inbound tourism in India and a strong pipeline of new airports (~50 new airports expected in next five years).

InterGlobe Aviation (INDIGO) reported a 78% decline in EBITDAR to INR15b, led by higher forex loss (~INR48.8b), while EBITDA (ex-forex) was down only 5% YoY to INR56.3b.

The first ATF price revision after the start of the Middle East (ME) conflict saw high frenzy—OMCs (IOCL) initially hiked domestic/international rates by 115%/107% MoM to Rs207/USD1.7 per ltr, followed by announcement of domestic scheduled airlines’ rate revision by only ~25% to Rs105/ltr as GoI action was aimed at shielding domestic air travelers from high fares (international fares unchanged).

An escalation in geopolitical conflicts has triggered material airspace disruption across critical international corridors, creating a multi-layered impact on IndiGo’s network, revenue, and cost structures, with meaningful implications for the nearterm earnings trajectory and margin resilience.

We maintain our constructive view on IndiGo. The key premise has been that of a structurally lower industry supply situation in the medium term which we believe may be a bigger investment thesis despite any short-term possible demand blip.

InterGlobe Aviation (INDIGO) reported a flat YoY EBITDAR of INR58.6b (est. INR59.8b) and an adjusted profit of INR20.5b (est. INR21.7b) in 3QFY26. EBITDA (ex-forex loss) was INR64.7b (down 2% YoY), as forex loss stood at INR11b vs. INR14.6b in 3QFY25.

India is emerging as a key beneficiary of global aviation growth, underpinned by rising long-haul demand, expanding connectivity, and robust outbound tourism.

IndiGo plans to add 158 pilots by Feb and 742 pilots by end-2026, which could escalate hiring costs amid intense industry competition Management has revised Q3 capacity growth guidance to high single digits for the peak season. However, near-term flight cancellations and elevated cost pressures are expected to weigh on FY26 earnings. IndiGo is expected to face heightened regulatory scrutiny and stricter compliance requirements in the near term, while the government is likely to promote greater competition and ensure operational stability. We downgrade our FY27E & FY28E earnings estimates by 43.1% & 10% to factor in the near term headwinds related to 10% cut in schedule, near...

We maintain our constructive view on IndiGo. The key premise has been that a structurally lower supply industry situation in the medium term is a bigger investment thesis, despite any short-term possible demand blip.

InterGlobe Aviation (INDIGO) reported a 64% YoY dip in EBITDAR to INR8.7b (est. INR25.8b) and a net loss of INR26.1b (est. net loss of INR6.6b) in 2QFY26.

Nailing the LCC model, IndiGo managed to capture its home market achieving ~64.4% share, supported by a fleet of ~416 aircraft and an orderbook of ~910 aircraft.

costs. However, softening fuel prices provided partial relief. The total fleet count stood at 416, with 8 additions and the return of 16 damp-leased units. Management guided for mid-single-digit capacity...