Stock Snapshot
Price Performance
Recommendation Rationale
Moderate growth outlook supported by strategic fleet expansion and strong demand drivers, tempered by margin pressures and geopolitical risks.
Basis of our Recommendation
InterGlobe Aviation (INDIGO) is positioned for moderate growth driven by strategic fleet expansion and international capacity increases, despite facing near-term challenges such as rising costs and geopolitical risks. The company aims for a 15% CAGR in capacity through FY30, supported by a favorable demand environment and diversified revenue streams. However, margin pressures and execution risks remain concerns that could impact profitability.
Why We Like This Stock
- Projected 15% CAGR in capacity through FY30
- Strategic shift to increase international capacity to 40%
- Diversification of revenue streams through cargo and premium offerings
Things To Watch Out For
- Rising fuel costs impacting margins
- Geopolitical disruptions posing operational risks
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 68,904 | 80,803 | 84,962 | 95,642 | 107,101 |
| Profit Before Tax (Cr.) | 7,054 | 6,107 | -367 | 3,896 | 6,515 |
| PBT Margin | 10.2% | 7.6% | -0.4% | 4.1% | 6.1% |
| Net Profit (Cr.) | 7,053 | 5,837 | -712 | 2,922 | 4,886 |
| EPS | 182.4 | 151.0 | -18.4 | 75.6 | 126.4 |
Company Overview
Show Company Profile
InterGlobe Aviation Limited, together with its subsidiaries, provides air transportation services under the IndiGo brand in India and internationally. The company offers pre-flight and post-flight ground handling operations; passenger and cargo services; and related allied services, such as in-flight sales, and other allied services at the airports. It also engages in aircraft and aircraft engine leasing, as well as related financial services. In addition, the company provides cargo transport; charter flights; hotel booking services through its website and mobile app; and cadet pilot program for pilot training. As of March 31, 2025, its fleet consisted of 434 aircraft. The company serves businesses, leisure travelers, students, and families. InterGlobe Aviation Limited was incorporated in 2004 and is based in Gurugram, India.