DINESH

Interglobe Aviation

Industry: Airlines
Latest CMP 5,310
Today's Change ▼ -1.12%
52-Week High / Low 6,156 | 3,944
Price Date: 14-Aug-2026
Recommendation Sell
Target Price 5,790
Expected Upside 4.4%
Forecast Horizon 2 Years
Historical CAGR 16.2%
1,000 Invested 10-Nov-2015
Today's Value 5,021
Investment Period 11 Years

Stock Snapshot

Post Results Return
-0.5%
Neutral Market Reaction
1-Year Target Price
5,790
2-Year Target Price
5,790
52-Week High / Low
6,156 / 3,944
20-Day Return
+1.5%
Market Cap (Cr.)
205,338
Current PE
P/BV Ratio
31.9
Dividend Yield
0.2%
Industry PE

Price Performance

Basis of our Recommendation

InterGlobe Aviation (IndiGo) is navigating a challenging operational landscape marked by elevated fuel costs and currency volatility, which have pressured margins and led to a net loss in Q1 FY27. However, management's commitment to a disciplined long-term growth strategy remains evident, with a focus on expanding international capacity to 40% by 2030 and modernizing the fleet with new aircraft. The company's strong yield growth and strategic cost management initiatives, including a recent engine maintenance agreement, are expected to support revenue growth despite current headwinds. Vista's financial outlook anticipates accelerating revenue growth beyond historical levels, underpinned by India's under-penetrated aviation market and robust demand. While the balance sheet reflects elevated leverage, the long-term growth narrative remains intact, with a target price of approximately 5760. The airline industry is poised for growth, driven by increasing travel demand, although competitive pressures and economic fluctuations present ongoing challenges. Key opportunities include fleet expansion and international market penetration, while watchpoints include fuel price volatility and geopolitical risks that could impact profitability in the near term

👍 Why We Like This Stock

  • Management's focus on expanding international capacity to 40% by 2030 supports long-term growth
  • Strong yield growth and disciplined cost management are expected to drive revenue despite current headwinds
  • IndiGo's dominant market position and extensive aircraft order book provide a competitive advantage

Things To Watch Out For

  • Elevated fuel costs and currency volatility have pressured margins and led to a net loss in Q1 FY27
  • The balance sheet reflects elevated leverage, increasing financial risk
  • Geopolitical disruptions and regulatory changes pose significant risks to profitability

Key Parameters

Balance Sheet Strength
Financial Stress Risk
Market Share
Stable
Industry Outlook
Weakening
Analyst View
Strong Buy
Dividend History
Irregular
FII Holdings
Reducing

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 68,904 80,803 84,962 92,755 106,206
Profit Before Tax (Cr.) 7,054 6,107 -367 -4,420 2,013
PBT Margin 10.2% 7.6% -43.2% -4.8% 1.9%
Net Profit (Cr.) 7,053 5,837 -712 -3,315 1,510
Earnings Per Share 182.4 151.0 -18.4 -85.7 39.0

Analyst Recommendations

Broker Recommendation Target Price Date
Ambit Capital ▲ Buy 5,350 24-Jul-2026
Anand Rathi ▲ Buy 5,550 27-Jul-2026
BofA ▲ Buy 5,100 01-Jun-2026
Citigroup ▲ Buy 5,800 24-Jul-2026
Elara Capital ▲ Buy 6,020 24-Jul-2026
Emkay Global ▲ Buy 5,200 09-Jun-2026
Goldman Sachs ▲ Buy 5,300 09-Jun-2026
HSBC ▲ Buy 5,545 23-Jun-2026
ICICI Securities ▲ Buy 6,020 27-Jul-2026
Investec ▼ Reduce 4,050 24-Jul-2026
JMFinancials ► Hold 5,000 29-May-2026
JPMorgan ► Neutral 4,740 24-Jul-2026
Jeffries ▲ Buy 5,840 28-Jul-2026
Kotak Securities ▲ Buy 5,900 24-Jul-2026
Moneycontrol ► Equalweight nan 24-Jul-2026
Morgan Stanley ▲ Overweight 5,844 09-Jun-2026
Motilal Oswal ▲ Buy 6,580 24-Jul-2026
Nuvama ► Hold 5,335 10-Jun-2026
Prabhudas Liladhar ► Hold 4,520 24-Jul-2026
Consensus Recommendation ▲ Strong Buy
Consensus Target 5,572
Coverage 19 Analysts
Analysts' Viewpoint
InterGlobe Aviation is focusing on expanding its international capacity to 40% of total ASKs by FY30, supported by new aircraft deliveries and a strategic engine agreement with CFM International. This expansion is expected to enhance revenue diversification and growth. However, the company faces significant near-term challenges, including elevated fuel costs, currency depreciation, and geopolitical tensions, which have compressed margins. Analysts remain optimistic about the company's long-term growth prospects, driven by strong demand, fleet optimization, and strategic investments in MRO capabilities.

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.