Interglobe Aviation
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →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
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 |
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.