IndiGo’s share price increased by 1.82% to reach Rs. 5,739.50 on November 6, 2023, following an announcement of a revised capacity growth target for the financial year 2026 (FY26). Despite reporting a substantial quarterly loss, the airline’s optimism about long-term demand recovery spurred investor confidence. The stock opened at Rs. 5,750 and peaked at Rs. 5,833.50 during intraday trading, reflecting heightened market activity with a trading volume of 1.78 million shares, significantly surpassing the 20-day average of 600,000 shares.
The parent company, InterGlobe Aviation, reported a net loss of Rs. 2,582 crore for the July-September quarter of FY26, compared to a loss of Rs. 987 crore in the same period last year. This widening loss was primarily attributed to foreign exchange fluctuations and a sharp increase in operating expenses. Nevertheless, excluding the impact of foreign exchange losses, IndiGo generated a net profit of Rs. 104 crore, highlighting the airline’s underlying operational strength.
Analysts Remain Optimistic on IndiGo’s Long-Term Growth
Brokerages such as Motilal Oswal and PL Capital maintain a positive outlook on IndiGo’s stock, assigning “Buy” ratings with target prices ranging from Rs. 6,300 to Rs. 7,300. Motilal Oswal projects a potential upside of nearly 30% from the current levels, pointing to the airline’s strategic capacity additions, particularly on international routes, which are expected to mitigate currency exposure risks and support future growth.
Despite the challenges presented by volatile aviation turbine fuel prices and fluctuating exchange rates, analysts identify IndiGo as a leading player in India’s aviation industry. The airline has adjusted its capacity growth forecast for FY26 from low double digits to mid-teens, reflecting confidence in the increasing demand for air travel in the region.
Revenue from operations for the quarter rose by 9.3% year-on-year to Rs. 18,555 crore, bolstered by robust passenger demand and improved yield. However, total expenses surged 18.3% to Rs. 22,081 crore, with forex-related losses escalating twelvefold to Rs. 2,892 crore.
Future Outlook and Investment Recommendations
Given the current market dynamics, analysts suggest that investors with a medium- to long-term perspective consider holding or accumulating IndiGo shares during market dips. The stock has shown significant resilience, having gained over 26% year-to-date in 2025, reaching a 52-week high of Rs. 6,232.50.
In summary, while IndiGo faces immediate profitability challenges, its proactive approach to capacity expansion and strategic operational improvements position it well for future growth in India’s expanding aviation market. As the sector continues to recover, IndiGo appears poised to capitalize on the upward trajectory of air travel demand, making it an attractive option for investors seeking opportunities in the aviation space.
