IndiGo shares higher in a weak market, supported by Q4 profit growth and target price upgrades

Shares of InterGlobe Aviation are higher in a weak market, supported by a 62 percent on-year growth in net profit for the March quarter, with a range of brokerages raising price targets on the stock.

Nuvama on IndiGo:

Nuvama Institutional Equities maintained a 'Hold' rating on IndiGo shares, citing lofty valuations and near-term industry weakness. The brokerage kept a target price of Rs 5,199 apiece for the stock, which implies a downside potential of over 4.8 percent from the stock's previous closing price of Rs 5,461.50 apiece.

Nuvama said that the airline's reported EBITDAR beat its estimates by 18 percent on 4 percent higher yields amid strong demand during the quarter. "The near-term outlook looks challenging as growth in capacity outpaces demand, hurting yields. Current valuations are unsupportive, but positive factors make the risk-reward balanced. We are trimming FY26E EBITDAR by 3% as we factor in Q1FY26 guidance and the adverse impact on yields and demand due to geopolitical tensions," Nuvama added.

JM Financial on IndiGo:

JM Financial also maintained a 'Hold' rating on IndiGo shares, but increased its target price for the stock by 4.5 percent to Rs 4,860 apiece. This implies a downside potential of nearly 11 percent from the stock's previous closing price.

The brokerage noted that the firm's profit after tax was higher than its estimate, mainly on account of higher passenger revenue.

Motilal Oswal on IndiGo:

Motilal Oswal Financial Services however maintained a 'Buy' rating on IndiGo shares, with a target price of Rs 6,375 apiece. This implies an upside potential of nearly 17 percent from the stock's previous closing price.

"Management continues to work towards its key promises with a customer-first approach. We retain our estimates for FY26/27 as of now," the domestic brokerage said. It cited delays in wide-body aircraft deliveries or rising AOGs, sharp volatility in crude or rupee could pressure margins if not passed on, and a higher share of business-class seating or premium fleet diluting the airline’s cost advantages as the key downside risks.

Emkay Global on IndiGo:

Emkay Global also maintained a 'Buy' rating on IndiGo shares, with a target price of Rs 6,000 apiece. This implies an upside potential of nearly 10 percent from the stock’s previous closing price.

"The management reiterated its FY26 ASK growth guidance of an early single digit, while mid-teens growth is expected in Q1FY26. Demand slowed down in May-25, amid elevated cancellations due to geopolitical turmoil, with no near-term yield guidance; the situation has bottomed out albeit is expected to see a recovery. AOGs are currently in the 40s," the brokerage said.

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Earnings Fineprint

The company's revenue from operations meanwhile grew 24 percent to Rs 22,151.9 crore from Rs 17,825.3 crore last fiscal, just short of estimates of Rs 22,500 crore. The carrier's EBITDAR (earnings before interest, tax, depreciation, amortisation and rent) jumped to Rs 6,948.2 crore as against Rs 4,412.3 crore a year back, while its margin increased to 31.4 percent from 24.8 percent.

Along with the Q4 results, IndiGo announced a dividend of Rs 10 per equity share subject to approval of the shareholders of the company at the ensuing Annual General Meeting (AGM). "The payment of dividend will be completed within 30 days of declaration at the ensuing AGM," IndiGo said in a statement.Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.