Despite a Q2 net loss of ₹2,582 crore, InterGlobe Aviation's shares increased 3.5% to ₹5,833 after an improvement in FY26 capacity guidance and extended operational plans. Strong execution and efficient capacity deployment helped the company post a 9.3% rise in sales.
Despite a higher-than-expected decline in Q2 net profit, InterGlobe Aviation, the parent company of India's biggest airline IndiGo, saw its shares rise 3.5% to ₹5,833 in early trading on Thursday, November 6, as investors applauded the firm's updated FY26 capacity guidance and increased H2 operating plans.Strong operational performance and promising growth prospects were cited by brokerages including Jefferies, Citi, and Motilal Oswal as reasons for their continued bullish outlooks on the stock, which bolstered the share price increase.
The business reported a net loss of ₹2,582 crore in Q2 compared to a loss of ₹987 crore in the same quarter last year when it released its Q2 statistics on Tuesday after market hours.
Higher foreign exchange expenses had an effect on the airline's performance, despite great operational execution and efficient capacity deployment driving a 9.3% year-over-year increase in income from operations to ₹18,555 crore.
Compared to just ₹204 crore in the same quarter last year, the domestic carrier posted a forex loss of ₹2,892 crore, representing a staggering 1,102% increase—the largest growth among all cost components.
Higher foreign exchange expenses had an effect on the airline's performance, despite great operational execution and efficient capacity deployment driving a 9.3% year-over-year increase in income from operations to ₹18,555 crore.
Compared to just ₹204 crore in the same quarter last year, the domestic carrier posted a forex loss of ₹2,892 crore, representing a staggering 1,102% increase—the largest growth among all cost components.
Passenger numbers increased 3.6% to 28.8 million during the quarter, while capacity increased 7.8% to 41.2 billion. In order to satisfy growing demand, the company has enlarged its operational plans and increased its FY26 capacity growth projection from low double digits to mid-teens.
By 2030, IndiGo hopes to have 30–40% of its fleet either owned or on financing lease. In Q2, it entered 15 aircraft from the original order book. To expand internationally, the business has doubled its order for A350 aircraft from 30 to 60.
Jefferies' IndiGo rating is still "Buy"; the target price is ₹7,025.
By 2030, IndiGo hopes to have 30–40% of its fleet either owned or on financing lease. In Q2, it entered 15 aircraft from the original order book. To expand internationally, the business has doubled its order for A350 aircraft from 30 to 60.
Jefferies' IndiGo rating is still "Buy"; the target price is ₹7,025.
With a target price of ₹7,025, Jefferies has a "Buy" recommendation on InterGlobe Aviation, pointing out that despite headline losses caused by the currency mark-to-market (MTM) impact, the firm produced an operational beat in a seasonally difficult quarter.
As signs of the company's strategy execution in the face of cost difficulties, the brokerage emphasized yield improvement and strong foreign expansion.
Additionally, management increased the capacity guidance for FY26 from the previous early double-digit estimate to early teens growth. Although short-term earnings were impacted by currency volatility, Jefferies thinks the company's long-term fundamentals are still intact.
As signs of the company's strategy execution in the face of cost difficulties, the brokerage emphasized yield improvement and strong foreign expansion.
Additionally, management increased the capacity guidance for FY26 from the previous early double-digit estimate to early teens growth. Although short-term earnings were impacted by currency volatility, Jefferies thinks the company's long-term fundamentals are still intact.
Citi continues to have a "Buy" recommendation on IndiGo. The target price is ₹6,500.
In a similar vein, Citi reduced its target price to ₹6,500 while maintaining a "buy" recommendation on InterGlobe. The brokerage noted that while operational performance, including yield and revenue, exceeded expectations, Q2FY26 EBITDAR and PAT fell short of projections due to large MTM FX losses.
Citi reported that, mostly due to quick foreign development, management raised the FY26 ASK growth estimate to early teens percent YoY from early double digits. Despite a high base in 3QFY25, the demand outlook is still stable, with 3QFY26 unit revenue projection predicted to be level to slightly better YoY.
In a similar vein, Citi reduced its target price to ₹6,500 while maintaining a "buy" recommendation on InterGlobe. The brokerage noted that while operational performance, including yield and revenue, exceeded expectations, Q2FY26 EBITDAR and PAT fell short of projections due to large MTM FX losses.
Citi reported that, mostly due to quick foreign development, management raised the FY26 ASK growth estimate to early teens percent YoY from early double digits. Despite a high base in 3QFY25, the demand outlook is still stable, with 3QFY26 unit revenue projection predicted to be level to slightly better YoY.
Motilal Oswal is still rated "Buy" on IndiGo; the target price is ₹7,000.
Additionally, the brokerage maintained its 'Buy' recommendation on the company with a target price of ₹7,300. Over FY25–28, the brokerage anticipates that the stock's sales, EBITDAR, and adjusted PAT will grow at a CAGR of 11%, 18%, and 14%, respectively.
"Backed by mid-teens capacity growth coupled with rising demand, stable yields, and a rising international mix, IndiGo is well-positioned to sustain healthy profitability," the brokerage stated.
Additionally, the brokerage maintained its 'Buy' recommendation on the company with a target price of ₹7,300. Over FY25–28, the brokerage anticipates that the stock's sales, EBITDAR, and adjusted PAT will grow at a CAGR of 11%, 18%, and 14%, respectively.
"Backed by mid-teens capacity growth coupled with rising demand, stable yields, and a rising international mix, IndiGo is well-positioned to sustain healthy profitability," the brokerage stated.
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