IndiGo’s share price increased by 1.82% to Rs. 5,739.50 amid market optimism, even as the airline reported a significant quarterly loss. The surge follows the company’s announcement of an upgraded capacity growth target for the fiscal year FY26, indicating confidence in a long-term recovery in demand for air travel.
The Indian airline’s stock jumped over 3% in early trading on November 6, after it revealed its quarterly results for Q2 FY26. The parent company, InterGlobe Aviation, saw its shares rise despite a reported net loss of Rs. 2,582 crore for the July-September quarter. Analysts remain optimistic, citing the anticipated rebound in passenger demand, driven by capacity expansion and efficient operational strategies.
Quarterly Losses Versus Growth Potential
IndiGo’s share price climbed from an opening of Rs. 5,750 to a high of Rs. 5,833.50 during the day, reflecting a strong trading volume of 1.78 million shares, significantly surpassing the 20-day average of 600,000 shares. The airline’s market capitalization now stands at around Rs. 2.22 lakh crore.
Despite the widening quarterly losses, which increased from Rs. 987 crore in the same quarter last year, analysts at leading brokerages—including Motilal Oswal and PL Capital—are maintaining “Buy” ratings with target prices ranging between Rs. 6,300 and Rs. 7,300 per share.
Revenue from operations rose by 9.3% year-on-year to Rs. 18,555 crore, attributed to robust passenger demand and increased ticket yields. However, total expenses surged by 18.3% to Rs. 22,081 crore, with foreign exchange losses alone escalating twelvefold to Rs. 2,892 crore. Excluding these forex-related impacts, IndiGo reported a net profit of Rs. 104 crore, a positive sign of its underlying operational strength.
Analysts Remain Bullish on IndiGo’s Long-Term Prospects
Analysts recognize IndiGo as a formidable player in India’s aviation sector, bolstered by its substantial market share and efficient cost structure. The airline’s revised capacity growth guidance for FY26, increasing from low double digits to mid-teens, underscores its optimism regarding rising passenger demand.
Despite the near-term challenges posed by high operating costs and foreign exchange volatility, brokerages project a strong long-term outlook. Motilal Oswal has set a target price of Rs. 7,300, indicating nearly 30% upside potential, while PL Capital has a target of Rs. 6,332, reflecting a 12% upside from current levels. Both firms caution that fluctuations in aviation turbine fuel prices and currency rates remain risks to the stock’s performance.
As IndiGo navigates these challenges, analysts advise investors with a medium- to long-term investment horizon to consider holding or accumulating shares, particularly on dips. The airline’s strategic fleet expansion and capacity growth are expected to yield favorable returns as the demand for air travel continues to rise in India.
The recent performance and strategic initiatives indicate that while the short-term outlook may be rocky, IndiGo’s long-term potential remains strong, positioning the airline favorably in a rapidly growing aviation market.
