IndiGo stock hits new high, zooms 52% in 7 months; should you book profit?

While the first quarter saw some impact of external headwinds, Q2FY26 is witnessing stabilisation, and IndiGo remain optimistic for the 3rd and 4th quarter to have a strong rebound and growth.

InterGlobe Aviation share price today

 

Shares of InterGlobe Aviation, the parent company of IndiGo, hit a record high of ₹6,055, gaining 1 per cent on the BSE in Thursday's intraday trade. The stock price of the budget airline surpassed its previous high of ₹6,019.20 which it touched on July 1, 2025.

 

In the past seven months, IndiGo shares have outperformed the market by zooming 52 per cent. Moreover, thus far in calendar year 2025, IndiGo stock has rallied 31 per cent as compared to 2.7 per cent rise in the BSE Sensex.  FOLLOW STOCK MARKET LIVE UPDATES TODAY

IndiGo airlines Q1 results

 

In the April to June 2025 quarter (Q1FY26), IndiGo's passenger volumes demonstrated a strong growth of around 12 per cent year-over-year, reflecting resilient demand despite the external headwinds.

 

Despite a challenging operating environment marked by geopolitical tensions, airspace restrictions, and the tragic accident in the Indian Aviation sector, IndiGo reported a net profit of ₹2,176 crore for the quarter ended June 30, 2025 (Q1FY26). The company had posted net profit of ₹2,794 crore in a year ago quarter (Q1FY25).

 

Earnings before interest, taxes, depreciation, amortization, and rent (or restructuring) (EBITDAR) stood at ₹5,738.6 crore, against ₹5,811.1 crore in the previous year quarter. EBITDAR margins contracted to 28.0 per cent from 29.7 per cent.

 

While the revenue environment saw moderation, demand for air travel held strong as the company served more than 31 million passengers during the quarter, reflecting a growth of around 12 percent on a year-over-year basis, the management said. Looking forward, the management remains optimistic about the growth of air travel.  ALSO READ | Vishal Mega Mart shares pare gains after zooming 8% post Q1; buy or sell?

IndiGo: Company Outlook

 

While the first quarter saw some impact of external headwinds, the second quarter is witnessing stabilisation, and IndiGo remains optimistic for the third and fourth quarter to have a strong rebound and growth.

 

"To unlock the massive long-haul opportunity ahead of us and to enhance connectivity between Indian cities and major international destinations, we signed an MoU with Airbus to convert 30 purchase rights into firm order. These widebodies will give us the reach, flexibility, and scale to tap into unserved global routes and position us as the preferred airline for long-haul journeys," IndiGo said in the Q1FY26 earnings conference call.

 

Brokerages on IndiGo Shares

 

Despite the geopolitical disruptions and operational headwinds in the recent quarters, IndiGo has demonstrated resilience through cost control, strong network execution, and steady passenger growth. Stabilizing fuel costs, the return of grounded aircraft to service, and improved demand are expected to drive performance in the coming quarters, according to Motilal Oswal Financial Services.

 

Backed by early double-digit capacity growth, stable yields, a rising international mix (currently ~30 per cent of ASKs), and improving operating leverage (from reduced damp leases and expanding wide-body routes), IndiGo is well-positioned to sustain healthy profitability, the brokerage firm said with a 'Buy' rating and a share price target of ₹6,900 per share.

 

Geojit Investments, meanwhile, maintained a positive view on IndiGo stock, backed by its market leadership, cost-efficient fleet, and ability to leverage a diversified network. Strong execution and healthy cash position further support its growth prospects. The brokerage firm maintained its 'Buy' rating on the stock with a target price of ₹6,720.

 

About IndiGo

 

IndiGo is amongst the fastest growing low-cost carriers in the world. IndiGo has a simple philosophy: offer fares that are low, flights that are on time, and a courteous, hassle-free travel experience. It had a fleet of 416 aircraft and provided scheduled services to 91 domestic and 41 international destinations as of June 30, 2025.