IndiGo stock crashes 7% on Monday; analysts see more turbulence ahead

IndiGo flight disruptions: As brand IndiGo takes hit, analysts caution on likely adverse impact on earnings and foresee up to 8 - 22 per cent further crack on the stock.

IndiGo stock cracked another 6.9 per cent in intra-day trade on Monday as India's biggest domestic airline by market share - InterGlobe Aviation (IndiGo) - continued to face operational challenges.  IndiGo stock hit an intra-day low of ₹5,001, and was quoting with a loss of 5 per cent at ₹5,100 as of 10:30am. The Interglobe Aviation stock has slumped 13.5 per cent thus far in December 2025; amid which the company's market-cap has plunged from ₹2.28 trillion to ₹1.94 trillion - wiping out over ₹34,000 crore in investors' wealth.  Analysts expect the stock to remain under pressure for some more time. Independent market analyst Ambareesh Baliga, for instance, expects the IndiGo stock to dip to ₹4,000 levels as the existing pain could impact earnings over the next two quarters.  Brand IndiGo, he believes, has taken a massive hit in the backdrop of current developments. With the current flight disruptions coming during the peak season,  he said, the airline could feel the heat on the earnings over the next two quarters, as the company faces challenges in terms of refunds, cap in fares, and mounting salaries.  ALSO READ | IndiGo flight cancellation: Use fall to buy for the long term, say analysts   "Implementation of new Flight Duty Time Limitation (FDTL) norms could see costs spiral by another 25 per cent for IndiGo going ahed," Baliga said.  At the bourses, Baliga fears the IndiGo stock could crash to ₹4,000-mark - down 21.6 per cent from current levels, with interim support possible around ₹4,800 - ₹4,600 zone.  Meanwhile the Director General of Aviation (DGCA), which had issued a show-cause notice to IndiGo CEO Pieter Elbers on massive flight disruptions, has asked the airline to reply by 6pm on Monday, December 8, 2025.  According to the regulator, the "primary cause" of the chaos was IndiGo's failure to make adequate arrangements for revised staffing and rostering requirements under the new Flight Duty Time Limitations (FDTL) rules. These gaps amounted to prima facie non-compliance with the Aircraft Rules, 1937 (Rule 42A) and related regulations on crew duty hours, flight time limits and rest periods. READ MORE  ALSO READ | SpiceJet surges 14% on heavy volumes in subdued market; here's why  Drumil Vithlani, technical analyst at Bonanza explains that IndiGo stock has been in a corrective phase after it failed to sustain above ₹6,000 - ₹6,100 resistance zone in August 2025.  "At present, the stock is testing a crucial rising trend line multi-year support around ₹5,050 levels; with ₹5,150 - ₹5,200 historically seen as a strong demand zone for the stock. Existing investors can continue to hold the stock with a stop loss of ₹4,700 (down 8 per cent from the current levels). On the upside, IndiGo stock can (technically) bounce back to ₹5,550, and in the long-term extend the pullback towards ₹6,000-mark," Vithlani said.  Disclaimer: The views expressed by the brokerage in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.