InterGlobe Aviation rallies 15% in 1 month, hits 5-month high; here's why

IndiGo's FY26 results underlined that demand remains strong, despite a host of challenges spanning internal/external disruptions and cost escalations throughout the year, analysts say.

InterGlobe Aviation (IndiGo) share price movement

 

Share price of InterGlobe Aviation (IndiGo) hit a five-month high at ₹5,104.70, gaining 3 per cent on the National Stock Exchange (NSE) in Wednesday’s intra-day trade on expectations of improved operational performance. 

 

The stock price of the airline company was quoting at its highest level since January 1, 2026. In the past month, IndiGo outperformed the market by soaring 15 per cent on falling crude oil prices. In comparison, the Nifty 50 was up 1.2 per cent during the period. However, thus far in the calendar year 2026, the stock underperformed by falling 9 per cent, as against 4 per cent decline in the benchmark index. It hit a 52-week high of ₹6,232.50 on August 18, 2025.

 

 

IndiGo temporarily suspends operations to six international destinations

 

IndiGo is India’s preferred and amongst the fastest growing carriers in the world. On June 4, 2026, IndiGo informed the stock exchanges that in view of a traditionally softer demand in the upcoming quarter and an incredibly challenging cost environment, the company decided to make temporary adjustments to a limited segment of its international network including temporary suspension of operations to Langkawi, Krabi, Ho Chi Minh, Hong Kong and Shanghai starting July 1, 2026, and Siem Reap starting July 3, 2026, until September 30, 2026.

 

IndiGo said the airline will continue to monitor the situation given the elevated operating costs and continued airspace restrictions.

 

In the financial year 2025-26 (FY26), IndiGo reported a net loss of ₹2,390 crore. The primary driver of the loss was the significant impact of foreign exchange movement, where the Rupee depreciated by more than 11 per cent against the US dollar in just 12 months, one of its steepest decline in many years. 

 

The Middle East developments had a meaningful impact on the company’s international operations, disrupting flights to the region as well as to Europe.

 

Further, as the company said it entered a seasonally softer demand environment from mid-June onwards; combined with elevated fuel prices, the management was adopting a measured approach to optimize capacity. As a part of this, selective recalibration of certain routes was warranted to protect margins, as was done last year as well, the company said.  Check - TOP GAINERS NSE | TOP LOSERS NSE 

ICICI Securities maintains BUY rating on IndiGo with target price of ₹6,020

 

IndiGo’s FY26 result underlined that demand remains strong, despite a host of challenges spanning internal/external disruptions and cost escalations throughout the year. The same has also been evident in the Q1FY27 yield outlook, based on trends in Apr/May’26.

 

“A moderation in crude prices against this backdrop has led to an expansion in our spread estimates, leading to a 26 per cent/16 per cent upgrade in our FY27/28E PBT,” analysts at ICICI Securities said in the company update. 

 

The broad thesis again remains the same—a structural supply deficit which allows IndiGo to register healthy yields from time to time. The brokerage firm said they have been cautious on spreads in the past, but the overall yield trajectory exhibits a positive surprise, apart from the moderation in crude prices. Analysts said they have not changed their ex-fuel cost assumptions, which remain high.

 

Even beyond FY28, the guidance of a 15 per cent compound annual growth rate (CAGR) in capacity over FY26-30, along with an increase in the international mix to 40 per cent from 32 per cent in FY26, lends a strong growth roadmap which could boost investor confidence beyond FY28, in the analysts' view. 

 

The brokerage firm maintained its 'Buy' rating on the stock with a revised target price of ₹6,020 (₹5,210 earlier) based on a 25x (unchanged) FY28E PAT of ₹9,300 crore (EPS of ₹241), assuming full tax.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.