Multiple brokerages have maintained bullish stances on InterGlobe Aviation, with ICICI Securities joining Motilal Oswal in recommending 'Buy' ratings on the stock. According to ICICI Securities' research report dated August 31, 2026, the brokerage has maintained its 'Buy' rating with an unchanged target price of ₹6,020, based on 25x FY28E EPS of ₹241 (post-full tax). This aligns with Motilal Oswal's earlier recommendation of ₹6,580 per share, demonstrating strong analyst confidence in IndiGo's growth trajectory. The consensus reflects belief that IndiGo's transition from a dominant domestic airline into a more integrated global aviation platform could reduce some of the volatility that has historically clouded reported earnings. Motilal Oswal has now reiterated its BUY rating with a target price of ₹6,580, based on 10x FY28E EBITDAR, as reported in its latest research dated August 28, 2026.
As reported by Motilal Oswal, IndiGo's 67% command of India's domestic aviation market provides a powerful feeder network from Tier-2 and Tier-3 cities. The brokerage believes this network can now become the launchpad for a much larger international franchise. India remains one of the most underpenetrated outbound travel markets, with passport penetration of around 9%, while rising middle-class incomes, a 35.4 million global diaspora and growing trade connectivity are expanding the opportunity. IndiGo's fleet pipeline of more than 900 aircraft, including 60 A350s and 40 A321XLRs, could allow it to expand into long-haul markets and capture traffic that currently moves through Gulf hubs. The brokerage believes these advantages could help IndiGo emerge as a leading international carrier for Indian travelers, positioning the airline for significant growth beyond its domestic dominance. Motilal Oswal expects IndiGo to deliver 13% revenue CAGR and 47% EBITDAR CAGR over FY26-28, with international expansion driving the top line growth.
According to Motilal Oswal, IndiGo's agreement with CFM covers more than 1,000 LEAP engines for 510 Airbus A320neo-family aircraft, along with long-term MRO and material support. The brokerage views this as addressing three major bottlenecks — engine availability, maintenance capacity and spare-parts access. With engine shortages constraining aircraft utilisation globally, the agreement provides greater certainty around fleet induction and aircraft availability as IndiGo has around 900 aircraft still to be delivered. The partnership could become a strategic enabler of IndiGo's next decade of expansion. Fleet ownership currently stands at around 22%, but Motilal Oswal expects this figure to rise to around 40% by FY30, supported by IndiGo's GIFT City leasing platform. Greater ownership could allow the airline to internalise part of the economics otherwise captured by lessors, reduce recurring lease costs and lower exposure to foreign-exchange volatility. The airline's Bengaluru MRO facility adds another layer to this strategy by bringing more aircraft maintenance capabilities in-house.
According to ICICI Securities, crude prices (ATF) have been higher for longer now, with an impact likely in Q2FY27 extending into Q3 (basis Aug'27 trend). As such, there is a downgrade in our earnings estimates for FY27. However, ICICI Securities believes this correction could be a buying opportunity, as the industry has consolidated, travel demand is high (>20% yield hike in Q1 and 25% yield hike guidance in Q2 is noteworthy validation). The brokerage expects non-fuel CASK to stabilise at an annual level with stable currency conditions. Despite the near-term headwinds, ICICI Securities maintains that IndiGo's 2030 outlook, wherein it may have an annual capacity of ~300bn ASKs, implying mid-teens capacity CAGR, 200mn passengers and >3,000 daily departures by 2030, improves medium-term earnings visibility and provides constructive valuation guidance for investors.
According to Motilal Oswal, the brokerage expects IndiGo to deliver 13% revenue CAGR and 47% EBITDAR CAGR over FY26-28. International expansion is expected to drive the top line, while the CFM partnership could de-risk fleet induction. Greater aircraft ownership and MRO integration could improve the economics of the business, while strong free cash flow provides funding for the transition. Looking ahead, a gradual normalisation of international operations, easing Pratt & Whitney-related groundings, fleet expansion (including A321XLR-led international deployment), and resilient demand trends are expected to support performance recovery over the coming year. The broader thesis suggests that IndiGo's transition from a dominant domestic airline into a more integrated global aviation platform could reduce some of the volatility that has historically clouded reported earnings. The market continues to underestimate IndiGo's cash-generation ability due to accounting volatility from foreign-exchange movements, but the airline's structural improvements in ownership and operational control could gradually improve this perception.
