InterGlobe Aviation shares declined nearly 2.5% following the airline's disappointing June quarter results, with the stock trading at ₹4,899.50, down ₹124 in morning trade on the NSE. The decline came amid a sharp increase in global crude oil prices, with Brent crude remaining close to the $100-per-barrel mark after attacks by Yemen-based Houthi militants on tankers in the Red Sea intensified concerns over supply disruptions in the Middle East. Brent crude has gained more than 13% during the week and briefly crossed the $100 mark for the first time in two months, raising concerns over future profitability for airlines as aviation turbine fuel accounts for one of their largest operating expenses.
ICICI Securities has issued a 'Buy' rating on IndiGo with a target price of ₹6,020, joining multiple brokerages in maintaining positive stances on the airline despite recent quarterly challenges. According to the latest research report dated July 27, 2026, ICICI Securities values the stock at 25x FY28E EPS of ₹241 (post-full tax). Anand Rathi has issued a 'Buy' rating with a target price of ₹5,550, maintaining its positive stance on the airline despite recent quarterly challenges. Motilal Oswal Financial Services maintained its 'Buy' rating with a target price of ₹6,580, indicating potential upside from current levels despite the disappointing quarterly performance. Equirus Securities also maintains a positive stance with a target price of ₹6,084, while JM Financial Research has an 'Add' rating with a target price of ₹5,630. The brokerages remain optimistic about the airline's prospects given its international expansion plans and strong demand trends.
InterGlobe Aviation reported ₹245.8 billion revenue in Q1FY27, up ~20% year-on-year, which exceeded both Motilal Oswal's and street estimates by approximately 2.8% and 1.9% respectively. The revenue growth was driven by ~2.9% year-on-year growth in ASK to ~43.5 billion and ~21.3% year-on-year improvement in yields to ~₹6.04, while load factors declined ~130 basis points year-on-year to ~83.3%. However, EBITDA declined ~37.7% year-on-year to ~₹33.5 billion with EBITDA margin contracting by ~1,259 basis points year-on-year to ~13.6%, largely attributed to significant increase in fuel expenses due to West Asia conflicts. EBITDAR declined ~33.7% year-on-year to ~₹38.9 billion, resulting in falling ~1,280 basis points year-on-year compression in EBITDAR margin to ~15.8%. Despite these substantial cost headwinds, the company achieved 21% year-on-year growth in yield to ₹6.04 supported by strategic price increases implemented during the quarter.
According to Motilal Oswal's research, the brokerage estimates a compound annual growth rate (CAGR) of 13% in revenue and 47% in EBITDAR over FY26-28. The valuation methodology applies a 10x multiple on FY28E EBITDAR to arrive at the target price of ₹6,580. Anand Rathi maintains its 'Buy' rating with an unrevised target price of ₹5,550, valuing the stock at 9.5x FY28e EBITDA. JM Financial Research has cut its FY27 operating profit assumptions by 12% due to the restart of West Asia conflict impacting Brent crude prices, while maintaining FY28 estimates. ICICI Securities maintains its 'Buy' rating with an unchanged target price of ₹6,020, citing IndiGo's strong 2030 outlook wherein it will have annual capacity of ~300bn ASKs, implying mid-teens capacity CAGR, 200mn passengers and more than 3,000 daily departures by 2030. The company expects passenger revenues to see 25% growth in Q2FY27 with capacity growth remaining flattish, supported by strong demand trends and the airline's pricing power. IndiGo's scale, cost leadership and disciplined execution position it to capture India's long-term aviation growth, with gradual normalisation of international operations and fleet expansion expected to support performance recovery over coming quarters.
