IndiGo Shares Poised for Potential 27% Gain as Brokerages Remain Optimistic on Growth Prospects

IndiGo's Shares Remain Bullish Despite Q4 Loss

Brokerages have maintained their 'Buy' ratings on InterGlobe Aviation Ltd, the parent company of IndiGo, after the airline reported a loss in the fiscal fourth quarter. Analysts have stated that foreign exchange losses, geopolitical disruptions, and temporary operational challenges have masked an otherwise intact long-term growth story for the airline.

According to brokerage targets, there is potential upside of 15-27 percent in IndiGo's shares from Friday's closing price of Rs 4,420. The most bullish target is Rs 5,600 per share, set by Motilal Oswal Financial Services (MOSL). Other brokerages, including Jefferies, Kotak Institutional Equities, Goldman Sachs, and Bank of America, have also maintained 'Buy' ratings on the stock.

Jefferies retained its 'Buy' rating on IndiGo but cut its target price to Rs 5,380 from earlier levels. The brokerage described the January-March quarter as weak but broadly in line with expectations, noting that the airline's pricing power is helping offset rising costs. Jefferies believes that IndiGo's focus is gradually shifting from aggressive capacity expansion towards profitability, although near-term industry conditions remain challenging.

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Goldman Sachs maintained a 'Buy' rating with a target price of Rs 5,200 per share. The brokerage noted that the airline's quarterly loss was lower than expected due to better cost performance and a slight revenue beat. It highlighted management's guidance for 3-4 percent capacity growth and mid-teen passenger revenue per available seat kilometre (PRASK) growth in the June quarter, while noting the absence of full-year FY27 capacity guidance.

Bank of America reiterated its 'Buy' rating and Rs 5,100 target price. The brokerage said the March quarter was largely in line with expectations despite the impact of the Iran-related disruptions. It added that IndiGo's June-quarter revenue guidance points to better cost recovery than anticipated and expects easing disruptions to shift investor focus back towards the airline's growth prospects.

Kotak Institutional Equities retained a 'Buy' rating with a target price of Rs 5,400. The brokerage said the reported loss was lower than expected despite a large mark-to-market foreign exchange loss. While grounded aircraft continue to weigh on profitability, Kotak said pricing trends suggest the industry is testing demand elasticity and expects significant relief from aircraft groundings by FY28.

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Motilal Oswal Financial Services maintained its 'Buy' rating and Rs 5,600 target price. The brokerage said IndiGo's operating performance exceeded expectations, although earnings were hurt by the West Asia crisis and foreign exchange losses. MOSL expects the airline's growth story to remain intact, driven by international network expansion and fleet growth, and forecasts strong revenue and EBITDAR growth through FY28.

InterGlobe Aviation reported a net loss of Rs 2,536 crore for Q4 FY26, compared with a profit of Rs 3,068 crore a year earlier. Revenue rose 1.3 percent year-on-year to Rs 22,438 crore. A key drag on earnings was a foreign exchange loss of Rs 4,823 crore during the quarter, compared with a forex gain of Rs 137 crore a year earlier.

The airline also incurred nearly Rs 250 crore of exceptional charges related to the implementation of India's new labour codes.

Despite the weak earnings, brokerages largely focused on improving pricing trends, expected recovery in grounded aircraft availability, international expansion opportunities, and IndiGo's dominant market position. The airline ended FY26 with a fleet of 441 aircraft and a cash balance of Rs 51,651 crore.

InterGlobe Aviation shares closed 3.3 percent lower at Rs 4,420 on Friday ahead of the earnings announcement. The stock has declined more than 17 percent over the past year, compared with a 4.7 percent fall in the Nifty 50, giving the airline a market capitalisation of about Rs 1.7 lakh crore.