IndiGo Shares Rise 4% Amid Bullish Brokerage Outlook, Q4 Loss Ignored
IndiGo Shares Rise 4% Amid Bullish Brokerage Views
Shares of InterGlobe Aviation Ltd., the parent of IndiGo, surged nearly 4 percent in early trade on Monday as investors focused on positive commentary from brokerages despite the airline's fiscal fourth quarter loss. The stock rose to Rs 4,578.40 in early morning trade, up 3.9 percent from the previous close.
The rally came after several major brokerages, including Jefferies, Goldman Sachs, Bank of America, Kotak Institutional Equities, and Motilal Oswal Financial Services, reiterated their bullish views on IndiGo stock despite the airline's net loss of Rs 2,536 crore for the January-March quarter. These brokerages retained Buy ratings on the stock, with target prices ranging between Rs 5,100 and Rs 5,600 per share, implying a potential upside of as much as 27 percent from the previous close.
Analysts largely attributed the quarterly loss to temporary factors such as foreign exchange losses, geopolitical disruptions, and aircraft groundings, while remaining constructive on IndiGo's growth outlook. The airline's March-quarter results were weighed down by a foreign exchange loss of Rs 4,823 crore, compared with a forex gain of Rs 137 crore a year earlier. Additionally, the airline reported nearly Rs 250 crore of exceptional charges linked to the implementation of India's new labour codes.
| Quarter | Revenue (Rs crore) | Capacity (billion ASK) |
|---|---|---|
| FY26 Q4 | 22,438 | 43.6 |
| FY26 Q4 (YOY) | 1.3% increase | 3.4% increase |
IndiGo's revenue for the quarter rose 1.3 percent year-on-year to Rs 22,438 crore, while capacity increased 3.4 percent to 43.6 billion available seat kilometres. The airline ended FY26 with a fleet of 441 aircraft and a cash balance of Rs 51,651 crore. Despite Monday's rebound, IndiGo shares remain down more than 14.1 percent over the past one year, underperforming the Nifty 50's decline of about 4.4 percent during the same period. The airline currently commands a market capitalisation of around Rs 1.8 lakh crore.
Investor Takeaway
Investors should focus on IndiGo's long-term growth prospects despite the airline's Q4 loss.
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