The shares of IndiGo, India’s largest airline by market share, are gaining investor interest as flyers shift away from Air India following a recent Dreamliner crash and a wave of cancellations and delays.
With a market capitalisation of Rs 2,20,535 crore, the share of InterGlobe Aviation Ltd (IndiGo), saw its shares rise nearly 1.5% intraday to touch Rs 5,722, up from the previous close of Rs 5,638.85. The stock has been on a strong upward trend, gaining almost 8% over the past five trading sessions.
Air India is facing a major crisis after its London-bound flight AI-171 crashed in Ahmedabad on June 12, killing nearly everyone on board and around 29 people on the ground.
The tragic incident has severely damaged the airline’s reputation, raising serious questions about its safety standards. In the days following the crash, passengers have reported frequent delays, cancellations, and poor service, further impacting confidence in the airline.
As a result, bookings for Air India flights have dropped by about 20% on both domestic and international routes. Average fares have also been cut by 8-15% to retain customers.
Meanwhile, IndiGo, India’s largest airline by market share, is emerging as the top choice for flyers seeking more reliable options. With growing passenger interest, the airline is gaining investor attention as well, as brokerages remain optimistic about its growth prospects in the current market environment.
Reflecting this shift in sentiment, brokerage firm B&K Securities became the first to assign a price target above Rs 7,000, initiating coverage on IndiGo with a ‘Buy’ rating and a target of Rs 7,256 per share. This implies a potential upside of nearly 30% from Wednesday’s closing price.
Global brokerage Jefferies also maintains a positive view on IndiGo, giving the stock a ‘Buy’ rating with a target price of Rs 6,300 per share, highlighting strong fundamentals and growing market share in the current environment.
Jefferies says IndiGo stands out for its strong on-time performance, low customer complaints, and overall efficiency. Even though it has had a few technical issues, it still performs better than its rivals. Jefferies expects IndiGo to gain market share soon, especially on premium short routes and busy metro flights.LINK
B&K Securities highlights IndiGo’s low-cost, no-frills model and strong operations as key strengths. The airline has a large order book 2.2 times its current fleet, which shows strong future growth.
With a 64% share in the domestic market and 13% ASK (Available Seat Kilometre) growth expected in FY26, IndiGo is far ahead of global low-cost carriers. It also keeps costs low and profits steady. B&K expects 20% EBITDA and 22% PAT growth from FY25 to FY27.LINK
About the company
IndiGo is India’s largest airline and one of the fastest-growing in the world. It is known for low fares, on-time flights, and a smooth, hassle-free travel experience.
The airline has a fleet of over 400 planes and operates more than 2,200 flights every day. It connects 130+ destinations, including over 40 international cities, and flew more than 113 million passengers last year.
IndiGo has the best on-time performance in the country and one of the highest customer satisfaction scores. The airline is now expanding globally, aiming to become a major international player. link
The company reported a revenue of Rs 80,803 crore in FY25, up by 17.27 percent from its FY24 revenue of Rs 68,904 crore. Coming to its profitability, the company reported a net profit decline of 11.18 percent to Rs 7,258 crore in FY25 from Rs 8,172 crore in FY24. The stock delivered an ROE and ROCE of 128 percent and 19.6 percent, respectively.
Written By Rohan Pandey
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