Brokerages remain bullish on InterGlobe Aviation (IndiGo) after the airline delivered a strong Q4 FY25 performance driven by robust demand, improved yields, and higher passenger growth. Multiple firms including Citi, Morgan Stanley, Jefferies, and Goldman Sachs have reaffirmed or raised their target prices, reflecting confidence in the company’s growth outlook despite near-term yield pressures.
Citi – Buy, Target Price: Rs 6,500
Citi highlighted that IndiGo’s Q4 results were much better than expected, led by strong yields and passenger load factors (PLFs), partly boosted by high travel demand during the Mahakumbh season. The brokerage noted that disruptions from recent geopolitical events were temporary, and demand has since bounced back.
The management reiterated FY26 ASK (Available Seat Kilometres) growth guidance of early double-digit YoY growth and mid-teens growth for Q1FY26, which Citi sees as a positive signal for sustained momentum.
Morgan Stanley – Overweight, Target Price: Rs 6,502
Morgan Stanley raised its target price to Rs 6,502, noting that Q4 EBITDA at Rs 59.5 billion was 13% above estimates. The brokerage sees industry consolidation, international expansion, and supportive fuel prices as key drivers of potential stock re-rating.
It flagged some softening in May travel demand and rising cancellations, but still raised FY26 EPS estimates by 9%, given the strong April trends and overall growth visibility.
Jefferies – Buy, Target Price: Rs 6,300
Jefferies lifted its target to Rs 6,300 after a strong Q4 beat, citing +19% YoY growth in passenger traffic and +2% YoY increase in yields. The firm acknowledged that Q1 may be temporarily impacted by geopolitical concerns but sees this as a short-term blip.
Jefferies also highlighted IndiGo’s new investment-grade credit rating from Moody’s, which places it among a select group of global airlines and strengthens its long-term financial credibility.
Goldman Sachs – Buy, Target Price: Rs 5,700
Goldman Sachs maintained its bullish stance with a TP of Rs 5,700. While Q4 PBT came in broadly in line with estimates, the miss was attributed to lower other income due to aircraft returns.
Ticketing RASK and CASK (ex-FX) were in line with forecasts. The airline maintained its mid-teens YoY ASK growth for Q1FY26 and confirmed early double-digit growth guidance for FY26. Goldman noted some yield pressure from mid-May due to increased cancellations and softer forward bookings.
Summary
| Brokerage | Rating | Target Price | Upside from CMP (approx Rs 5,456) | Key Takeaways |
|---|---|---|---|---|
| Citi | Buy | Rs 6,500 | +19% | Strong Q4; demand recovery underway |
| Morgan Stanley | Overweight | Rs 6,502 | +19% | EPS upgraded; sees re-rating potential |
| Jefferies | Buy | Rs 6,300 | +15% | Passenger growth, Moody’s rating seen as positives |
| Goldman Sachs | Buy | Rs 5,700 | +4% | Yield caution but long-term growth intact |
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.
