Citi has reiterated its buy rating on InterGlobe Aviation with a target price of ₹5,700 per share, noting that the financial impact of recent operational disruptions was significantly lower than expected.
Citi had anticipated a sharp impact on Q3FY26 performance due to FDTL-related disruptions. However, while operational parameters were broadly in line with expectations, the financial fallout turned out to be milder, aided by better-than-expected yields and resilient demand.
The brokerage highlighted that yields surprised positively, helping cushion the impact of disruptions. Nevertheless, Citi has made modest adjustments to its estimates, factoring in slightly higher costs and marginally lower yields going forward, after management flagged some softness heading into Q4FY26.
Importantly, Citi noted that IndiGo’s operations are now normalising, and the overall disruption impact, including penalties, has not been severe. Market share remains strong, reinforcing IndiGo’s leadership position in the domestic aviation market.
Citi also highlighted continued progress on international route expansion, supported by fleet additions such as the A321 XLR, which enhances the airline’s long-haul capabilities and network flexibility.
Overall, Citi believes IndiGo’s strong market position, improving international footprint and operational recovery justify its continued positive stance.
Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
