Goldman Sachs has maintained a ‘Buy’ rating on InterGlobe Aviation with a target price of ₹5,700 after the company’s Q4FY25 results met operating expectations but missed slightly on profit before tax due to lower other income.
IndiGo posted a ₹3,067 crore net profit, as revenue surged 24.3% YoY. Capacity (ASK) increased 21%, and the load factor improved to 87.4%. RASK stood at ₹4.65 and CASK (ex-forex) at ₹4.77 — both in line with estimates, according to Goldman Sachs.
The brokerage noted that IndiGo returned a number of older aircraft in the quarter, which may have led to reduced compensation income, impacting PBT. Management guided for mid-teens ASK growth in Q1FY26, maintaining its FY26 outlook of early double-digit capacity expansion.
However, Goldman Sachs flagged that yield pressure has emerged since mid-May, with bookings softening and cancellations on the rise. Despite near-term weakness, it sees IndiGo’s cost discipline and market dominance as long-term positives.
Disclaimer: This article is based on the brokerage report by Goldman Sachs. It does not constitute investment advice.
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