Goldman Sachs has reiterated its buy rating on InterGlobe Aviation (IndiGo) with a revised target price of ₹5,700 per share, noting that the earnings impact from higher pilot costs in FY27 and operational disruptions remains fluid, with regulatory developments still evolving. The brokerage said the recent rostering-related challenges, which triggered a temporary wave of cancellations, have highlighted labour-cost sensitivities ahead of tighter rules expected in 2026.
Despite the near-term uncertainty, Goldman Sachs believes IndiGo’s core fundamentals remain unmatched, backed by its dominant domestic market share, lowest cost structure and the deepest visibility on fleet expansion among Indian carriers. The firm said India’s growing aspirational passenger base and IndiGo’s scale advantage continue to support a compelling medium-term demand outlook, even though the stock may remain volatile until clarity emerges on potential regulatory action.
Goldman Sachs has trimmed earnings estimates modestly, resulting in the downward revision of its target price from ₹6,000 to ₹5,700. However, it said the long-term investment case remains intact, as IndiGo is best positioned to benefit from industry consolidation, rising utilisation of tier-2/3 airports and strong aircraft induction pipelines. The brokerage added that the airline’s balance sheet strength and disciplined capacity strategy provide a solid buffer against short-term turbulence.
Disclaimer: The views and recommendations above are those of Goldman Sachs. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
