Jefferies has reiterated its ‘Buy’ rating on InterGlobe Aviation and raised its target price to ₹6,300, after the airline posted a robust Q4FY25 earnings beat driven by higher passenger growth and resilient yields. However, the brokerage cautioned that Q1FY26 may see softness due to geopolitical tensions weighing on travel sentiment.
IndiGo’s Q4 revenue rose 24.3% YoY to ₹22,151 crore, while profit jumped to ₹3,067 crore from ₹1,894 crore in Q4FY24. The carrier saw a 19.6% increase in passengers and a 2.4% rise in yield to ₹5.32, while fuel costs declined, aiding margins.
Jefferies noted the strong operating leverage and steady forward guidance on capacity growth, despite the uncertain macro backdrop. The airline achieved a key milestone in receiving its first-ever investment-grade credit rating from Moody’s, further cementing its financial standing.
While geopolitical uncertainties may dampen demand in Q1FY26, Jefferies believes IndiGo is structurally well-placed. It has raised its FY26 EPS estimate by 6%, factoring in lower crude prices, even as it builds in some revenue softness for Q1.
Disclaimer: This article is based on the brokerage report by Jefferies. It does not constitute investment advice.
