Synopsis: Indigo, whose parent company is Interglobe Airline, witnessed another day of fall in its share price. Let us see what is happening with the company and what the analysts’ opinion is on this company and its share price.
The shares of this company, which is India’s largest passenger airline operating as a low-cost carrier, serving more than 90-plus destinations, including 40-plus international destinations, continued their tumbling as the entire flight-cancelling chaos did not seem to have been contained. Broking houses have given their opinion and targets; let us see what they have to say about the company.
With a market cap of Rs 1,92,000 crore, the shares of Interglobe Aviation Ltd has dipped about 8%, reaching a low of Rs 4951.80 compared to its previous day closing at Rs 5371.30. The shares have given a return of 190% in the last 5 years and are trading at a PE of 38.8, whereas their industry PE is 20.3.
About the Indigo Fiasco.
IndiGo is facing one of its biggest operational crises, with thousands of flights cancelled across major cities like Delhi, Bengaluru, Mumbai, Hyderabad, and Kolkata. The chaos began when the airline struggled to adapt to the DGCA’s new crew-rostering and rest-period rules.
These regulations require longer breaks for pilots, and IndiGo didn’t have enough legally available crew to operate its packed schedule. As a result, flight after flight was grounded, leaving passengers stranded, dealing with long delays, and scrambling for alternatives as the disruption spread nationwide.
To manage the fallout, IndiGo has started issuing large-scale refunds, which are processed at Rs 610 crore and is working to stabilise operations. The airline has said it expects schedules to return to near-normal around 10 December.
Meanwhile, the DGCA has stepped in, issuing a show-cause notice to IndiGo and pushing the airline to explain how the situation spiralled. The crisis has not only shaken passenger confidence but also highlighted how dependent India’s aviation system is on a single dominant airline and how quickly things can collapse when its operations falter.
As of the latest reports, the “PIL filed in the Supreme Court over the IndiGo crisis” and SC has declined an urgent hearing; the CJI says the govt has taken cognisance & action over the matter. A similar plea was filed in the Delhi HC, for which the hearing is on December 10.
Global Broking House’s opinion.
Jefferies stays positive on IndiGo. In its December 2025 update, the brokerage kept a “Buy” call with a target price of around Rs 7,025, highlighting IndiGo’s strong execution, steady capacity expansion, and its leadership in the domestic aviation market. Jefferies believes these factors should support earnings growth over the next few years. At the same time, it cautions that rising ATF prices, a weaker rupee, and the possibility of global aircraft-supply issues easing could create some pressure.
UBS has also maintained a “Buy” rating on the airline but has turned slightly more cautious in the short term, trimming its target price to Rs 6,350. The firm still sees long-term value in IndiGo, but the ongoing flight cancellations, regulatory scrutiny, and broader cost inflation have prompted it to lower near-term expectations while keeping its overall positive stance intact.
Investec, however, is taking a far more bearish view. It has reiterated a “Sell” rating on IndiGo with a target price of roughly Rs 4,040, pointing to rising fuel costs, currency weakness, and the operational fallout from crew-duty rule changes as key concerns, and believes the airline faces meaningful downside risk in the near term.
What can investors do?
Investor sentiment around IndiGo is currently split, and that naturally creates uncertainty about what comes next. With Jefferies and UBS still positive on the airline’s long-term prospects and Investec taking a sharply negative view, the situation highlights how differently analysts are interpreting the same set of challenges. On one side, IndiGo’s scale, strong market position, and structural demand for air travel continue to be seen as long-term strengths.
On the other, the recent wave of flight cancellations, rising fuel and currency pressures, and stricter regulatory requirements have raised concerns about earnings volatility and operational execution.
In moments like this, investors generally focus on clarity rather than short-term market noise, watching how the company manages disruptions, how quickly operations stabilise, and how these issues reflect in upcoming quarterly results. Broader factors such as fuel trends, currency movements, and regulatory actions also play a role in shaping sentiment.
Overall, this phase is less about taking sides and more about recognising that IndiGo is at a point where execution, transparency, and operational discipline will determine how confidence builds back. Investors should typically monitor these evolving signals closely to understand the company’s direction before forming a stronger view and taking investment decisions accordingly.
Financials and others.
The revenue from operations is at Rs 18,555 crore in Q2 FY26 versus Rs 16,970 crore in Q2 FY25, which is an increase of about 9 per cent YoY. However, in both quarters the company incurred a loss. The company has a good FII backing of about 28.44%, with the government of Singapore holding a 3.25% stake and a DII backing of 24.58%.
IndiGo, run by InterGlobe Aviation, has grown into one of India’s most trusted airlines with a clear focus on making travel easier and more accessible for everyone. From the start, the company has aimed to be the country’s first choice for both domestic and international journeys, and over the years it has steadily built a strong reputation at home and abroad.
Written by Leon Mendonca.
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