Stockgram

Shares of Interglobe Aviation Ltd., parent company of India's largest airline by market share, IndiGo, will react on Thursday, May 22, following its robust March quarter earnings. While analysts have maintained their stance on the stock, some have raised their price targets after the results.





Morgan Stanley has given InterGlobe Aviation (IndiGo) an 'Overweight' rating and raised its target price to ₹6,502 per share.





The brokerage said that IndiGo’s Q4 FY25 EBITDA of ₹5,950 crore was 13% higher than expected.





It believes that industry consolidation, expanding international routes, and favorable fuel prices could boost IndiGo’s valuation.





The company declared a dividend for the first time in five years.





However, it did not comment on yields. While April data was strong, May showed signs of weakness with slower traffic growth and more cancellations.





For Q1 FY26, the company expects capacity to grow in the mid-teens (percentage-wise) year-on-year. Despite estimating weaker yields in Q1, Morgan Stanley has raised its FY26 EPS forecast by 9%.





Jefferies has a 'Buy' rating and raised its target price to ₹6,300, citing a strong Q4 performance led by higher topline on stronger passenger growth (+19% YoY) and improved yields (+2% YoY).





The foreign brokerage expects Q1 to be negatively impacted by geopolitical tensions affecting travel demand, though it sees this as a temporary disruption.





IndiGo has achieved a new financial milestone by receiving its first investment-grade credit rating from Moody’s, an achievement shared by only a few global airlines.





Jefferies has raised its FY26 EPS estimate by 6%, factoring in lower crude oil prices ($72/bbl), though this is partly offset by expected weakness in Q1.





Citi also maintains a 'Buy' rating on Interglobe Aviation, with a target price of ₹6,500.





The brokerage said that Q4 results were much better than expectations, driven by strong yields and high passenger load factors (PLFs) – partly reflecting robust demand during the Mahakumbh in Q4.





Management reiterated its FY26 ASK (Available Seat Kilometre) growth guidance at low double digits (%) year-on-year.





For Q1 FY26, ASK growth is guided at mid-teens (%) year-on-year.





Citi added that the recent operational disruptions from geopolitical events were temporary, and demand now appears to be recovering.





Nuvama Institutional Equities maintains a 'Hold' rating on IndiGo on lofty valuations and near-term industry weakness. However, the brokerage has increased its target price by 9% to ₹5,199.





According to Nuvama, the near-term outlook looks challenging as growth in capacity outpaces demand, hurting yields. Current valuations are unsupportive, but positive factors make the risk-reward balanced.





The brokerage has trimmed its FY26E EBITDAR by 3% as it factors in Q1FY26 guidance and the adverse impact on yields and demand due to geopolitical tensions.





Shares of Interglobe Aviation Ltd. ended 0.27% higher on Wednesday at ₹5,456.50. The stock has risen nearly 20% so far in 2025.