IndiGo soars 8% in 2 days, hits record high. Should you buy, sell or hold?

The shares of InterGlobe Aviation-owned IndiGo have zoomed 7.9% in just 2 days to hit their new all-time high of Rs 5,187 on the BSE after the airline company shared its ambitious roadmap for FY30.

IndiGo, in its investor presentation, shared that it anticipates carrying 118 million passengers in FY25, with early double-digit growth projected for FY26. The airline also aims to expand its network by adding 14 new destinations in FY26, further enhancing its domestic and international reach.

Further, IndiGo's expansion into key markets across Asia and Europe may strengthen its global presence. A significant milestone in its fleet strategy is the introduction of Airbus A321 XLR aircraft, with deliveries scheduled to begin in FY26, enabling more efficient operations on long-haul international routes.


IndiGo anticipates receiving more than one aircraft per week in FY26 and aims for early double-digit capacity growth, further strengthening its market leadership in India's aviation sector.

After this update, here’s what analysts across various brokerage firms say:

Kotak Institutional Equities: Buy | Target price: Rs 5,700

Indigo’s analyst meet takeaways are best brought out in terms of currencies (assets) that it will leverage, capabilities it endeavors to add, and conduct it aims to uphold. These translate into a guidance of almost doubling of capacity in the next five years (softer near term), an uptick in the international share of capacity to 40%, lowering the cost of aircraft ownership, improving fuel efficiency and growing the share of ancillary revenues.

Our Rs 5,700 FV builds in full to nil benefits across the above themes. Moreover, our near-term estimates do not build the seemingly not-so-transient pricing benefits of constrained supply for Indian carriers beyond Indigo, which may last for years.

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Nuvama: Hold | Target price: Rs 4,768

IndiGo’s Investor Day highlighted several key takeaways. Q4FY25 performance is expected to exceed prior guidance, driven by a 17% YoY increase in passenger growth and higher PRASK. By FY30E, the share of international ASKMs is forecasted to rise to 40% from 28% in FY25E, aided by the introduction of wide-bodied aircraft for mid and long-haul routes.

IndiGo also maintains one of the lowest CASK globally, with an ex-fuel and forex cost of USD 3.37 (Oct’23–Sep’24). Based on the positive outlook, FY25E–27E EPS estimates have been raised by 8–13%.

Motilal Oswal: Neutral | Target price: Rs 4,660

IndiGo is actively expanding its international presence through strategic partnerships and loyalty programs. In FY24, the airline served 106.7 million customers and recorded a net increase of 63 aircraft. The company had eight strategic partners and achieved a 27% international share in terms of Available Seat Kilometers (ASK).

To strengthen its global brand awareness, IndiGo’s management has implemented preemptive measures aimed at capturing a larger share of international market growth in the coming years. The airline is also focused on enhancing international travel services and continuously adjusting schedules to improve customer experience.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)