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Shares of InterGlobe Aviation, the parent company of IndiGo, rose over 3% in early trade on April 15, approaching record highs; Check new target price
IndiGo (File Photo)
IndiGo Share Price: Shares of InterGlobe Aviation, the parent company of IndiGo, rose over 3% in early trade on April 15, approaching record highs. The rally came after Motilal Oswal upgraded the stock to a ‘Buy’ with a target price of Rs 6,550, citing strong domestic recovery, strategic expansion plans, and a supportive cost environment driven by cooling crude prices.
In its latest research note, the brokerage firm called IndiGo the “best domestic consumption play,” backed by surging demand for air travel within India and ongoing expansion into international routes. However, the biggest tailwind, it noted, comes from the softening crude price outlook. Brent crude is expected to ease to $65 per barrel by FY26-27 amid a potential rollback of OPEC+ supply cuts and rising global inventories.
“As aviation turbine fuel accounts for nearly 40% of total operating costs, lower crude prices directly translate into better margins,” Motilal Oswal said.
The firm expects IndiGo’s EBITDA and profit before tax (PBT) to grow at a compound annual rate of 28% and 38%, respectively, between FY25 and FY27. This growth will be driven by steady aircraft deliveries, expanding codeshare partnerships, and the scaling up of its cargo business. Additionally, IndiGo has capitalized on GoFirst’s exit from the market, gaining market share and further strengthening its leadership position.
IndiGo’s international operations is poised to benefit from Donald Trump’s remarks on auto tariffs, which are being interpreted as a broader softening stance on global trade dependencies.
For IndiGo, which is aggressively expanding international routes and building its codeshare network, a stable and less challenging trade environment would be key to tapping new markets profitably.
At current levels, the stock trades at 20x FY26 P/E and 9.7x FY26 EV/EBITDA, which Motilal Oswal considers reasonable, given the margin tailwinds and scale advantages. “Consistent profitability post-Covid highlights management’s execution capabilities and strategic clarity,” the note added.
IndiGo recently made history by briefly overtaking global majors like Delta Airlines and Ryanair to become the world’s most valuable airline in terms of market capitalisation.
