IndiGo share price: Rising costs erode margins, brokerages share price targets post Q1
Brokerage Elara reiterated a buy call on the airline stock and maintained its target price at Rs 6020. The stock closed 1.83% lower at Rs 5023.50 in the previous session.
- Jul 24, 2026,
- Updated Jul 24, 2026 9:18 AM IST
Shares of InterGlobe Aviation Ltd, the parent of IndiGo airline, are in focus today after the airline reported Q1 earnings led by revenue beat due to high fares and margin miss amid rising costs. Brokerage Elara reiterated a buy call on the airline stock and maintained its target price at Rs 6020. The stock closed 1.83% lower at Rs 5023.50 in the previous session.
"The underlying demand/fare thesis is intact despite the miss in Q1— industry capacity is constrained (Tata Group fleet -13% YoY, Summer Schedule -6% YoY domestic departures), and INDIGO continues to test higher yields to offset cost inflation. The cut in FY27E estimates is a near-term reset led by fuel/FX rather than a demand concern, and FY28E-29E earnings are retained as fares more than offset our higher crude/INR assumptions," said Elara.
Brokerage JPMorgan maintain its neutral call on the stock with a target price of Rs 4,740. The brokerage said Q1 earnings missed estimates as fuel & non-fuel costs came in higher than expected.
Referring to the standalone PAT Ex-Fx which came at a loss of Rs 380 crore against estimated Rs 370 cr profit, JPMorgan said this level Of deviation in such a volatile quarter as Q1 should normally not be a source of worry. However, it appears that volatility might continue for the rest Of year.
Jefferies raised its price target on IndiGo to Rs 5840 against the earlier target of Rs 5380. It has an accumulate call on the stock.
Soft June quarter saw high fuel costs only partly offset by strong yield growth. In FY27, the firm has shifted to measured capacity growth, focusing on yields to offset costs. Despite healthy yields, near term earnings will remain subdued, with a tougher backdrop for peers. Renewed Middle-East tensions add volatility to the outlook of the stock.
In Q1, standalone net loss came at Rs 382 crore against a net profit of Rs 2,161 crore in the year-ago period.
Airlines such as IndiGo have been facing soaring jet fuel prices as the Iran war pushed crude to above $100 per barrel in the quarter, eroding margins.
Revenue from operations rose 20% to Rs 24,584 crore against Rs 20,496 crore in Q1FY26. However, expenses rose at a faster pace of 35.1%. They were led by a nearly 86% surge in aircraft fuel expenses to Rs 10,830 crore.
"A combination of fuel price escalation, adverse foreign exchange movement and the Middle East conflict impacted profitability during the quarter," said IndiGo.
Shares of InterGlobe Aviation Ltd, the parent of IndiGo airline, are in focus today after the airline reported Q1 earnings led by revenue beat due to high fares and margin miss amid rising costs. Brokerage Elara reiterated a buy call on the airline stock and maintained its target price at Rs 6020. The stock closed 1.83% lower at Rs 5023.50 in the previous session.
"The underlying demand/fare thesis is intact despite the miss in Q1— industry capacity is constrained (Tata Group fleet -13% YoY, Summer Schedule -6% YoY domestic departures), and INDIGO continues to test higher yields to offset cost inflation. The cut in FY27E estimates is a near-term reset led by fuel/FX rather than a demand concern, and FY28E-29E earnings are retained as fares more than offset our higher crude/INR assumptions," said Elara.
Brokerage JPMorgan maintain its neutral call on the stock with a target price of Rs 4,740. The brokerage said Q1 earnings missed estimates as fuel & non-fuel costs came in higher than expected.
Referring to the standalone PAT Ex-Fx which came at a loss of Rs 380 crore against estimated Rs 370 cr profit, JPMorgan said this level Of deviation in such a volatile quarter as Q1 should normally not be a source of worry. However, it appears that volatility might continue for the rest Of year.
Jefferies raised its price target on IndiGo to Rs 5840 against the earlier target of Rs 5380. It has an accumulate call on the stock.
Soft June quarter saw high fuel costs only partly offset by strong yield growth. In FY27, the firm has shifted to measured capacity growth, focusing on yields to offset costs. Despite healthy yields, near term earnings will remain subdued, with a tougher backdrop for peers. Renewed Middle-East tensions add volatility to the outlook of the stock.
In Q1, standalone net loss came at Rs 382 crore against a net profit of Rs 2,161 crore in the year-ago period.
Airlines such as IndiGo have been facing soaring jet fuel prices as the Iran war pushed crude to above $100 per barrel in the quarter, eroding margins.
Revenue from operations rose 20% to Rs 24,584 crore against Rs 20,496 crore in Q1FY26. However, expenses rose at a faster pace of 35.1%. They were led by a nearly 86% surge in aircraft fuel expenses to Rs 10,830 crore.
"A combination of fuel price escalation, adverse foreign exchange movement and the Middle East conflict impacted profitability during the quarter," said IndiGo.