IndiGo shares crash 9% in a week; Check reasons for this fall, impact on results & targets

Shares of InterGlobe Aviation (Indigo) have crashed nearly 9 per cent in the last five trading sessions on the back of multiple reasons. The stock dropped more than 3.3 per cent on Thursday to Rs 5407.30, before making a marginal rebound. The stock was seen at Rs 5,911.35 on Friday, November 28.

Shares of IndiGo have corrected nearly 13 per cent from its 52-week high at Rs 6,225.05, hit in August 2025. Despite this correction the stock is up 26 per cent in the last one year, 190 per cent in the last three years and 220 per cent in the last five years, rewarding investors handsomely.
 

Reasons and impact on earnings

IndiGo has faced significant disruptions in its operations, majorly for the past two days, leading to a wave of flight delays and cancellations across the country. In a statement on Thursday with the exchanges, the budget airline acknowledged the challenges and sincerely apologised to customers for the inconvenience caused.

Operationally, IndiGo is dealing with challenges like technical glitches, winter weather and crew shortages, which is mounting its woes. Besides that, falling Indian currency and potentially increase in the user development fee (UDF) for customers travelling from Mumbai and Delhi airports are also adding to its concerns.

Sunny Agrawal, Head of Fundamental Research at SBI Securities said that IndiGo has seen multiple flight cancellations over the last few days due to implementation of Flight Duty Time Limitations norms by DGCA which has impacted crew availability; weather related disruptions; airport congestion at major airports due to glitches in airport software systems and issues with Airbus A320 aircraft

Accounting its impact in the earnings, Shobit Singhal, Research Analyst, Anand Rathi Institutional Equities said that from 2,300 daily flights , nearly 100-120 got cancelled or delayed yesterday and from October around 1,200 flights have been impacted which is just 0.5-0.8 per cent. The overall impact on revenue shall be around 1 per cent or 150-200 crore out of Rs 20,000 crore revenue for the quarter.

Domestic air traffic regained its momentum through Oct-Nov, supported by strong festive travel, while IndiGo further strengthened its dominant position, said Emkay Global Financial Services. "With robust international expansion and rising traction, international growth remains a key driver heading into Q3FY26," it added.

Should you buy IndiGo shares?

The recent disruption in flight schedules along with the weakness in the rupee is likely to impact earnings in this quarter which is also weighing on stock performance. Medium to long term outlook remains positive with the airline expanding its international routes, lack of adequate options in the domestic market and the overall strong demand for air travel, said Aggarwal from SBI Securities.

Airbus has also reduced its delivery from 820 planes per year to 780 now, so many external factors into play, but Indigo remains one of the safest bets in aviation, adds Singhal from Anand Rathi. Any correction because of these events is to be taken as an opportunity for long term investment," he suggests. The brokerage gave it a target price of Rs 7,000 in October 2025.
 

What do charts say

According to technical analysts, Indigo faces strong resistance near Rs 5,950–5,960 and has turned bearish after slipping below key moving averages. RSI and MACD confirm weakening momentum. Support lies at Rs 5,530–5,500; a breakdown could drag it to Rs 5,450–5,150. Upside remains capped at Rs 5,700–5,800, with strength above Rs 5,800, the decode.

Indigo encountered stiff resistance in the Rs 5,950-5,960 zone and saw a sharp reversal thereafter, slipping below the 20, 50, and 100 DEMA, which indicates increasing weakness in the near-term trend. The RSI has moved below 40, signalling fading momentum and mounting bearish pressure, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.

"The MACD has also slipped below both the signal line and the zero line, confirming a bearish trend shift. The 5530–5500 zone remains a critical support area; a decisive breakdown below this could open the gates for a move toward 5460–5450, aligning with the 200-day EMA. On the upside, 5700 now acts as immediate resistance," he said.

The stock is consolidating in a broad range between Rs 5,500-5,900, but trading below the 20-SMA and 40-EMA suggests that short-term trend remains bearish, and 5800 acts as the key barrier for any short covering move. As long as it remains below the cluster around Rs 5,800, any bounce is likely to face selling pressure, said Kunal Shah, Technical Analyst at Mirae Asset ShareKhan.

Only a sustained breakout above Rs 5,800 can open the way toward Rs 6,100. RSI and MACD showing negative crossovers on the daily chart reinforce a bearish undertone, making the support at Rs 5,500 crucial; a breakdown and close below Rs 5,500 can accelerate declines toward the next support zone near Rs 5,150.