IndiGo shares: Rs 53,000 crore mcap gone; InterGlobe Aviation stock crashes 20% in 10 days

IndiGo shares: InterGlobe Aviation, the parent company of IndiGo, has hammered hard lately on the back of operational mismanagement by the company, which has wreaked havoc in India's aviation industry. The stock has seen a sharp correction of 22 per cent, which has wiped out more than 53,000 crore from investors pocket.

Shares of IndiGo have cracked to Rs 4,847.30 on Tuesday, December 09, from its 52-week high at Rs 6,225.05 on 18 August 2025. The carnage has slashed its market capitalization to Rs 1,87,379.08 crore from Rs 2,40,637.92 crore, hinting at a 53,258.84 crore valuation gone from its value. IndiGo's fiasco has been a double whammy for investors and travelers.

Global credit rating agency Moody’s Ratings on Monday said IndiGo faces credit negative implications due to inadequate planning and weak preparedness for regulatory changes, despite the airline’s strong market position and stable Baa3 rating. Moody’s downgraded IndiGo’s human capital issuer score to 4 from 3 due to the adverse impact of slower hiring.

The stock has crumbled nearly 18 per cent in December 2025 so far. Revenue loss and hit of profitability for the current quarter and fiscal year is already on cards for InterGlobe, which may result in market share loss.. Analysts tracking the stock believe that the one needs to look at the severity of regulatory action for the aviation player amid the going outage, which is likely to continue until FY27.

However, overseas brokerage firms continue to remain positive on IndiGo. Jefferies and UBS have maintained their 'buy' rating on InterGlobe Aviation with a target price of Rs 7,025 and Rs 6,350, respectively.  B&K Securities has a 'buy' rating on the stock with a target price of Rs 7,256.

Investec said that Indigo must comply with the new FDTL norms by 10 February 2026. The brokerage has cut its target price to Rs 4,040 citing 'bad just goes worse' for it. JM Financial said that passing turbulence could lead to some lasting cost pressures. It has a 'reduce' rating with a target price of Rs 5,570 on it. InCred Equities has a 'reduce' rating on InterGlobe Aviation.