InterGlobe Q4 Beats on Numbers, Not on Sentiment; Analysts Still Bullish

InterGlobe Aviation shares showed mixed movement today, despite the company’s robust earnings in the March quarter. The stock fell as much as 2.4% to its intraday low, while it climbed just 0.7% higher than previous close to intraday high of Rs 5,498 on the NSE. At 10:27 AM, the shares were trading flat on the exchange.

The consolidated net profit of the largest airline company in India grew 62% on year during the quarter under review, on the back of a 24% surge in revenue for the period. With this surge, the company registered its highest ever fourth quarter earnings. For FY25, IndiGo’s parent entity reported a healthy net profit of Rs 7,258.4 crore, and excluding the impact of foreign exchange, the net came in at Rs 8,867.6 crore.

InterGlobe said that its capacity increased 13% to 157.5bn in FY25, while its passengers rose 11% to 118.6mn. “Our sustained performance is the result of record passenger volumes, operational efficiencies, agility and commitment demonstrated by IndiGo employees,” CEO of InterGlobe, Pieter Elbers, said. The company expects its average seat kilometre to increase in mid-teens in the first quarter of FY26 as compared to the year-ago quarter.

Morgan Stanley has raised its target price on the stock to Rs 6,502 per share as it believes that consolidation in the industry, expansion of international routes, and favourable fuel prices could likely boost the company’s valuation. The brokerage house has ‘overweight’ call on the stock.

Another brokerage firm, Jefferies also raised the target price of the stock to Rs 6,300, implying an upside of 15% to the stock’s Wednesday close on the NSE. However, the brokerage expects a temporary disruption in the ongoing June quarter due to geopolitical tensions, which could have likely affected the travel demand. Jefferies also maintained its ‘buy’ rating on the stock, as it raised its earnings estimate by 6% for FY26.

Similar to Jefferies, Nuvama and Citi also highlighted a near-term impact. While Nuvama has ‘hold’ call  on InterGlobe, Citi has a ‘buy’ rating.