IndiGo shares surge 4% on FY30 growth plans
What's the story
Shares of InterGlobe Aviation, which operates IndiGo, surged over 4% on Thursday. The spike came after several brokerages reaffirmed their positive outlook following the airline's Investor Day presentation. Despite concerns about rising fuel costs and aircraft delivery delays, analysts are optimistic about IndiGo's long-term growth strategy.
Future plans
IndiGo's ambitious vision for FY30
The Investor Day presentation highlighted IndiGo's vision for FY30, rather than focusing on near-term earnings. The airline plans to evolve from a leading domestic player to a globally relevant aviation platform. Key targets include flying some 200 million passengers (up from 123 million in FY26), operating over 3,000 flights a day (currently around 2,200), and expanding its fleet beyond 550 aircraft (from about 400 now).
Expansion strategy
Capacity growth expectations and fleet constraints
IndiGo also plans to increase its international capacity mix to some 40% from the low-30% range. However, the successful execution of these plans will be closely monitored by investors. The management expects FY27 available seat kilometer (ASK) growth to remain in single digits due to fleet constraints, with a stronger mid-teen ASK growth expected between FY28 and FY30.
Market response
Brokerages reaffirm 'Buy' ratings on IndiGo
Brokerages like Emkay and Goldman Sachs have retained their "Buy" ratings on IndiGo's shares. Emkay emphasized India's long-term aviation growth potential and retained its ₹5,200 target price. Goldman Sachs reiterated its Buy rating with a target price of ₹5,300, citing IndiGo's strong 900-aircraft order book and the expected increase in international capacity to 40% by FY30.
Analyst projections
Target prices and ratings from various brokerages
Jefferies also maintained a "Buy" rating with a target price of ₹5,380. It noted that IndiGo is focusing more on pricing discipline and profitability than capacity expansion. HSBC retained its "Buy" rating with a target price of ₹5,545, citing long-term earnings growth potential despite higher fuel costs. However, JPMorgan maintained a "Neutral" rating and a ₹4,610 target price due to slower FY27 capacity growth before stronger expansion from FY28 to FY30.
Financial results
IndiGo reports ₹2,536 crore loss in Q4 FY26
Low-cost airline IndiGo reported a net loss of ₹2,536 crore for Q4 FY26, a sharp fall from the net profit of ₹3,067 crore in the same quarter last year. Revenue from operations grew 1% to ₹22,438 crore. The company said its capacity (measured in available seat kilometers or ASKs) grew 3.4% to 43.6 billion despite disruptions due to the ongoing Middle East conflict.