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New Delhi: As IndiGo is in the news for its operational disruptions which has led to mass flight cancellations, InterGlobe Aviation shares have taken a hit and declined over 10 per cent in the last five days.
However, undeterred by the present chaos at IndiGo, brokerage firm Emkay Global's has advocated for IndiGo's parent company InterGlobe Aviation and maintained a BUY rating on the stock. Also, it has estimated that there would be an upside momentum in the stock.
IndiGo's recent decline may have an impact on its financial performance. The brokerage firm estimates that IndiGo's revenue may decline by 3 per cent, EBITDA 8% and ex-forex profit before tax by 17% in FY26. Behind this, there is a possibility of an estimated 2% decline in both flight numbers and fares and a rise in CASK. Crew shortages and addition of new staff have further increased the expenses of Q3FY26.
Nevertheless, Emkay is expecting its ASK growth (method of measuring airline capacity) 12-13% and RPK growth (a measure of how many passengers travel for how many passengers are traveled) 11-12% (FY26). The company's ASK growth could be 14-15% in Q4FY26, although increased competition and costs may put rents under pressure. Projections for PRASK to grow flat or slightly in Q3FY26 may soften.
The brokerage firm maintained its Buy call and projected a target price of Rs 6,300, thus keeping faith in IndiGo's parent company InterGlobe Aviation.
The brokerage believes that after the flight schedule becomes normal, the company's recovery in the coming quarters can be accelerated.
There is volatility in the short term, but Emkay believes that IndiGo's strong grip in the Indian aviation market and its ability to return to normal soon will give it a big chance to grow.
IndiGo details on BSE as of Dec 11, 2025
IndiGo is facing an operational crisis, with more than 4,200 flights cancelled in just eight days, which is about 23% of its daily schedule. Under the FDTL rules, the problems have increased due to the decline in the availability of crew, weather and software related problems. The DGCA has temporarily relaxed the FDTL rules till 10 February 2026 in view of the situation. However, a show-cause notice has also been issued to the airline, while the investigation is still ongoing. The situation is now slowly returning to normal.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
