Street View: IndiGo's disciplined growth, strong fares lift outlook

Interglobe Aviation

30/10/2026 03:52

** IndiGo INGL.NS said on Thursday that fare increases were inevitable as fuel prices rise and that it would adjust capacity to manage costs after posting a smaller loss
** Stock up 1% at 4,720 rupees

PRICING POWER HELPS OFFSET FUEL PAIN
** Jefferies ("buy," PT: 6,200 rupees) says Sept-quarter performance was broadly in line with expectations
** Strong yields and fare environment helped offset cost pressures, while low single-digit capacity growth guidance signals discipline - Jefferies
** Ambit Capital ("buy," PT: 5,760 rupees) says earnings upgrade cycle is yet to emerge, but favourable supply-demand dynamics, fleet optimisation and the phased exit of costly damp-leased wide-body aircraft could support margins
** Emkay Global ("add," PT: 5,850 rupees) says fuel costs remain the key monitorable; expects fare hikes, premiumisation initiatives and network adjustments to aid profitability as industry capacity stays constrained
** Citi ("buy," PT: 6,200 rupees) says yield growth of 34% and lower fuel unit costs drove a sharp EBITDA beat; maintains long-term growth view despite near-term pressure from elevated jet fuel prices and a weaker rupee

 (Reporting by Kashish Tandon in Bengaluru)
 ((kashish.tandon@thomsonreuters.com; 8800437922))