IndiGo share price surged over 5% as top brokerages maintained bullish ratings despite a sharp quarterly loss. Motilal Oswal, Nuvama, and Elara Capital see long-term growth intact, driven by rising airfares, aircraft shortages, and growing market share for India’s largest airline.

IndiGo Q4 FY26 Results: What Happened?

InterGlobe Aviation reported a consolidated net loss of ₹2,536.9 crore in Q1 FY26, versus a ₹3,067.5 crore profit a year ago. Key reasons include higher aviation fuel costs, rupee depreciation, forex losses, Middle East airspace disruptions, aircraft grounding, and supply chain delays from Airbus and Pratt & Whitney. Despite the weak quarter, analysts remain focused on the airline’s long-term growth prospects.

Why Brokerages Remain Bullish on IndiGo

Brokerage firms believe the Indian aviation sector is entering a favorable cycle

Key drivers of airfare inflation due to limited aircraft availability and strong travel demand:

Industry Capacity Shortage Supporting Airfares

• 15-day advance domestic fares up ~17% YoY (Apr-May 2026)
• 30-day advance international fares up ~40% YoY
• Domestic flight departures down ~6% YoY

According to Elara Capital, capacity shortages across nearly 400 domestic routes are lifting ticket prices. This environment boosts IndiGo’s pricing power and helps the airline gain additional market share.

Elara Capital on IndiGo

IndiGo Share Price Target 2026 by Elara Capital

Rating: Buy

Target Price: ₹6,020

Elara Capital has maintained a bullish outlook on InterGlobe Aviation stock and reiterated its “Buy” rating with a target price of ₹6,020.

According to the brokerage, the recent correction in IndiGo share price was mainly caused by short-term challenges including crude oil price volatility, rupee depreciation, aircraft grounding issues, and operational disruptions in the aviation sector.

Elara Capital highlighted that IndiGo stock has declined nearly 25% over the past six months, underperforming the broader market, while the Nifty index corrected around 10% during the same period.

Despite the near-term pressure, the brokerage remains positive on IndiGo’s long-term growth outlook. Elara believes ongoing airline capacity shortages, rising airfares, improving passenger demand, and stronger pricing power could support earnings recovery and margin expansion in the coming quarters.

The brokerage expects the Indian aviation sector supply-demand imbalance to continue benefiting IndiGo through higher yields, improved profitability, and market share gains.

Motilal Oswal on IndiGo

IndiGo Share Price Target by Motilal Oswal

Rating: Buy

Target Price: ₹5,600

Potential Upside: 27%

Motilal Oswal Financial Services maintained a “Buy” rating on InterGlobe Aviation with a target price of ₹5,600.

The brokerage remains positive on IndiGo’s long-term growth outlook, supported by its strong balance sheet and aircraft ownership strategy.

Key Positives

• Cash reserves of ₹51,600 crore
• Free cash of ₹36,200 crore
• Loans prepaid on 17 aircraft in FY26
• Ownership of 36 debt-free aircraft worth over ₹9,500 crore

Motilal Oswal also highlighted IndiGo’s planned $820 million investment into its GIFT City aviation leasing business for aircraft acquisition.

The brokerage believes increasing aircraft ownership could improve long-term profitability, margins, and cost efficiency.

Nuvama on IndiGo

Nuvama on IndiGo: Buy | Target ₹5,054 | 15% upside

Nuvama believes IndiGo is nearing the end of a tough phase driven by aircraft grounding and geopolitical disruptions. Near-term earnings pressure may continue, but recovery is seen from Q2 FY27.

Why Nuvama is positive:

• Falling crude oil prices may ease cost pressures
• Easing geopolitical tensions to aid operations
• Airbus and Pratt & Whitney supply chains improving
• International expansion gaining traction

Nuvama expects IndiGo to replicate its successful domestic strategy in international markets over the coming years.

IndiGo Share Price Targets by Brokerages

Long-Term Outlook for IndiGo

Brokerages remain optimistic on IndiGo due to several long-term growth drivers:

• Strong domestic aviation demand
• Expanding international network
• Industry-wide aircraft shortage
• Rising airfares
• Strong balance sheet
• Market share gains

Analysts believe the airline remains well-positioned to benefit from India’s rapidly growing aviation market despite short-term volatility.