The brokerage cut its target price to Rs 5,200 from Rs 6,000, citing rising fuel costs and near-term weakness in traffic from the Middle East region.
It now expects EBITDAR of around Rs 13,700 crore for FY26, Rs 15,900 crore for FY27 and Rs 24,400 crore for FY28, reflecting a more cautious near-term outlook.
The broker noted that ongoing geopolitical tensions have impacted travel demand, particularly in key Middle East routes, which remain an important market for the airline.
The company recently introduced a fuel surcharge on domestic and international flights in response to a sharp rise in jet fuel prices.
Amid the evolving situation, IndiGo is operating 252 weekly flights to and from the Middle East between 16 March 2026 and 28 March 2026, as it gradually restores its network. This includes 126 weekly flights to Saudi Arabia, 98 to the UAE and 28 to Oman.
Despite near-term pressures, the brokerage highlighted that industry consolidation amid supply constraints could support market share gains for IndiGo. It also pointed to the airline’s strong net cash balance sheet as a key strength.
InterGlobe Aviation is amongst the fastest growing low-cost carriers in the world.
On a consolidated basis, Interglobe Aviation's net profit declined 77.55% to Rs 549.80 crore while net sales rose 6.16% to Rs 23471.90 crore in Q3 December 2025 over Q3 December 2024.