Brokerage firm Prabhudas Lilladher has issued a bullish outlook on InterGlobe Aviation (IndiGo), recommending a “Buy” rating with a target price of ₹5,861. This projection reflects confidence in the airline’s growth trajectory, supported by its ambitious expansion plans and robust financial performance.
Key Highlights from the Analysis:
- Fleet Expansion: IndiGo plans to add more than one aircraft per week, aiming to significantly increase its capacity. The airline is also set to introduce wide-body aircraft to tap into lucrative long-haul international routes.
- Network Growth: The company intends to launch 14 new destinations in FY26, enhancing its domestic and international connectivity.
- Workforce Expansion: IndiGo is expected to add 3,000 employees in FY26, reflecting its commitment to scaling operations.
- Revenue Growth: Prabhudas Lilladher projects a revenue compound annual growth rate (CAGR) of 15% over FY25-FY27, with EBITDAR margins of 24.7% in FY25, 23.7% in FY26, and 23.3% in FY27.
- Focus on International Markets: IndiGo is increasing its focus on international operations, with plans to raise its international capacity share from 25% to 40% by FY30.
Financial Outlook:
The brokerage highlights IndiGo’s strong financial position, including a free cash reserve of ₹289 billion as of Q3FY25. This financial flexibility is expected to support the airline’s aggressive expansion and operational goals.
Prabhudas Lilladher’s analysis underscores IndiGo’s potential to maintain its leadership in the aviation sector, driven by strategic initiatives and a focus on long-term growth. Investors are advised to consider this stock for its promising outlook, subject to individual risk assessments and market conditions.
