Interglobe Aviation Ltd
Interglobe Aviation Ltd (Indigo) is India’s largest passenger airline operating as a low-cost carrier. Serving 86 destinations including 24 international destinations, it provides passengers with a simple, unbundled product, fulfilling its singular brand promise of providing “low fares, on-time flights, and a courteous and hassle-free service” to its customers. IndiGo commenced operations in August 2006 with a single aircraft and has grown its fleet to 262 aircrafts.
Key Business segments
Inter Globe Aviation Ltd generates revenue primarily through passenger services, which account for 90-92% of total revenue (₹74,211 crore out of ₹80,803 crore in recent FY).
- Passenger Tickets: 86% of revenue (₹15,967 Cr in Q2 FY26, +11.2% YoY)
- Ancillary Services: 12% (₹2,141 Cr, +14% YoY) from baggage, seats, meals
- Cargo: ~2-8% via IndiGo CarGo
- Other: Minimal from charters/partnership
Shareholding Pattern (Sep-25)
Financial Summary
| Particulars | Mar-23 | Mar-24 | Mar-25 |
| Sales | 54,446 | 68,904 | 80,803 |
| Sales Growth % | 109.97% | 26.55% | 17.27% |
| Expenses | 47,926 | 52,573 | 62,753 |
| Operating Profit | 6,521 | 16,331 | 18,050 |
| OPM % | 12% | 24% | 22% |
| Net Profit | -317 | 8,168 | 7,253 |
| EPS in Rs | -8.21 | 211.6 | 187.7 |
Final Outlook
Inter Globe Aviation Ltd represents a compelling long-term growth opportunity in India’s structural aviation boom. While Q2 FY26 losses reflect near-term macro headwinds (forex, depreciation), the company’s operational excellence, market dominance, and strategic international expansion position it for strong recovery.
- Executive Summary & Company Overview with market positioning (64.2% domestic share, 430+ aircraft)
- Detailed Q2 FY26 Financial Analysis showing 10.4% YoY revenue growth but ₹2,582 Cr net loss due to forex and depreciation headwinds
- Valuation Metrics including P/E ratio (33.4-44.8x), P/B (24.1x), and comparable analysis vs. global LCCs
- Growth Drivers: Early-teens capacity growth, widebody international expansion, market consolidation tailwinds
- Risk Assessment with mitigating factors for forex volatility, fuel inflation, and competition
- Bull/Bear Case Analysis (70/30 weighting) supporting investment thesis
- Revenue & Earnings Projections through FY28E with 25-35% growth trajectory
- DCF & Comparable Valuation frameworks yielding ₹7,800-₹7,950 fair value
- Investment Suitability recommendations and key catalysts
Final Outlook: BUY with 31.8% upside potential for long-term investors. Strong structural Indian aviation growth + IndiGo’s operational excellence justify premium valuation despite near-term Q2 losses.
Recommend BUY for long-term investors comfortable with near-term volatility. Strong structural tailwinds in Indian aviation, coupled with IndiGo’s unmatched operational capabilities, justify a premium valuation. Expect sustained 12-15% earnings CAGR through FY28, driving price target of ₹7,800-₹7,950 within 12 months.
