Buy InterGlobe Aviation; target of Rs 5680: ICICI Securities

ICICI Securities is bullish on InterGlobe Aviation has recommended buy rating on the stock with a target price of Rs 5680 in its research report dated January 23, 2026.

Broker Research

January 23, 2026 / 14:38 IST

Buy

ICICI Securities's research report on InterGlobe Aviation

We maintain our constructive view on IndiGo. The key premise has been that of a structurally lower industry supply situation in the medium term which we believe may be a bigger investment thesis despite any short-term possible demand blip. It had a major disruption in first week of Dec’25 when there were operational challenges but the recovery has been well chartered as of now (refer Exhibit 1). Guidance for 10% volume growth in Q4FY26 YoY will also imply ASK in Q4 to be 2% higher QoQ which becomes important to note in this aspect. Spreads are expected to get a boost from steady crude price, better cost absorption on higher volume/lower damp leases in FY27. However, CASK ex-fuel remains under pressure driven by weakening INR and is a risk. Increasing importance of spreads in international business (most growth continues to come from international segment) will also be key. Basis guidance, we believe IndiGo could clock ~INR 20bn PAT in Q4FY26E ex of forex.

Outlook

We maintain BUY with a revised target price of INR 5,680 (6,680 earlier), based on 25x (earlier 28x) FY27E EPS of INR 227 (post full tax). The cut in FY27 earnings factors in higher CASK ex fuel.

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