Brokerages give Indigo's premiumisation journey a thumbs up, see 26% upside

Indigo shares have surged 67 percent over the past year, as compared to a 22 percent jump in the benchmark Nifty 50.

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26 Aug, 2025 12:21

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Brokerages gave InterGlobe Aviation a thumbs up after it launched the 'IndiGo Stretch' business class.

The business class offering will be available for 12 routes, including Chennai, Hyderabad, Bangalore, and Mumbai from mid-November, CEO Pieter Elbers said on August 5 on the occasion of its 18th anniversary as India's topline airline.

The carrier, which eyes to tap a growing number of premium flyers domestically, will open business class booking from August 6 for travel from 14 November and fares start at Rs 18,018. IndiGo will also launch the "Bluchip' loyalty program, which will start around September.

Also Read | IndiGo launches 'IndiGo Stretch' business class for 12 routes; fares start at Rs 18,018

International brokerage JP Morgan was positive on Indigo's premiumization thrust. The brokerage maintained its 'overweight' call, with a target price of Rs 4,950 per share as Indigo continues to expand its international business with "new, innovative routes." From the previous session's closing price, this indicates an upside of around 17 percent.

By shifting into business class, Indigo is building customer loyalty and stockiness. As a result of these initiatives, Indigo will maintain its dominant market share and profit leadership.

Emkay Global reiterated its bullishness on Indigo as it embarks on the premiumization journey. The brokerages foresee support to yields over the medium term, led by premiumisation.

While the net impact on earnings is unquantifiable at present, it retained its earnings estimates. "We maintain BUY on Indigo with an unchanged target price of Rs 5,300/share," said Emkay. This implies a further headroom of 25.6 percent in the stock.

Indigo shares have surged 67 percent over the past year, as compared to a 22 percent jump in the benchmark Nifty 50.

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