Neutral InterGlobe Aviation; target of Rs 4535: Motilal Oswal

Neutral

Motilal Oswal's research report on InterGlobe Aviation

INDIGO reported flat YoY EBITDA at INR51.6b and PAT of INR24.4b (est. INR36.9b) in 3QFY25. Excl. forex loss/gain, EBITDA was 5% above our estimate. Revenue passenger kilometers (RPK) stood at 35.5b. Passenger load factor (PLF) was 87%, with available seat kilometers (ASK) of 40.8b (est. 40.9b) and yield of INR5.43 (est. INR5.37, down 1% YoY) in 3Q. Management highlighted that the quarter saw robust air travel by customers thanks to the festive season, year-end holidays and a general rise in consumer demand. This was markedly offset by a forex loss of INR14.6b as INR continued to depreciate during the quarter, which continued in Jan’25. Management remains confident that as its international operations expand, it would serve as a natural hedge.

Outlook

The stock is trading at ~17x FY26E EPS of INR248.9 and ~8x FY26E EV/EBITDAR. We reiterate our Neutral rating on the stock with a TP of INR4,535, based on 8x Dec’26E EV/EBITDAR.

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InterGlobe Aviation_27012025_Motilal Oswal