Buy InterGlobe Aviation; target of Rs 7000: Anand Rathi

buy

Anand Rathi's research report on InterGlobe Aviation

Nailing the LCC model, IndiGo managed to capture its home market achieving ~64.4% share, supported by a fleet of ~416 aircraft and an orderbook of ~910 aircraft. Notwithstanding a weak H1FY26, we expect a strong H2 due to festive season & higher discretionary spends prompted by GST rate cuts and this sustained demand trajectory is expected to continue going forward as well. We believe IndiGo to be a long-term compounding story supported by disciplined low-cost model, India market dominance, strategic expansion, healthy balance sheet and robust long-term growth prospects.

Outlook

Hence, we initiate coverage with a Buy rating, at a 12-mnth TP of Rs 7,000, valuing at 10x Sep’27e EBITDA.

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InterGlobe Aviation - 28102025 - anand