IndiGo share price falls nearly 2% in early trade after Q3 results, even as analysts bullish on stock

InterGlobe Aviation (IndiGo)

• IndiGo shares fell 2% after Q3 profit drop from one-time charges.
• Brokerages kept Buy ratings due to steady revenue and strong operational metrics.
• Management forecasts 10% capacity growth in Q4, driven by international expansion.

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Shares of IndiGo operator InterGlobe Aviation Ltd slipped in early trade on Friday with the stock down 1.96 percent at Rs 4,813, a day after the company reported its Q3 FY26 financial results. The airline’s market capitalisation stood at about Rs 1.86 lakh crore.

The decline comes after InterGlobe Aviation disclosed a sharp year-on-year fall in reported net profit for the December quarter, weighed down by sizeable one-time exceptional items linked to the implementation of new labour codes and operational disruption during early December. The company had said these exceptional charges materially impacted headline profitability, even as revenue growth and operational metrics remained steady.

However, brokerages largely looked past the headline profit decline, maintaining Buy ratings on the stock and reiterating confidence in IndiGo’s underlying business. UBS said the quarter was a “decent show despite disruptions”, noting that management expects capacity growth of around 10 percent year-on-year in Q4 FY26, led largely by international expansion. UBS also flagged guidance for higher costs in the March quarter but said yields are expected to moderate only gradually from a strong base.

Citi said the Q3 financial impact of the FDTL-related disruption was lower than its estimates, with yields coming in better than expected and operational parameters broadly in line. Goldman Sachs said reported profit before tax was above estimates, adding that costs excluding forex, particularly aircraft rentals, were lower than anticipated, while management reiterated guidance of around 10 percent ASK growth in Q4, driven mainly by international operations.

InterGlobe Aviation stock had closed at Rs 4,929 on Thursday ahead of the results, having gained over 19 percent in the past one year, outperforming the benchmark Nifty 50.

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