Shares of InterGlobe Aviation, the parent company of IndiGo, climbed nearly 2 percent in early trade on Friday after the airline reported its fiscal second quarter earnings, with Jefferies, Nomura and HSBC retaining their 'buy' ratings on the stock. The brokerages highlighted IndiGo's strong pricing power and improving revenue yields, although elevated fuel costs and pressure on operating expenses remained concerns.
IndiGo shares were trading at Rs 4,755, up 1.7 percent, in early deals. At this price, Nomura's revised target of Rs 6,200 implies an upside of around 30 percent, while Jefferies' target of Rs 5,650 and HSBC's target of Rs 5,545 suggest potential gains of approximately 19 percent and 17 percent, respectively.
The stock has declined 7.1 percent so far in 2026, outperforming the Nifty 50, which has fallen 12.2 percent during the period. IndiGo's market capitalisation stood at Rs 1.83 lakh crore. The gains came even as the broader market was largely flat. At 9:19 am, the Sensex was down 7 points at 74,144, while the Nifty was flat at 22,935.
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Jefferies maintained its 'buy' rating on IndiGo with a target price of Rs 5,650, describing the July-September quarter performance as soft but broadly in line with expectations. The brokerage said a 34 percent year-on-year increase in passenger yields helped partially offset higher fuel and other operating costs. It added that pricing remained a priority for the airline, with management guiding for low-single-digit capacity growth and more than 25 percent growth in passenger revenue per available seat kilometre (PRASK) in the December quarter.