Shares of InterGlobe Aviation, which operates IndiGo, increased by 1.92% on Thursday, September 18, 2026, reaching a high of Rs 4,947.30. This surge follows global investment bank Jefferies' decision to maintain its 'Buy' rating on the airline, setting a price target of Rs 5,840, which suggests a potential 20% upside.
Jefferies' analysis comes after management commentary at the Jefferies India Forum 2026, where IndiGo detailed its outlook on capacity, pricing, and operational costs. The airline has kept its FY27 capacity growth guidance in the single digits, with second-quarter capacity expected to remain stable year-on-year before improving in the latter half of the fiscal year.
IndiGo's Strategic Focus and Cost Management
IndiGo management has also upheld its guidance of approximately 25% PRASK (passenger revenue per available seat kilometre). Jefferies highlighted that recent fare increases could become permanent even as operating conditions normalize, potentially boosting revenue realization.
The airline is actively pursuing cost rationalization strategies amidst elevated operating expenses. Key initiatives include discontinuing its damp-leased wide-body aircraft program and enhancing the utilization of its newer-generation aircraft fleet. Additionally, IndiGo has postponed salary increments for senior employees as part of its cost-saving measures.
Management confirmed that the appointment of Willie Walsh as CEO in August has not altered the airline's overarching strategic direction. Core priorities remain operational resilience, cost efficiency, and the advancement of its A350 aircraft program.
Financial Projections and Identified Risks
Looking ahead, Jefferies projects IndiGo's revenue to climb to Rs 1,01,931 crore in FY27, up from an estimated Rs 84,962 crore in FY26. EBITDA is forecasted to rise significantly to Rs 17,710 crore from Rs 12,720 crore over the same period. The brokerage anticipates IndiGo will report a profit of Rs 1,978 crore in FY27, a substantial turnaround from an estimated Rs 786 crore loss in FY26.
Jefferies also underscored IndiGo's robust balance sheet, which includes approximately Rs 39,000 crore in free cash. This financial strength provides the airline with flexibility for aircraft ownership and investments in infrastructure, such as in-house Maintenance, Repair, and Overhaul (MRO) capabilities and an integrated campus.
Despite the positive outlook, the global investment bank identified several potential risks. These include fluctuations in crude oil and aviation turbine fuel prices, depreciation of the Indian Rupee, and the ongoing normalization of the global aircraft supply chain.