Shares of InterGlobe Aviation, parent company of IndiGo, are expected to see a significant 23% upside, according to brokerage firm Motilal Oswal Financial Services (MOSL). The optimistic outlook, published on June 10, 2026, is primarily attributed to strong passenger growth and the airline's strategic expansion within India's booming aviation sector.
In the previous trading session, IndiGo's shares closed 4% higher at ₹4,537.60, pushing the airline's market capitalization to ₹1.75 lakh crore. MOSL has maintained a 'Buy' rating on the stock, setting a target price of ₹5,600.
Aviation Sector Boom Fuels Optimism
India's aviation market is poised for substantial growth, with domestic and international passenger traffic projected to more than double between fiscal years 2026 and 2035. This growth is expected to be fueled by several key factors:
- A rising number of first-time international travelers.
- Increasing inbound tourism.
- Significant expansion of airport infrastructure, with nearly 50 new airports anticipated to become operational over the next five years.
MOSL believes IndiGo is well-positioned to capitalize on these robust long-term trends, which will drive its overall IndiGo stock growth.
IndiGo's Ambitious Growth Roadmap
To leverage the expanding market, IndiGo has outlined an ambitious growth roadmap extending to FY30. Key targets include:
- Available Seat Kilometers (ASK): Increasing from 172.4 billion in FY26 to 300 billion by FY30, representing a compound annual growth rate (CAGR) of approximately 15%.
- Annual Passenger Traffic: Growing from 123 million to 200 million during the same period, implying a CAGR of 13%.
- Fleet Expansion: Expanding its fleet to 550 aircraft from the current 441.
- Daily Departures: Boosting average daily departures to 3,000 from around 2,200 flights.
The airline is also committed to strengthening its international network through additional fleet inductions, including A321XLR aircraft designed for long-range routes.
Brokerage Outlook and Financial Projections
Motilal Oswal anticipates improved earnings momentum for IndiGo in the coming years. This improvement is expected as international operations gradually normalize and the number of aircraft groundings related to Pratt & Whitney engine issues declines. The combination of fleet expansion, particularly with new long-range aircraft, and sustained travel demand is forecast to support operational recovery and enhanced profitability.
Brokerage estimates suggest IndiGo could deliver impressive financial performance between FY26 and FY28, with revenue and EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent) CAGRs of 13% and 46%, respectively. The 'Buy' rating and target price of ₹5,600 are based on a valuation of 9 times FY28 estimated EBITDAR, highlighting confidence in IndiGo's future financial trajectory and continued IndiGo stock growth.