Shares of InterGlobe Aviation fell 2.5% in Friday morning trade, trading at Rs 4,899.50, down Rs 124 at 9:25 am on the NSE.
The dip followed the carrier’s report of a weaker-than‑expected June quarter. EBITDAR dropped 34% year‑on‑year to Rs 37.5 billion, while EBITDA fell 39% to Rs 32.9 billion. The airline posted an adjusted loss of Rs 3.8 billion, compared with an adjusted profit of Rs 21.6 billion a year earlier.
Fuel costs surged to 44.1% of sales, well above expectations, even as the company achieved a 21% rise in yield to Rs 6.0. Rising aviation fuel prices are the biggest operating expense for airlines.
Brent crude hovered near $100 a barrel after Houthi attacks on tankers in the Red Sea, adding to market tension. Brent rose more than 13% this week, crossing the triple‑digit mark for the first time in two months.
Motilal Oswal Financial Services kept its “Buy” rating and a target price of Rs 6,580. The brokerage cut its FY27 EBITDAR estimate by 12% because of the renewed Middle East conflict but remains positive on the long‑term outlook.
The firm expects passenger revenue per available seat kilometre (PRASK) to grow about 25% year‑on‑year in the second quarter, supported by strong demand and sustained pricing. Management believes most curtailed capacity will be restored by Q3FY27.
In separate news, the Competition Commission of India has put its investigation into IndiGo on hold, as announced by InterGlobe Aviation in a filing to the exchanges. No further details were released.
Overall, while short‑term margin pressure from higher fuel costs is evident, analysts remain cautiously optimistic about IndiGo’s growth prospects amid India’s robust domestic demand and expanding international network.