IndiGo May Take Off on Strong Q4 Expectations

Stock of largest airline touches all-time high on healthy outlook

- Deepak Korgaonkar & Ram Prasad Sahu

Shares of InterGlobe Aviation, which operates IndiGo, hit an all-time high of ₹5,199.50, gaining 4 per cent on the BSE during Tuesday's intraday trade on a healthy outlook.

The stock ended the day with gains of 3.4 per cent to close at ₹5,157. During the past month, the stock of the country's largest airline company has rallied 12 per cent on expectations of a strong passenger growth outlook in the January-March 2025 quarter (Q4FY25) and falling crude oil prices. By comparison, the BSE Sensex was up just 0.7 per cent during the same period.

Analysts led by Ansuman Deb of ICICI Securities expect IndiGo to benefit from a better than expected combination of fares, crude oil and passenger load factor, to post a strong Q4FY25 net profit of ₹2,300 crore.

This should help boost profit before tax excluding forex to ₹8,600 crore for FY.

The brokerage has been structurally positive on IndiGo, driven by business moats of cost competitiveness, robust order book and strong balance sheet.