InterGlobe Aviation Limited, the parent company of India’s largest airline IndiGo, announced its financial results for the second quarter, recording a net loss of Rs 2,582.10 crore. The loss was primarily driven by currency movements, despite an increase in total income to Rs 19,599.5 crore, compared to Rs 17,759 crore in the same period last year.
The airline's CEO, Pieter Elbers, emphasized that improved capacity deployment contributed to a 10 percent growth in revenue, excluding foreign exchange impacts, and led to an operational profit of Rs 104 crore after a prior operational loss. Although the quarterly figures were mixed, market responses showed confidence, with shares climbing 1.3 percent to Rs 5,726 and reaching an intraday high of Rs 5,830.
Analysts from Nuvama maintain a Hold rating for the stock, with a target price of Rs 150, citing the company's high valuation and cost pressures affecting EBITDA, which declined 62 percent year-on-year. Looking forward, the brokerage expects passenger yields to improve, though passenger growth remains modest at 4 percent. Revenue outlooks and profitability are cautiously optimistic, with revisions to EBITDA estimates for upcoming fiscal years. Overall, IndiGo appears resilient amid global economic uncertainties, and its stock continues to garner investor interest.
