IndiGo Shines Amidst Market Weakness on Strong Q4 and Analyst Upgrades

Despite a generally subdued market,

shares saw a rise today, bolstered by robust Q4 profit growth and several target price upgrades from brokerages. Nuvama Institutional Equities maintained a 'Hold' rating on IndiGo, setting a target price of Rs 5,199. While acknowledging strong Q4 performance with EBITDAR beating estimates by 18%, Nuvama expressed concerns about "lofty valuations and near-term industry weakness" due to capacity outpacing demand. They trimmed their FY26E EBITDAR by 3% due to Q1FY26 guidance and geopolitical impacts. JM Financial also kept a 'Hold' rating but raised their target price by 4.5% to Rs 4,860, citing higher passenger revenue as the key driver for the firm's better-than-estimated profit after tax. In contrast, Motilal Oswal Financial Services reiterated their 'Buy' call on IndiGo, setting an ambitious target price of Rs 6,375. They emphasized management's "customer-first approach" and maintained their FY26/27 estimates, noting potential risks from wide-body aircraft delivery delays, rising AOGs, crude/rupee volatility, and a higher share of premium seating impacting cost advantages. Similarly, Emkay Global also maintained a 'Buy' rating with a target price of Rs 6,000. They highlighted management's FY26 ASK growth guidance of early single digits and mid-teens growth for Q1FY26. While acknowledging a slowdown in demand in May due to geopolitical turmoil, Emkay noted the situation has "bottomed out" and expects a recovery.