InterGlobe Aviation Set to Enter Sensex in December Rebalancing as Strong Q2 Results Boost Case

Mumbai | November 13

InterGlobe Aviation Ltd, the parent of IndiGo, has emerged as the leading candidate for inclusion in the Sensex during the December rebalancing, following the sharp decline in Tata Motors’ free-float market capitalisation after its recent demerger. If confirmed, InterGlobe could see passive inflows of nearly $342 million (around ₹2,850 crore) from index-linked global funds.

Both InterGlobe Aviation and Grasim Industries are being tracked as potential replacements, but analysts note that InterGlobe’s significantly higher average market capitalisation, stronger liquidity profile and rising institutional ownership put it firmly ahead in the race. The Sensex changes will be announced roughly four weeks ahead of becoming effective after market close on 19 December.

Q2 Earnings Strengthen InterGlobe’s Inclusion Prospect

The company’s Q2 FY26 performance has further reinforced confidence in its eligibility. Despite reporting a headline loss due to a large foreign‑exchange hit of ₹26.8 billion, core operating performance remained resilient.

Revenue rose 9.3% year‑on‑year to ₹185.5 billion, driven by 11.2% passenger revenue growth, steady yields at ₹4.69, and disciplined cost management. Excluding the forex impact, the airline reported a positive PAT of ₹1.0 billion, marking a sharp improvement from the loss in the previous year.

Jinesh Joshi, at PL capital, said the headline loss did not reflect the underlying strength of the business. “IndiGo delivered a far stronger quarter beneath the surface. Adjusted for FX impact, profitability improved meaningfully with stable pricing, softer costs and better capacity utilisation. The airline’s medium-term growth outlook supported by rising international share and a rapidly scaling fleet-continues to strengthen its case for index inclusion.”

InterGlobe also revised its full-year capacity outlook higher, guiding for ASKM growth in the early teens, with its fleet expanding to 417 aircraft during the quarter. Its increasing international footprint, expected to touch 40% of total capacity in the medium term, has added to investor conviction.

Grasim Remains in Contention but Trails InterGlobe

Grasim Industries remains a possible but lower‑probability contender for the Sensex slot. If selected, it may see inflows of roughly ₹2,526 crore, analysts estimate. However, InterGlobe’s higher market capitalisation, stronger liquidity and better representation of the expanding services sector give it a clear advantage.

Meanwhile, Tata Motors whose demerger sharply reduced its Sensex‑relevant market capitalization faces potential passive outflows of nearly ₹2,232 crore if removed from the index.

A Rare Aviation Entry to India’s Benchmark Index

A Sensex inclusion would mark a notable shift in sector representation, signalling growing recognition of the aviation sector’s importance to India’s economy. Analysts highlight IndiGo’s scale, profitability track record and dominant market share as key factors supporting its inclusion.

Domestic air‑travel growth, IndiGo’s rising international capacity, and improving operational resilience have strengthened the airline’s case among global passive and long‑only managers.

Awaiting Official Announcement

With the December rebalancing approaching, index managers and global passive funds are monitoring developments closely. The final Sensex reshuffle will be announced approximately four weeks before becoming effective after market close on 19 December.

For now, InterGlobe Aviation remains the strongest and most structurally aligned candidate for inclusion, its case bolstered by robust Q2 performance, sector leadership and superior market‑cap metrics.