InterGlobe Aviation (INDIGO IN) – Analyst Meet Update – Encouraging long-term ASKM guidance – HOLD
Published on 09 Jun 2026
We attended INDIGO IN’s analyst meet wherein the management highlighted plans to 1) reach ASKM of 300bn, 2) increase the share of owned and finance-leased aircraft to 30-40% of fleet mix, and 3) increase international ASKM share to 40% by FY30E. In addition, given excessive FX volatility witnessed in recent times, INDIGO IN aims to expand the hedge cover to 33% of net BS exposure by FY27E/FY28E. Despite a modest capacity addition growth guidance of single digit for FY27E, the long-term target to reach ASKM of 300bn by FY30E (15% CAGR over FY26-30E) is encouraging. We believe near-term growth will be price led (PRASK is likely to grow by mid-teens in 1QFY27E) amid sharp repricing given excessive ATF price volatility. We broadly retain our estimates and expect sales/FX-adjusted EBITDAR CAGR of 10%/4% over FY26-28E. Given multiple headwinds arising from capacity bottlenecks in near term, FX volatility and rising crude prices, we maintain HOLD on the stock with a TP of INR4,724 (9x FY28E EBITDAR; no change in target multiple).
