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What is the story about?
Shares of InterGlobe Aviation Ltd., the parent company of IndiGo Airlines, gained for the second consecutive session on Monday, June 15, rising nearly 5%.
The stock has surged 9.8% over the two sessions. However, the airline stock is still 20.7% away from its 52-week high of ₹6,232.5 apiece.
Brokerage firm Jefferies maintained its "buy" recommendation on the stock with a price target of ₹5,380 per share, indicating an upside of 14.2% from its previous close of ₹4,709.7 per share.
Jefferies said the airline's near-term focus is on pricing discipline over aggressive capacity addition. It said it has managed cost inflation via a pragmatic growth approach.
The company's international business remains a key growth driver via fleet and route expansion, Jefferies said.
The brokerage added that forex hedging coverage is being increased. It said the airline is expanding its customer base and geographic reach via new initiatives.
Of the 26 analysts who have coverage on the IndiGo stock, 21 have a "buy" rating, three have a "hold" rating and two have a "sell" rating.
Brent crude declined 5% below $84 per barrel after US and Iran announced a peace deal, which will be signed on Friday, June 19, following which the Strait of Hormuz will reopen for shipments.
Brent crude has traded at an average of $100 per barrel ever since the Iran-US war started on February 28. It hit its war-high on March 31, 2026.
As per the latest analyst estimates, every $5 rise in brent prices leads to a 13% impact on IndiGo's earnings.
The last updated prices for aviation turbine fuel (ATF) was at ₹105 per litre in Delhi. Airlines, including IndiGo, were to decide whether to opt in or out of the new ATF price stabilization scheme. This would have meant paying fixed ATF price of ₹86.3 per litre for domestic operations and ₹104.5 per litre for international operations.
As per analyst estimates, this translates to ₹115 per litre fixed ATF price in Delhi for IndiGo, fixed for three years.
The airline reported its fourth quarter earnings last month . Its net profit declined to ₹2,536.3 crore from ₹3,067.5 crore in the previous year, as forex losses, elevated costs and exceptional charges weighed heavily on its results. Its revenue of ₹22,438.4 crore was 1.3% higher from the previous year's ₹22,151.9 crore.
Its EBITDAR declined 67.9% to ₹2,227.8 crore from ₹6,948.2 crore last year. Its EBITDAR margin contracted to 9.9% from 31.4% in the year-ago period.
Last week, incoming CEO Willie Warsh told CNBC-TV18 IndiGo is a "fantastic airline" with ambitious growth plans, while he warned high fuel costs, aircraft groundings and taxation remained key challenges for India's aviation sector.
Shares of IndiGo are trading 4.5% higher on Monday at ₹4,923. The stock is among the top gainer on the Nifty 50 index. The stock is still down 3.7% so far for the year.
Also Read: L&T shares turn positive for 2026 after second day of gains on US-Iran peace deal
The stock has surged 9.8% over the two sessions. However, the airline stock is still 20.7% away from its 52-week high of ₹6,232.5 apiece.
Why Is Jefferies Positive On IndiGo?
Brokerage firm Jefferies maintained its "buy" recommendation on the stock with a price target of ₹5,380 per share, indicating an upside of 14.2% from its previous close of ₹4,709.7 per share.
Jefferies said the airline's near-term focus is on pricing discipline over aggressive capacity addition. It said it has managed cost inflation via a pragmatic growth approach.
The company's international business remains a key growth driver via fleet and route expansion, Jefferies said.
The brokerage added that forex hedging coverage is being increased. It said the airline is expanding its customer base and geographic reach via new initiatives.
Of the 26 analysts who have coverage on the IndiGo stock, 21 have a "buy" rating, three have a "hold" rating and two have a "sell" rating.
How Do Lower Oil Prices Benefit IndiGo?
Brent crude declined 5% below $84 per barrel after US and Iran announced a peace deal, which will be signed on Friday, June 19, following which the Strait of Hormuz will reopen for shipments.
Brent crude has traded at an average of $100 per barrel ever since the Iran-US war started on February 28. It hit its war-high on March 31, 2026.
As per the latest analyst estimates, every $5 rise in brent prices leads to a 13% impact on IndiGo's earnings.
The last updated prices for aviation turbine fuel (ATF) was at ₹105 per litre in Delhi. Airlines, including IndiGo, were to decide whether to opt in or out of the new ATF price stabilization scheme. This would have meant paying fixed ATF price of ₹86.3 per litre for domestic operations and ₹104.5 per litre for international operations.
As per analyst estimates, this translates to ₹115 per litre fixed ATF price in Delhi for IndiGo, fixed for three years.
How Did IndiGo Performed In Q4 FY26
The airline reported its fourth quarter earnings last month . Its net profit declined to ₹2,536.3 crore from ₹3,067.5 crore in the previous year, as forex losses, elevated costs and exceptional charges weighed heavily on its results. Its revenue of ₹22,438.4 crore was 1.3% higher from the previous year's ₹22,151.9 crore.
Its EBITDAR declined 67.9% to ₹2,227.8 crore from ₹6,948.2 crore last year. Its EBITDAR margin contracted to 9.9% from 31.4% in the year-ago period.
Last week, incoming CEO Willie Warsh told CNBC-TV18 IndiGo is a "fantastic airline" with ambitious growth plans, while he warned high fuel costs, aircraft groundings and taxation remained key challenges for India's aviation sector.
Shares of IndiGo are trading 4.5% higher on Monday at ₹4,923. The stock is among the top gainer on the Nifty 50 index. The stock is still down 3.7% so far for the year.
Also Read: L&T shares turn positive for 2026 after second day of gains on US-Iran peace deal
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