InterGlobe Aviation shares fall 3% on first day as a Nifty 50 stock

Shares of Interglobe Aviation Ltd., the parent company of Indigo airlines, fell as much as 3% in early trading on Tuesday, September 30, as it began trading as a Nifty 50 constituent.

Last month, the National Stock Exchange (NSE) said the Index Maintenance Sub-Committee (Equity) of NSE Indices Ltd had announced changes to the index as part of its semi-annual review of broad market indices.

As per the reshuffle, InterGlobe Aviation and Max Healthcare will replace IndusInd Bank and Hero MotoCorp in the Nifty 50 index.

The changes are in-line with the period review the NSE indices undertake to ensure the benchmark index remains reflective of the evolving market and sectoral representation.

InterGlobe Aviation had reported a weak first quarter. Its consolidated net profit of ₹2,176 crore was down ₹2,728 crore from the year-ago period and also missed Street estimates of ₹2,484 crore.

The airline reported a 4.7% increase in its revenue at ₹20,496 crore, which too was lower than the CNBC-TV18 poll of ₹21,150 crore.

Its earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 1.3% to ₹5,226 crore from ₹5,455 crore last year. Its operating margin contracted to 25.5% from 26.4% in the year-ago period and was marginally lower than Street estimates of 25.7%.

Last week, IndiGo airlines shared its plans to start with 18 daily departures to more than 15 destinations, when the Navi Mumbai International Airport opens. It is looking at expanding the same to 140 daily departures, including 30 international flights, by November 2026.

Of the 25 analysts that have coverage on the stock, 20 have a "buy" rating, three have a "hold" rating and two have a "sell" rating.

Shares of InterGlobe Aviation ended the previous session in the green after declining for four consecutive trade sessions.

Shares of Interglobe Aviation are trading 2.1% lower on Tuesday at ₹5,581 apiece. While it has declined nearly 1.8% in the past month, it has gained 10.8% in the last six months and 21.2% this year, so far.

Also Read: Man Industries shares in focus after SEBI bars firm, three top executives from securities market