First Read: InterGlobe Aviation "Geopolitics re-enters the flight path"

Research evidence excerpt

First Read: InterGlobe Aviation "Geopolitics re-enters the flight path"

Global Research

24 July 2026ab

First Read

EquitiesInterGlobe Aviation

Geopolitics re-enters the flight path India

Airlines

12-month rating Neutral

Fuel dynamics cap upside

IndiGo's Q1FY27 revenue performance was broadly in line with expectations, while 12m price target Rs5,450.00

EBITDA came in 24% below consensus estimates, primarily due to higher-than- Prior : Rs5,090

anticipated fuel costs. The increase in fuel expenses was driven by a combination of

Price (23 Jul 2026) Rs5,023.9

impact from VAT and excise duty and potential sourcing from private suppliers (Figure 9Q1FY27

estimatedfuelpricebuildup), while other operating expenses remained largely in line with expectations. Looking RIC: INGL.BO BBG: INDIGO IB

ahead, fuel cost pressures are expected to remain elevated in the near term amid Trading data and key metrics

renewed Iran–US tensions, which have led to a rebound in global jet fuel prices, and the

52-wk range Rs6,154.05-3,943.75

company is yet to finalize a longer-term fuel procurement strategy. At present, IndiGo

Market cap. Rs1,936b/US$20.1b

continues to procure fuel at prevailing market prices. Accordingly, our fuel cost

Shares o/s 385m (ORD)

assumptions for the remainder of FY27 and FY28 are based on Singapore jet fuel

forward curves. On the demand side, management commentary on yields remained Free float 25%

constructive, with the company indicating that pricing discipline continues to hold Avg. daily volume ('000) 1,134

across the industry. While elevated fuel costs may weigh on earnings in the near term, Avg. daily value (m) Rs5,428.3

sustained yield strength could help offset some of these pressures. Should the current Common s/h equity (03/26E) Rs58.3b