InterGlobe Aviation Ltd, the parent company of IndiGo, saw its shares climb over 3% in early trade on November 6, following the release of its Q2 FY26 results. As of 9:20 am, IndiGo shares were trading at ₹5,820 apiece.

Despite reporting a sharp increase in quarterly losses, brokerages maintained a positive outlook on the airline’s long-term performance.

In the past month, IndiGo’s stock has gained over 2%, while it rose more than 9% in the last six months. So far in 2025, the shares are up by over 26%, with a current P/E ratio of above 32.

IndiGo Q2 FY26 Results: Loss Widens, Revenue Grows

For the July–September 2025 quarter (Q2 FY26), IndiGo reported a consolidated net loss of ₹2,582 crore, a nearly threefold increase from ₹986.7 crore in the same period last year. The company attributed the higher losses to cost escalation outpacing revenue growth.

The net loss included foreign exchange impacts on dollar-denominated future obligations. However, excluding the forex effect, IndiGo recorded a net profit of ₹104 crore, compared to a ₹754 crore loss in the year-ago quarter.

Revenue from operations grew 9.3% year-on-year to ₹18,555.3 crore, driven by higher passenger traffic and improved yields. Meanwhile, total expenses surged 18.3% to ₹22,081.2 crore, largely due to foreign exchange costs and higher operating expenses.

The most significant expense component was foreign exchange losses, which rose 12 times to ₹2,892 crore in Q2 FY26.

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Motilal Oswal Retains ‘Buy’ Rating, Sees 29.5% Upside

Motilal Oswal maintained its ‘Buy’ rating on IndiGo with a target price of ₹7,300 per share, implying an upside potential of over 29.5% from the previous close.

The brokerage noted that IndiGo has raised its FY26 capacity growth guidance to mid-teens from double digits, supported by strong long-term demand. It also highlighted that international expansion will help diversify exposure to foreign exchange volatility.

However, Motilal Oswal cut its FY26 earnings estimate by 23% due to forex losses but retained FY27 and FY28 estimates.

PL Capital Also Bullish, Sets Target at ₹6,332

PL Capital also reiterated a ‘Buy’ rating on IndiGo with a target price of ₹6,332, valuing the stock at 11x FY27E EBITDAR.

The firm expects sales and EBITDAR CAGR of 12% and 11% respectively between FY25–FY27, driven by steady demand and pricing.

It noted that while inflationary pressures may affect the cost structure in FY26, positive pricing trends (PRASK) and the upward revision in ASKM growth guidance to early teens provide comfort.

PL Capital, however, flagged foreign exchange and aviation turbine fuel (ATF) volatility as key risks.

Outlook

Despite a challenging quarter marked by currency fluctuations and cost pressures, brokerages remain optimistic about IndiGo’s growth potential, backed by strong travel demand, capacity expansion, and international diversification.

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