IndiGo Share Price Target 2026

The brokerage has assigned a BUY rating for the stock and maintained a target price of Rs 5,600. The target implies an upside of around 29 per cent from the current price level.

In the previous session, the BSE Sensex component fell over 2.5 per cent, or Rs 117, to trade at Rs 4,361.40. (IndiGo Share Price)

IndiGo Stock Outlook

The brokerage attributes the upside to India's domestic air travel demand growing at a CAGR of around 9 per cent over the coming years, providing a supportive backdrop for industry players, particularly market leader IndiGo.

Aggressive Capacity Expansion Plans

IndiGo has outlined aggressive capacity expansion plans, targeting 300 billion Available Seat Kilometres (ASK) by FY30, compared to 172 billion ASK in FY26. The airline also aims to increase passenger traffic to 200 million by FY30, up from the current 123 million.

Fleet expansion remains a key growth driver, with IndiGo planning to increase its fleet from 441 to 550 aircraft by FY30. The company's order book remains robust, with 901 aircraft yet to be delivered, ensuring long-term visibility on capacity growth.

International Expansion and Network Strategy

International expansion is also expected to play a larger role, with IndiGo targeting a 40 per cent international capacity share by FY30, supported by the induction of A321XLR aircraft.

On the network and product side, the airline continues its premiumisation strategy, with business class seating expected to increase by over 54 per cent by FY27. Its loyalty programme, BluChip, has already surpassed 11 million members within 20 months of launch.

Cargo Growth and Operational Efficiency

Cargo operations are also witnessing steady growth, with volumes increasing 13 per cent year-on-year to 450,000 tonnes in FY26. The segment is projected to grow 1.5x-2x by FY30, aided by fleet expansion.

IndiGo continues to maintain its position among the lowest-cost airlines globally, reporting a cost per available seat kilometre (CASK) of 3.38 US cents. The airline is also focused on fleet modernisation, targeting over 95 per cent next-generation aircraft by FY30.

Management has indicated expectations of mid-teen revenue growth, supported by pricing strength and network expansion initiatives. Motilal Oswal estimates a 13 per cent revenue CAGR and a 46 per cent EBITDAR CAGR for FY26-28E.

IndiGo Update

This positive outlook from the brokerage comes after India's largest airline announced the suspension of some international routes.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

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