Shares of Interglobe Aviation, IndiGo's parent opened 5% higher on Monday, June 1 despite the airline giant announcing net loss in the fourth quarter results of fiscal 2025-26.
IndiGo shares advanced 5.2% so far trading at Rs 4,633.9 apiece. The scrip was trading 3.41% higher at 9:32 am, while the benchmark Nifty 50 was 0.27% up.
InterGlobe Aviation dropped to net loss for the fourth quarter of FY26 year-on-year, dragged down by one-time loss and a hefty forex loss during the quarter under review, according to an exchange filing on Friday.
IndiGo posted a net loss of 2,536 crore, compared to a net profit of Rs 3,068 crore in the year-ago period. India's largest airline said that it incurred forex loss of Rs 4,823 crore along with a one-time loss of Rs 250 crore.
IndiGo's revenue from operations rose 1% year-on-year to Rs 22,438 crore, compared to Rs 22,152 crore in Q4FY25.
On the operational front, earnings before interest, taxes, depreciation, and amortisation declined sharply by 87% to Rs 810 crore from Rs 6,089 crore a year ago. EBITDA margin stood at 3.6% versus 27.5% in the corresponding quarter last year.
Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent (or Restructuring) costs adjusted for forex stood at Rs 6,396 crore, compared to Rs 5,953 crore in Q4FY25, while EBITDAR margin came in at 28.5% against 26.9% a year ago.
Flagging near-term challenges, Goldman Sachs and Jefferies mainatined 'Buy' ratings as they expect the airline's long-term growth story. Brokerages highlighted higher costs with Jefferies lowering its earnings estimates for FY27.
Goldman Sachs In InterGlobe Aviation
- Maintain 'Buy' at target price of Rs 5200
- 4Q Review: Operationally better despite disruption
- Near term headwinds but long term story intact
- Improved PRASK outlook for Q1 is encouraging
- Alert-PRASK- Passenger Revenue per Available Seat Kilometer
- increased costs in Q1/FY27 remains an overhang in light of a lack of clarity on capacity growth for FY27
Jefferies On InterGlobe Aviation
- Maintain 'Buy' and cut target price to Rs 5380
- Clouded near term outlook
- Co expects mid-teen revenue growth (pricing led)
- Near term performance could remain muted
- Focus would on capacity optimization
- Cut EPS estimates by 5-27% for FY27
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