Weaker Q1 Does Not Deter The Strong Business Proposition For IndiGo: ICICI Securities

IndiGo in Q4 FY25 reported PRASK of Rs 4.65 driven by strong travel demand from festivities, wedding season and the Maha Kumbh. However, Q1 FY26 has been marred with geopolitical issues around the world and Air India's unfortunate accident.

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ICICI Securities Report

We have been highlighting about the possible disruption in Q1 FY26 on account of several matters in our previous reports, and as such is expected. However, we remain constructive on IndiGo Ltd. basis-

1. systemic business position continues to gain strength for IndiGo (case in hand being international passenger market share which has now increased 425bps YoY amongst Indian carriers in May'25),

2. IndiGo has taken a host of measures to augment allround capability,

3. inherent capability of IndiGo to clock in Rs 10 billion PAT in FY27E after full tax even though disruptions in supply demand and gross margin may happen.

While our estimated PAT for IndiGo is ~Rs 19.5 billion ex of forex (down 33.5% YoY) in Q1 FY26E, there is no change in strong fundamental positioning of the business.

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