IndiGo shares leapt 3.2% on Friday after InterGlobe Aviation posted a Q2 net loss of ₹1,879 crore, a sharp drop from the ₹2,581.7‑crore loss recorded a year earlier.
Revenue surged 25.9% to ₹23,364 crore, beating analyst consensus of ₹22,500 crore. EBITDAR climbed to ₹2,460 crore from ₹1,114.3 crore YoY, lifting the margin to 10.5% from 6%.
Nomura kept its 'Buy' rating, upping the price target to ₹6,200 from ₹5,400—citing robust yields and pricing power that should offset higher fuel costs. HSBC mirrored the stance, setting a target of ₹5,545 after noting Q2 EBITDA was 25% above estimates, driven by better yields and lower fuel spend. Jefferies also retained a 'Buy' but lowered its FY27 earnings backdrop by 9% amid concerns over fuel volatility.
Management guided for passenger revenue per available seat kilometre (PRASK) growth above 25% in Q3 and FY27, while capacity expansion is slated for low single digits. Nomura projects margin improvement in Q3, expecting the airline to recoup 80–90% of cost hikes through fare adjustments.
Forward‑looking, InterGlobe has earmarked ancillary and cargo revenue as key growth drivers and expects ex‑fuel unit costs to rise in the high single‑to‑low‑double‑digit range. Investors will watch FY28 guidance next month for a clearer picture of the airline's profitability trajectory.