Anand Rathi reiterates Buy on InterGlobe Aviation with Rs 5,550 target after Q1FY27 results
InterGlobe Aviation's Q1FY27 revenue beat expectations on higher yields and modest capacity growth, but EBITDA and margins fell sharply as Middle East tensions lifted fuel costs. The report reiterates IndiGo's strong market share and cash position, yet highlights near-term profitability sensitivity to energy prices. Broad market impact is likely limited, with the main readthrough centered on Indian aviation and input-cost pressures.
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InterGlobe Aviation (IndiGo) posted Q1FY27 revenue of Rs245.8bn, up about 20% year on year and ahead of estimates. ASK rose about 2.9% to roughly 43.5bn, while RASK increased about 16.3% to around Rs5.65 despite a roughly 130 bps decline in load factor to about 83.3%. EBITDA fell about 37.7% to roughly Rs33.5bn as higher fuel costs linked to West Asia conflicts pressured margins, and the report maintained a Buy rating with a target price of Rs5,550.