New Delhi: Shares of InterGlobe Aviation Ltd, the parent company of IndiGo, rose on Monday after global brokerage Jefferies issued a bullish assessment of the airline, citing improving pricing conditions, disciplined capacity deployment and its strong financial position.
The stock climbed 2.4% to an intraday high of ₹5,030.50 on the NSE before paring some gains. It was trading about 1.3% higher at ₹4,982 around 9:40 am.
Jefferies highlights stronger pricing environment
According to the brokerage, airlines are currently focusing more on profitability than rapid capacity expansion as the industry continues to face elevated costs.
Jefferies said capacity rationalisation could help maintain pricing discipline by bringing supply and demand into better balance. Despite operational challenges, the brokerage noted resilience in fares and yields.
IndiGo’s management has maintained its earlier capacity guidance for the second quarter, while Passenger Revenue per Available Seat Kilometre (PRASK) is expected to grow by 25% year-on-year.
Strong balance sheet supports expansion
Jefferies also highlighted the airline’s long-term growth prospects and financial strength. IndiGo’s management has reiterated its FY30 guidance, with stronger volume growth expected from fiscal 2028 onwards.
The brokerage pointed to IndiGo’s ₹39,000 crore in free cash and strong balance sheet as providing flexibility for aircraft ownership and investments in infrastructure, including in-house maintenance, repair and overhaul capabilities.
New leadership focuses on operations
The brokerage also highlighted the priorities of new CEO Willie Walsh, including strengthening operational capabilities and building the foundations for the airline’s next phase of growth.
Jefferies’ assessment has placed renewed attention on IndiGo’s ability to balance near-term industry pressures with its longer-term expansion plans.