A brokerage has set a 'BUY' recommendation for Interglobe Aviation (IndiGo), forecasting a 20% upside to ₹5,845. The airline is expected to see strong profit growth from FY26 to FY29.

IndiGo's Growth Prospects Boosted, Target Price Set at ₹5,845

Interglobe Aviation (IndiGo) has a target price of ₹5,845, indicating a potential 20% upside from its current price of ₹4,870.

Reader Takeaway: Strong profit growth projected, but fuel and currency risks remain.

What just happened

A brokerage has initiated coverage on Interglobe Aviation, assigning a 'BUY' rating with a target price of ₹5,845 per share. This implies a potential upside of 20% from the current market price of ₹4,870. The firm anticipates a significant turnaround and growth trajectory for the airline from FY26A to FY29E.

Why this matters

This positive outlook from a brokerage suggests increased investor confidence in IndiGo's future performance. The projected rise in Net Sales, EBITDA, and particularly the shift from a net loss to a substantial net profit from FY26 to FY29, indicates a strong recovery and expansion phase for the airline.

The backstory

IndiGo is India's largest passenger airline, holding a dominant 64% domestic market share. As of March 2026, it operates a fleet of 441 aircraft, connecting 97 domestic and 45 international destinations. The planned development of new international airports in Noida and Navi Mumbai is expected to further support capacity expansion and capture growing air travel demand.

What changes now

The brokerage's forecast implies that IndiGo is well-positioned to capitalize on structural growth in Indian aviation. Factors like the potential cooling of crude oil prices due to Middle East peace, and the reopening of Iranian airspace aiding route restoration, are seen as tailwinds.

Risks to watch

Key risks identified include:

• Fuel and Currency Volatility: Fluctuations in Aviation Turbine Fuel (ATF) prices and the Rupee-Dollar exchange rate remain significant sensitivities.
• Operational Disruptions: Investors should monitor potential delays in aircraft deliveries, airspace issues, and weather-related impacts.

Peer comparison

While specific peer data isn't provided in the filing, IndiGo's 64% domestic market share underscores its leading position in the Indian aviation market.

Context metrics (time-bound)

Financial Projections (₹ cr):

Operational Snapshot (March 2026):

• Fleet: 441 aircraft
• Domestic Market Share: 64%
• Destinations: 97 domestic, 45 international

What to track next

Investors should closely watch ATF prices, the Rupee-USD exchange rate, aircraft delivery schedules, and any further developments regarding new airport infrastructure.