InterGlobe Aviation (IndiGo) shares slipped 2.2 per cent in trade on the BSE, logging an intra-day low at ₹4,201.95 per share. At 9:18 AM, Indigo’s share price was trading 2.24 per cent lower at ₹4,198.8 per share. In comparison, the BSE Sensex was down 1.06 per cent at 74,476.41.
In a month, IndiGo shares have declined over 10 per cent, compared to Sensex’s fall of over 7 per cent.
The selling on the counter came after the company received a goods and services (GST) tax order from the CGST Gurugram commissionerate for ₹42,92,24,671. The airline said, “The company strongly believes that the order passed by the department is not in accordance with the law, backed by advice from external tax advisors.”
Meanwhile, analysts also attributed the fall in stock price to disruptions because of the West Asia conflict affecting the financials in the near-term. Motilal Oswal Financial Services, in its note, said that the ongoing airspace disruption represents a meaningful near-term earnings overhang for IndiGo, driven by a combination of network dislocation, revenue loss, and elevated cost pressures.
It added: The supply-side nature of the shock limits mitigation, with cancellations and booking softness likely to weigh on Q4FY26 performance.
“While demand fundamentals remain intact and recovery should be swift once normalcy resumes, the concurrent fuel cost spike, rerouting inefficiencies, and forex headwinds could extend margin pressure beyond the disruption window, thereby impacting earnings visibility to early FY27 despite partial offsets through pricing actions,” the brokerage said.
Over the longer term, Motilal Oswal remains confident in the company’s growth strategy.
Indigo’s domestic network remains the backbone of its operations, supporting India’s travel and tourism evolution, while expanding international connectivity provides a natural hedge and enhances margins, noted Motilal.
It expects the revenue/Earnings before interest, taxes, depreciation, amortisation, and rent/restructuring (EbitdaR)/Adjusted profit after tax (PAT) to clock a compound annual growth rate (CAGR) of 11 per cent/13 per cent/6 per cent over FY25-28. The brokerage reiterated ‘Buy’ with a reduced target of ₹5,500 from ₹6,100.
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