IndiGo Share Price Today Slides 2% After Q3 Profit Crashes 78% Due to December Flight Chaos; Buy or Sell?

IndiGo Share Price Today: Shares of InterGlobe Aviation Limited fell nearly 2% during Friday's intraday trade after the airline company reported a whopping 78% year-on-year decline in its Q3FY26 profit due to December flight disruptions.

IndiGo shares were trading 1.42% lower at Rs 4,844 per share on BSE with a market capitalisation of Rs 1,87,264.73 crore at 10 am. The stock had dipped to an intraday low of Rs 4723.60 per share and an intraday high of Rs 4864.65 per share.

IndiGo Share Price Recommendation

IndiGo's EBITDA declined during the quarter as forex loss stood at INR11b vs. INR14.6b in 3QFY25. Decline in IndiGo's net profit came due to the impact of new labour codes and Rs 5.8 billion pertaining to the impact of flight disruptions in December 2025, noted Motilal Oswal in its report. The brokerage maintained its 'buy' recommendation for the stock.

IndiGo Share Price Target

Motilal Oswal gave a 'Buy' rating for IndiGo share price with a target of Rs 6,100, indicating an upside of 24% from the market price on Thursday. "We expect its revenue/EBITDAR/Adj. PAT to clock a CAGR of 12%/13%/10% over FY25-28. We value the stock at 9x FY28E EBITDAR to arrive at our TP of INR6,100. Reiterate BUY," noted Motilal Oswal in its report.

IndiGo Q3 Result Recap

IndiGo reported a sharp 77.57% year-on-year decline in its net profit to Rs 5,210 million for the third quarter of financial year 2025-26. The company had reported a Rs 24,501 million profit in the year-ago period. However, the company also saw a sequential increase in its net profit as IndiGo had incurred a loss of Rs 24,817 million in the second quarter.

The disruption, which unfolded in the first weeks of December, saw IndiGo cancel about 4,500 flights across India. Tens of thousands of passengers were stranded, airport terminals faced crowding, and schedules went off track at the height of the winter holiday rush, straining trust among frequent domestic flyers.

IndiGo's fuel CASK reduced by 2.8% to Rs 1.53 billion. Despite the drag on profitability, IndiGo's core business metrics improved in the third quarter. Passenger ticket revenue increased 6% year-on-year to Rs 20,464 crore, while ancillary revenue from baggage, seat selection and other services climbed 13.6% to Rs 2,446 crore. IndiGo expects capacity in the seasonally weaker fourth quarter to increase about 10%.

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