Indigo Shares Rise as It Secures Spot in BSE Sensex from Dec 22; Replaces Tata Motors, Stock Up 28% in 2025

IndiGo's parent company, InterGlobe Aviation, is set to make a big move in the stock market. The airline will officially enter the BSE Sensex from Monday, December 22nd, replacing Tata Motors Passenger Vehicles (TMPV). The update was confirmed by BSE Index Services on Friday.

Indigo Shares Today

On Monday, Indigo shares traded at Rs. 5,908, rising 1.10% during the day. With this jump, Indigo shares are now up nearly 28% in 2025, and it is currently one of the strongest performers in the aviation and travel sector.

Indigo's Sensex Entry

Being added to the 30-stock BSE Sensex is considered a big achievement because it represents India's most-tracked benchmark index. From December 22, IndiGo will officially take Tata Motors' place. The reshuffle is part of the regular BSE index reconstitution, which adjusts the lineup based on market performance and eligibility rules.

Along with this change, IDFC First Bank will join the BSE 100 index, replacing Adani Green Energy, while in the Sensex Next 50, IndusInd Bank and IDFC First Bank will replace Max Healthcare and Adani Green Energy. These updates will also take effect from the market open on Monday, December 22.

IndiGo Announces USD 820 Million Investment

In a separate development, IndiGo has approved an investment of USD 820 million (around Rs. 7,270 crore) into its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited. The funds will be used for aircraft acquisition, helping the airline expand its fleet and future growth plans. The investment will be carried out through a mix of equity shares and 0.01% non-cumulative optionally convertible redeemable preference shares (OCRPS), in one or more phases, the company said in its statement.

Indigo Q2 Results

On the 4th of November, InterGlobe Aviation, the parent company of IndiGo, reported a consolidated net loss of Rs 2,582 crore for Q2 FY26. However, if the forex impact is excluded, the airline actually posted a net profit of Rs 104 crore, a strong turnaround from the Rs 754 crore loss in the same quarter last year. Operational performance remained steady, with revenue from operations rising 9.3% year-on-year to Rs 18,555.3 crore. Total income also increased 10.4% to Rs 19,599.5 crore, even as overall expenses jumped 18.3% to Rs 22,081.2 crore, mainly due to foreign exchange losses, which surged 12-fold to Rs 2,892 crore. During the quarter, IndiGo's capacity grew 7.8%, passenger numbers rose 3.6% to 28.8 million, the load factor stayed firm at 82.5%, and yields improved 3.2% to Rs 4.69. The airline's EBITDAR dropped to Rs 1,114 crore from Rs 2,434 crore last year; however, EBITDAR excluding forex impact improved significantly to Rs 3,800 crore, with margins expanding to 20.5% from 15.7%.

"We believe IndiGo to be a long-term compounding story supported by a disciplined low-cost model, India market dominance, strategic expansion, a healthy balance sheet and robust long-term growth prospects. Hence, we initiate coverage with a Buy rating, at a 12-month TP of Rs 7,000, valued at 10x Sep'27e EBITDA, as per the Anand Rathi research report on the stock.

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