Jefferies reiterates Buy on IndiGo, sees about 20% upside on fare resilience
Jefferies retained its Buy rating on InterGlobe Aviation with a Rs 5,840 target, citing resilient fares, cost rationalisation and cash reserves of about Rs 39,000 crore. IndiGo has maintained FY27 capacity and PRASK guidance while investing in aircraft, MRO and an integrated campus.
What happened
Jefferies retained its Buy rating on IndiGo with a Rs 5,840 target, citing fare resilience, cost rationalisation and strong cash reserves. The airline
Key facts
- Jefferies Buy target: Rs 5,840
- Implied upside: around 20%
- Free cash: around Rs 39,000 crore
- PRASK guidance: around 25%
What changed
Jefferies retained its Buy rating on IndiGo with a Rs 5,840 target, citing fare resilience, cost rationalisation and strong cash reserves. The airline maintained FY27 capacity and PRASK guidance while pursuing aircraft, MRO and integrated-campus investments.
Why this matters
Jefferies’ reiterated Buy and ₹5,840 target imply roughly 20% upside, underpinned by fare resilience, cost rationalisation and a strong balance sheet.
What to watch
- Monthly domestic passenger growth, load factors and reported yield/PRASK trends.
- Competitor aircraft induction plans, route launches, financing stress and signs of industry-wide discounting.
- ATF prices, INR/USD movement, lease-rate trends and engine-maintenance costs.
- Aircraft delivery reliability, grounded-aircraft levels and engine availability.
- Progress on MRO and integrated-campus investments, including evidence of lower maintenance and overhead costs.