InterGlobe Aviation, the parent company of IndiGo, experienced a nearly 2% dip in its share price following the release of its third-quarter (Q3) results for the fiscal year 2026. Despite this initial market reaction, several brokerage firms have maintained a bullish outlook on the stock.
On January 22, 2026, InterGlobe Aviation reported a consolidated net profit of ₹550 crore for Q3 FY26, a 77% decrease compared to the ₹2,449 crore reported in the same period last year. This significant drop in profit was primarily attributed to exceptional expenses totaling ₹1,546 crore during the October-December period. These expenses included ₹969 crore allocated for the implementation of new labor codes and ₹577 crore for operational disruptions experienced in December.
Despite the profit decline, the company's revenue from operations saw a 6% increase, rising to ₹23,472 crore from ₹22,111 crore in the corresponding quarter of the previous year. IndiGo's operational performance remained relatively stable, with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increasing by 4% to ₹5,367 crore. However, the EBITDA margin contracted by 60 basis points to 22.9%. The airline's capacity increased by 11.2% to 45.4 billion, and the number of passengers rose by 3% to 31.9 million during the quarter.
The airline faced substantial operational challenges between December 3rd and 5th, leading to numerous flight cancellations and delays. Pieter Elbers, CEO of IndiGo, acknowledged the disruptions and expressed gratitude to customers for their patience and to the employees for their efforts in restoring normal operations. He stated that IndiGo delivered a topline of around ₹245 billion in the December quarter, reflecting a growth of around 7%, with a reported profit of around ₹5 billion and an underlying profit excluding exceptional items and forex of ₹31 billion. He added that the company welcomed nearly 32 million customers in the quarter and around 124 million customers in the calendar year 2025.
Despite the disappointing profit figures, several brokerages remain optimistic about InterGlobe Aviation's future prospects. UBS reiterated its 'Buy' rating on IndiGo stock with a target price of ₹6,170 per share, suggesting an upside of over 25%. The brokerage believes that while the near-term outlook might be soft, the medium- to long-term fundamentals of the company remain strong. Citi also maintained a 'Buy' call with a target price of ₹5,700, noting that the financial impact of disruptions was lower than anticipated and that operational metrics were generally in line with expectations. Motilal Oswal Financial Services has also maintained a buy call on the stock with a target price of ₹6,100.
On January 23, 2026, IndiGo shares opened at ₹4,840.10 on the Bombay Stock Exchange (BSE), against the previous close of ₹4,913.80. The stock initially fell by 3.9% to an intraday low of ₹4,723.60 but recovered to trade 1.75% lower at ₹4,827.85.
Analysts believe that the one-off expenses related to labor code changes and operational disruptions primarily drove the earnings impact, rather than any fundamental weakness in the airline's business. They anticipate improved demand and the return of grounded aircraft to service will drive performance in the coming quarters.
