Shares of InterGlobe Aviation Ltd., the parent company of IndiGo and India’s largest airline, fell 2% on Tuesday, December 9, after being the biggest loser on the Nifty 50 on Monday. IndiGo recorded its steepest single-day decline since February 2022 and has now suffered losses for seven consecutive sessions, its longest slump since February 2023. Trading volumes surged to a seven-month high, with nearly 1.58 crore shares changing hands versus the 20-day average of 12.1 lakh, while delivery volumes jumped to 71.7 lakh from the 20-day average of 7.3 lakh. The stock has lost almost ₹40,000 crore in market value over the week.
BofA Securities cut its Q3 net income estimate by 9% due to cancellations, citing rising unit costs and higher labour expenses under tighter rostering norms from 2026, trimming FY26-28 earnings by 7% but maintaining a ₹6,600 target. Goldman Sachs retained a ‘Buy’ with a target of ₹5,700, highlighting IndiGo’s market dominance and fleet expansion, though noting potential regulatory impact on pilot costs.
Meanwhile, the DGCA received IndiGo’s response to its show-cause notice. The airline cited multiple triggers, including technical issues, winter schedule changes, weather, system congestion, and new pilot rest norms, and undertook a network reboot with mass cancellations. Moody’s described the disruptions as “credit negative,” highlighting revenue and regulatory risks, while Jefferies noted pressure from elevated crew costs and currency volatility.
