IndiGo shares extend losses for third straight day after Q1 miss; down 9% in July

Shares of InterGlobe Aviation, the parent company of India's largest airline IndiGo, extended their losing streak for a third straight session on Friday, July 24, falling another 3% to an intraday low of ₹4,886 after the company's weaker-than-expected June quarter performance disappointed the Street.

The airline on Thursday, after market hours, reported a consolidated net loss of ₹238 crore for the June quarter, marking its second consecutive quarterly loss, following a loss of ₹2,537 crore in the preceding March quarter.

Profitability during the quarter was primarily impacted by a sharp surge in fuel costs and elevated supplementary lease expenses. Aircraft fuel expenses doubled year-on-year to ₹10,833 crore from ₹5,833 crore in the year-ago period, while the company's total expenses rose 34% YoY.

On the topline, total income increased to ₹25,614.1 crore in the June quarter from ₹21,542.6 crore a year earlier. Passenger ticket revenue rose 23% year-on-year to ₹21,878.6 crore, while ancillary revenue increased 13.9% to ₹2,453.4 crore, supported by healthy travel demand and higher non-ticket income.

Management said capacity growth is expected to remain moderate to flat in Q2FY27 and in the single digits for FY27, reflecting disciplined capacity deployment amid robust industry demand.

It also guided for PRASK (Passenger Revenue per Available Seat Kilometre) growth of over 25% year-on-year in Q2FY27, indicating a favourable demand-supply environment.

At the operating level, EBITDAR (earnings before finance income and cost, tax, depreciation, amortisation, and aircraft and engine rentals) declined to ₹3,833 crore from ₹5,739 crore in the year-ago quarter, while the EBITDAR margin contracted to 15.6% from 28%.

Despite near-term headwinds from higher CASK ex-fuel and geopolitical uncertainties, domestic brokerage JM Financial believes the airline's long-term earnings outlook remains intact.

"We continue to view IndiGo as one of the highest-quality aviation franchises globally and maintain our constructive stance given its dominant market position, disciplined capacity deployment, superior cost structure, and multi-year international expansion opportunity," the brokerage said.

JM Financial retained its 'Add' rating on the stock with a target price of ₹5,800 per share.

The recent sell-off has dragged the stock down 9% so far in July, marking a sharp reversal after three consecutive months of gains. However, the stock has still rebounded 26.5% from its March low of ₹3,895 to trade around ₹4,930 apiece.

Looking at its long-term performance, the stock has ended each of the last three calendar years in the green and has delivered positive annual returns in six of the last eight years. It had climbed to a record high of ₹6,232 in August 2025 and is currently trading about 21% below that peak.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills...