The brokerage referred to the airlines’ significant exposure to crude oil prices and jet fuel spreads, which limits the ability to accurately forecast cost structures and near-term demand elasticity.
However, Kotak said investors should pay closer attention to the rapidly rising losses of IndiGo’s peers.It said that aggregate investments in competing airlines are substantial, requiring profitability levels higher than IndiGo’s peak post-Covid pre-tax operating margins to generate high-single-digit post-tax returns.
According to the brokerage, airlines are best viewed as a play on consumer spending, with consumers eventually absorbing inflation over time, while airlines benefit during periods of cost deflation.Meanwhile, Crisil has removed its ratings on the bank facilities of IndiGo, from ‘Rating Watch with Developing Implications’ and reaffirmed them at Crisil AA-/Crisil A1+ with a Positive outlook.
The ratings were placed on watch on December 8, 2025, after the airline cancelled multiple flights amid disruptions to flight schedules following changes in Flight Duty Time Limitations (FDTL) norms and other operational challenges.
Crisil said the resolution of the rating watch was driven by a swift recovery in operations, supported by several corrective measures, including enhanced manpower deployment.
The agency said that around 18% of IndiGo’s available seat kilometres (ASK) are impacted by the ongoing Middle East conflict. However, the impact is not expected to be major unless the situation prolongs.
Currently, 27 analysts track InterGlobe Aviation. Of these, 22 have a ‘Buy’ rating, three recommend ‘Hold’, while two have a ‘Sell’ rating.
Shares of InterGlobe Aviation settled 2.28% lower at ₹4,410 on Friday. The stock has declined about 14% so far in 2026.
