IndiGo’s stock came under renewed pressure on Thursday after Kotak Securities trimmed its price target, citing the airline’s reduced near-term outlook and rising competitive risks.
Kotak revised its target for the carrier to ₹5,350 from ₹5,700, warning that IndiGo may face heightened competition as rival airlines prepare to utilise its unused flight slots. The brokerage also noted that IndiGo is currently focused on hiring more experienced pilots, which may limit its operational flexibility in the short term.
Meanwhile, Morgan Stanley maintained its ‘Overweight’ rating with a ₹6,540 target, stating that the long-term fundamentals remain solid even though earnings could stay subdued in the coming months.
Kotak highlighted that roughly 10% of IndiGo’s daily flights may come under competitive pressure as Air India, Akasa Air and SpiceJet look to occupy the available slots. Citing aviation analyst Sanjay Lazar, the report noted that Akasa may add around six aircraft by March 2026, while SpiceJet could induct 18 leased planes—expanding their ability to capture more routes. Kotak also said IndiGo’s weaker fare outlook for Q3 signals soft demand in November.
Morgan Stanley added that share-price dips could offer good entry points for investors. It said IndiGo continues to benefit from steady industry growth, a widening lead over domestic competitors and its expanding international network. The firm also pointed out that the stock currently trades at about eight times its projected FY27 EBITDA, slightly below the pre-Covid average of 8.5x.
However, the brokerage warned that volatility in crude oil prices, currency fluctuations and uncertainties in international travel demand remain key risks. Growing competition and aggressive capacity expansion by peers could further impact the airline.
Citi also cut its valuation multiple for IndiGo to 2.6x estimated sales from 2.7x, lowering its price target to ₹5,800 from ₹6,500, implying upside potential of around 18%.
IndiGo has recently cancelled thousands of flights due to insufficient pilot roster planning under new rest-and-duty rules. The disruptions have stranded tens of thousands of passengers and left multiple aircraft grounded.