Stories
Goldman Sachs Boosts IndiGo Outlook, Sees 21% Upside on Strong Growth
C
CNBC TV18•29-09-2026, 13:25
Goldman Sachs Boosts IndiGo Outlook, Sees 21% Upside on Strong Growth
- •InterGlobe Aviation shares gained after Goldman Sachs reiterated a Buy rating on IndiGo with a target price of –5,900, implying a 21% upside.
- •Goldman Sachs remains positive on IndiGo's growth outlook, citing consistent market share gains, favorable industry capacity dynamics, cost leadership, and international business potential.
- •IndiGo's market share increased from 50% in FY20 to 65% in August 2026, with gains expected to be sustainable due to competitor liquidity challenges.
- •Modest industry fleet additions are anticipated to support yields, while IndiGo's cost leadership is projected to improve profitability.
- •Despite near-term fuel cost headwinds, Goldman Sachs expects significant profitability improvement by FY28 and values IndiGo at 10.4 times FY28 estimated EV/EBITDAR.
Key Questions Answered
Goldman Sachs reiterated a Buy rating on InterGlobe Aviation, the parent company of IndiGo, with a target price of ₹5,900, which implies an upside of approximately 21% from Monday's closing price.
Goldman Sachs cited IndiGo's consistent market share growth, cost leadership, favorable industry capacity dynamics, and strong long-term expansion potential in its international business as key drivers for its positive outlook.
According to Bloomberg data, 21 out of 26 analysts recommend a Buy rating for IndiGo, with three hold and two sell recommendations, and a 12-month consensus target price of ₹5,585.31.
