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Nomura Predicts IndiGo Shares to Soar to ₹6,000: 3 Key Growth Drivers Revealed
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CNBC TV18•05-10-2026, 12:36
Nomura Predicts IndiGo Shares to Soar to ₹6,000: 3 Key Growth Drivers Revealed
- •Nomura initiated coverage on InterGlobe Aviation Ltd. (IndiGo's parent) with a "buy" recommendation and a price target of ₹6,000, indicating a 20.4% upside.
- •IndiGo's robust orderbook of over 900 aircraft is expected to maintain domestic market dominance and drive global expansion.
- •The airline's lean cost structure positions it to navigate a price-sensitive Indian market and high fuel inflation, potentially outperforming competitors.
- •A volatile environment and aircraft delivery backlogs limit new market entrants and supply, benefiting established players like IndiGo.
- •Nomura projects IndiGo's revenue to grow at a 16% CAGR and EBITDA at a 38% CAGR from FY26-FY29, assuming a partly normalized war scenario by FY28.
Key Questions Answered
Nomura initiated coverage on InterGlobe Aviation with a buy recommendation and a price target of ₹6,000, which represents a 20.4% upside potential from the previous Thursday's closing price.
Nomura highlighted three primary reasons: a robust orderbook pipeline of over 900 aircraft maintaining domestic dominance, a lean cost structure allowing the airline to outperform peers during high fuel inflation, and a volatile market environment that discourages new competitors.
While Nomura set a target of ₹6,000, other analysts covering the airline have different projections, with Motilal Oswal targeting ₹6,580 and Morgan Stanley targeting ₹6,436.
