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Nomura Retains Buy on IndiGo with Rs 6,000 Target Amid Airfare Rule Uncertainty
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Moneycontrol•19-10-2026, 13:59
Nomura Retains Buy on IndiGo with Rs 6,000 Target Amid Airfare Rule Uncertainty
- •Nomura maintains a Buy rating on InterGlobe Aviation with a target price of Rs 6,000 despite low visibility on upcoming government airfare rules.
- •The brokerage expects increased regulatory oversight and transparency on airfares rather than direct government intervention under the Bharatiya Vayuyan Adhiniyam, 2024.
- •Nomura's base-case projections estimate revenue and EBITDA compound annual growth rates of 16 percent and 38 percent respectively over FY26 to FY29.
- •Potential regulatory outcomes include stronger DGCA monitoring of sharp fare surges and greater price transparency, while price bands remain uncertain.
- •The target price of Rs 6,000 is based on 11 times the estimated FY28 enterprise value to EBITDA, matching the four-year mean multiple.
Key Questions Answered
Nomura has maintained a 'Buy' rating on InterGlobe Aviation with a target price of Rs 6,000, based on 11 times its FY28 estimated enterprise value to EBITDA.
The government is expected to notify new rules related to airfares under the Bharatiya Vayuyan Adhiniyam, 2024, within two weeks.
Nomura highlighted IndiGo's robust orderbook pipeline of over 900 aircraft supporting domestic dominance and global expansion, along with its lean cost structure that helps navigate high fuel inflation and a price-sensitive market.
