The federal government stated on Sunday that IndiGo handed refunds value Rs 610 crore following 2,000 cancelled flights within the span of few days.
Brokerages consider the fiasco may lead to lasting price stress on IndiGo whereas regulatory motion together with a show-cause discover to the CEO can also be possible.
One brokerage estimates earnings hit of 8-9% for FY26 if the scenario lasts for a complete of ~15 days with 5 days already executed, whereas one other believes rising prices may erode PBT by round 25% if not offset by fare hikes.
The federal government, in the meantime, has additionally capped pricing for all carriers within the Rs 7,500 – 18,000 vary, which is a internet unfavorable for IndiGo as properly.
Out of 26 analysts monitoring the corporate, 21 keep a ‘purchase’ score, tworecommend a ‘maintain’ and three recommend ‘promote’, based on Bloomberg information. The typical 12-month consensus worth goal of Rs 6,332 implies an upside of 17.1%.
