InterGlobe Aviation Ltd., the parent company of IndiGo, witnessed buying interest in Tuesday's trading session after brokerage firm Motilal Oswal maintained its Buy rating on the airline and retained a target price of ₹5,600. The positive commentary from the brokerage supported investor sentiment, helping the stock gain nearly 2% during morning trade.
As of 10:26 AM, IndiGo shares touched an intraday high of ₹4,459.70 compared with the previous closing price of ₹4,359.70. The stock opened at ₹4,375.00 and traded within a range of ₹4,375.00 to ₹4,459.70 during the session. Trading volume stood at 2.96 lakh shares. The stock remains below its 52-week high of ₹6,232.50 but above its 52-week low of ₹3,895.20.
Motilal Oswal expects India's domestic aviation market to maintain strong momentum over the coming years, projecting air travel demand growth of around 9% CAGR. The brokerage believes IndiGo is well positioned to benefit from this trend given its dominant presence in the domestic market and its ongoing capacity expansion plans.
According to the brokerage, the airline is targeting approximately 300 billion Available Seat Kilometres (ASK) and around 200 million passengers by FY30. To support this growth, IndiGo plans to expand its fleet from 441 aircraft currently to around 550 aircraft by FY30. The expansion will be backed by a substantial order book of 901 pending aircraft deliveries, providing visibility for long-term capacity growth.
Motilal Oswal also highlighted the company's increasing focus on international operations. IndiGo aims to raise the share of international capacity to 40% by FY30, supported by the induction of Airbus A321XLR aircraft. The longer-range aircraft are expected to enable the airline to enter new international markets and strengthen its network beyond traditional short-haul routes.
The brokerage noted that IndiGo is pursuing a premiumisation strategy alongside its expansion plans. The airline intends to increase business-class seating by more than 54% by FY27 as it seeks to cater to higher-yield passengers and diversify revenue streams.
Beyond passenger traffic, ancillary businesses are also showing growth. IndiGo's loyalty programme, BluChip, has crossed 11 million members within 20 months of launch, reflecting strong customer engagement. The cargo business recorded 13% year-on-year growth in FY26, handling around 450,000 tonnes. Motilal Oswal expects cargo volumes to grow between 1.5 times and 2 times by FY30, creating an additional avenue for revenue expansion.
The brokerage further noted that IndiGo continues to maintain its position among the world's lowest-cost airlines, with a Cost per Available Seat Kilometre (CASK) of 3.38 US cents. The company is targeting a fleet comprising more than 95% new-generation aircraft by FY30, which could support operational efficiency and cost management.
Based on these growth drivers, Motilal Oswal projects revenue CAGR of 13% and EBITDAR CAGR of 46% over FY26-FY28. The brokerage believes expanding network reach, sustained passenger demand, pricing strength, and growth in ancillary businesses could support earnings growth over the medium term.