Shares of InterGlobe Aviation (IndiGo) fell over 2% in early deals today afetr Kotak Institutional Equities downgraded the aviation stock.
The brokerage changed the rating of the stock to ‘Add’ from its earlier rating of ‘Buy’. It cited recent operational pressures and the sharp rally in the stock behind the move. Now, the brokerage has a target price of Rs 6,850 on the aviation stock.
Recent data points signal the effect of IndiGo’s capacity cuts, which appear to be happening at a slightly faster pace than its key peer. “We would not take this as a sign of weakening demand,” the brokerage said.
IndiGo is set to phase out damp leases and defer new aircraft deliveries as part of its strategy to manage a typically loss-making quarter. Instead of expanding capacity in the second quarter, the airline is focusing on yield growth as the festive season approaches.
Analysts at Kotak noted that IndiGo is keen on maintaining better yield standards, particularly as many carriers face financial difficulties. Remarkably, yields have remained stable over three years despite the decline in crude oil prices, a situation described by Kotak as a “commendable feat.” The airline is expected to push for year-on-year yield growth as it navigates the upcoming season.
InterGlobe Aviation stock slipped 2.34% to Rs 6010 against the previous close of Rs 6154.05 on BSE. Market cap of the firm stood Rs 2.36 lakh crore.
Total 8,602 shares of the firm changed hands amounting to a turnover of Rs 5.21 crore. Interglobe Aviation stock is trading higher than the 5-day, 10 day, 20-day, 30 day, 50-day, 100-day and 200-day moving averages.
The stock has gained 42 per cent in one year and risen 33 per cent since the beginning of this year.
The aviation stock hit a 52-week high of Rs 6225 on August 18, 2025 and a fell to a 52-week low of Rs 3778 on October 28, 2024.