Mumbai, April 27: Global brokerage firm UBS has downgraded InterGlobe Aviation Limited, the parent company of IndiGo, on Monday. The target price has been reduced to ₹4,940 from the previous ₹5,480.
UBS changed its rating on InterGlobe Aviation from “Buy” to “Neutral.” This downgrade comes at a time when tensions are high due to the ongoing U.S.-Iran conflict, leading to soaring energy prices.
The brokerage noted that the aviation sector has been particularly weak, with jet fuel prices nearly doubling in recent months due to supply concerns in various regions.
Despite these challenges affecting global airlines, UBS acknowledged that IndiGo is in a relatively better position compared to many international peers, thanks to its large scale and operational efficiency.
Domestically, the Indian government has intervened to limit the rise in aviation turbine fuel (ATF) prices, providing some relief. For April 2026, a cap of 9% on ATF price increases has been set, significantly lower than the 115% rise seen in international prices in March.
This measure has helped mitigate the immediate impact on airlines operating in India.
Despite the downgrade, IndiGo’s shares were trading higher. By 3 PM, the stock had gained 1%, reaching ₹4,567. However, over the past five days, IndiGo’s shares have dropped by 3%. In the last month, the stock has seen an increase of over 11%.
Nevertheless, it has fallen by 21% over the past six months and recorded a decline of about 10% year-on-year.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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