The international brokerage has cut the target by 13.3% to Rs 5,200 apiece, lower from Rs 6,000 earlier. The new target price implies an upside potential of 25% from the last closing price of Rs 4,146 per share.
Analysts said this is due to rising fuel costs and near-term weakness in Middle East traffic. The brokerage now expects EBITDAR of around Rs 13,700 crore for FY26, Rs 15,900 crore for FY27 and Rs 24,400 crore for FY28.
It added that industry consolidation is likely amid ongoing supply constraints, which could support market share gains for IndiGo as weaker players exit. Goldman Sachs also highlighted the airline’s net cash balance sheet as a key strength.
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Last week, the airline introduced a fuel surcharge on domestic and international flights, citing a sharp surge in jet fuel prices amid ongoing geopolitical tensions in the Middle East.
According to IATA’s Jet Fuel Monitor, fuel prices in the region have risen by more than 85%. Aviation Turbine Fuel accounts for a significant portion of airlines’ operating costs, and the sudden spike is expected to materially impact carriers’ cost structures and network operations, including those of IndiGo.
Amid the evolving situation in the Middle East, IndiGo said it will operate 252 weekly flights to and from the region as it cautiously adjusts its network between March 16 and March 28, 2026.
The airline is gradually returning to its regular schedule, with 126 weekly flights to and from Saudi Arabia and 28 weekly flights to and from Oman. It will also operate 98 weekly flights to and from the UAE.
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