IndiGo Share Crash: Indigo share price fell by 7% directly, brokerages said...

News Topical, Digital Desk : IndiGo Share Crash: Shares of IndiGo's parent company InterGlobe Aviation Limited fell by up to 7 per cent on Monday, December 8. Several brokerages warned of increasing operational and cost pressures on India's largest airline. Investec maintained a Sell rating on the stock, giving a price target of Rs 4,040, and said that after a weak H1 FY26, hopes of a Q3 recovery are fading. The report said that aviation turbine fuel prices have risen 6 per cent quarter-on-quarter and the rupee has hit a new low of 90 against the dollar, increasing the cost burden.

IndiGo Flights Cancelled
The large number of flight cancellations, linked to IndiGo's transition to the new duty time limitation norms (IndiGo Crisis), has dampened expectations of earnings improvement. The new norms require full compliance by February 10, 2026, and may require approximately 20% more pilots per aircraft. Investec estimates suggest this will increase the cost per available seat kilometer by Rs 0.10. If fares are not increased, profit before tax could decline by approximately 25%. What happened in the stock market that Sensex fell badly by 450 points, Nifty reached near 26,000.

UBS gave a 'Buy' rating on the stock UBS has set a target of Rs 6,350 while keeping a Buy rating on the stock. UBS said that incomplete preparation for the duty time norms led to massive disruption. Cost estimates have been raised from FY26 to FY28, factoring in the need for new crew and the weakening rupee. However, UBS said international expansion will provide the company with currency hedges and margin stability, and the situation will be closely monitored. Kotak Institutional Equities maintained an Add rating and lowered its price target from Rs 6,400 to Rs 5,700. Jefferies maintained a Buy rating with a target price of Rs 7,025, noting that new duty hours regulations have reduced pilot duty hours and increased crew requirements, putting pressure on IndiGo's high-utilization model. IndiGo Latest News: The Directorate General of Civil Aviation (DGCA) extended the deadline for CEO Pieter Elbers and the accountable manager to respond to the show-cause notice issued on December 6 by 24 hours, clarifying that no further extensions would be granted. IndiGo said its network would stabilize by December 10. On Sunday, over 1,650 flights were operated, up from 1,500 a day earlier. On-time performance increased from 30% to 75%. The company stated that refund and baggage processing is being handled at full capacity.

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