UBS downgrades IndiGo, cuts target price to Rs 4,940

Mumbai, April 27 Shares of InterGlobe Aviation Limited, the parent of IndiGo, opened flat with negative bias on Monday, as global brokerage UBS downgraded the stock and trimmed its price target, citing rising macroeconomic headwinds and sustained pressure on airline profitability.

However, it recovered from early losses and were trading at Rs 4,560.50, down by Rs 37.40 or 0.83 per cent during noon trade.

UBS lowered its rating on the stock to “neutral” from “buy” and cut its price target to Rs 4,940 from Rs 5,480, flagging growing concerns over the operating environment for airlines.

The downgrade comes at a time when geopolitical tensions, particularly the ongoing US-Iran conflict, have triggered heightened volatility across global markets and driven a sharp surge in energy prices.

The brokerage noted that the aviation sector has been particularly vulnerable, with jet fuel spot prices nearly doubling in recent months amid supply concerns across multiple regions.

While these developments have weighed on global carriers, UBS acknowledged that IndiGo remains relatively better positioned than many of its international peers due to its scale and operational efficiency.

Domestically, the Indian government’s intervention to limit the rise in Aviation Turbine Fuel (ATF) prices has provided some relief.

For April 2026, ATF prices were capped at a 9 per cent increase, significantly lower than the 115 per cent surge seen in international prices in March.

This move has helped cushion the immediate impact on airlines operating in India.

In last five days, IndiGo shares were down by Rs 153.50 or 3.26 per cent. The stock has delivered a positive of Rs 461 or 11.25 per cent in last one month.

However, over bigger timeframe, the negative return of shares has been pronounced as it were down by Rs 1,274.50 or 21.84 per cent in last six months.

On year-to-date (YTD) basis, it dropped Rs 550 or 10.76 per cent.

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