IndiGo share price slides 4% as Q3 profit drops 78%—Should investors hold or exit?

IndiGo share price: Shares of InterGlobe Aviation, which operates IndiGo, fell sharply in Friday’s trade after the airline reported a steep drop in December quarter profit.

The stock slipped 3.79 per cent to an intraday low of Rs 4,722.50 on the BSE. Later, it recovered part of the losses and was trading at Rs 4,833.50, down Rs 75.50 or 1.54 per cent. IndiGo opened at Rs 4,878 and hit the same level as its day’s high. The company’s market capitalisation stood at around Rs 1.87 lakh crore. The stock is still below its 52-week high of Rs 6,232.50.

IndiGo was among the top losers in early trade as Indian equity benchmarks opened on a cautious note. The BSE Sensex was down marginally at 82,290, while the Nifty 50 slipped to around 25,262.

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What hit the stock

IndiGo reported a 78 per cent year-on-year decline in consolidated net profit for the quarter ended December 31, 2025. Net profit fell to Rs 550 crore. Revenue rose 6.15 per cent year-on-year to Rs 23,472 crore, helped by steady demand. EBITDAR increased 5.45 per cent to Rs 6,990 crore, while the EBITDAR margin remained flat at 30 per cent.

The sharp fall in profit was mainly due to one-time exceptional costs. These included Rs 577 crore related to flight disruptions in December 2025 and Rs 969 crore linked to the implementation of new labour codes.

“This quarter, the company faced major operational disruptions that resulted in significant flight cancellations and delays from December 3 to 5,” IndiGo CEO Pieter Elbers said in the earnings statement.

Brokerages stay mixed

Despite the weak quarterly profit, most brokerages maintained a positive view on the stock, citing strong market share and long-term growth prospects.

Morgan Stanley maintained an Overweight rating and raised its target price to Rs 6,498 from Rs 6,359. Goldman Sachs also maintained a Buy rating and increased its target to Rs 6,000, citing lower-than-expected costs and stable yields.

UBS maintained a Buy rating but cut its target to Rs 6,170. It said the near-term outlook is weak, but medium- to long-term prospects remain strong, supported by international expansion.

JP Morgan maintained a Neutral rating and cut its target to Rs 4,625. Citi retained its Buy call, with a lower target of Rs 5,700, noting that the financial impact of disruptions was less severe than feared.