IndiGo shares slip 3% as Q3 guidance cut rattles investors; CEO to face DGCA panel today

Shares of Interglobe Aviation Ltd., the parent company of India’s largest airline IndiGo, dropped another 3 per cent to Rs 4,650 on Thursday, December 11, after the carrier revised down its guidance for the third quarter of FY26. The stock had already declined 3 per cent on Wednesday and is now down 20 per cent over the past month, threatening to erase most of its 2025 gains.

Anil Singhvi’s view on IndiGo guidance cut

Market expert Anil Singhvi said the guidance cut was expected, noting that the third-quarter performance was weaker than anticipated. He highlighted that investors should watch for how IndiGo manages operational disruptions and cost pressures in the coming quarters.

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Q3 guidance cut on capacity and revenue growth

IndiGo reduced its Available Seat Kilometer (ASK) growth guidance to 7–12 per cent, down from an earlier forecast of 15–17 per cent. Similarly, Passenger Unit Revenue (PRASK) growth guidance for the December quarter was revised to a mid-single-digit decline, compared with earlier guidance of flat to slight growth.

The airline attributed the downgrade to operational disruptions that resulted in the cancellation of around 4,500 flights, causing revenue loss and additional costs to support affected passengers.

“Measures undertaken to reset operations resulted in cancellations of around 4,500 flights during the week, impacting revenue. We continue to provide passenger support services for these disruptions, incurring additional expenses,” the company said in a statement.

CEO to appear before DGCA panel

IndiGo CEO is scheduled to appear before a DGCA panel at 3 PM to discuss recent operational disruptions. The DGCA has said it is maintaining a “regular vigil” to monitor real-time resolution of passenger grievances.

Brokerage reaction and stock outlook

Following the guidance cut, several brokerages lowered their price targets for IndiGo but retained a bullish long-term view. Kotak Institutional Equities revised its target from Rs 5,700 to Rs 5,350. Meanwhile, Morgan Stanley added IndiGo to its focus list, replacing Coforge.