INDIGO (Interglobe Aviation Ltd.) was listed on the NSE on November 10, 2015. In the last five year, the stock has given a massive return of more than 450% to its investors. Will INDIGO continue to provide such impressive returns in 2025 and upcoming years as well? In this article, we will explore the Indigo Share Price Target from 2025 to 2050.
About INDIGO
Indigo was created in 2005 by Rahul Bhatia and Rakesh Gangwal as Interglobal Aviation Limited. It began operations on August 4, 2006. Indigo is a leading low-cost airline in India, which is recognized for its affordable rates and on-time performance. As of November 2024, it has a 63.6% domestic market share, with over 2,200 daily flights to 123 destinations, including 89 in India and 34 global. IndiGo has made air travel more accessible and convenient for millions, developing to become one of the leading airlines in the country.
INDIGO Fundamental Analysis
| Stock Name | Interglobe Aviation Ltd. |
|---|---|
| NSE Symbol | INDIGO |
| Market Cap | ₹ 197123 Cr. |
| 52W High | ₹ 5649 |
| 52W Low | ₹ 3778 |
| Stock P/E (TTM) | 32.4 |
| Book Value | ₹ 96.6 |
| Dividend Yield | 0.00 % |
| ROCE | 24.5 % |
| ROE | – % |
| Face Value | ₹ 10.0 |
| Industry PE | 32.4 |
| Price to book value | 52.8 |
| Debt to equity | 15.9 |
| PEG Ratio | 0.32 |
| Quick ratio | 1.17 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 67.86% | 57.29% | 49.27% |
| FIIs | 19.43% | 23.66% | 25.12% |
| DIIs | 10.43% | 15.03% | 20.66% |
| Government | 0.07% | 0.07% | 0.07% |
| Public | 2.19% | 3.95% | 4.88% |
| No. of Shareholders | 1,06,266 | 1,70,059 | 2,89,444 |
Key Factors Driving INDIGO Future Growth
- Strong Market Position: Indigo Ltd. is one of India’s largest and most trusted airlines, which provides it a solid base for future growth.
- Expanding Fleet Size: Indigo Ltd. is continually increasing its fleet size, allowing it to serve more destinations while improving operational efficiency.
- Focus on Low-Cost Operations: Indigo Ltd. continues to focus on its low-cost carrier model, which helps attract price-sensitive customers in a competitive market.
- Growing Domestic Travel Demand: With India’s rising middle class and growing air travel demand, Indigo Ltd. is well-positioned to benefit from an increasing number of domestic flyers.
- International Expansion Plans: Indigo Ltd. has been expanding its international routes, growing into new markets, and increasing its global presence.
- Strategic Partnerships: Indigo Ltd. has been forming partnerships with other airlines, which helps in strengthening its connectivity and customer base.
- Efficient Cost Management: Indigo Ltd.’s focus on maintaining low operating costs ensures it remains profitable even during challenging market conditions.
- Technology Adoption: Indigo Ltd. invests in advanced technology, such as modern aircraft and digital systems, to improve operational efficiency and customer experience.
- Government Policies Supporting Aviation: Favorable government initiatives like UDAAN and infrastructure improvements at airports support Indigo Ltd.’s growth in new regions.
- Rising Middle-Class Population: As more people in India enter the middle class, there is an increasing preference for air travel, which benefits Indigo Ltd.
- Focus on Sustainability: Indigo Ltd. has been researching sustainable aviation fuels and energy-efficient operations in order to align with global environmental trends and attract environmentally conscious customers.
- Market Leadership in Tier 2 and 3 Cities: Indigo Ltd. is expanding its presence in smaller cities, tapping into untapped markets where demand for air travel is growing rapidly.
Pros Of Investing In INDGO
- Market Leadership: As of November 2024, IndiGo holds a 63.6% share of the domestic market, indicating its strong position in the Indian aviation sector.
- Extensive Network: The airline operates over 2,200 daily flights to 123 destinations, including 89 within India and 34 international locations, showcasing its vast reach.
- Financial Performance: In the fiscal year ending March 2024, IndiGo reported a profit before tax of nearly ₹80.5 billion, reflecting its strong financial health.
- Modern Fleet: Approximately 78% of IndiGo’s fleet consists of new-generation aircraft, contributing to a 19% reduction in CO₂ emissions compared to seven years ago, highlighting its commitment to sustainability.
- Customer Satisfaction: IndiGo is renowned for its on-time performance and hassle-free travel experience, making it a preferred choice for many passengers.
- Consistent Revenue Growth: INDIGO sales have grown at 68% CAGR over the last three years.
- Consistent Profit Growth: INDIGO profits have grown at 102% CAGR over the last five years.
- Increase in FIIs Holding: Foreign Institutional Investors (FIIs) have increased their holding to 25.12% in March 2025 from 24.83% in December 2024, which indicates growing confidence in the INDIGO future potential by the FIIs.
Cons Of Investing In INDIGO
- Profit Decline Due to currency fluctuations: IndiGo reported an 18.6% reduction in profit for the quarter ending December 31, 2024, due mostly to severe foreign exchange losses from the rupee’s depreciation. The rupee’s 2% decrease resulted in a 29-fold increase in forex losses, rising total expenses by 20%.
- Impact of Rising Fuel Prices: In the quarter ended June 30, 2024, IndiGo’s overall expenses increased by approximately 24%, with fuel prices increasing by 23%. This increase in operational costs led to a decrease in profit to 27.27 billion rupees from 30.87 billion rupees the prior year.
- Low Return on Equity (ROCE): INDIGO 5-year average ROCE is 1.82%, which shows that it is not using shareholders’ funds efficiently to generate profits.
- High Price to Book Value: INDIGO is trading at a Price-to-Book Value (P/B) ratio of 52.8, which indicates that its stock is significantly overvalued compared to its book value.
- High Financial Risk: INDIGO has a high debt-to-equity ratio of 15.9, indicating a strong dependency on debt. This increases financial risk, raises interest costs, and may have an impact on profitability.
- Decrease in DIIs Holding: Domestic Institutional Investors (DIIs) have reduced their holding to 20.66% in March 2025 from 21.14% in December 2024, indicating a decline in DIIs confidence in the company’s future growth prospects.
INDIGO Ltd Balance Sheet
| Particulars | March 2023 | March 2024 | Sept 2024 |
|---|---|---|---|
| Equity Capital | 386 | 386 | 386 |
| Reserves | -6,695 | 1,546 | 3,348 |
| Borrowings | 44,860 | 51,280 | 59,237 |
| Other Liabilities | 20,492 | 28,857 | 34,027 |
| Total Liabilities | 59,043 | 82,069 | 96,998 |
| Fixed Assets | 27,650 | 36,037 | 43,309 |
| CWIP | 21 | 1 | 20 |
| Investments | 11,514 | 16,453 | 20,288 |
| Other Assets | 19,858 | 29,578 | 33,381 |
| Total Assets | 59,043 | 82,069 | 96,998 |
By the end of 2025, the INDIGO share price is expected to be around ₹6800 in normal conditions. In a bear market, it might be ₹6380, and in a bull market, it may go up to ₹7900.
| INDIGO Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 6380 |
| 2nd Target | 6800 |
| 3rd Target | 7900 |
In 2026, the INDIGO share price is expected to be around ₹8000 in a normal situation. In a bear market, it might be ₹7650, and in a bull market, it may cross ₹10,250.
| INDIGO Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 7650 |
| 2nd Target | 8000 |
| 3rd Target | 10,250 |
According to our analysis, the INDIGO share price is expected to be around ₹10,500 in 2027. In a bear market, it might be ₹9200, and in a bull market, it may cross ₹13,350.
| INDIGO Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 9200 |
| 2nd Target | 10,500 |
| 3rd Target | 13,350 |
According to our analysis, the INDIGO share price may trade near ₹14.500 by 2028; bearish conditions could pull it down to ₹11.000, while a strong bull run might lift it to ₹17,350.
| INDIGO Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 11,000 |
| 2nd Target | 14,500 |
| 3rd Target | 17,350 |
In a normal situation, the INDIGO share price is projected to be approximately ₹16,800 in 2029. In a bear market, the value may be as low as ₹13,200, while in a bull market, it may rise to ₹22,500.
| INDIGO Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 13,200 |
| 2nd Target | 16,800 |
| 3rd Target | 22,500 |
In a normal situation, the INDIGO share price is projected to be approximately ₹19,500 in 2030. In a bear market, the value may be as low as ₹15,800, while in a bull market, it may rise to ₹29,300.
| INDIGO Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 15,800 |
| 2nd Target | 19,500 |
| 3rd Target | 29,300 |
By 2035, the INDIGO share price is projected to be around ₹39,000 under normal conditions. In adverse markets, the price could fall to ₹32,000, while favorable conditions might push it up to ₹88,000.
| INDIGO Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 32,000 |
| 2nd Target | 39,000 |
| 3rd Target | 88,000 |
Under normal conditions, the INDIGO share price might hit ₹1,20,000 by 2040. A bearish trend could lower it to ₹64,000, whereas a bullish surge could raise it to ₹2,64,000.
| INDIGO Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 64,000 |
| 2nd Target | 1,20,000 |
| 3rd Target | 2,64,000 |
In 2050, the INDIGO share price is expected to be around ₹7,20,000 in a normal situation. In a bear market, it might be ₹2,50,000, and in a bull market, it may go up to ₹15,80,000.
| INDIGO Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 2,50,000 |
| 2nd Target | 7,20,000 |
| 3rd Target | 15,80,000 |
| Years | Target Price |
|---|---|
| Indigo Share Price Target 2025 | ₹6380 to ₹7900 |
| Indigo Share Price Target 2026 | ₹7650 to ₹10,250 |
| Indigo Share Price Target 2027 | ₹9200 to 13,350 |
| Indigo Share Price Target 2028 | ₹11,000 to ₹ 17,350 |
| Indigo Share Price Target 2029 | ₹13,200 to ₹ 22,500 |
| Indigo Share Price Target 2030 | ₹15,800 to ₹ 29,300 |
| Indigo Share Price Target 2035 | ₹32,000 to ₹ 88,000 |
| Indigo Share Price Target 2040 | ₹64,000 to ₹ 2,64,000 |
| Indigo Share Price Target 2050 | ₹2,50,000 to ₹ 15,80,000 |
Conclusion
INDIGO is India’s largest low-cost airline, known by its strong market position, efficient operations, and broad network of domestic and international flights. It has helped millions of people gain access to air travel. However, the airline takes on difficulties such as growing fuel costs, currency fluctuations, and technical concerns with aircraft engines, all of which have the potential to damage its financial performance and operations.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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