InterGlobe Aviation Limited (IndiGo): Comprehensive Stock Analysis Report | Scrolls
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- Sep 8
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by KarNivesh | 08 September, 2025
Overview of InterGlobe Aviation Limited (IndiGo)
InterGlobe Aviation Limited, better known as IndiGo, is India’s largest passenger airline with a market share of 64.3% and a fleet of more than 434 aircraft. Founded in 2005 and operational since 2006, the airline has built its dominance on low fares, punctuality, and reliable service. By June 2025, IndiGo was operating over 2,200 daily flights across 127 destinations (91 domestic, 36 international).
Financial Performance and Growth
IndiGo has displayed strong recovery and growth following the COVID-19 crisis. Revenue grew from ₹25,931 crores in 2022 to ₹80,803 crores in 2025 a 211% rise over three years. In Q4 FY2025 alone, it posted its highest quarterly profit of ₹3,067.5 crores, up 62% year-on-year. Passenger load factors reached 87.4%, while yields rose to ₹5.32 per km.
For FY2025, IndiGo carried 118 million passengers, generating ₹80,803 crores in revenue. Net profit, however, declined slightly to ₹7,258 crores from ₹8,172 crores in FY2024, due to higher interest and forex expenses. Still, operating margins expanded significantly from 6.66% in 2023 to 33.13% in 2025, surpassing the industry average of 22%.
Balance Sheet and Capital Structure
The company’s assets grew 152% between 2022 and 2025, from ₹45,963 crores to ₹115,844 crores, primarily due to fleet expansion. Cash reserves improved to ₹18,963 crores in 2025 from just ₹695 crores in 2024, strengthening liquidity. Debt increased to ₹66,810 crores, but the debt-equity ratio improved from 25.69x in 2024 to 7.13x in 2025 as equity turned positive at ₹9,368 crores. Total cash reserves stood at ₹48,171 crores, including free cash of ₹33,153 crores, giving IndiGo strong financial flexibility.
Shareholding and Valuation
As of June 2025, promoters hold 43.54% of shares, FIIs 27.31%, mutual funds 17.21%, and retail/others 5.06%. Promoter stakes have declined due to planned exits, with sales worth ₹12,900 crores absorbed by the market. IndiGo trades at a market cap of ₹2,19,182 crores, at ₹5,670 per share with a P/E ratio of 32.7x, higher than the industry average of 27.1x. The stock’s five-year return of 361.22% highlights investor confidence.
Strategic Expansion
IndiGo is pursuing aggressive fleet expansion with orders for over 1,000 aircraft by 2035, including Airbus A320neo and A321XLR for long-haul routes. Cargo operations (IndiGo CarGo) are growing rapidly, with revenues up 46% year-on-year. Strategic partnerships with global airlines such as Qatar Airways, British Airways, and American Airlines strengthen international connectivity.
Industry Outlook
India’s aviation market is projected to grow at a CAGR of 12.21%, reaching ₹3.4 lakh crores (USD 40.81 billion) by 2033. Passenger traffic is expected to rise to 580 million by 2030, offering significant opportunities for IndiGo. Government infrastructure expansion and regional schemes like UDAN will further support growth.
Risks and Challenges
Key risks include regulatory scrutiny (DGCA concerns over pilot training), high debt levels, fuel price volatility, and growing competition from Air India-Vistara. Safety rating downgrades and infrastructure bottlenecks at major airports also pose challenges.
Conclusion
IndiGo’s strong market leadership, efficient low-cost model, robust financial recovery, and expansion strategy make it an attractive long-term investment. However, investors must remain mindful of regulatory risks, industry cyclicality, and debt levels. For long-term wealth creation, a cautious but systematic investment approach is recommended.
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