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The Economic Times
The Economic Times
Business
Debaroti Adhikary

Can IndiGo shares fly again amid soaring oil prices? Ambit remains bullish but lists 5 key risks

The shares of IndiGo-parent InterGlobe Aviation have declined around 8% in a month as fresh escalations in the Middle East conflict pushed oil prices beyond $100 per barrel. Ambit Institutional Equities warns that the aviation sector's near-term share price upside remains capped but the brokerage’s structural conviction remains unchanged given cost-led market leadership.

In its latest report, Ambit Institutional Equities said India’s aviation landscape showed divergent trends, with IndiGo leading while other incumbents lagged. Air India posted its largest-ever net loss of over Rs 22,000 crore in FY26, forcing capacity cuts of 22-27%. While SpiceJet’s fleet contracted to 21-25 aircraft given persistent liquidity constraints, Akasa continued expanding off a small base with an industry-best load factor, the brokerage said.

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