InterGlobe Aviation Limited

Industrials — Airlines · NSE

₹4,686.90−₹91.40 (−1.91%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, the company is currently loss-making, falling profits.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of InterGlobe Aviation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

InterGlobe Aviation Limited, together with its subsidiaries, provides air transportation services under the IndiGo brand in India and internationally.

IndustryAirlines

SectorIndustrials

Employees41,907

Annual revenue₹82,709 Cr

How does it make money?

Turns over ₹82,709 Cr a year. Of every ₹100 of sales, about ₹-3 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 41,907 employees supports ₹1.97 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.97 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What is the outlook?

15 analysts covering the stock expect revenue to grow about 12.6% and earnings to grow about 180.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.6%

Est. earnings growth+180.8%

Analysts15

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +54% while net margin moved +407% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+54%

Margin effect+407%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

47/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

26/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

18.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 14.0% to 17.1% over 3 years.
Cash generation is improving
Free cash flow is up 79% over 3 years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 8.0% to 4.0% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 73% over 3 years, from ₹44,854 Cr to ₹77,749 Cr.
🔴High leverageFinancial
Debt/Equity of 11.13x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.7x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹2,392 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.5x to 0.7x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.0% to 17.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 15.6% CAGR
Latest reported year was 19.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 17.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 5.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 0.7x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹21,760 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 1 neutral · 7 weak

Market Cap

₹1.81 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

25.99x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-124.36

Loss-making

Negative earnings per share — the business is losing money

ROE

-34.3%

Weak

Weak capital efficiency

ROCE

4.0%

Weak

Low return on total capital employed

Debt/Equity

11.13x

High

High leverage

Revenue Growth (YoY)

19.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-133.0%

Falling

Profits are shrinking

Dividend Yield

0.21%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹21,760 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

20.2x

Operating Margin

1.5%

Weak

Thin margins leave little room for error

Net Margin

-5.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.51

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.64

Defensive

Steadier than the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4890.5 / 5030.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹53,608 Cr	₹67,387 Cr	₹77,619 Cr	₹82,709 Cr	+15.6%
EBITDA	₹7,492 Cr	₹17,714 Cr	₹19,903 Cr	₹14,170 Cr	+23.7%
EBITDA Margin	14.0%	26.3%	25.6%	17.1%	—
PAT (Net Profit)	-₹306 Cr	₹8,173 Cr	₹7,258 Cr	-₹2,392 Cr	—
EPS	₹-7.93	₹211.61	₹187.67	₹-61.88	—
ROE	—	409.3%	77.5%	-34.3%	—
ROCE	8.0%	23.8%	15.5%	4.0%	—
Total Debt	₹44,854 Cr	₹51,280 Cr	₹66,810 Cr	₹77,749 Cr	+20.1%
Free Cash Flow	₹12,158 Cr	₹20,115 Cr	₹22,547 Cr	₹21,760 Cr	+21.4%

🟢 Revenue has grown at 15.6% a year over 3 years.

🟢 EBITDA has grown at 23.7% a year over 3 years.

🟢 EBITDA Margin has risen from 14.0% to 17.1% over 3 years (+3.2 pts).

🔴 ROE has fallen from 409.3% to -34.3% over 3 years (-443.7 pts).

🔴 ROCE has fallen from 8.0% to 4.0% over 3 years (-4.0 pts).

🔴 Total Debt has grown at 20.1% a year over 3 years.

🟢 Free Cash Flow has grown at 21.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.36 L Cr

Total Liabilities

₹1.29 L Cr

Cash & Equivalents

₹1,324 Cr

Operating Cash Flow

₹23,470 Cr

Capex

-₹1,710 Cr

Shareholding (proxy)

Institutional Holding

44.1%

Insider Holding

41.6%

Corporate Actions

Next Earnings

03 Nov 2026

Dividend Rate

₹10

Ex-Dividend Date

13 Aug 2025

Analyst Consensus

Recommendations

21 Buy · 3 Hold · 1 Sell

Target Price (Mean)

₹5,630.84

+20.1% vs CMP

Target Range

₹4,050 – ₹6,580

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 mixed1 negative3 general

Rules finalised to regulate airfares, govt tells Supreme Court; InterGlobe Aviation shares fall over 2%

Moneycontrol.com, 16 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

InterGlobe Aviation Share Price: Price Fall and Valuation

Univest, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

InterGlobe Aviation FY26 Net Loss Narrows; Q4 EBITDA Margin Drops to 3.3%

scanx.trade, 15 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Three key reasons why Interglobe Aviation share price could go to ₹6,000, as per Nomura - CNBC TV18

LinkedIn, 05 Oct

InterGlobe Aviation stock: Nomura sets INR 6,000 target for InterGlobe Aviation stock

ad-hoc-news.de, 16 Oct

IndiGo rallies 3%, hits 8-month high; what's driving airline stock?

Business Standard, 05 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health · Risk

WeakBusiness Quality · Profitability · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑