IndiGo shares fall after weak Q3 results, but analysts recommend BUY on dips. Stock trades near ₹4,704 with targets up to ₹6,300 on strong long-term growth.

New Delhi: IndiGo shares fell after a sharp drop in Q3 profits. However, most analysts are still positive on the stock. They believe this fall is a good buying opportunity and have advised BUY on dips, with target prices going up to ₹6,300, supported by IndiGo’s strong long-term growth in international routes and its leadership in the airline market.

Company Background

Based in Gurgaon, IndiGo focuses on low-cost domestic travel and is steadily expanding its international operations.

Recent Stock Dip

On January 23, IndiGo shares closed at ₹4,704.50, falling 4.17% from the previous close of ₹4,857.50. During the day, the stock touched a low of ₹4,686.50. The stock has now corrected nearly 20% from its recent high of ₹6,000.

Despite this fall, analysts note that the stock is finding support around ₹4,700, where buying interest is visible.

Recent closing prices:

• January 22: ₹4,909
• January 20: ₹4,941.50
• January 19: ₹4,764.50

Q3 FY26 Results Breakdown

IndiGo announced its Q3 results on January 23, showing a one-time impact but stable business operations:

• Net profit: ₹549.80 crore, down 77.5% year-on-year, mainly due to ₹1,546.5 crore in exceptional costs related to operational disruptions and changes in labour rules.
• Total income: ₹24,500 crore, up 6.7% year-on-year.
• Passengers carried: 31.9 million, an increase of 2.8% year-on-year.

Q4 guidance by the company:

• ASK growth: Around 10% year-on-year, mainly driven by international routes.
• CASK (excluding fuel and forex): Expected to rise in mid-to-high single digits.
• Yields: Likely to soften in low-to-mid single digits.
The airline faced disruptions in over 2,500 flights in December, but operations are now improving as more aircraft are added to the fleet.

Technical Outlook and Trading Strategy

The stock has support near ₹4,670 and resistance at ₹4,839. If the support level holds, analysts see a possible 10% rebound toward ₹5,200.

In the short term, technical indicators remain weak, as the stock is trading below its 100-day simple moving average (₹5,513.96). However, analysts believe this decline offers a good entry point for medium-term investors expecting an upward trend.

Analyst Recommendations

• Motilal Oswal: BUY, target ₹6,100 (24% upside)
• UBS: BUY, target ₹6,170 (25%+ upside)
• Emkay Global: BUY, target ₹6,300
• JM Financial: ADD, target ₹5,420 (10% upside)
• Goldman Sachs: BUY, target ₹6,000
• Citi: BUY, target ₹5,700

Consensus average target: ₹6,074.56

Most brokerages remain confident about IndiGo’s international expansion, even though short-term challenges continue.

Also Read on jabalpur today; Gold and Silver ETFs vs. The Physical market: Why the recent dip isn’t What it seems

Broader Market Insights

The aviation sector is currently facing pressure due to rising fuel costs and forex impact. Still, IndiGo stands out because of its strong market position. On January 23, the Nifty slipped 0.1%, while IndiGo continued to be seen as one of the top stock picks for 2026, backed by its plans for fleet growth and route expansion.

Discussions on X (formerly Twitter) show strong confidence in broker BUY calls, with many investors calling the fall a “golden buying opportunity.”

Key Risks to Watch

Investors should keep an eye on weak ticket pricing, rising costs, pilot-related issues, and increasing competition. Q4 performance will be important to track recovery in capacity growth (ASK). Stock market investments involve risk, so the focus should remain on IndiGo’s long-term growth story rather than short-term volatility.

Also Read on jabalpur today: Adani Group Stocks Fall as US Regulator Seeks to Question Founder in Fraud Case