Shares of InterGlobe Aviation Ltd, the parent company of IndiGo, rose nearly 2 percent in early trade on Tuesday after multiple brokerages reiterated positive views on the airline following its investor day. Analysts are bullish on IndiGo's ambitious FY30 growth plans despite concerns over higher fuel costs and aircraft delivery delays.

The stock gained as much as 1.7 percent to Rs 4,434.3. The move came after Goldman Sachs, Jefferies and HSBC maintained their 'Buy' ratings on the stock. The brokerages cited IndiGo's long-term expansion strategy, targeting carrying 200 million passengers per year, operating more than 550 aircraft, nearly 3,000 daily departures, and increasing international operations to 40 percent of total capacity by FY30.

They said the airline's leadership position, large aircraft order book and growing international presence leave it well placed for long-term growth. The positive views come even as management guides for a moderation in capacity growth to single digits in FY27 amid a challenging operating environment.

IndiGo stock had declined 2.4 percent on Monday to close at Rs 4,375 amid a sharp rise in crude oil prices and concerns over delayed aircraft deliveries from Airbus. InterGlobe Aviation stock has fallen 23 percent over the past year, compared with a 7.9 percent decline in the Nifty 50.

Brokerages constructive on IndiGo's long-term growth outlook

Goldman Sachs maintained its 'Buy' rating on IndiGo stock with a target price of Rs 5,300 per share. The brokerage said IndiGo is well placed for growth with a 900-aircraft order book. It expects the airline's international capacity mix to rise to 40 percent by FY30 from around 30 percent currently, while capacity growth is expected to remain in single digits in FY27. Goldman Sachs said that passenger yields are likely to stay strong, although cost pressures remain elevated.

Jefferies also reiterated its 'Buy' rating with a target price of Rs 5,380. The brokerage said IndiGo's focus is gradually shifting from capacity expansion to pricing and profitability. It highlighted the airline's plans to increase international operations, improve hedging coverage, expand cargo operations and increase aircraft ownership.

HSBC maintained a 'Buy' rating and raised optimism around the airline's long-term earnings trajectory. It assigned a target price of Rs 5,545 per share, implying an upside of nearly 27 percent. The brokerage acknowledged near-term challenges from higher fuel costs but said fare increases could help support profitability. It added that investments in network expansion and pricing initiatives could drive earnings growth over the longer term.

JPMorgan was relatively more cautious, maintaining a 'Neutral' rating with a target price of Rs 4,610 per share. The brokerage said that IndiGo expects available seat kilometre (ASK) growth to remain in single digits in FY27 before accelerating to a mid-teen compound annual growth rate between FY28 and FY30. JPMorgan also highlighted plans to raise the international capacity mix to 40 percent by FY30, supported by Airbus A321XLR and A350 aircraft additions.

IndiGo expects international operations to account for a larger share of its business over the coming years as it expands into longer-haul routes and seeks to position India as a global aviation transit hub connecting Europe, the Middle East, Africa and Southeast Asia.

The bullish brokerage commentary comes despite a challenging operating backdrop. Brent crude, a key determinant of aviation fuel costs, was trading above $94 a barrel on Tuesday after surging in recent sessions amid tensions between Israel and Iran. IndiGo has also faced concerns over delayed Airbus aircraft deliveries. It recently announced temporary suspension of flights to six international destinations between July and September due to softer seasonal demand and a challenging cost environment.