IndiGo posts biggest single-day profit in 16 months

Mumbai: Shares of InterGlobe Aviation, IndiGo’s parent company, rose over 4% – the highest single-day gain in 16 months – after the fine imposed by the Directorate General of Civil Aviation on the airline for the mass flight cancellations in December was seen as lower than what investors expected. The stock closed 4.2% higher at ₹4,937 and emerged as the top gainer on the Nifty on Monday. Benchmark Nifty fell 0.4%. This is IndiGo’s biggest single-day progress since August 2024.

“The DGCA fine of ₹22 crore was much lower expected, which prompted investors to buy,” said Sunny Agrawal, Head of Fundamental Research at SBI Securities. He said Indigo has reduced operational capacity to comply with regulations.

In early December, the airline canceled several flights, compounded by the introduction of a crew time limit and the grounding of its A320 fleet due to software issues. The disruptions sparked criticism as thousands of passengers were stranded.

“Indigo stock has seen a significant correction since the disruption in December, but given the cooling of DGCA issues, it is currently a good business at a lower price,” said Sonam Srivastava, founder and CEO of Wright Research.

Srivastava said the easing of supply side issues and decline in crude oil prices are expected to provide a boost to the company.

IndiGo shares have fallen 13% since early December. “The company’s December quarter results are expected to be on the weaker side due to the peak season disruptions and reduced operations could weigh on the company till March,” Agrawal said.