Why IndiGo Share Price is Falling

Indian markets are trading lower today, 13 June following Israel's airstrikes on Iran.

At the time of writing, the Nifty 50 index is down about 0.8%, trading near 24,684 points. The BSE Sensex has declined roughly 673 to 81,019 points.

Oil marketing companies like HPCL, BPCL, and IOC are down over 3% over rising crude prices. The Nifty IT index is one of the few sectors showing resilience.

In the broader market, the Nifty MidCap and SmallCap indices are down around 0.3% to 0.5%, respectively.

A stock that has fallen sharply today is InterGlobe Aviation (IndiGo).

Here are reasons for the same...

#1 Surge in Crude Prices

Crude oil prices have surged sharply following Israel's airstrikes against Iran. US West Texas Intermediate crude oil futures rose by around 10%. Brent crude, the global benchmark, similarly surged 9-10%, to nearly US$ 78 per barrel.

Crude oil prices have a significant impact on airline companies in India. This is because aviation turbine fuel (ATF), derived from crude oil, constitutes a large portion of their operating expenses. it could be around 20-70% of total expenses depending on the airline and context.

This led to a drop in the stock price of IndiGo as investors fear a big negative impact on the company's margins and profitability.

#2 Air India Dreamliner Crash

The crash of an Air India Boeing 787-8 Dreamliner shortly after take-off from Ahmedabad on 12 June, has rattled investor sentiment.

The tragedy has caused shares of major Indian airline stocks like IndiGo to fall.

Even though the exact cause is yet to be confirmed, investors have reassessed risks associated with airline operations.

#3 Promoter to Sell Stake

InterGlobe Enterprises, the main promoter of IndiGo, is planning to sell up to 4% of its stake in the airline through block deals, aiming to raise nearly $1 billion (around Rs 8,600 crore). This stake sale is expected to be executed by Rahul Bhatia, co-promoter and managing director of InterGlobe Enterprises, marking his second stake sale in just over a year. As of March 2025, InterGlobe Enterprises held a 35.7% stake in IndiGo.

What Next?

IndiGo has done well over the last few quarters on the back of lower crude prices.

Revenue for the quarter rose 24% year-on-year (YoY) to Rs 230.9 bn, with capacity and passenger numbers also growing significantly.

IndiGo posted its highest-ever fourth quarter profit of Rs 30.68 bn in Q4 FY25, a 62% increase YoY. This was driven by strong air travel demand. The company has also reduced its debt-to-equity ratio in the past year.

The airline is rapidly increasing its fleet, having added 67 aircraft in FY25 and expecting deliveries of Airbus A321XLR aircraft in FY26.

IndiGo plans to launch direct flights to 10 new international destinations in FY26, including major Western European cities like London, Amsterdam, Manchester, and Athens, as well as Copenhagen, Siem Reap, and four Central Asian cities.

However, the company faces external risks. For instance, if there is a prolonged period of unrest in the Middle East, crude oil prices could remain elevated.

How Shares of IndiGo have Performed Recently

Over the last one month, the share price of IndiGo has fallen 5.3% from Rs 5,520 to current levels of Rs 5,228. In the past one year, shares of the company have gained 28%.

The stock hit a 52-week high of Rs 5,731.8 on 10 June 2025. The stock also hit a 52-week low of Rs 3,778.5 on 28 October 2024.

About IndiGo

IndiGo is India's largest low-cost airline and the leading carrier by domestic market share.

Founded in 2005 by Rahul Bhatia and Rakesh Gangwal, IndiGo commenced operations in August 2006. The company quickly rose to become the largest Indian airline by passenger market share by December 2012.

It went public in October 2015 and has since grown to become the second largest airline in Asia.

IndiGo is expanding its service offerings, including plans to introduce business-class cabins on select metro routes by the end of 2025. It's growing its international network to over 40 destinations.

The company also operates cargo services through its subsidiary IndiGo CarGo and is investing in pilot training and operational efficiencies to support its growth.

To know more, check out IndiGo's latest fact sheet and quarterly results. You can also compare IndiGo with its peers on our website.

IndiGo vs SpiceJet

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...