IndiGo shares: Due to the firm's operational mismanagement, which has devastated India's aviation sector, InterGlobe Aviation, the parent company of IndiGo, has recently been heavily criticized. Investors have lost about 53,000 crore as a result of the stock's severe 22% decline.

Key Highlights

• InterGlobe Aviation stock plunged ~20 % in 10 days, erasing over ₹53,000 crore in market cap.
• The crash follows massive flight cancellations and regulatory turmoil after new pilot-duty norms disrupted IndiGo operations.

On Tuesday, December 9, shares of IndiGo fell to Rs 4,847.30 from its 52-week high of Rs 6,225.05 on August 18, 2025. Its market capitalization dropped from Rs 2,40,637.92 crore to Rs 1,87,379.08 crore due to the carnage, suggesting a 53,258.84 crore reduction in value. Both investors and tourists have suffered as a result of IndiGo's disaster.

Despite the airline's solid market position and stable Baa3 rating, global credit rating agency Moody's Ratings stated on Monday that IndiGo has credit negative consequences due to inadequate planning and weak preparation for regulatory changes. Due to the negative effects of slower hiring, Moody's reduced IndiGo's human capital issuer score from 3 to 4.

So far in December 2025, the stock has dropped by around 18%. InterGlobe is already facing revenue loss and a decline in profitability for the current quarter and fiscal year, which could lead to a loss of market share. In light of the ongoing outage, which is expected to last until FY27, analysts monitoring the stock feel that it is necessary to consider the seriousness of regulatory action for the aviation player.

Also Read: IndiGo Loses Rs 37,000 Cr in 6 days: Can the Stock Recover?

International brokerage firms, meanwhile, are still optimistic about IndiGo. With a target price of Rs 7,025 and Rs 6,350, respectively, Jefferies and UBS have kept their "buy" ratings on InterGlobe Aviation. The stock is rated "buy" by B&K Securities, with a target price of Rs 7,256.

According to Investec, Indigo has until February 10, 2026, to adhere to the new FDTL regulations. Because "bad just gets worse," the firm has lowered its target price to Rs 4,040. According to JM Financial, there may be some long-term cost constraints as a result of passing turbulence. It has a target price of Rs 5,570 and a 'reduce' rating. InterGlobe Aviation has given InCred Equities a "reduce" rating.