Daijiworld Media Network - Mumbai

Mumbai, Apr 27: Shares of InterGlobe Aviation Limited, which operates IndiGo, began Monday’s trading session on a muted note with a slight negative bias after global brokerage UBS downgraded the stock and reduced its price target.

Despite early weakness, the stock recovered partially during midday trade, hovering around Rs 4,560.50, down 0.83 percent.

UBS revised its rating from “buy” to “neutral” and cut the target price to Rs 4,940 from Rs 5,480. The downgrade reflects growing concerns over macroeconomic challenges and continued pressure on airline profitability.

A key factor behind the cautious outlook is rising geopolitical tension, particularly linked to the US-Iran conflict, which has increased volatility in global markets and pushed energy prices sharply higher. The aviation sector has been significantly impacted, with jet fuel prices nearly doubling in recent months due to supply constraints.

Even so, UBS noted that IndiGo remains relatively better positioned compared to many global airlines, thanks to its scale and efficient operations.

On the domestic front, measures by the Government of India to limit increases in Aviation Turbine Fuel (ATF) prices have offered some relief. For April 2026, ATF prices were capped at a 9 percent rise, much lower than the steep global surge seen earlier.

In terms of stock performance, shares of InterGlobe Aviation have declined by about 3.26 percent over the past five days. However, they have gained over 11 percent in the last month. Over a longer period, the trend has been negative, with the stock falling nearly 22 percent in six months and over 10 percent on a year-to-date basis.