IndiGo Stock Plunge
Mumbai
InterGlobe Aviation, the parent company of IndiGo, suffered a sharp fall in market value on Monday as the airline continued to face one of the worst operational breakdowns in India’s aviation sector. The company’s stock plunged 10 per cent to ₹4,842 — its steepest drop since February 2022 — marking its seventh straight day of losses. In just six trading sessions, the stock has slipped 16.4 per cent, erasing nearly ₹37,000 crore in market capitalisation.
The sell-off grew more intense as investors reacted to the airline’s widespread cancellations and delays linked to its shift to new flight duty time limitation norms. Analysts say the ongoing chaos is hurting hopes of an earnings rebound that many expected in the coming quarter. Brokerage Investec kept its ‘Sell’ rating on InterGlobe Aviation, cutting expectations for a recovery after a weak first half of FY26 and setting a price target of ₹4,040.
The crisis deepened when IndiGo struggled to meet the regulator’s deadline for adopting the revised duty-time rules. The carrier, along with another airline, requested more time on December 7 due to operational strain at several major airports. Although the regulator granted a limited extension until 6 p.m. on December 8, it firmly stated that no further relief would be given.
IndiGo said its operations are gradually improving and that its schedule should stabilise by December 10. On Sunday, it operated more than 1,650 flights, an increase from 1,500 the previous day, and its on-time performance rose to 75 per cent from 30 per cent. The airline also said refunds and baggage services are working at full capacity.
To manage the crisis, IndiGo has set up a high-level Crisis Management Group made up of Chairman Vikram Singh Mehta, board members Gregg Saretsky, Mike Whitaker and Amitabh Kant, and CEO Pieter Elbers. Their task is to restore normal operations and address the spike in delays and cancellations.