Author: Prashant Marathe
Date Published: May 21, 2025
🧾 At a Glance
- Total Income (Q4): ₹2,310.51 Cr
- Net Profit (Q4): ₹307.34 Cr
- EPS (Basic, Q4): ₹79.54
- CMP: ₹5,456
- EduFair Value: ₹4,400–₹4,800
👉 Verdict: Stock is flying — but maybe too close to the sun.
🛫 About the Company
InterGlobe Aviation Ltd (aka IndiGo) is India’s:
- 🥇 Largest domestic airline
- ✈️ Leanest fleet operator (low cost, high frequency)
- 💰 King of ancillary revenues (seat charges, bags, pre-book meals, dreams)
Basically: it’s the Walmart of airlines — cheap, fast, and everywhere.
📊 Q4 FY25 Performance
| Metric | ₹ Cr |
|---|---|
| Total Income | 2,310.51 |
| Net Profit | 307.34 |
| EPS (Basic) | ₹79.54 |
| Net Margin | ~13.3% |
A quarter that soared, especially after a bumpy Q2 loss of ₹988 Cr.
📈 Full-Year Trend
| Quarter | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|
| Q1 FY25 | 2,726.70 | 70.64 |
| Q2 FY25 | -988.80 | -25.60 |
| Q3 FY25 | 2,442.00 | 63.21 |
| Q4 FY25 | 3,073.40 | 79.54 |
Total FY25 Net Profit ≈ ₹7,253 Cr
Full-year EPS = ₹288.00+
Now let’s talk valuation.
🧠 EduInvesting Take
“IndiGo is the only airline in India that makes consistent money — but that doesn’t mean it’s cheap.”
✅ Brand moat
✅ Operational edge
✅ Consistent EBITDAR
✅ No airline union drama
But… at ₹5,456/share?
That’s a P/E of ~19x — which is fair, but not cheap for a cyclical, fuel-sensitive business.
🧮 EduFair Value Calculation
- EPS (FY25): ₹288
- Assign 15x P/E for aviation (due to fuel + macro volatility)
✅ Fair Value = ₹4,320 – ₹4,800
CMP = ₹5,456 → Overvalued by ~15–20%
Still investable? Yes. But margin of safety? Minimal.
⚠️ Risks
- 🛢️ ATF price hikes can destroy quarterly profitability
- 💸 Fleet leasing costs are USD-linked — rupee depreciation hurts
- ⚖️ Competition from Akasa + Air India post-merge
- 🌍 Global slowdown may hurt international route expansion
💸 CMP vs FV
| Metric | Value |
|---|---|
| CMP | ₹5,456 |
| EPS (TTM) | ₹288+ |
| P/E at CMP | ~19x |
| EduFair Value | ₹4,400–₹4,800 |
| Margin of Safety | ❌ Thin |
🏁 EduFinal Word
IndiGo is:
- A rare Indian airline that actually makes money ✅
- Dominating the skies ✅
- Valued like it’ll keep doing this forever ❌
Edu Verdict:
Fly the stock only if you’ve got a long runway (3–5 years) and can handle mid-air turbulence. For value buyers — wait for ₹4,500 range.
