Goldman Sachs Sticks with 'Buy' on InterGlobe Aviation Amid Earnings Pressures

Goldman Sachs has maintained its 'Buy' rating for InterGlobe Aviation stock, setting a target price of INR 5,900. This assessment comes after the airline reported Q1 FY27 revenue growth of 20% year over year to INR 245.84 billion, despite incurring an INR 2.38 billion loss.

The brokerage's view is based on InterGlobe Aviation's market-share gains and international expansion potential, as well as its cost leadership. However, the company's near-term earnings base remains weak, according to Goldman Sachs.

The report noted that InterGlobe Aviation's total expenses rose 34% year over year in Q1 FY27, driven largely by higher fuel and operating costs. This disparity between revenue growth and expense growth is a key issue behind the stock's competing bullish and bearish views.