₹59 crore GST penalty notice, 4 inspectors suspended: How are IndiGo shares faring on Friday? Check what analysts said

The airline cancelled over 50 flights from Bengaluru Airport on Friday.

FOIs are senior officials within the Directorate General of Civil Aviation, working as part of its regulatory and safety oversight functions, often deployed to monitor airline operations.

On December 11, IndiGo CEO Pieter Elbers was grilled by an inquiry panel on a day when the airline announced a compensation of ₹10,000 in the form of travel vouchers to affected passengers. Meanwhile, Elbers and COO Isidre Porqueras will appear again before the DGCA's investigation panel at 2 PM on Friday.

Further, the airline in a regulatory filing said that it has received a demand and penalty of ₹58.74 crore from the GST authority for FY21.

“The Company believes that the order passed by the authorities is erroneous. Further, the Company believes that it has a strong case on merits, backed by advice from external tax advisors. Accordingly, the Company will contest the same before the appropriate authority,” IndiGo said in the filing.

However, the budget carrier said there is no significant impact on financials, operations or other activities of the company.

Other developments this week

On Wednesday, IndiGo Chairman Vikram Mehta had spoken for the first time in 10 days about the crisis, apologising for the chaos and attributing the massive disruptions to a combination of internal and external "unanticipated" events.

In a video message, he also said that the board has decided to involve external technical experts to work with the management and help determine the root causes that led to the disruption.

The civil aviation ministry on Tuesday said it has ordered Indigo to reduce its flight schedule by 10% as it would help the crisis-ridden airline to stabilise operations, which have been disrupted massively due to the transition to the second phase of the new flight duty norms for pilots.

IndiGo share price

On Friday, after opening at ₹4,830 apiece, shares of the airline had touched a low of ₹4,811.50 per share. At 11:50 AM, IndiGo shares were trading at ₹4,866 per share, gaining 0.98%.

The stock has gained nearly 2% on the NSE to an intraday high of ₹4,898 apiece on Friday.

The stock has slipped 6% in the last five trading sessions and 11% over the last six months. However, on a year-to-date basis, IndiGo shares have gained more than 6%.

The company’s market capitalisation stands at ₹1.88 lakh crore.

Analyst view after the IndiGo crisis

According to global brokerage Jefferies, IndiGo has trimmed its near-term guidance in line with expectations, reflecting the impact of recent operational disruptions. Analysts at Jefferies noted that the airline’s ability to scale operations from here will depend heavily on timely aircraft inductions and adequate pilot availability—both of which remain key constraints in the near term.

Jefferies has also cut IndiGo’s FY26–FY28 earnings estimates by 13–53% to factor in these challenges. The brokerage cited IndiGo’s strong execution track record, disciplined growth strategy, and expanding international footprint as reasons for its continued optimism despite the short-term pressures.

Analysts at Morgan Stanley highlighted that IndiGo has lowered its Q3 capacity guidance from “high teens” to high single–low double digits year-on-year, while passenger unit revenues are now expected to decline in the mid-single digits versus the earlier flattish outlook.

The airline has also refrained from giving any guidance for Q4 FY26 capacity or yields, adding to near-term uncertainty. Morgan Stanley noted that additional costs arising from passenger support services amid recent operational disruptions will pressure earnings in the short term; however, the brokerage maintained that IndiGo’s long-term growth story remains intact.