InterGlobe Aviation Limited Just Beat Revenue Estimates By 5.2%

It's been a good week for InterGlobe Aviation Limited (NSE:INDIGO) shareholders, because the company has just released its latest first-quarter results, and the shares gained 3.7% to ₹4,474. It was a workmanlike result, with revenues of ₹196b coming in 5.2% ahead of expectations, and statutory earnings per share of ₹70.57, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on InterGlobe Aviation after the latest results.

View our latest analysis for InterGlobe Aviation

Taking into account the latest results, the current consensus from InterGlobe Aviation's twelve analysts is for revenues of ₹781.6b in 2025. This would reflect a decent 8.9% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 5.8% to ₹214. Before this earnings report, the analysts had been forecasting revenues of ₹772.8b and earnings per share (EPS) of ₹212 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹4,972. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on InterGlobe Aviation, with the most bullish analyst valuing it at ₹5,500 and the most bearish at ₹4,050 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting InterGlobe Aviation is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that InterGlobe Aviation's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2025 being well below the historical 24% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.2% per year. Even after the forecast slowdown in growth, it seems obvious that InterGlobe Aviation is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹4,972, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on InterGlobe Aviation. Long-term earnings power is much more important than next year's profits. We have forecasts for InterGlobe Aviation going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for InterGlobe Aviation that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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