Shares of climbed 3 per cent in early trade on Wednesday, emerging among the top gainers on the despite the resignation of the company’s Chief Executive Officer Pieter Elbers. Co-founder Rahul Bhatia has assumed the role of interim CEO.
The stock, which operates IndiGo airlines, traded flat at ₹4,401.40 at 11.45 am after touching an intraday high of ₹4,512.90. The previous close stood at ₹4,380.40. It
Despite the leadership change, market sentiment remained resilient, suggesting investor confidence in the airline’s operational stability and long-term growth prospects.
Global brokerage Jefferies maintained a buy recommendation with the highest target price among peers at ₹6,140. The brokerage highlighted that under Elbers’ leadership, IndiGo significantly expanded its international operations, initiated wide-body aircraft operations and introduced new customer-focused initiatives. Jefferies said leadership transitions at the airline have historically been smooth, supported by strong founder oversight that ensures continuity in strategy and execution.
However, the brokerage flagged near-term risks, including operational stability amid West Asia-related disruptions and crude oil price volatility, clarity on peak summer travel schedules and visibility on the appointment of a permanent CEO.
Another global brokerage, HSBC, also retained its buy rating and set a target price of ₹5,860.
HSBC said the company’s official statement cited personal reasons for the departure, although earlier operational incidents in December may have contributed to the decision. The brokerage does not expect any major strategic shifts at IndiGo and believes Bhatia will continue to emphasise operational efficiency and execution discipline.
UBS maintained a buy rating with a target price of ₹5,480, stating that the management reset comes at a time when competitive dynamics in the aviation sector are evolving. The brokerage noted that pricing moves by Air India could reopen room for airfare hikes across the industry.
UBS added that periods of sectoral stress typically strengthen the competitive advantage of large and efficient players, reinforcing its positive stance on the airline.
Analysts broadly believe the airline’s scale, cost leadership and strong domestic market position are likely to cushion the impact of management changes while supporting sustained growth momentum.