BUZZ-JP Morgan flags earnings pressure for India's IndiGo, cites weaker rupee, competition

Reuters03-06 13:04
BUZZ-JP Morgan flags earnings pressure for India's IndiGo, cites weaker rupee, competition

** J.P. Morgan says external volatility to keep Indian airline IndiGo's INGL.NS earnings under pressure

** Sees domestic pricing constrained by competition; international pricing under pressure from capacity addition and rupee weakness

** Brokerage expects jet fuel prices to moderate in FY26–28 but says rupee depreciation and crude swings remain key risks

** Cuts FY27 EPS by 13% on weaker yields and higher fuel costs; FY24–28 EPS CAGR now seen at 12.5%

** Ratings agency S&P Global says it expects Middle East conflict to have a more pronounced effect on Indian carriers, given their higher capacity and number of routes to the Middle East

** Stock down 1.7% on the day and has shed 10% since February 27 when tensions in the region escalated

(Reporting by Kashish Tandon in Bengaluru)

((Kashish.tandon@thomsonreuters.com))

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