Indigo Shares Rise as Airline Set to Join BSE Sensex on December 22, Replacing Tata Motors

InterGlobe Aviation, IndiGo's parent company, will join the BSE Sensex on December 22, replacing Tata Motors. This follows a strong stock performance, with shares gaining nearly 28% in 2025.

IndiGo's parent firm, InterGlobe Aviation, is gearing up for a major milestone in the Indian stock market. The country's largest airline will officially enter the prestigious BSE Sensex from Monday, December 22, taking the spot currently held by Tata Motors Passenger Vehicles (TMPV). The announcement was confirmed by BSE Index Services on Friday.

Indigo Shares Continue Strong Run in 2025

IndiGo shares opened the week on a positive note, trading at Rs 5,908 and climbing 1.10%. With this rise, the stock has now gained nearly 28% in 2025, reaffirming its position as one of the standout performers in the aviation and travel sector this year.

Sensex Inclusion a Big Win for IndiGo

Being added to the 30-stock BSE Sensex is widely considered a major achievement, as the index represents the country's most-watched benchmark for stock performance. From December 22, IndiGo will officially replace Tata Motors in the index as part of BSE's periodic reshuffle based on market performance and eligibility norms.

Other index changes taking effect the same day include IDFC First Bank entering the BSE 100 index, replacing Adani Green Energy. In the Sensex Next 50, IndusInd Bank and IDFC First Bank will replace Max Healthcare and Adani Green Energy.

IndiGo Approves USD 820 Million Investment in Subsidiary

In a separate strategic move, IndiGo has approved an investment worth USD 820 million (Rs 7,270 crore) into its wholly owned subsidiary, InterGlobe Aviation Financial Services IFSC Pvt Ltd. The funds will support aircraft acquisition, enabling the airline to expand its fleet and fuel its long-term growth plans. The investment will be made through a combination of equity shares and optionally convertible preference shares.

Q2 Financials: Loss on Paper, Profit Once Forex Hit Removed

InterGlobe Aviation recently reported a consolidated net loss of Rs 2,582 crore for Q2 FY26. However, excluding the impact of foreign exchange losses, the airline actually posted a net profit of Rs 104 crore, a notable turnaround from a Rs 754 crore loss in the same quarter last year.

Operational performance stayed strong:

• Revenue from operations rose 9.3% to Rs 18,555.3 crore
• Total income increased 10.4%
• Passenger numbers grew 3.6% to 28.8 million
• Load factor held steady at 82.5%
• Yields improved 3.2% to Rs 4.69

Forex losses, however, surged twelvefold to Rs 2,892 crore, pushing overall expenses up 18.3%.

EBITDAR slipped to Rs 1,114 crore from Rs 2,434 crore last year, but excluding forex impact, the figure jumped to Rs 3,800 crore, with margins improving to 20.5%.

Analysts remain optimistic. “IndiGo is a long-term compounding story with strong fundamentals and market leadership,” said Anand Rathi in its research report, giving the stock a Buy rating with a 12-month target price of Rs 7,000.