Interglobe Aviation Ltd is Rated Sell

Current Rating and Its Significance

MarketsMOJO’s current rating of Sell for Interglobe Aviation Ltd indicates a cautious stance towards the stock. This rating suggests that, based on a comprehensive evaluation of various parameters, the stock is expected to underperform relative to the broader market or its sector peers in the near term. Investors are advised to consider this rating carefully when making portfolio decisions, as it reflects a combination of quality, valuation, financial trends, and technical factors.

Quality Assessment

As of 07 February 2026, Interglobe Aviation maintains a good quality grade. This reflects the company’s established market presence and operational capabilities within the airline sector. Despite the challenges faced by the aviation industry globally, Interglobe continues to demonstrate resilience in its core business operations. However, quality alone does not offset other concerns that influence the overall rating.

Valuation Perspective

The valuation grade for Interglobe Aviation is currently assessed as fair. This suggests that the stock’s price relative to its earnings, book value, and other valuation metrics is neither excessively expensive nor particularly cheap. Investors should note that a fair valuation implies limited upside potential from a price perspective, especially when weighed against other negative factors impacting the stock.

Financial Trend Analysis

The financial trend for Interglobe Aviation is negative as of today. The company’s recent quarterly results reveal a decline in profitability and efficiency metrics. Specifically, profit before tax excluding other income (PBT LESS OI) for the quarter stood at ₹1,040 crore, marking a significant fall of 36.78%. Additionally, the return on capital employed (ROCE) for the half-year is at a low 13.26%, indicating diminished capital efficiency. Net profit after tax (PAT) for the quarter also declined by 15.9%, reflecting pressure on the company’s bottom line. These figures highlight ongoing financial headwinds that weigh heavily on the stock’s outlook.

Technical Outlook

From a technical standpoint, the stock is graded as bearish. This assessment is based on recent price movements and market sentiment. Over the past six months, Interglobe Aviation’s stock price has declined by 16.64%, and the three-month return is down 13.68%. Although there was a modest 6.84% gain over the past week, the overall trend remains negative. The one-year return of 11.98% is positive but modest when compared to broader market indices, suggesting limited momentum for sustained gains.

Debt and Capital Structure Considerations

Interglobe Aviation is classified as a high debt company, with an average debt-to-equity ratio of 4.51 times. This elevated leverage level increases financial risk, particularly in a sector vulnerable to external shocks such as fluctuating fuel prices and regulatory changes. High debt levels can constrain the company’s ability to invest in growth initiatives or weather economic downturns, further justifying the cautious rating.

Stock Performance Snapshot

As of 07 February 2026, the stock’s recent performance shows mixed signals. The one-day change was a slight decline of 0.45%, while the one-month return was negative at -1.79%. Year-to-date, the stock has fallen by 2.94%. These figures, combined with the longer-term negative trends, reinforce the current Sell rating.

Implications for Investors

For investors, the Sell rating on Interglobe Aviation Ltd suggests prudence. While the company retains operational quality and a fair valuation, the negative financial trends and bearish technical outlook indicate potential challenges ahead. Investors should carefully weigh these factors against their risk tolerance and investment horizon. Those holding the stock may consider monitoring developments closely or exploring alternative opportunities within the airline sector or broader market.

Sector and Market Context

The airline sector continues to face headwinds from fluctuating fuel costs, regulatory pressures, and evolving travel demand patterns. Interglobe Aviation, as a leading player, is not immune to these challenges. While the company’s operational quality remains intact, the financial strain and technical weakness reflect broader sectoral pressures. Investors should consider these macro factors alongside company-specific data when evaluating the stock.

Summary of Key Metrics as of 07 February 2026

To summarise, Interglobe Aviation Ltd’s current metrics are as follows:

• Mojo Score: 33.0 (Sell Grade)
• Debt to Equity Ratio: 4.51 times (High Debt)
• PBT LESS OI (Quarterly): ₹1,040 crore, down 36.78%
• ROCE (Half Year): 13.26%, lowest level
• PAT (Quarterly): ₹2,060.26 crore, down 15.9%
• Stock Returns: 1D -0.45%, 1W +6.84%, 1M -1.79%, 3M -13.68%, 6M -16.64%, YTD -2.94%, 1Y +11.98%

These figures collectively underpin the current Sell rating, signalling that investors should approach the stock with caution given the prevailing financial and technical challenges.

Looking Ahead

Investors should continue to monitor Interglobe Aviation’s quarterly results and sector developments closely. Improvements in profitability, debt reduction, or a shift in technical momentum could alter the stock’s outlook. Until such positive changes materialise, the Sell rating remains a prudent guide for portfolio positioning.

Conclusion

In conclusion, Interglobe Aviation Ltd’s current Sell rating by MarketsMOJO, last updated on 03 December 2025, reflects a comprehensive assessment of quality, valuation, financial trends, and technical factors as of 07 February 2026. While the company retains operational strengths, the negative financial trajectory and bearish market signals warrant caution. Investors should consider these insights carefully when making investment decisions related to this stock.

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