IndiGo: India’s Dominant Airline, With Long Runway of Growth

Rajeev Mantri of Navam Capital presented his in-depth investment thesis on InterGlobe Aviation Ltd (India: INDIGO) at Asian Investing Summit 2025.

Thesis summary:

InterGlobe Aviation, which operates under the IndiGo brand, is India’s largest and most dominant airline, recently accounting for over 63% market share in the domestic market and operating more than 2,200 daily flights to 128 destinations. Founded in 2006, IndiGo has emerged as the world’s most highly valued airline by capitalizing on a simple but robust low-cost carrier model emphasizing affordability, operational efficiency, and reliability. The company recently expanded its capabilities by ordering 30 Airbus A350-900s to strengthen its long-haul fleet and international presence.

India’s civil aviation market has undergone radical transformation over the past decade, marked by government support, infrastructure expansion, and the exit of several legacy carriers. IndiGo has emerged as the key beneficiary of this evolution, having steadily gained market share while competitors struggled with profitability and scale. IndiGo’s domestic market share has expanded sharply from around 30% in 2014 to over 60% in 2025, even as the broader industry grew in volume and outbound international travel surged.

The company’s highly standardized fleet, no-frills service model, and tech-enabled processes drive industry-leading cost efficiency and high aircraft utilization. These operating advantages, along with the scale of its network and brand loyalty, position IndiGo to ride a long S-curve of growth driven by rising discretionary incomes and government emphasis on regional and international connectivity. The business has delivered consistently strong earnings growth and has been a multi-bagger over the past five years.

The shares recently traded at ₹5,151, with a market capitalization near ₹2 trillion and an EV/EBITDA of 12.8x. With net profit at ₹60.7 billion and ROCE of 24.5%, IndiGo combines robust financial performance with long-term structural tailwinds. Risks include macroeconomic shocks, competitive intensity, and operational constraints tied to aircraft and crew availability, but its high promoter ownership, institutional backing, and proven ability to scale mitigate many of these challenges. For investors seeking exposure to a rapidly expanding consumer sector with clear leadership and compounding potential, IndiGo remains an attractive opportunity.

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About the instructor:

Rajeev Mantri is managing director of Navam Capital, an India-focused investment firm. Prior to founding Navam Capital, Rajeev worked as a venture capitalist at New York-based Lux Capital, focusing on investments in energy, water and nanomaterials. Rajeev has contributed columns and articles on technology, investing, venture capital and political economy to The Wall Street Journal, Mint, Swarajya, Financial Times, The Indian Express, The New York Times International Weekly, Roubini Global Economics and other publications. In August 2010, Rajeev co-founded Vyome Therapeutics, a biopharmaceuticals company, and served as Vyome’s president through the company’s formative years. Rajeev graduated with a BS in materials science and engineering from Northwestern University, and an MBA from Columbia Business School, specializing in private equity and value investing. Rajeev is the author (with Harsh Madhusudan) of the book, A New Idea Of India — Individual Rights In A Civilisational State, an international best-seller on the history and future of modern India covering a diverse range of topics in economics, foreign policy and politics.