IndiGo share price crashes 8% on rising oil prices, declines 11% this month. Do you own?

IndiGo share price crashed 8% to ₹4,045 apiece in Monday's trading session, extending its fall to the second day in a row today, amid rising crude oil prices and disrupted flight operations due to escalating tensions in the Middle East. IndiGo also emerged as the worst-performing stock on both the Sensex and Nifty at the time of writing this report.

IndiGo stock opened at ₹4,150 apiece on Monday, as compared to the previous close of ₹4,404 on Friday. On March 6, the aviation stock closed around 2.41% lower. Meanwhile, IndiGo shares have fallen over 11% so far in March 2026.

What's behind the Indigo share price crash?

According to market experts, the major reason behind the fall in the aviation stock is soaring crude oil prices. Crude oil prices surpassed $100 a barrel, hitting a 52-week high, for the first time since 2022.

Brokerage firm JM Financial said that a geopolitical spike in crude oil prices poses margin risk given IndiGo’s high fuel cost sensitivity and limited hedging. “For every USD 5 increase in Brent price, IndiGo’s earnings are expected to contract by ~13% as per our calculation,” the firm said in a note.

IndiGo has also suspended its flights to and from the Middle East after geopolitical tensions escalated last week, following strikes by the United States and Israel on Iran that triggered retaliatory attacks across several countries in the region.

In an exchange filing dated March 4, the company said, “In view of the evolving airspace restrictions over Iran and the Middle East, more than 500 flights to the Middle East and select international destinations have been cancelled between February 28, 2026 and March 3, 2026. We continue to closely monitor the revenue environment arising from this situation. Our operational teams are continuously assessing the evolving regional developments, recalibrating flight schedules, and planning repatriation operations in coordination with relevant authorities in India and the respective international jurisdictions, to minimise disruption to passengers.”

The brokerage firm further opined that IndiGo’s structural strengths - cost leadership, strong liquidity, and resilient domestic demand - are positioned well to absorb temporary shocks; however, the Middle East disruption introduces a clear near-term earnings and sentiment overhang via international capacity disruption and fuel cost volatility.

“A swift de-escalation would likely see operations and bookings normalise quickly, but a prolonged disruption risks capacity rationalisation, margin compression, and estimate downgrades. We therefore view the situation as tactically negative in the immediate term, with the duration of airspace restrictions and crude price trajectory remaining the key variables for stock direction,” the firm added.

Meanwhile, Emkay Global, in a note today, said that if current trends persist, ATF prices for Apr-26E may rise by >40%, although the extent of pass-through by OMCs remains uncertain. While near-term visibility on the conflict remains limited, the strategic importance of ME energy flows to global markets could accelerate a resolution, it opined.

“Encouragingly, IndiGo’s operating metrics for Jan/Feb-26 were broadly in line with or slightly ahead of guidance and our estimates. We, therefore, maintain our positive stance on the stock, expecting a swift normalisation in operations once geopolitical tensions ease,” said the brokerage.

For now, it has retained a ‘BUY’ call, with Dec-27E IndiGo share price target of ₹6,300.

IndiGo share price trend

The share price trend of aviation major InterGlobe Aviation has remained largely weak in the near term. The stock has declined around 18% over the past month and is down about 20% so far this year.

IndiGo shares have further declined 12.26% in a year. However, the aviation stock has proven to be a multibagger stock by giving 119% returns in three years and 142% in five years.

IndiGo share price is listed on both NSE and BSE. The multibagger aviation stock hit a 52-week high of ₹6,232.50 on August 18, 2025 and a 52-week low of ₹4,035 on March 9, 2026.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.