IndiGo Shares Soar 4% Post-DGCA Fine; Jefferies Eyes Schedule Normalization

• IndiGo shares surged over 4% after a DGCA fine, with Jefferies reiterating a 'Buy' rating and raising the price target to ₹6,140.
• The DGCA fined IndiGo ₹22.2 crore for December 2025 disruptions, citing over-optimisation and management lapses, also demanding a ₹50 crore bank guarantee.
• Jefferies noted the fines were modest and highlighted that the focus now shifts to DGCA's guidance on normalizing IndiGo's flight schedules.
• Disciplinary warnings were issued to senior IndiGo executives, including the CEO and COO, with the SVP of Operations Control Center removed from accountable roles.
• The December disruptions stemmed from revised FDTL norms and pilot shortages, leading to over 3,500 cancellations, but DGCA acknowledged IndiGo's swift recovery.

Why It Matters: IndiGo shares gained significantly despite a DGCA fine, as Jefferies focuses on future operational normalization.