Analysts Slash IndiGo Earnings on Higher Costs, FDTL Impact

• IndiGo's earnings estimates are sharply cut by analysts due to operational disruptions, new pilot-duty rules (FDTL), and rising costs.
• Brokerages like Jefferies, IIFL, and Kotak have slashed FY2026 EPS forecasts by 18% to 64%, citing higher staff costs, rupee depreciation, and reduced utilization.
• The airline's stock has seen a significant drop, and analysts anticipate narrower margins, slower capacity growth, and a structural increase in costs.
• Analysts view FY26 as a reset year for IndiGo, expecting thinner margins and a gradual recovery, though its long-term dominance is expected to remain intact.

Why It Matters: IndiGo's future profitability and market dominance are at risk due to rising costs and new rules.