IndiGo shares fall 2% after Rs 238 crore Q1 loss. So why are Citi and Nuvama raising target prices?

InterGlobe Aviation (IndiGo) reported a net loss of Rs 238 crore in Q1 FY27 versus a profit in the year-ago quarter, despite revenue rising 20 percent year-on-year to Rs 24,584 crore. The swing to loss was driven by a sharp 86 percent year-on-year jump in aircraft fuel expenses to Rs 10,833 crore, pushing total expenses up 34 percent. Despite the loss, Citi raised its target price to Rs 5,800 and Nuvama to Rs 5,583, while JM Financial cut its target to Rs 5,630, with all three maintaining positive ratings citing strong yields and supply discipline.