India’s largest airline was jolted on March 10, 2026, when IndiGo chief executive Pieter Elbers resigned with immediate effect after just over three years at the helm. The abrupt exit comes as the airline works to restore operational reliability after a major scheduling disruption in December 2025 while continuing one of the fastest fleet expansion programmes in global aviation.
Co-founder Rahul Bhatia has stepped in to run the airline on an interim basis while the board begins the search for a permanent successor. Despite the sudden leadership change, brokerage Jefferies maintained its ‘Buy’ rating on IndiGo’s parent InterGlobe Aviation with a price target of Rs 6,140, implying roughly 45% upside from the current price of Rs 4,236.
The brokerage argues that IndiGo’s operating discipline, scale and promoter oversight have allowed the airline to maintain continuity during past leadership transitions.
The ‘unexpected’ resignation
Pieter Elbers, who joined IndiGo as chief executive in September 2022 after leading KLM, stepped down citing personal reasons.
Jefferies described the announcement as unexpected.
“The move comes as a surprise given the airline’s strong growth trajectory and Elbers’ relatively short tenure since September, 2022,” the brokerage said in its flash note.
The board responded quickly, appointing managing director and co-founder Rahul Bhatia to take interim charge while a permanent replacement is identified.
In the company’s statement, the chairman said Bhatia would assume management responsibilities “to strengthen the company’s culture, reinforce operational excellence and deepen its commitment to delivering exceptional service of care, reliability and professionalism to its customers.”
Bhatia also released a statement following the announcement.
“Having founded and nurtured InterGlobe Aviation for twenty two years, I feel a deep sense of personal commitment and responsibility towards our nation, and towards the airline’s customers, employees, shareholders and all other stakeholders.”
Rahul Bhatia returns to familiar territory
For IndiGo, a founder stepping back into day-to-day leadership during a management change is not unusual.
Since the airline launched operations in 2005, leadership has passed through Bruce Ashby, Aditya Ghosh, Ronojoy Dutta and Pieter Elbers, with Rahul Bhatia stepping in for interim roles during transitions.
Jefferies notes that previous changes in leadership have not disrupted IndiGo’s operating model or its cost advantage in the domestic market.
“Prior transitions from Bruce Ashby to Aditya Ghosh, Ronojoy Dutta have been largely smooth, with promoters maintaining strategic control,” the brokerage said.
That continuity, according to Jefferies, demonstrates the institutional depth built within the airline over two decades.
What Elbers built during his tenure
Elbers presided over one of the most ambitious expansion phases in IndiGo’s history.
During his tenure, fleet size grew from about 300 aircraft to roughly 440 aircraft, while domestic market share increased from about 55% to nearly 65%.
The airline also placed its largest ever aircraft order for 500 planes and moved ahead with a wide-body aircraft order aimed at long-haul international routes.
Elbers introduced several consumer initiatives as well. These included the airline’s loyalty programme and IndiGo Stretch, a business-class seating product rolled out first on select domestic routes and later on international flights.
Alongside these initiatives, IndiGo increased the use of damp and wet leasing arrangements to add capacity quickly while awaiting aircraft deliveries.
Earlier, under Aditya Ghosh between 2008 and 2018, IndiGo had grown from about 25 aircraft to more than 200 aircraft and expanded domestic market share from roughly 10% to over 40%.
Jefferies estimates that international flying now accounts for more than 30% of IndiGo’s available seat kilometres (ASKs).
IndiGo: The financial picture
IndiGo remains profitable, although earnings are expected to soften in the near term.
Jefferies estimates net profit excluding foreign exchange impact at Rs 7,563 crore for FY26, compared with Rs 8,872 crore in FY25.
Earnings per share are projected to decline to Rs 79 in FY26 from Rs 188 in FY25, before recovering to Rs 174 in FY27.
Revenue, however, continues to expand. Jefferies projects total revenue of Rs 86,029 crore in FY26, rising to Rs 98,471 crore in FY27.
EBITDA margin is expected to ease to 18.6% in FY26 before improving to about 23% in FY27 as cost pressures moderate.
Jefferies values the airline using 10× FY28 EV/EBITDA, which leads to the brokerage’s Rs 6,140 price target.
Based on its estimates, the stock trades at 55.3× FY26 earnings, 25.2× FY27 earnings and 18.8× FY28 earnings.
IndiGo: 4 factors Jefferies is watching closely
Jefferies outlined several factors that could influence the airline’s performance over the coming quarters.
Operational reliability remains the first priority. The December 2025 scheduling disruption affected IndiGo’s reputation for punctuality, making consistent on-time operations a key objective.
The second factor is regulatory clarity on the airline’s summer schedule. The brokerage said discussions with India’s aviation regulator could influence capacity deployment and earnings forecasts.
Leadership succession will also attract attention as markets assess the profile of the next permanent chief executive.
Finally, aviation turbine fuel prices and geopolitical tensions in the Middle East remain risks for airline costs.
Jefferies assumes ATF prices of about Rs 91 per litre in FY26, compared with Rs 95 per litre in FY25.
IndiGo’s dominance in the domestic market
Even with the leadership change, IndiGo’s position in the Indian aviation market remains unusually strong.
The airline currently holds about 64% domestic passenger market share in FY26 to date, according to Jefferies data.
That share has grown from just 3% in FY07, illustrating the airline’s rise to dominance in India’s aviation sector.
Fleet size stood at about 440 aircraft as of December 2025, and Jefferies expects the fleet to expand to 476 aircraft by FY26 end and 567 aircraft by FY28.
Capacity growth also remains strong. Available seat kilometres are projected to grow 11% in FY26, 11% in FY27, and 15% in FY28.
Return on equity is projected at 29% in FY26, improving to 44% in FY27 and 40% in FY28.
Conclusion
Jefferies has kept its Buy recommendation intact despite the unexpected change at the top. The brokerage maintains a buy rating, citing IndiGo’s scale, cost discipline and strong domestic position.
The key risks include higher crude oil prices, rising aviation turbine fuel costs, depreciation in the Indian rupee and improved aircraft supply for competitors. IndiGo has experienced leadership changes before without disrupting its operating model. The coming months will show whether that pattern continues as the airline pursues its next phase of expansion.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.