Shares of InterGlobe Aviation, the parent company of IndiGo, rose over 3% in early trade on April 15, approaching record highs and continuing their upward trajectory. The stock touched INR 3,463 on the NSE, driven by softening crude oil prices and an optimistic outlook from the brokerage firm Motilal Oswal Financial Services.

Motilal upgraded the stock to 'Buy' from its earlier recommendation of ‘Neutral' and also raised its price target on the stock by 30% to INR6,550 from INR5,050 per share earlier.

The brokerage has termed IndiGo the “best consumption play” in India’s booming market, citing the airline’s dominant domestic presence, cost efficiency, and aggressive capacity expansion as key growth catalysts. IndiGo currently commands a market share of 61.8% in India’s aviation sector and is well-positioned to ride the wave of rising air travel demand.

Some of the risk factors states by the brokerage firm are delays in widebody aircraft deliveries, sharp volatility in crude or rupee and a higher share of business-class seating or premium fleet may dilute IndiGo's cost advantages.

The sharp uptick in share price comes as Brent crude slipped below the $90 mark, offering potential relief on operating costs for airlines. Lower fuel prices directly impact profitability in the aviation sector, given that fuel accounts for nearly 40% of an airline's expenses.

As India's skies get busier and fuel costs ease, IndiGo’s stock appears set for turbulence-free cruising at higher altitudes.