IndiGo’s profits soar in June quarter, but what its investors want is peace

If distractions were really helpful, InterGlobe Aviation Ltd’s June quarter results are as good as they come. In the midst of the messy, public spat between the airline company’s co-founders, the company reported a standout performance, with reported net profit being about 60% higher than the Street’s already optimistic estimates. InterGlobe runs IndiGo, India’s largest airline.

As an analyst at a domestic brokerage puts it, “While the results are impressive, it’s unlikely that the IndiGo stock will go back to its earlier highs because of the unresolved spat between the co-founders.” IndiGo’s management tried to assuage investor concerns by saying that the only disagree between the co-founders was related to their shareholder agreement, and that other matters such the airline’s international expansion plans are unaffected. But as the wise saying goes, “When elephants fight, it is the grass that suffers.”