💰 Financial Performance

Revenue Growth by Segment

FY2025 total revenue was INR 5,325.69 Cr, a decline of 24.83% YoY from INR 7,085.31 Cr. Air transport services revenue fell 24% to INR 5,136.42 Cr, while freighter and logistics services revenue dropped 42.4% to INR 186.94 Cr.

Geographic Revenue Split

Not explicitly disclosed in percentage terms; however, the company is strategically focusing on remunerative leisure and tier-2/3 domestic routes within India to improve market share.

Profitability Margins

FY2025 net profit margin was 1.1% (INR 61.93 Cr profit) compared to -5.81% (INR 423.72 Cr loss) in FY2024. Q2 FY2026 witnessed a significant downturn with a PAT loss of INR 635 Cr on total income of INR 827 Cr.

EBITDA Margin

FY2025 EBITDA margin stood at 5.4%. The operational loss (EBITDA loss) improved by 31.3% to INR 438.75 Cr in FY2025 from INR 638.35 Cr in FY2024, primarily due to better absorption of fixed expenses.

Capital Expenditure

SpiceJet raised INR 3,000 Cr through a Qualified Institutional Placement (QIP) in FY2025 to settle liabilities and fund fleet reactivation. A new order for a fresh fleet is planned to increase capacity by 2.5 times.

Credit Rating & Borrowing

Acuité upgraded the long-term rating to BB (Stable) from BB- and reaffirmed the short-term rating at A4+. CRISIL assigned an A4+ rating, recognizing the company's capital-raising ability and improved liquidity.

⚙️ Operational Drivers

Raw Materials

Aviation Turbine Fuel (ATF) is the primary operational input, representing 40-45% of total operating costs.

Key Suppliers

Key partners include Carlyle Aviation Partners (lessor), Boeing (aircraft OEM), and various global MRO (Maintenance, Repair, and Overhaul) providers for fleet reactivation.

Capacity Expansion

As of June 30, 2025, SpiceJet had 21 operational aircraft out of a total fleet of 56. The company plans to double its operational fleet to 40 aircraft and increase daily flights from 125 to 225 by the end of 2025.

Raw Material Costs

ATF costs account for 40-45% of total operating costs. Total expenses in Q2 FY2026 rose 2% QoQ to INR 1,462 Cr despite an 18% decline in ASKM, driven by ungrounding costs and forex impacts.

Manufacturing Efficiency

Passenger Load Factor (PLF) was 84.2% in Q2 FY2026, down from 85.9% in Q1 FY2026. Total CASK increased 25% QoQ to INR 8.23 in Q2 FY2026.

Logistics & Distribution

Freighter and logistics services (SpiceXpress) generated INR 186.94 Cr in revenue in FY2025, down from INR 324.83 Cr in FY2024.

📈 Strategic Growth

Expected Growth Rate

150%

Growth Strategy

Growth will be achieved by doubling the operational fleet to 40 aircraft and tripling Available Seat Kilometers (ASKM) by end-2025. This expansion is supported by the INR 3,000 Cr QIP and reactivation of grounded Boeing 737 MAX planes.

Products & Services

Low-cost passenger air travel, cargo and logistics services (SpiceXpress), and merchandise (SpiceJet Merchandise Pvt Ltd).

Brand Portfolio

SpiceJet, SpiceXpress.

New Products/Services

Paperless boarding via WhatsApp, piloted at Shillong airport, is expected to save 6 tonnes of carbon emissions per month.

Market Expansion

Targeting 225 daily flights in Winter 2025 (up from 125 in Summer 2025), focusing on remunerative leisure and tier-2/3 domestic routes.

Market Share & Ranking

SpiceJet is the fourth-largest airline in India by domestic passenger volume.

Strategic Alliances

Successful settlement with Carlyle Aviation Partners unlocked USD 79.6 million in cash maintenance reserves and USD 9.9 million in lease credits.

🌍 External Factors

Industry Trends

The Indian aviation sector is under-penetrated, offering growth potential; industry is shifting toward digital innovation and fleet modernization.

Competitive Landscape

Intense competition in the low-cost carrier segment from major domestic and international players.

Competitive Moat

Moat is based on an established low-cost carrier brand and diversified cargo revenue; sustainability depends on successful fleet reactivation and liability restructuring.

Macro Economic Sensitivity

Highly sensitive to global crude oil prices and domestic discretionary spending; economic slowdowns negatively impact passenger volumes.

Consumer Behavior

Increasing demand for seamless digital travel experiences and eco-conscious travel initiatives.

Geopolitical Risks

Vulnerable to oil price shocks, exchange rate volatility, and geopolitical tensions that could disrupt operational continuity.

⚖️ Regulatory & Governance

Industry Regulations

Subject to strict DGCA safety norms and airspace restrictions; April 2025 airspace restrictions and airport shutdowns contributed to a Q1 FY2026 revenue decline.

Environmental Compliance

Paperless boarding initiative saves 6 tonnes of carbon emissions per month; ESG focus includes employee well-being and workplace safety.

Legal Contingencies

Settled USD 24 million with Credit Suisse and USD 89.5 million with Carlyle Aviation Partners; negative tangible net worth of INR 2,983.47 Cr remains a critical financial risk.

⚠️ Risk Analysis

Key Uncertainties

Grounding of 35 aircraft (62.5% of fleet) and volatile ATF prices (40-45% of costs) pose significant risks to profitability and market share.

Geographic Concentration Risk

Primary focus on the Indian domestic market, specifically expanding into tier-2 and tier-3 cities.

Third Party Dependencies

Critical dependency on Boeing for aircraft and Carlyle Aviation for lease restructuring and fleet revival.

Technology Obsolescence Risk

Mitigated by 70% migration to public cloud and digital initiatives like WhatsApp-based boarding passes.

Credit & Counterparty Risk

Poor financial risk profile marked by negative tangible net worth of INR 2,983.47 Cr and high leverage of 13.8x Net Debt/EBITDAR.