Why Did SpiceJet’s Stock Plunge Over 5% Following Disappointing Q1 Results?
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Synopsis
SpiceJet's stock has taken a hit over 5 percent after revealing poor Q1 FY26 results, leading to losses and declining revenues. The airline's leadership remains optimistic about future recovery amidst industry challenges.
Key Takeaways
- SpiceJet reported a net loss of Rs 234 crore in Q1 FY26.
- Revenue fell 36% to Rs 1,059.88 crore.
- EBITDA loss stood at Rs 18 crore.
- Passenger Load Factor remained at 86%.
- Domestic brokerage Nuvama cut target price to Rs 40.
Mumbai, Sep 8 (NationPress) SpiceJet's stock experienced a decline of over 5 percent during intra-day trading on Monday, following the airline's release of disappointing earnings for the first quarter of the fiscal year 2025-26 (Q1 FY26).
The budget airline reported a consolidated net loss of Rs 234 crore for the April-June quarter, marking a significant downturn from the net profit of Rs 158.18 crore achieved in the same quarter the previous year. On a standalone level, the net loss stood at Rs 235.08 crore.
SpiceJet’s operational revenue also faced a substantial decline, plummeting nearly 36 percent year-on-year (YoY) to Rs 1,059.88 crore, in contrast to Rs 1,646.21 crore during the same period last fiscal year.
The airline attributed this downturn to several challenges, including geopolitical tensions with a neighboring country and restrictions in international airspace that negatively impacted demand for leisure travel.
Moreover, the airline encountered delays in returning grounded aircraft to service due to global supply chain disruptions and engine maintenance issues.
Ajay Singh, the Chairman and Managing Director of SpiceJet, remarked that these results reflect the extraordinary hurdles faced by the aviation sector, highlighting the turbulence caused by geopolitical factors, restricted air routes, and supply chain interruptions.
Despite these challenges, Singh expressed optimism regarding the airline's resilience and ongoing efforts to enhance fleet reliability, reduce costs, and broaden its network.
He voiced confidence that India's rapidly expanding aviation and tourism sectors would facilitate a recovery in the upcoming quarters.
The airline also reported an EBITDA loss of Rs 18 crore in Q1 FY26, a stark contrast to the profit of Rs 402 crore recorded a year earlier.
Some operational metrics remained stable, with the Passenger Revenue per Available Seat Kilometer (PAX RASK) at Rs 4.74 and a Passenger Load Factor (PLF) of 86 percent.
Meanwhile, SpiceJet’s total expenses for the quarter decreased by 25 percent to Rs 1,435.04 crore, down from Rs 1,919.58 crore the previous year.
Following the results, domestic brokerage firm Nuvama revised its target price for SpiceJet down to Rs 40 from Rs 48, maintaining a 'Hold' rating. The brokerage noted the airline's Q1 performance was weaker than anticipated due to reduced capacity, modest load factors, and increased costs.
Point of View
My perspective remains steadfast in highlighting the resilience of the aviation sector in India. Despite SpiceJet's recent setbacks, the airline industry is poised for recovery, driven by India's burgeoning tourism and aviation markets. We believe in the potential for growth and adaptation even in challenging times.
NationPress
09/09/2025
Frequently Asked Questions
What caused SpiceJet's stock to fall?
SpiceJet's stock fell due to weak Q1 FY26 earnings, with a net loss of Rs 234 crore and a 36% decline in revenue.
How much did SpiceJet's revenue decrease?
SpiceJet's revenue from operations decreased by nearly 36% year-on-year, dropping to Rs 1,059.88 crore.
What is the current outlook for SpiceJet?
Despite challenges, SpiceJet's leadership remains optimistic about recovery, focusing on fleet reliability and cost-cutting measures.
What were the key financial metrics in Q1 FY26?
SpiceJet reported a consolidated net loss of Rs 234 crore and an EBITDA loss of Rs 18 crore.
How did brokerage firms react to SpiceJet's results?
Brokerage firm Nuvama reduced its target price for SpiceJet to Rs 40 from Rs 48, maintaining a 'Hold' rating.
