Synopsis:
SpiceJet’s settlement with Carlyle unlocks $89.5M in liquidity, restructures $121.18M in leases, issues $50M in equity shares, and offers future lease relief through profit-sharing on share sales.
This small-cap Aviation Stock, engaged in providing low-cost air transport services for the carriage of passengers and cargo across domestic and international destinations in India, jumped 5 percent after securing an $89.5 million liquidity boost through the Carlyle settlement.
With a market capitalization of Rs. 4,320.30 crores, the share of SpiceJet Limited has reached an intraday high of Rs. 34.85 per equity share, rising nearly 5.41 percent from its previous day’s close price of Rs. 33.06. Since then, the stock has retreated and is currently trading at Rs. 33.70 per equity share.
What is the news?
SpiceJet Limited has finalized a settlement agreement with Carlyle Aviation Partners, giving the airline a much-needed boost in liquidity. As part of this deal, SpiceJet has gained access to $79.6 million in cash maintenance reserves for future aircraft and engine upkeep. Additionally, it has received $9.9 million in credits to reduce its lease obligations. These funds will help the airline manage operations better and continue with its restructuring plans.
The settlement also includes a major restructuring of lease obligations worth $121.18 million. To support this, SpiceJet will issue equity shares amounting to $50 million. This step strengthens the airline’s financial position and provides a more flexible way to handle its commitments.
Another important part of the agreement is a provision where, if the lessors earn more than $50 million from selling the issued shares, some of that extra money will be adjusted against SpiceJet’s future lease payments. This ensures long-term financial relief for the company.
The agreement also allows the promoter, or their chosen representative, to buy back these equity shares later, once the mandatory lock-in period and any additional agreed restrictions are over. This gives SpiceJet more options to manage its ownership and financial structure in the future.
Capacity Expansion
SpiceJet is working on capacity expansion by securing maintenance and overhaul slots to bring its grounded fleet back into service. A total of 19 engines have been sent to repair shops worldwide, including 7 for Boeing 737 NG, 6 for Boeing 737 MAX, and 6 for Q400 aircraft. This step will help the airline improve operations and meet growing demand.
For fleet expansion, SpiceJet plans to bring back about 10 aircraft by April 2026, with 4-5 aircraft returning in early winter to serve the peak travel season. The airline has also finalized lease agreements for 10 Boeing 737 aircraft starting in October 2025 and is in talks for more narrow-body and wide-body planes during October and November 2025.
Fleet Breakups
As of June 25, SpiceJet operates a fleet of 56 aircraft. This includes 5 Boeing 737-700, 3 Boeing 737-700F, 12 Boeing 737-800, 3 Boeing 737-900, 7 Boeing 737-MAX, and 24 Q400 planes, along with 2 aircraft on wet lease. The diverse fleet supports both passenger and cargo operations across domestic and international routes.
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Company Overview
SpiceJet Limited was established in 2005 and is an Indian low-cost airline headquartered in Gurgaon, Haryana. The company is the fourth largest airline in India by domestic passengers, serving around 73 destinations, including 60 domestic and 13 international.
The airline operates a fleet mainly of Boeing 737 and Bombardier aircraft and is known for its extensive network, including maximum UDAN scheme flights to remote areas. It runs a cargo subsidiary called SpiceXpress and had earlier run seaplane services under Spice Shuttle, though those were discontinued in 2021.
Recent quarter results
Coming into financial highlights, SpiceJet Limited’s revenue has decreased from Rs. 1,708 crore in Q1 FY25 to Rs. 1,120 crore in Q1 FY26, which is a drop of 34.43 percent. The net profit of the company turned a net loss, from Rs. 158 crore in Q1 FY25 to Rs. -234 crore in Q1 FY26.
In terms of ratios, the company’s ROCE and ROA stand at 29.3 percent and 0.95 percent, respectively. SpiceJet Limited has an earnings per share (EPS) of Rs. 0.44.
Written By – Nikhil Naik
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