Synopsis: Airline stock hit the upper circuit after the airline expanded its fleet with three Airbus A320 aircraft, boosting investor sentiment around capacity growth, network expansion, and turnaround plans.
The share of this company, which is principally engaged in the business of providing air transport services for the carriage of passengers and cargo, gained investor traction after its expansion plans and others
With a market capitalization of Rs 1,880 crore, SpiceJet Ltd’s share on Thursday made a day high of Rs 12.32 per share, up by 10 percent, hitting the upper circuit in the day’s trade from its previous day’s close price of Rs 11.20 per share. The company’s share a negative return of 69 percent over the last year.
Factors that might have fueled the rally today?
Fleet Expansion: SpiceJet has inducted three Airbus A320 aircraft under damp lease arrangements, with commercial operations expected to begin later this week. The addition is aimed at increasing operational capacity and supporting the airline’s expansion plans.
Network Growth: The newly inducted aircraft will help SpiceJet strengthen connectivity on key domestic routes and launch new services ahead of the busy travel season, allowing the airline to cater to higher passenger demand.
Further Capacity Addition: SpiceJet is in advanced discussions with several lessors to induct more aircraft in the coming months. This forms part of the airline’s broader strategy to expand its fleet and improve operational efficiency.
Volume Surge: The stock saw strong investor interest, with hourly trading volumes rising from around 5 million shares to 11 million shares, a 120 percent increase, reflecting increased market participation and positive sentiment.
Technical View: The stock has moved above its key 50-day Exponential Moving Average (EMA) and is now heading towards its 200-day EMA. This technical setup indicates improving momentum and suggests the stock is gaining strength.
About the Company
SpiceJet is a prominent Indian low-cost carrier headquartered in Gurugram, Haryana, offering budget-friendly domestic and international flights. Operating primarily with Boeing 737 and Q400 aircraft, it serves dozens of destinations.
Financial Highlights: Revenue from operations increased 12.43 percent YoY to Rs 1,384 crore in Q3 FY26 from Rs 1,231 crore in Q3 FY25. Its operating margin improved to negative 14 percent in Q3 FY26 from negative 15 percent in Q3 FY25. However, the company reported a net loss of Rs 269 crore in Q3 FY26, compared to a net profit of Rs 25 crore in Q3 FY25. Earnings per share also declined to a loss of Rs 1.76 per share in Q3 FY26, against earnings of Rs 0.19 per share in Q3 FY25.
The delay in SpiceJet’s Q4 results is mainly due to the company’s ongoing financial restructuring, cash flow constraints, and pending audit finalisation. Its limited operational fleet and the complexity of completing financial statements during the turnaround process have also contributed to the delay.
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