SpiceJet stock dives 8% post quarterly results; Nuvama shares target price

Shares of SpiceJet Ltd cracked during the trading session on Thursday even as the troubled airline counter flew back to black in the December 2024 quarter. However, the company reported a net loss in the September 2024 quarter but revenue from the operations and other metrics came in at better figures.

SpiceJet reported the earnings for both quarters on Wednesday, February 26. The company reported a loss of Rs 441.7 crore for July-September 2024 period, while it clocked a net profit of Rs 26 crore in the October-December 2024. The company had clocked a net loss of Rs 300 crore in the year ago period.

The airline’s total revenue surged by 35 per cent to Rs 1,651 Crore, driven by strong passenger demand, improved yields, and enhanced operational efficiency. Passenger Load Factor (PLF) stood at an impressive 87 per cent for the Q3FY25. SpiceJet's net worth turned positive at Rs 70 crore, for the first time in a decade.

Following the announcement of earnings, shares of SpiceJet dropped 8.17 per cent to Rs 44.05 on Thursday, against its previous close at Rs 47.97 on Tuesday. The total market capitalization of the company stood near Rs 5,800 crore. The stock has crashed nearly 45 per cent from its 52-week high at Rs 79.90 hit in September 2024.

This quarter’s performance is a testament to SpiceJet’s resilience and relentless focus on financial and operational recovery. For the first time in a decade, the company has turned net worth positive – an important milestone that underscores the success of turnaround strategy, said Ajay Singh, Chairman and Managing Director at SpiceJet.

SpiceJet carried 9.69 lakh passengers, commanding a market share of 2.5 per cent in September 2025 quarter. It carried 15.90 lakh passengers commanding a market share of 4.3 per cent in the year-ago period. Similarly, SpiceJet carried 12.67 lakh passengers, commanding a market share of 3 per cent in Q3FY25, which is down from 21.84 lakh passengers, or 5.6 per cent a year ago.

SpiceJet's Q3FY25 EBITDAR offset operational weakness. Its operations are set to improve as it has started to induct grounded fleet by settling with its lessors for outstanding dues, said Nuvama Institutional Equities. Revival is likely to be gradual post-QIP with turnaround a key monitorable, it said.

SpiceJet's lack of transparency in sharing key operational data remains a major concern while Q3 yields jumped 18 per cent YoY on better route mix while Q2 yields fell 4 per cent YoY. "We are cutting FY25E/26E EPS by 14 per cent/13 per cent on operational softness. We are cutting target price to Rs 52 as we roll forward to Q3FY27E, revise EV/EBITDAR to 7 times," it added with a 'hold' rating.