Are SpiceJet Ltd latest results good or bad?

SpiceJet Ltd's latest financial results for Q3 FY26 reflect a complex operational landscape characterized by significant challenges. The company reported a net loss of ₹261.38 crores, which represents a substantial year-on-year decline. In contrast, revenue for the same quarter reached ₹1,408.29 crores, indicating a year-on-year increase of 13.84% and a notable sequential growth of 77.72% from the previous quarter. This revenue growth suggests some recovery in demand, particularly during the festive travel season, but it has not translated into profitability. The operating margin, excluding other income, remained negative at -13.44%, although this marks a slight improvement from the previous year's -15.92%. The persistent negative profit margins, including a PAT margin of -19.45%, highlight ongoing operational inefficiencies and financial distress. Furthermore, the company continues to experience negative cash flows, with a reported operating cash outflow of ₹1,689 crores for FY25, underscoring its struggles to generate sufficient cash from core operations. SpiceJet's balance sheet reveals a negative book value of ₹-14.64 per share, raising serious concerns about its financial health and sustainability. The company has faced a significant reduction in foreign institutional investor holdings, which fell from 11.85% to 4.00% over the past months, indicating a loss of confidence among institutional investors. Overall, while SpiceJet has shown some revenue recovery, the underlying operational challenges, persistent losses, and negative cash flows present a troubling picture. The company has seen an adjustment in its evaluation, reflecting the ongoing difficulties it faces in achieving sustainable profitability and operational stability.