SpiceJet Ltd Reports Mixed Quarterly Results Amid Continued Market Challenges

Quarterly Revenue Growth Signals Operational Recovery

In the quarter ended December 2025, SpiceJet reported net sales of ₹1,408.29 crores, marking a robust 22.1% increase compared to its average sales over the previous four quarters. This growth suggests a positive trajectory in passenger volumes and ticket pricing, reflecting a partial recovery in demand within the airline sector. The increase in sales is a welcome sign amid a challenging macroeconomic environment and rising fuel costs that have pressured the industry.

However, this top-line improvement has not translated into profitability. The company’s net profit after tax (PAT) for the quarter plunged to a loss of ₹241.57 crores, representing a staggering 96.1% decline relative to its four-quarter average. This sharp contraction in earnings highlights persistent cost pressures and operational inefficiencies that continue to weigh heavily on SpiceJet’s bottom line.

Financial Trend Improvement: From Very Negative to Negative

SpiceJet’s financial trend score has improved from a very negative -29 to a negative -7 over the past three months, signalling some stabilisation in its financial health. While this shift indicates that the company is making incremental progress in addressing its challenges, the overall negative score reflects ongoing concerns about its ability to generate sustainable profits and manage its capital structure effectively.

Return on Capital Employed and Efficiency Ratios Remain Troubling

The airline’s return on capital employed (ROCE) for the half-year period stands at a deeply negative -18.29%, the lowest recorded in recent times. This metric underscores the company’s inability to generate adequate returns from its invested capital, a critical factor for long-term viability and investor appeal.

Operational efficiency ratios also paint a bleak picture. The inventory turnover ratio has dropped to 24.91 times, the lowest in the half-year period, indicating slower utilisation of inventory assets. Similarly, the debtors turnover ratio has declined to 4.85 times, signalling delays in receivables collection and potential liquidity constraints. These deteriorations in key operational metrics compound the financial strain on SpiceJet, limiting its flexibility to navigate market headwinds.

Stock Performance Lags Market Benchmarks

SpiceJet’s share price closed at ₹19.88 on 13 February 2026, down 2.60% from the previous close of ₹20.41. The stock is trading near its 52-week low of ₹19.70, a stark contrast to its 52-week high of ₹56.80, reflecting significant investor scepticism.

Comparing returns against the broader Sensex index reveals a pronounced underperformance. Over the past week, SpiceJet’s stock declined by 10.29%, while Sensex fell only 0.79%. The one-month and year-to-date returns are even more stark, with SpiceJet down 25.40% and 33.15% respectively, versus Sensex declines of less than 1% and 2.7%. Over longer horizons, the disparity widens further: a one-year return of -55.92% against Sensex’s 8.91%, and a five-year return of -78.07% compared to Sensex’s 60.87% gain. This persistent underperformance highlights the market’s lack of confidence in SpiceJet’s recovery prospects.

Mojo Score and Ratings Reflect Elevated Risk

MarketsMOJO assigns SpiceJet a Mojo Score of 3.0, categorising it with a Strong Sell grade as of 23 December 2024, an upgrade from the previous Sell rating. This adjustment reflects a slight improvement in the company’s financial trend but remains firmly negative given the ongoing losses and operational challenges. The market capitalisation grade stands at 3, indicating a small-cap status with associated liquidity and volatility risks.

Investors should note that despite the revenue growth, the deteriorating profitability and poor returns on capital employed weigh heavily on the company’s outlook. The Strong Sell rating signals that the stock is expected to underperform relative to peers and broader market indices in the near term.

Industry Context and Sector Challenges

The airline sector continues to face headwinds from fluctuating fuel prices, regulatory pressures, and evolving travel demand patterns post-pandemic. While some competitors have managed to stabilise margins and improve cash flows, SpiceJet’s financial metrics lag behind industry averages, reflecting structural inefficiencies and a challenging competitive environment.

Given the sector’s capital-intensive nature, the negative ROCE and low turnover ratios raise concerns about the company’s ability to sustain operations without further capital infusion or strategic restructuring.

Investor Takeaway: Caution Advised Amid Mixed Signals

SpiceJet’s recent quarterly performance offers a mixed bag for investors. The encouraging 22.1% revenue growth demonstrates the company’s ability to capture market demand, yet the near-total collapse in profitability and negative returns on capital employed highlight deep-rooted challenges. Operational inefficiencies, as evidenced by declining turnover ratios, further complicate the recovery narrative.

With the stock trading near its 52-week low and a Strong Sell rating from MarketsMOJO, investors should approach SpiceJet with caution. The company’s financial health remains fragile, and the path to sustained profitability is uncertain. Those considering exposure to the airline sector may benefit from evaluating alternative opportunities with stronger fundamentals and more favourable outlooks.

In summary, while SpiceJet has made some progress in stabilising its financial trend, significant hurdles remain. The company’s ability to improve operational efficiency, reduce losses, and generate positive returns on capital will be critical to reversing its prolonged underperformance relative to the broader market.

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