Shares of SpiceJet Ltd declined 3.45% on Monday, September 8, to trade at ₹33.26 on the BSE, extending losses after weak Q1 FY26 earnings and cautious commentary from analysts. The stock has slipped further from Friday’s close of ₹34.45, with the day’s trade ranging between ₹32.60 and ₹33.49.
The airline had recently reported a net loss of ₹234 crore in Q1 FY26, compared to a profit of ₹158 crore in the same quarter last year, as revenues fell 36% year-on-year to ₹1,060 crore. On a sequential basis, revenues also dropped 24%, with the airline blaming geopolitical tensions, airspace restrictions, and delays in fleet re-induction.
Despite these challenges, brokerage Nuvama has maintained a ‘Hold’ rating on SpiceJet with a target price of ₹40 per share, implying an upside potential of around 16% from current levels.
The brokerage highlighted that EBITDAR improved sharply to ₹1,230 crore in Q1 FY26 from ₹280 crore a year ago, supported by higher passenger load factors and improved yields. However, it cautioned that the airline’s Available Seat Kilometres (ASKM) fell 28% due to reduced fleet size, a factor that could delay its revival.
Nuvama also trimmed its FY26E and FY27 EBITDAR estimates by 14% each, pointing to delayed recovery despite SpiceJet completing a ₹3,000 crore QIP and working on restructuring agreements with lessors.
For investors, the stock remains a wait-and-watch case, with a turnaround dependent on timely fleet expansion and sustained operational improvements.
