Despite decent Q4 results, brokerages have retained hold call and slashed EDITDA estimates of Spicejet for FY26/27 as sharp scale-up is awaited.
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PUNIT PARANJPE
SpiceJet shares gained 5 per cent in early trade on Monday after posting a record high quarterly net profit of ₹319 crore for Q4 FY25.
Despite decent Q4 results, brokerages have retained hold call and slashed EDITDA estimates for FY26/27 as sharp scale-up is awaited.
Nuvama Institutional Equities maintained hold rating on the stock at a lower target price of ₹48. Nuvama cited in its report that the Q4 marked a stronger-than-expected yield environment due to the 45-day Maha Kumbh festival and the airline’s focus on non-metro destinations under the UDAN scheme. However, the available seat kilometre (ASKM) fell 29 per cent y-o-y and passenger load factor (PLF) tanked 92 per cent y-o-y.
The cost per available seat kilometre (CASK) came in flat as negative operating leverage offset the fall in overheads due to a reduction in fleet size. Fuel CASK decreased 6 per cent y-o-y, underperforming the 9 per cent cut in ATF prices due to increased VAT rates in certain states.
Nuvama has cut FY26 and FY27 EBITDAR estimates by 14 per cent each. The brokerage expects revival likely to be gradual after QIP.
InCred Equities has slashed FY26 EBITDAR estimate by 43 per cent and has retained hold rating at ₹47 per share. Sharp uptick in domestic traffic is an upside risk while compression in profit margin is a downside risk, it added.
Shares traded flat on the BSE at ₹43.80 as at 11.50 am after opening higher at ₹46 from the previous close of ₹43.81.
Published on June 16, 2025
