{"id":56943,"date":"2025-06-16T16:11:15","date_gmt":"2025-06-16T10:41:15","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=56943"},"modified":"2025-11-06T23:26:21","modified_gmt":"2025-11-06T17:56:21","slug":"turnaround-stocks-2025-spicejet-posts-first-profit-in-7-years-blue-skies-ahead","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/turnaround-stocks-2025-spicejet-posts-first-profit-in-7-years-blue-skies-ahead\/","title":{"rendered":"Turnaround Stocks 2025: SpiceJet Posts First Profit in 7 Years. Blue Skies Ahead?"},"content":{"rendered":"
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Over the weekend, budget<\/a> carrier SpiceJet posted its Q4 earnings<\/a>. The company reported its highest ever quarterly profit and also staged a turnaround for the full year FY25.<\/p>\n\n\n\n

The stock price<\/a> gained 5% in intraday trade today reacting to the same.<\/p>\n\n\n\n

Note that this development comes at a time when SpiceJet is reacting to a triple threat \u2013 oil price surge, the Air-India crash, and rising geopolitical tensions<\/a> \u2013 all of which are adding pressure on aviation stocks.<\/p>\n\n\n\n

Let\u2019s look at the detailed numbers of SpiceJet and understand how the company got here.<\/p>\n\n\n\n

SpiceJet Q4 Results<\/strong><\/p>\n\n\n\n

In Q4, SpiceJet\u2019s revenue declined by 17% YoY, owing to lesser operational fleets during the quarter. <\/p>\n\n\n\n

The company operated 25 aircrafts in Q4FY25, lower than 28 in the previous quarter. Due to this, its available seat kilometers (ASKM) fell 29%. <\/p>\n\n\n\n

Despite this decline in revenue, SpiceJet\u2019s EBITDA rebounded sharply owing to better yields and a better route mix. During the quarter, its yields rose by 28%.<\/p>\n\n\n\n

SpiceJet\u2019s fare yields were better due to the religious travel boom including Mahakumbh<\/a>. If you remember, airfares had surged almost 5x-10x or even more during this period.<\/p>\n\n\n\n

Subsequently, its net profit surged more than two-fold or 167% during the quarter. <\/p>\n\n\n\n

SpiceJet Q4FY25 Performance<\/strong><\/p>\n\n\n\n\n\n

Source: Investor Presentation<\/p>\n\n\n\n\n\n

Source: Investor Presentation<\/p>\n\n\n\n

SpiceJet Full Year Results<\/strong><\/p>\n\n\n\n

SpiceJet\u2019s share price and its financial performance \u2013 both have remained rangebound over the past few years.<\/p>\n\n\n\n

Although the airline sector has grown, SpiceJet has been unable to grow its profits due to constant pressure on its profitability from fuel costs as well as interest and depreciation.<\/p>\n\n\n\n

Even though its topline has grown, it has continued to incur losses. A classic case of growth having a negative impact on value.<\/p>\n\n\n\n

But the story seems to be changing now\u2026<\/p>\n\n\n\n

For the full year FY25, SpiceJet posted a profit of Rs 48 crore, the first profit in seven years.<\/p>\n\n\n\n

This was on the back of better yields, cost optimisation measures, and capital infusion.<\/p>\n\n\n\n

SpiceJet FY25 Performance<\/strong><\/p>\n\n\n\n\n\n

Source: Investor Presentation<\/p>\n\n\n\n

Capital Infusion<\/strong><\/p>\n\n\n\n

SpiceJet improved its net worth during Q4, following a promoter equity infusion of Rs 500 crore.<\/p>\n\n\n\n

SpiceJet Capital Infusion Update<\/strong><\/p>\n\n\n\n\n\n

Source: Investor Presentation<\/p>\n\n\n\n

Restructuring Update<\/strong><\/p>\n\n\n\n

Apart from upbeat earnings, SpiceJet also announced a restructuring update – the company plans to restructure its $121.18 million in lease arrears owed to lessors managed by Carlyle Aviation Management, through a securities issuance.<\/p>\n\n\n\n

According to Spicejet\u2019s filing –<\/p>\n\n\n\n