A major low-cost airline has reported a remarkable quarterly profit surge of 1,585 percent, driving its stock up 5 percent. This article details the airline’s impressive turnaround alongside its strategic debt reduction plan, involving restructuring in lease dues by issuing equity to a key lessor.
SpiceJet Limited’s stock, with a market capitalisation of Rs. 5,735.62 crores, rose to Rs. 46, hitting a high of up to 5 percent from its previous closing price of Rs. 43.81. However, the stock over the past year has given a negative return of 17.8 percent.
Debt reduction plan
SpiceJet will restructure $121.17 million in lease dues by issuing up to $50 million in equity to Carlyle Aviation, reducing debt and improving financials. The deal includes payment waivers, revised lease terms, and no immediate promoter benefit, with Carlyle limited to under a 10 percent stake post-issuance.
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Company Debt
The company’s debt has steadily declined, improving its financial health. Total debt dropped 43 percent from Rs. 7,348 cr in FY23 to Rs. 4,214 cr in FY25. Year-on-year, debt fell 27 percent in FY24 and another 22 percent in FY25. This consistent reduction reflects stronger cash flows and balance sheet discipline, though the debt-to-equity ratio remains high at 6.96.
Q4 Financial highlight
The company reported revenue of Rs. 14,655.63 crore in Q4FY25, marking an 18.5 percent increase QoQ from Rs. 12,370.41 crore. However, it declined 15.7 percent YoY compared to Rs. 17,383.85 crore in Q4FY24. Over the past three years, the company’s revenue has shown a negative CAGR of 7 percent, indicating a downward trend in long-term sales growth.
Net profit for Q4FY25 stood at Rs. 3,417.37 crore, up sharply from Rs. 202.73 crore in Q3FY25, reflecting a massive QoQ growth of over 1,585 percent. On a YoY basis, profit surged 169.4 percent from Rs. 1,268.74 crore. The company’s 3-year profit CAGR of 27 percent shows strong long-term profitability despite revenue pressures.
Written By Fazal Ul Vahab C H
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