Spicejet Ltd

Legal Proceedings and Financial Impact ️

• Supreme Court upheld order requiring SpiceJet to deposit INR 144 crore as security pending appeal.
• SpiceJet has paid INR 730 crore to Kalanithi Maran and KAL Airways, including INR 580 crore principal and INR 150 crore interest.
• Claims exceeding INR 1,300 crore by KAL Airways and Kalanithi Maran were rejected with finality.
• All challenges to the arbitral award by KAL Airways and Kalanithi Maran have been dismissed.
• SpiceJet expects a potential refund of INR 449 crore upon conclusion of the legal process.
• Delhi High Court showed prima facie support for SpiceJet’s refund claims against KAL Airways and Kalanithi Maran.

Business Overview

• SpiceJet operates passenger and cargo airline services with domestic and international segments.
• Total fleet of 70 aircraft including Boeing 737 variants and Q400 turboprops.
• Recent fleet expansion includes wet lease aircraft increasing operational capacity.

Key Operational Highlights

• ASK (Available Seat Kilometers) increased 56% QoQ and 11% YoY to 2,772 million.
• Passenger load factor improved to 89.5%, up 6% QoQ and 2% YoY.
• Number of passengers rose 77% QoQ and 16% YoY to nearly 2 million.
• Average daily flights increased 45% QoQ to 145 flights.
• Domestic ASKM share rose to 64%, up 36% QoQ and 10% YoY.

Financial Performance

• Total income grew 85% QoQ to INR 1,517 Cr but declined 7% YoY.
• Income from operations increased 77% QoQ to INR 1,385 Cr, up 13% YoY.
• EBITDA loss narrowed to INR 59 Cr from INR 417 Cr loss QoQ; margin improved to -4%.
• PAT loss reduced to INR 268 Cr from INR 635 Cr loss QoQ; margin at -18%.
• PAX revenue rose 81% QoQ to INR 1,235 Cr, driven by 165% domestic revenue growth.
• Ancillary revenue doubled QoQ to INR 77 Cr, mainly from cancellation fees.
• Total CASK (ex-forex & exceptional) declined 14% QoQ to INR 6.20 per ASK.
• Fuel cost per ASK increased 13% QoQ to INR 1.98.
• Aircraft lease rentals surged 836% QoQ to INR 234 Cr due to wet lease expansion.

Capital Structure & Liquidity

• Significant increase in aircraft lease rentals reflects higher wet lease utilization.
• No explicit details on debt or equity changes disclosed.

Strategic Priorities & Outlook

• Focus on capacity expansion with increased fleet and daily flights.
• Shift towards higher domestic capacity share to capture market demand.
• Ancillary revenue growth targeted through cancellation and baggage fees.

Risks & Mitigation

• Exceptional INR 18.56 Cr cost related to new labor law implementation impacted results.
• Foreign exchange losses reduced significantly QoQ but remain a risk factor.

Governance & Leadership

• No significant board or management changes disclosed in this quarter.

Financial Results Approval

• Board approved unaudited standalone and consolidated Q3 FY26 results for quarter ended Dec 31, 2025
• Standalone net loss of Rs. 2,674.72 million for Q3 and Rs. 11,405.57 million for nine months ended Dec 31, 2025
• Consolidated net loss of Rs. 2,597.24 million for Q3 and Rs. 11,198.14 million for nine months ended Dec 31, 2025
• Exceptional item of Rs. 185.62 million (standalone) and Rs. 198.08 million (consolidated) due to New Labour Codes
• Foreign exchange loss impacted results due to lease liability restatements

Auditor Remarks

• Qualified conclusion due to non-compliance with various laws and regulations
• Material uncertainty on going concern due to accumulated losses and negative working capital
• Emphasis on ongoing litigation with erstwhile promoters pending in Delhi High Court
• Receivable of Rs. 25,507.70 million from subsidiary SpiceXpress to be settled by equity shares issuance
• No modification of auditor conclusion despite uncertainties and litigations

Significant Board Decisions

• Completed preferential allotment of 112.5 million equity shares to aircraft lessors for USD 54 million dues
• Board approved fleet ramp-up to 55-60 aircraft for winter schedule via wet/damp leases and grounded aircraft return
• Plan to strengthen liquidity by monetising surplus spare parts and grounded assets
• Filed application for listing on NSE

Operational Highlights

• Revenue from operations increased 77% QoQ to Rs. 1,384 crore in Q3 FY26
• Passenger Load Factor maintained at 90% in Q3 FY26
• Passenger RASK improved to Rs. 4.74 in Q3 FY26 from Rs. 4.04 in Q2 FY26
• Inducted 16 aircraft on wet lease including Boeing NG and 737 Max models
• Domestic market share increased to 4.3% in December 2025 from 1.9% in September 2025
• Launched non-stop flights to Najaf (Iraq), Ahmedabad-Sharjah, and daily flights to Imphal

Legal and Compliance Matters

• Ongoing arbitration and court proceedings with erstwhile promoters over Rs. 5,790.90 million advances
• Company paid Rs. 1,500 million to erstwhile promoters under court orders without prejudice
• Delays in TDS and GST payments and filings; interest accrued on statutory dues
• Non-compliance with RBI foreign exchange repatriation timelines
• No CFO re-appointment within statutory time frame
• Amounts paid under protest for IGST and customs duty on re-import of aircraft parts considered recoverable

Corporate Governance

• No changes in directors or key management personnel disclosed
• Employee stock options: 71,500 exercised in Q3 and 195,600 in nine months ended Dec 31, 2025

🗓️ Meeting Details

• Board meeting scheduled for February 12, 2026.

📊 Financial Performance

• Approval of unaudited standalone and consolidated financial results for Q3 ended December 31, 2025.