🧠 At a Glance
SpiceJet’s financials look like their emergency landing record — unpredictable and frequently in red. While it once rivalled IndiGo in India’s low-cost airline race, today it’s burning cash, pledging promoter shares, and magically showing ₹1,452 Cr in “Other Income.” We dug into the black box — and found a flaming balance sheet.
🧳 1. The Business Class Overview (No Frills, Of Course)
- SpiceJet operates 250+ daily flights with a fleet of Boeing 737s and Q400s
- It dominates India’s UDAN regional connectivity scheme
- International routes are operational, but domestic routes are the lifeline
- Competes with IndiGo (Interglobe), Akasa, Air India, Vistara
🧯 They’ve survived plane fires, leasing defaults, and DGCA bans. But can they survive their own P&L statement?
📉 2. P&L = Pilot & Loss?
Let’s just say SpiceJet’s 5-Year P&L graph would fail a sobriety test. Here’s the rollercoaster:
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | Operating Margin | EPS |
|---|---|---|---|---|
| FY21 | ₹5,133 | -₹998 | 3% | -₹16.61 |
| FY22 | ₹6,557 | -₹1,725 | -14% | -₹28.67 |
| FY23 | ₹8,869 | -₹1,503 | -12% | -₹24.97 |
| FY24 | ₹7,050 | -₹409 | -9% | -₹5.23 |
| FY25 | ₹5,284 | ₹58 | -9% | ₹0.41 |
🔍 Even the FY25 “profit” of ₹58 Cr is thanks to ₹1,452 Cr in “Other Income” — aka the dahi-tadka on a burnt biryani.
🛠️ 3. Restructuring or Just Window Dressing?
💸 Latest Moves:
- Converting $121 million lease debt into equity at ₹65/share. Current price? ₹42. 😂
- Massive dilution: equity base grew from 602 Cr to 1,413 Cr shares in just 2 years.
- Promoters pledged 42.2% of their stake. Holding dropped from 59% → 33.5%
🎭 SpiceJet isn’t fixing the engine — they’re repainting the plane and hoping no one asks for the DGCA report.
🔥 4. Cash Burn So Hot, It Could Melt Runways
FY25 Cash Flow:
| Metric | ₹ Cr |
|---|---|
| Cash from Operations | -1,665 |
| Cash from Investing | -674 |
| Cash from Financing | +2,170 |
| Net Cash Flow | -170 |
To put it simply: They’re borrowing from Peter, paying Paul, and issuing shares to both.
🏦 5. Balance Sheet = Balance Sheesh
| FY25 | Amount (₹ Cr) |
|---|---|
| Total Assets | ₹9,116 Cr |
| Borrowings | ₹4,214 Cr |
| Negative Reserves | -₹730 Cr |
| Book Value / Share | ₹4.83 |
| Current Market Price | ₹42.2 → 8.7x Book 😵 |
📉 Even after ₹6,000 Cr in equity raised in 2 years, they have negative reserves. It’s like drinking water in a leaky bottle — and calling it hydration.
👀 6. Other Income: The Airline’s Magic Carpet
SpiceJet’s reported “Other Income” over the last 5 years is nearly ₹5,000 Cr.
Guess what? It includes:
- Aircraft sale leasebacks
- Insurance claims
- Writebacks and “settlements”
- Subsidies from UDAN and others
🎩 So their EPS didn’t fly on engines — it floated on fairy dust.
🤕 7. Red Flags? Or Just The Company Logo?
🚩 Negative operating margin for 5 straight years
🚩 Promoters’ holding down by 25% in 3 years
🚩 42.2% shares pledged
🚩 Debtor days up from 10 → 68
🚩 Interest coverage = low, ROCE = 9%, ROE = undefined
🚩 Stock trades at 8.7x book — for a loss-making company with negative net worth
🧮 8. Fair Value Range: ₹15–₹25
Let’s be generous and assume they turn profitable with ₹500 Cr PAT in future. Assigning a 15x P/E (typical for Indigo):
Fair Value = ₹500 Cr × 15 ÷ 1,413 Cr shares ≈ ₹18/share
You could even argue for ₹25 if aviation turns around. But current price of ₹42? You’re paying first-class fares for a middle-seat with no legroom and no air conditioning.
😂 TL;DR
- SpiceJet’s stock chart looks like an air crash simulator
- Profit came from “other income” — not the core flying business
- Dilution, debt, pledges, and fantasy accounting dominate the skies
- Fair value looks 40% below CMP even in a bullish scenario
🎫 “Book your ticket carefully — because this airline might not fly much higher.”
✍️ Written by Prashant | 📅 18 June 2025
Tags: SpiceJet, Aviation, Equity Dilution, PSU Bailouts, Pledged Shares, EduInvesting Satire, Stock Valuation
