SpiceJet shares crash to ₹12.88 in 2026 after a massive block deal, even as market share doubles and capacity expands. Explore the reasons behind the sharp fall, financial losses, investor concerns, and whether the airline’s turnaround plan can revive confidence.

New Delhi: In a surprising situation, shares of SpiceJet Ltd fell to a new 52-week low of ₹12.88 on February 25, 2026. The stock hit the 10% lower circuit after one of the biggest block deals in recent months. This sharp fall happened even though the airline has been increasing its flights and regaining market share. Investors, however, are not convinced, and the stock has dropped 25% in just seven trading sessions.

Huge Block Deal Leads to Fresh Selling

Around 15 crore shares, equal to about 8.4% of the company’s total equity, were sold in a large block deal. This caused the stock to fall 9.99% from its previous closing price of ₹14.31. The stock had already closed 9.72% lower on February 24 after touching an intraday low of ₹14.11.

The fall has been steep. The stock has dropped 39% in one month, 60% in six months, and more than 70% in the past year. It has performed much worse than the Sensex. Technical analysts say the stock is trading below all major moving averages, and strong support is visible only around ₹10–12 levels.

Strong Operational Growth: Market Share Doubles

Even though the share price is falling, the airline’s operations show strong growth.

• Domestic market share increased from 1.9% in September 2025 to 4.3% in December 2025, more than doubling in three months.
• Available Seat Kilometres (ASKMs) almost doubled to 105 crore in Q3 FY26. This growth came after adding 16 aircraft and expanding routes and flight schedules.
• On February 19, 2026, the airline signed a Memorandum of Understanding (MoU) to add 10 more aircraft.

Debojo Maharshi, Chief Business Officer of SpiceJet, said that doubling capacity in one quarter was a major milestone and the new MoU is a positive development.

The airline now plans to reach over 220 crore ASKMs by Winter 2026, operate more than 300 daily flights, and expand its fleet to around 60 aircraft. It plans to do this through wet and damp leases and by restarting grounded aircraft. Currently, it operates about 250 daily flights to more than 48 destinations, with a strong presence on UDAN regional routes.

Financial Results: Revenue Up, But Losses Continue

The company’s Q3 FY26 results, announced in mid-February, show mixed performance:

• Revenue from operations: ₹1,345.46 crore (up 14% year-on-year from ₹1,178.76 crore and about 77% higher than the previous quarter).
• Net loss: ₹261.38 crore, compared to a profit of ₹20.43 crore in Q3 FY25. The loss was mainly due to higher operating costs and some one-time expenses.

Over the last 12 months, revenue stands at around ₹4,718 crore, but the company has posted a net loss of about ₹813 crore.

Although FY25 showed some recovery with profitable quarters after a ₹3,000 crore Qualified Institutional Placement (QIP), FY26 has again seen pressure due to rising costs. The company has reduced its debt to about ₹4,209 crore. Its net worth turned positive for the first time in more than 10 years after the 2024 QIP and promoter fund infusion. However, recent losses are testing that recovery.

From Crisis to Comeback Attempt

SpiceJet started in 2005 as a low-cost airline but has faced many challenges. It suffered heavily during COVID-19. In 2022, many aircraft were grounded due to disputes with lessors. At one point, liabilities reached around ₹14,000 crore, and the fleet reduced to about 28–39 aircraft by 2024.

In 2024–25, the airline tried to revive itself by:

• Raising ₹3,000 crore through a QIP, which was oversubscribed.
• Promoter warrant conversions worth about ₹294 crore.
• Settling debt with aircraft lessors at discounted rates.

These steps helped restore operations and deliver three profitable quarters in FY25. But the sharp fall in February 2026 shows that investors are still cautious.

Key Concerns Affecting Investor Confidence

Safety and Reliability: On February 25, a Delhi–Leh flight (SG 121) returned soon after takeoff due to a technical issue. All 150 passengers were safe. However, such incidents and weaker on-time performance compared to competitors affect confidence.

Financial Risks: The company has contingent liabilities of ₹806 crore. About 47.7% of promoter shares are pledged. Promoter holding has reduced to around 31%
.
External Pressure: High fuel prices, tough competition, and strict regulatory oversight continue to put pressure on margins.

Most analysts currently rate the stock as “Strong Sell.” Target prices are around ₹17–19, but technical charts suggest weakness in the short term. Some experts, including Ravi Singh of Mastertrust, have advised investors to exit.

What Investors Should Understand

The large block deal, similar to promoter sales in 2025 by CMD Ajay Singh at higher prices, suggests that major stakeholders may be adjusting their positions.

For high-risk investors, there could be upside if the airline successfully expands in 2026 and turns market share gains into steady profits above 5–7%. However, for most investors, ongoing financial stress and execution risks make the stock risky in the near term.

What Lies Ahead: Recovery 2.0 or More Trouble?

SpiceJet’s 2026 strategy is clear: grow aggressively during India’s aviation boom while controlling costs. Success will depend on smooth aircraft additions, better ticket pricing, improved punctuality, and avoiding past mistakes. The upcoming Q4 results and actual fleet additions will be key tests.

For now, there is a clear gap between the airline’s operational progress and the stock market’s reaction. In 2026, SpiceJet remains a company where positive business updates are not yet strong enough to lift investor confidence.

Also Read on jabalpur today: Kerala to Become Keralam? Union Cabinet Likely to Approve Name Change Today Before State Elections