SpiceJet share price falls nearly 12% in two days; here’s what analysts say

SpiceJet share price remained under selling pressure for the second straight session on Friday, with the domestic aviation stock falling nearly 12% in two days. After the Q3 results, SpiceJet share price dropped by more than 8% during Thursday's trading session, and it has fallen by over 5% in Friday's session.

On Wednesday, the budget airline SpiceJet announced a profit after tax of ₹26 crore for the quarter ending December 2024, driven by an overall enhancement in performance. The airline had reported a loss of ₹300 crore during the same period last year.

Its total revenue for the September 2024 quarter reached ₹1,077 crore. In contrast, the total revenue for the latest December quarter is lower than the ₹2,149 crore recorded for the three months that ended December 2023.

"Total revenue surged by 35% to ₹1,651 crore, driven by strong passenger demand, improved yields and enhanced operational efficiency. Passenger Load Factor (PLF) stood at an impressive 87 per cent," the airline said in an exchange filing.

As per the report from ICICI Securities after analysing domestic air traffic data, SpiceJet's market share fell by 10 basis points to 3.2%. In January 2025, SpiceJet experienced a month-over-month decline in its passenger load factor (PLF), dropping 30 basis points to 87.1% compared to 93.7% in January 2024.

Following the third-quarter results, Nuvama Institutional Equities has revised its target price down by ₹52 and maintains a 'Hold' rating.

“We are cutting FY25E/26E EPS by 14%/13% on operational softness. We are cutting target price to ₹52 as we roll forward to Q3FY27E, revise EV/EBITDAR to 7x (from 9x); ‘HOLD’,” said Nuvama in its report.

Technical Views

SpiceJet share price today opened at ₹43.50 apiece on the BSE, the stock touched an intraday low of ₹42.40 apiece, and an intraday high of ₹43.79 per share on the BSE.

Riyank Arora, Technical Analyst, Mehta Equities Ltd explained that SpiceJet share price is currently trading near a crucial support zone in the ₹40- ₹42 range, where a potential rebound could be expected. Holding above this level may trigger an upward move as momentum builds. However, a break below ₹39 could signal weakness, leading to further downside pressure. On the upside, if the stock sustains its strength, it is likely to head towards the ₹52- ₹54 range in the near term, supported by improving momentum and positive technical indicators.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.