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| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
| Bank Loan Ratings | 0.00 | 1066.70 | ACUITE BB | Reaffirmed | Rating Watch with Negative Implications | - | RBI |
| Bank Loan Ratings | 0.00 | 383.30 | - | ACUITE A4+ | Reaffirmed | Rating Watch with Negative Implications | RBI |
| Total Outstanding | 0.00 | 1450.00 | - | - | - |
| Total Withdrawn | 0.00 | 0.00 | - | - | - |
| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
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Rating Rationale |
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Acuité has reaffirmed its long-term rating to ‘ACUITE BB’ (read as ACUITE double B) from and its short term ratings of 'ACUITE A4+' (read as ACUITE A four plus) on Rs. 1450.00 Cr. bank facilities of SpiceJet Limited. The ratings have been placed under 'Rating Watch with Negative Implications'.
Rationale for Rating The ratings have been placed under Rating Watch with Negative Implications following adverse judicial outcomes in ongoing litigations against SpiceJet. The Delhi High Court has ordered the airline to pay Rs. 144.5 crore in relation to its dispute with Mr. Kalanithi Maran and KAL Airways, while the UK Commercial Court has ruled that SpiceJet must pay approximately USD 8 million (around Rs. 68 crore) to Sunbird France in connection with an aircraft engine leasing dispute. These rulings are expected to exert additional pressure on the company’s near-term liquidity profile. Further, the airline’s operating and financial performance may come under additional pressure due to the escalation of geopolitical conflict in West Asia since late February 2026, which has materially disrupted the availability of international airspace and led to a sharp increase in crude oil prices. However, liquidity pressure may be partly mitigated by potential access to funds under the Emergency Credit Line Guarantee Scheme. The Government of India has indicated its intent to support domestic airlines by proposing up to Rs. 1,000 crore per airline through sovereign-backed funding, aimed at easing near-term liquidity stress amid elevated fuel prices and continued industry challenges. The quantum and tenure of the sanctioned loan will remain key determinants of SpiceJet’s ability to meet its court-mandated payments, lease liabilities to lessors, financial obligations to lenders, and working capital requirements necessary for sustaining operations. Accordingly, the timely availability and adequacy of such funding, given the airline’s currently stretched liquidity position, will be a key monitorable over the near to medium term. Going forward, SpiceJet’s ability to pass on higher costs through fare increases, improve operational fleet size, and maintain healthy passenger load factors (PLF) will remain critical monitorable for its profitability and credit profile. The ratings continue to be constrained by SpiceJet’s weak financial risk profile, declining scale of operations and profitability, and stretched liquidity position. Additionally, the airline remains exposed to volatility in fuel prices and foreign exchange (forex) rates, which have adversely impacted its performance in the recent past. |
| About the Company |
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Established in 1984 and based in Gurugram (Haryana), SpiceJet Limited was initially set up as an air taxi provider. In 1993, the company diversified into domestic aviation service provider. SpiceJet follows the Low Cost Carrier (LCC) business model with an objective to deliver the lowest air fares with the highest consumer value, to price sensitive consumers making flying accessible for the wider population. SpiceJet, a public limited company, is listed on Bombay Stock exchange (BSE) and National Stock Exchange (NSE) and is promoted by Mr. Ajay Singh with majority holdings.
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| About the Group |
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The SpiceJet group has diversified interests across aviation and non-aviation segments, complementing its core airline operations. The group’s activities include trading of merchandise and allied goods; operation of small aircraft, helicopters and other chartered air vehicles; provision of air cargo and logistics services; and delivery of information technology, engineering and technical services related to the aviation, aerospace and defence sectors. Collectively, these businesses support the group’s broader strategy of leveraging aviation-led expertise while diversifying into allied and support services to strengthen operational capabilities and create additional revenue streams.
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| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has considered the consolidated business and financial risk profiles of SpiceJet Limited along with its subsidiaries to arrive at the rating. The detailed list given on annexure 2. |
| Key Rating Drivers |
| Strengths |
| Experienced management and healthy business model with diversified revenue streams
SpiceJet, a Low-cost carrier segment airline provider, has established presence in the Indian aviation industry. Mr. Ajay Singh, the Chairman and Managing Director of SpiceJet, has more than 15 years of experience in the line of aviation and is involved in the day-to-day operations of the company. In the past, through his extensive and rich experience, Mr. Singh successfully turnaround SpiceJet Limited by undertaking and implementing various measures in revenue and cost management, customer retention and employee welfare. SpiceJet, over the years with its established presence in the aviation industry has been able to diversify its revenue stream for its cash generation. SpiceJet has given new order for increasing the capacity of existing fleet which is expected to benefit the company in the near to medium term. Improving Fleet Size SpiceJet’s operational fleet size improved from 19 aircraft to 33 aircraft as on December 31, 2025. The increase in fleet size is aligned with the airline’s revival strategy, which focuses on ungrounding aircraft to enhance market share, improve capacity deployment, and support the scale-up of operations. The gradual restoration of fleet strength is expected to aid revenue generation and operating leverage, although the sustainability of these improvements will remain contingent upon the airline’s liquidity position and ability to meet ongoing financial and operational obligations. |
| Weaknesses |
| Weak financial position
The group’s financial risk profile is poor marked by negative net worth of Rs. 2,983.47 Cr. in FY 2025 against negative Rs. 6,628.18 Cr. in FY 2024.The improvement in net worth on the account of infusion of funds through QIP & promoters. Further, the debt-equity ratio of the company stood at (0.30) times in FY25 against (0.17) times in FY24. The DSCR of the company stood at 1.80 times in FY25 against 0.71 times in FY24. The TOL/TNW ratio stood at (2.86) times in FY 25 against (1.76) times in FY24. Acuite believes that SpiceJet’s financial risk profile will remain weak, primarily on account of the airline’s continued loss-making operations over recent years. Declining Scale of Operations & Profitability The group’s revenue declined by 24.83% and stood at Rs. 5,325.69 crore in FY 2025, compared to Rs. 7,085.31 crore in FY 2024. The decline was primarily attributable to the grounding of a significant portion of the fleet during the first six months of FY 2025, prior to the completion of the Qualified Institutional Placement (QIP). The operational loss (EBITDA loss) stood at Rs. 438.75 crore in FY 2025, against Rs. 638.35 crore in FY 2024. SpiceJet reported a net profit of Rs. 61.93 crore in FY 2025, compared to a net loss of Rs. 423.72 crore in FY 2024. This turnaround was largely on account of other income (largely non-cash in nature) amounting to Rs. 1,442 crore, primarily arising from waiver and reduction of lessor liabilities pursuant to settlement agreements. The airline had entered into settlement arrangements with certain lessors against its outstanding dues. However, on an operational basis, the company continued to report losses, with operating PBT remaining negative, albeit improving from Rs. (1,858.52) crore in FY 2024 to Rs. (1,380.64) crore in FY 2025, reflecting ongoing pressure on core profitability. Further, during 9M FY 2026, SpiceJet recorded net revenue of Rs. 3,320.91 crore, along with an EBITDA loss of Rs. 698.11 crore and a PAT loss of Rs. 1,117.19 crore, indicating continued stress on operating performance. Acuite believes that, going forward, the scale of operations and profitability of SpiceJet are likely to remain under pressure due to the sharp increase in fuel prices during Q4 FY 2026, which is expected to adversely impact cost metrics and operating margins. |
| ESG Factors Relevant for Rating |
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Environmental
Environmental issues related to the air transport industry is a key concern. GHG emissions, air pollutant emissions, environmental management, energy efficiency, ESG reporting and waste management are significant environmental issues for this industry. Social Labour management issues, such as employee safety & development and employment quality, is a crucial issue in air transport industry. Furthermore, key material issues such as community support & development, product quality & safety, human rights, equal opportunity and responsible procurement have a significant impact on the social scores for this industry. Governance Air transport industry is highly exposed to governance risks associated with regulatory compliance, board oversight, business ethics and corrupt practices. Furthermore, inadequate anti-takeover mechanism, management & board compensation, board independence & diversity, audit committee functioning, financial audit & control and shareholders’ rights are the key material issues for this industry |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Stretched |
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The liquidity profile of the group remains stretched, characterised by continued operating losses and sizeable debt repayments of over Rs. 400 crores (CPLTD) falling due over the next two financial years. The company has largely utilised the proceeds of its Rs. 3,000-crore QIP, with free cash balances of only about Rs. 170 crores as of 31 December 2025. The group’s current ratio continues to remain below unity, albeit improving to 0.40 times in FY25 from 0.29 times in FY24. Acuite believes that SpiceJet’s liquidity profile is likely to remain stretched over the near to medium term, driven by ongoing operational losses and the adverse outcomes from legal disputes, which could necessitate additional cash outflows in the near term. Liquidity may improve with expected emergency credit line with sovereign backing as per scheme from centra government.
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| Outlook : Not Applicable |
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| Other Factors affecting Rating |
| None. |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 5325.69 | 7085.31 |
| PAT | Rs. Cr. | 61.93 | (423.72) |
| PAT Margin | (%) | 1.16 | (5.98) |
| Total Debt/Tangible Net Worth | Times | (0.30) | (0.17) |
| PBDIT/Interest | Times | 3.38 | 1.71 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any Other Information |
| None. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm |
| Note on complexity levels of the rated instrument |
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| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||||||||||
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Contacts |
List of instruments and names of regulators of the instruments |
