­­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.

­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. 

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. (1,380.26) crore in FY 2025, reflecting ongoing pressure on core profitability. Further, during 9MFY2026, 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.

Increasing prices of Crude impacting airline industry
Rising crude oil prices since February 2026 have significantly impacted the airline industry, with global benchmark Brent crude increasing from an average of around USD 70–71 per barrel in February 2026 to approximately over USD 100 per barrel by mid-April 2026, driven largely by escalating geopolitical tensions in West Asia and supply disruption concerns around the Strait of Hormuz. This sharp escalation has exerted sustained pressure on airline cost structures, as aviation turbine fuel prices closely track global crude movements, compressing margins across the sector. For SpiceJet, the impact has been more acute given its already stretched liquidity position; elevated fuel costs have increased cash burn, strained route-level profitability particularly on international and Gulf routes and significantly reduced financial flexibility to absorb additional operational and cash outflows.

Instances of delays in debt servicing
As Per feedback received from Spicejet’s lender on July 27, 2026, there has been several instances of delays in monthly debt servicing (principal and monthly interest) by Spicejet in the recent months and an invocation of SBLC in July 2026.

• Timely servicing of debt obligations
• Further increase in fleet size through ungrounding of aircraft and/or induction of additional aircraft, leading to improvement in operational scale and operating margins.

• ­Inability to raise adequate funds and/or delays in asset monetisation, including aircraft spare parts, could adversely impact liquidity.
• Unfavourable outcomes in ongoing legal disputes (other than DHC), resulting in additional near-term cash outflows and further pressure on liquidity.