SpiceJet Q4 FY25 results: Here's what led to a turnaround in financials and what the charts say

Domestic aviation company, Spicejet Ltd, reported strong Q4FY25 results over the weekend. The company reported a sharp jump in profits after facing turbulence for a long period. The company reported a strong and long overdue turnaround after six years of losses, as its FY25 net profit stood at ₹58 crore vs net loss of ₹409 crore in FY24. The company was grappling with financial difficulties primarily due to poor operational efficiency, weak financial health, cash crunch and other operational issues. This led to a substantial downfall in its fleet and market share. However, the company has managed to sail through the turbulence and recorded its first-ever net profit in over seven years.

What led to a turnaround in the company?

For Q4FY25, the revenue for the quarter dipped by 16% YoY to ₹1,446 crore as compared to ₹1,719 crore, largely due to the lower plant load factor of 88% in Q4FY25 vs 92% in Q4FY24 and a 29% YoY drop in ASKM (available seat per kilometre) at 2557 million vs 3610 million in the previous year’s similar quarter. Despite the weak topline metrics, the company managed to generate strong operational profits for the quarter, largely due to a strong check in operational expenses and a sharp drop in fuel expenses.

The ATF (Airt turbine fuel) expenses for the quarter dropped by 33% to ₹494 crore in Q4FY25 as compared to ₹745 crore. Similarly, for FY25, the ATF expenses dropped 31% YoY to ₹2051 crore for FY25 as compared to ₹2,982 crore in FY24. In addition, airport charges, aircraft maintenance costs have also decreased by 22% YoY. Owing to strong operational performance, the bottom line posted a turnaround in FY25 at ₹58 crore vs net loss of ₹409 crore in FY25.

What do charts indicate?

After posting a turnaround in financials for the first time in seven years, the stock is back in focus among traders as well due expectation of increased activity in the stock. The long-term charts on a monthly basis, the stock has taken resistance at the lower high trendline starting from record high levels of ₹156 touched in May 2019. Experts believe the stock's next leg of the rally can only be presumed after it closes above the trendline on a monthly basis.

Similarly, on a medium-term basis, the stock still trades below the 200 EMA level on daily charts of ₹51. On the downside, the stock has witnessed the absence of selling pressure at the levels of ₹41-42 apiece, indicating a strong support for the medium term.