SpiceJet Soars with USD 121 Million Carlyle Aviation Deal & 173% Q4FY25 Profit Growth: Is This Penny Stock Set to Fly?
SpiceJet Limited, a well-known Indian low-cost airline, is once again in the spotlight. The penny stock trading below ₹50 has taken a significant strategic leap by signing a USD 121.18 million restructuring deal with Carlyle Aviation Management Limited (CAML). Alongside this, the airline reported a 173% surge in its Q4FY25 net profit, making it one of the most talked-about aviation stocks in India.
🚀 Major Financial Restructuring with Carlyle Aviation
On June 15, 2025, SpiceJet announced a crucial financial agreement with Carlyle Aviation, aiming to restructure its outstanding aircraft lease liabilities worth over USD 121 million as of March 31, 2025. This is a transformative move for the airline, which has struggled with mounting debt and operational constraints in the past years.
Under this agreement, SpiceJet will issue equity shares to Carlyle-managed lessors at ₹65 per share, or as per SEBI’s preferential guidelines, to partially settle lease dues amounting to up to USD 50 million. While shareholder and regulatory approvals are pending, it's clear that this move will help de-leverage the company’s balance sheet and inject new investor confidence.
Importantly, the Carlyle group’s post-issuance stake will remain below 10%, ensuring corporate governance and compliance with market norms. This structured dilution also guards the promoter group's interest through a right of first refusal in the future.
🧾 Terms of the Deal Include:
- Review and restructuring of aircraft lease terms
- Reactivation of grounded planes
- Revised engine overhaul and maintenance schedules
- New lines of operational credit
This agreement not only improves SpiceJet’s cash flow but also accelerates its fleet reactivation plan, thereby enhancing operational efficiency in the months ahead.
📊 Q4FY25 Results: First Annual Profit in 7 Years
SpiceJet’s Q4FY25 results further reinforce its turnaround story. The airline reported a net profit of ₹324.87 crore in Q4FY25, up from ₹118.9 crore a year ago—a growth of 173%. While its revenue from operations declined 16% YoY to ₹1,446.37 crore, it still posted its first full-year net profit since FY18.
For the full FY25, SpiceJet recorded a net profit of ₹58 crore versus a ₹409 crore loss in FY24. Despite a 25% YoY drop in annual revenue to ₹5,284 crore, this marks a remarkable operational and financial rebound.
📈 Stock Performance & Technical Analysis
The SpiceJet share price closed at ₹43.81 on June 13, 2025, after recovering from a 52-week low of ₹39.91. However, it still trades nearly 45% below its 52-week high of ₹79.90 (September 2024).
Technical analysts see a bottoming out pattern:
- Multiple support levels have formed near ₹40
- Hidden bullish divergences on RSI charts suggest strength
- A breakout above ₹47 could lead to targets of ₹55–₹58
Jigar S. Patel of Anand Rathi recommends buying in the ₹43–₹45 range with a stop loss below ₹39 for a medium-term rally to ₹58. Anshul Jain from Lakshmishree Investments confirms a potential breakout from a falling channel near ₹47.
👨💼 Promoter & Institutional Holdings
The airline’s promoters increased their stake to 33.47% in March 2025, indicating confidence in the company's future. Institutional players like Authum Investment (2.65%) and Plutus Wealth LLP (2.71%) also hold meaningful positions.
🛩️ About SpiceJet
SpiceJet operates a fleet of Boeing 737s and Q400s and is India’s leading regional connectivity player under the UDAN scheme. Its "SpiceMax" service offers the most spacious economy seating in Indian skies.
The company is certified by IATA-IOSA and continues to emphasize safety, affordability, and regional expansion.
📉 Challenges to Watch
Despite these developments, investors should be aware of the risks:
- Volatility in crude oil prices
- Intense competition from market leaders like IndiGo and Air India
- Potential delays in engine overhauls and aircraft reactivation
Still, the management remains optimistic. CMD Ajay Singh stated that SpiceJet’s partnerships with OEMs like StandardAero and Carlyle Aviation are yielding results, and overhauled engines are now returning to service.
🔍 Final Take: Should You Buy SpiceJet Stock?
With a significantly improved balance sheet, renewed institutional interest, and visible signs of financial turnaround, SpiceJet is emerging as one of the top airline penny stocks under ₹50 to watch in 2025.
Investors with a medium-term horizon may consider entering in the ₹43–₹45 range for a target of ₹55–₹58, keeping a tight stop loss. The Carlyle Aviation restructuring deal and Q4FY25 results paint a positive picture, provided broader market and sectoral risks are accounted for.
Disclaimer: This article is for educational and informational purposes only and does not constitute investment advice. Please consult a registered financial advisor before making any stock market investments.
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