SpiceJet Extends Rally, Stocks Surge 42% Over Nine Sessions

SpiceJet Shares Extend Rally, Lock in Upper Circuit for Second Straight Session

SpiceJet shares saw a sharp rally on Thursday, extending their upward momentum in recent sessions. The stock was locked in the 5 percent upper circuit at Rs 14.14 in morning trade. This move marks the second consecutive session of an upper circuit close for the counter. Over a slightly broader window, SpiceJet shares have hit the upper circuit in five out of the last six sessions.

The ongoing rally has come despite persistent concerns around the airline's financial position and recent legal developments. Last week, a UK court directed SpiceJet to pay about $8 million (around Rs 70 crore) to aircraft engine lessor Sunbird France 02 SAS over unpaid lease rentals and maintenance dues. These dues relate to unpaid rent from January 2022 and maintenance accruals dating back to November 2020, with the lessor having repossessed three engines between late 2022 and mid-2023.

The airline continues to operate under financial strain, with auditors having flagged concerns over its ability to continue as a going concern, citing sustained losses and a mismatch between liabilities and assets. SpiceJet has also faced challenges including lease disputes, fleet constraints, and loss of market share to competitors such as Akasa Air.

| Stock Performance Comparison | | --- | --- | | SpiceJet | Nifty 50 | | -42.4% gain in 9 consecutive sessions | 3.8% gain over the past one year | | -70.7% decline over the past one year | |

Despite the sharp recent rally, the longer-term trend remains weak. SpiceJet shares are still down about 70.7 percent over the past one year. Even after the latest gains, SpiceJet has significantly underperformed the benchmark Nifty 50, which has risen around 3.8 percent during the same period. On the other hand, the sustained upmove over the past nine sessions indicates strong momentum-driven buying interest in the stock.