SpiceJet shares rise 13%, extending second-day rally amid IndiGo operational disruptions

SpiceJet shares surged as much as 13% intraday on Monday, hitting a high of Rs 35.30 on the BSE, extending gains for a second straight session. The rally comes amid widespread flight delays and cancellations at rival InterGlobe Aviation, the operator of IndiGo, which has led to higher demand for SpiceJet services.

The disruption at IndiGo—India’s largest airline—has created an unexpected opportunity for SpiceJet, which has been stepping in to operate additional flights.

Last week, SpiceJet Chairman and Managing Director Ajay Singh said the airline would operate 100 extra flights over the next few days to assist stranded passengers.

“What happened is extremely unfortunate, and it has caused huge inconvenience to passengers,” Singh said. “We are attempting to help by running 100 additional flights… We welcome the government’s decision to constitute a committee to investigate the issue.”

Despite Monday’s sharp rise, SpiceJet’s stock has fallen 43% over the past year and remains close to its 52-week low of Rs 28.13.

On the technical front, the stock’s technical set-up remains weak overall. The 14-day Relative Strength Index (RSI) stands at 37.8, which reflects bearish momentum that is beginning to stabilise. While an RSI below 30 typically indicates an oversold condition and above 70 an overbought one, the current reading suggests the stock is still under pressure but not yet in deeply oversold territory.Price action also shows continued weakness, with the stock trading below six of the eight major Simple Moving Averages (SMAs). This reinforces the view that despite minor short-term recoveries, the broader trend remains negative.Shareholding Pattern (Q2 FY25): Promoter holding saw a slight decline to 33.45% from 33.46%. Notably, promoter share pledging rose, with 3.70% pledged during the latest quarter, taking total pledged promoter holding to a significantly high 47.69%. Such elevated pledging levels often signal financial stress and are generally viewed as a red flag by investors.

Foreign Institutional Investors (FIIs) trimmed their stake sharply from 11.79% to 7.95%, indicating growing caution towards the company. Mutual Funds also made a small reduction in their holdings, moving from 1.94% to 1.92%, reflecting marginally weaker institutional confidence.

September Quarter (Q2 FY25) Results: SpiceJet’s performance in the September 2025 quarter remained subdued. The company reported revenue of Rs 828 crore, marking a 23.1% year-on-year decline. Losses also deepened, with the net loss widening to Rs 634 crore.

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