SpiceJet hits 5% upper circuit third day, gains 15% in sessions
UK court orders $8 million payment to lessor
Legal pressure, weak balance sheet persist despite momentum-driven stock rally
Shares of SpiceJet hit the 5% upper circuit for the third consecutive session on Friday, recovering from early losses despite a UK court ordering the airline to pay about $8 million (around ₹70 crore) to an aircraft engine lessor.
The stock was locked at ₹12.27 around 10 am, extending its recent rally and gaining over 15% in the last three sessions. The rebound came after an initial dip in early trade, with strong buying interest pushing the stock back to the upper circuit level, indicating continued momentum-driven activity.
1 April 2026
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The rally comes even as London's Commercial Court ruled in favour of Sunbird France 02 SAS, directing SpiceJet to clear unpaid lease rentals and maintenance dues. The court granted summary judgment, stating that the airline had no realistic prospect of defending the claim and had not participated in the proceedings despite being given opportunities.
The dues relate to unpaid lease rentals from January 2022 and maintenance accruals dating back to November 2020. The lessor had earlier issued default notices in July 2022 and subsequently repossessed three engines between late 2022 and mid-2023.
Legal Pressure Mounts Amid Weak Financials
Following the ruling, the lessor is expected to approach the Delhi High Court to seek enforcement of the UK court's order, which could further increase financial pressure on the airline.
The development comes at a time when SpiceJet continues to face balance sheet stress. Auditors have previously flagged concerns over the airline's ability to continue as a going concern, citing sustained losses and a mismatch between its liabilities and assets.
Despite these concerns, the stock has witnessed a sharp short-term rally, driven largely by trading momentum rather than fundamental improvements.
However, the broader trend remains weak, with the stock still down about 74% over the past one year, significantly underperforming the Nifty 50, which has gained around 4.1% during the same period.
