SpiceJet Tumbles After 8.4% Equity Transfer Sparks Sell-Off

On 25 February 2026, SpiceJet shares slid almost 10%. The stock hit the lower circuit after a large block of shares changed hands in block deals on the Bombay Stock Exchange (BSE).

Around 8.4% of the airline’s equity changed hands through multiple bulk deals, with trading volumes far above the stock’s usual daily average. The unusually high activity added to the existing selling pressure in the counter.

By late morning, the SpiceJet share price was stuck at ₹12.88, a level not seen in over a decade.

The decline marked the seventh straight day of losses, with the stock dropping roughly a quarter of its value in just one week. It also ranked among the weakest performers in the small-cap space during the session.

What Do Technical Indicators Suggest?

Technical signals reflect extreme weakness. The 14-day Relative Strength Index (RSI) fell to 9.01 as compared to the 30 mark that is considered oversold.

While such readings indicate stretched downside, these signals do not necessarily guarantee a near-term rebound. Though the indicators point to an extended downside, they generally do not imply that an immediate recovery is at hand.

What About The Airline’s Expansion Plans?

The sharp decline in the stock has come at a time when SpiceJet is attempting to rebuild its operations. The airline has laid out plans to increase its fleet size to around 60 aircraft by adding planes through wet and damp lease arrangements, along with reintroducing previously grounded aircraft into service.

Operationally, the company has reported some improvement. Its domestic market share rose to 4.3% in December from 1.9% in September, aided by a 56% capacity expansion during the December quarter. Looking ahead, the airline is targeting more than a twofold increase in capacity to 220 crore available seat kilometres by winter 2026.

At the same time, certain operational hurdles persist. It is reported that Bangladesh has restricted the access of SpiceJet to its airspace due to pending dues. This means that some of the flights, especially those departing Kolkata, will have to use longer routes, and this may affect efficiency.

What Does This Mean For Investors?

The sudden drop in stock price portrays the ongoing volatility and doubt in the financial and operational stability of the airline.

The growth strategies and the increasing market share can be seen as an effort to restore the volume, but large block trades and the ongoing selling pressure could be an indication of the weak fundamentals in the near future.

The extremely oversold technical setup may attract short-term traders. Simultaneously, the long-term recovery will probably depend on a better understanding of liquidity, debt liability, fleet expansion implementation, and operational difficulties resolution.

Until then, the stock may remain highly sensitive to news flow and trading activity. Hence, investors should keep an eye on the stock before making any investment.

Sources:

NDTV Profit
Money Control