Conference Call with Spandana Sphoorty Financial Management and Analysts on Q2FY26 Performance and Outlook. Listen to the full earnings transcript.
Microfinance Institutions company Spandana Sphoorty Financial announced Q2FY26 results AUM: Rs 4,088 crore 18% QoQ decline (Rs 4,958 crore – June’25). Disbursement: Rs 934 crore as against Rs 280 crore disbursed in Q1FY26 - a QoQ growth of 233%. Asset Quality (Consolidated): GNPA: 5.62% (30-June-2025 – 5.49%); NNPA – 1.17% (30-June-2025 – 1.15%). PCR: Provision Coverage Ratio has been maintained at ~80%. Collection Efficiency: Gross Collection Efficiency improved to 92.9% for Q2FY26 (91.1% in Q1FY26). Net collection efficiency improved to 92.4% (90.6% in Q1FY26). Sufficient liquidity of Rs 1,179 crore at the end of September 2025. Financial Performance for Q2FY26 vs Q1FY26: Total Income: Rs 239 crore in Q2FY26, 21% QoQ decline. Net Interest Income: Rs 91 crore in Q2FY26, lower by 20% QoQ. Yield: 19.6%, improved by 21 bps QoQ. Cost of borrowings: 12.6% in Q2FY26; increased by 27 bps QoQ. Pre-Provision Operating Profit (PPOP): (Rs 40 crore) for Q2FY26 vs (Rs 40 crore) reported in Q1FY26. The Company reported a net loss of Rs 249 crore for Q2FY26, driven by elevated credit costs stemming from higher gross slippage, coupled with subdued income due to degrowth in loan book and elevated operational expenses. Ashish Damani, Interim CEO, President and CFO, said: “The trends developing in Q2FY26 have been rather heartening after last 15 tumultuous months for microfinance industry. Spandana’s X-bucket collection efficiency continued its upward trajectory recording 98.7% for September 2025 vs 97.9% reported for Jun-25. ~28% of our portfolio (built under new stricter credit norms) is performing extremely well with only 0.1% delinquent at the end of September 25. Our focused efforts have resulted in Rs 48 crore recoveries during Q2FY26. The positive trends during the quarter strengthened our confidence to deepen customer engagement, leading to a sequential increase in disbursements to Rs 934 crore, compared with Rs 280 crore in Q1FY26. The Company’s AUM stood at Rs 4,088 crore as of September 30, 2025, while standalone GNPA and NNPA were 4.97% and 0.97% respectively. However, profitability continued to be weighed down by elevated impairment costs from the portfolio originated in FY24 and FY25, along with a higher bench relative to a shrinking loan book. Consequently, the Company reported a net loss of Rs 249 crore for Q2FY26. We continue to relook at every possibility for improvements. Our comfortable liquidity of Rs 1,179 crore and strong Balance sheet with CRAR of 47.0%, gearing of 1.5x positions us favorably to drive future growth. The recent macros along with bountiful rains across India give us sufficient indication of the quality and trend of credit demand in rural India” Result PDF
Microfinance Institutions company Spandana Sphoorty Financial announced Q1FY26 results Total Income: Rs 304 crore in Q1FY26 - 27% QoQ decline. Net Interest Income: Rs 113 crore in Q1FY26, lower by 43% QoQ. Yield: 19.35%, decline of 138 bps QoQ. Cost of borrowings: 12.34% in Q1FY26; decline by 21 bps QoQ. Pre-Provision Operating Profit (PPOP): (Rs 59 crore) for Q1FY26 vs. Rs 25 crore reported in Q4FY25. The Company reported a net loss of Rs 360 crore for Q1 FY26, driven by elevated credit costs stemming from higher gross slippage, coupled with subdued income due to degrowth in loan book and increased operational expenses. AUM: Rs 4,958 crore 27% QoQ decline (Rs 6,819 crore: March’25). Disbursement: Muted disbursements owing to very selective lending and continued industry headwinds. Total disbursement for the quarter was Rs 280 crore as against Rs 365 crore disbursed in Q4FY25 - a QoQ decline of 23%. Asset Quality (Consolidated): GNPA: 5.49% (31-March-2025: 5.63%); NNPA: 1.15% (31-March-2025: 1.19%). PCR: Provision Coverage Ratio has been maintained at ~80%. Collection Efficiency: Gross Collection Efficiency was at 91.1% for Q1FY26 (91.5% in Q4FY25). Net collection efficiency was flat QoQ at 90.6% (90.9% in Q4FY25). Sufficient liquidity of Rs 1,731 crore at the end of June 2025. Ashish Damani, Interim CEO, President & CFO, said: “We successfully closed the Rs 400 crore rights issue with participation in full from promoters and institutional investors. This capital raise will further strengthen our capital structure and position us for future growth. Post-issue, our CRAR has improved to 46%, up from 40.8% at the end of June 2025 on a consolidated basis. During Q1FY26, we prioritised strengthening our products, processes, and technology across the customer journey, while maintaining a disciplined approach to disbursements. The operating environment is improving gradually, and we remain focused on identifying the right opportunities to serve our customers effectively. We continued to grapple with industry-wide challenges that emerged in FY25. Despite stabilisation in operations, these factors continued to disrupt operations and collections, driving up gross slippage, credit costs and resulting in a loss for the quarter ended June 30, 2025. Disbursements for the quarter stood at Rs 280 crore. AUM at the end of Q1FY26 was Rs 4,958 crore. Standalone GNPA and NNPA were at 4.88% and 0.96%, respectively. Spandana continues to maintain comfortable liquidity with Rs 1,731 crore, which is 26% of our assets. As of Jun-25, our PCR was maintained at ~80% and gearing was at 1.9x. As the industry moves forward with full implementation of SRO guidelines, we are confident that team Spandana is well-equipped to meet customer lifecycle needs and continue building a quality portfolio.” Result PDF