Spandana Sphoorty Financial Limited (NSE: SPANDANA) today announced its unaudited financial results for the third quarter and nine months ended December 31, 2025. The company’s shares closed at 234.60 on January 27, 2026, on the NSE, marking a 1.43% intraday decrease from the previous close. Over the past 52 weeks, Spandana’s shares have traded between a low of 193.00 and a high of 360.35.
Q3 FY26 Performance Highlights
Spandana Sphoorty reported a consolidated net loss of 95 crore for Q3 FY26, a significant reduction from a net loss of 249 crore in Q2 FY26 and 440 crore in Q3 FY25. This improvement occurred despite factors including technical write-offs stemming from slippages, subdued income due to loan book degrowth in the current fiscal year, and one-off impacts related to new labor code implementation.
Disbursements for the quarter increased by 27% quarter-over-quarter (QoQ) to 1,188 crore, up from 934 crore in Q2 FY26. Assets Under Management (AUM) stood at 3,948 crore, a 3% QoQ decline from 4,088 crore. Consolidated total income for Q3 FY26 was 246 crore, a 3% QoQ growth. Net Interest Income (NII) grew by 18% QoQ to 107 crore. Pre-Provision Operating Profit (PPOP), including recovery of written-off loans, turned positive at 8 crore, compared to 40 crore in Q2 FY26.
Asset quality showed improvement with standalone Gross Non-Performing Assets (GNPA) decreasing to 2.60% from 4.97% in Q2 FY26. Net Non-Performing Assets (NNPA) also fell to 0.50% from 0.97% in the previous quarter. Collection Efficiency improved, with gross collection efficiency at 94.5% in Q3 FY26, up from 92.9% in Q2 FY26 and net collection efficiency at 93.9%, up from 92.4% in Q2 FY26. The company maintains a Provision Coverage Ratio (PCR) of approximately $$80%$.
Nine-Month and Year-over-Year Context
For the nine months ended December 31, 2025, Spandana reported a consolidated net loss of 704 crore, compared to a net loss of 601 crore in 9M FY25. Total income for 9M FY26 was 789 crore, a decline from 2,005 crore in 9M FY25. The company notes significant year-over-year reductions in various financial metrics largely due to the challenging microfinance sector environment in prior quarters.
The company’s management highlighted efforts in recovery, operational optimization, and prudent customer selection, with 58% of microfinance AUM from FY26 sourcing reporting 99.8% net collection efficiency. The company held 1,626 crore in liquidity and a Capital to Risk-weighted Assets Ratio (CRAR) of 40.3%.
Analyst Activity
No specific analyst upgrades, downgrades, or price-target changes were reported today. However, recent market commentary indicates varied perspectives on the company’s valuation.
Operational Initiatives
Spandana merged or closed 137 branches during 9M FY26 and plans to merge/close approximately 100 more in Q4 FY26 to reduce overhead costs and enhance efficiency. The company is also evaluating the merger of its subsidiary Criss Financials Ltd. to optimize capital utilization and diversify its asset base.