Spandana Sphoorty Financial is primarily engaged in the business of micro finance providing small value unsecured loans to low-income customers in semi-urban and rural areas.
Q3 FY26 Earnings Results
- Revenue from Operations: ₹206.99 crore (standalone), down about 59.4% YoY vs ₹509.36 crore; up 3.9% QoQ vs ₹199.32 crore.
- EBITDA: Pre‑provision operating profit not explicitly called out for Q3; earlier quarters run in losses; management notes improving collections and lower credit costs but no positive operating profit yet.
- PAT: Consolidated net loss of approximately ₹94.97 crore vs loss of ₹440.20 crore YoY (about −78% smaller loss); standalone net loss of ₹82.54 crore vs ₹393.89 crore in Q3 FY24 (about −79% better).
- Other key metrics: Interest income ₹198.26 crore vs ₹461.77 crore YoY (−57.1%); total income ₹216.47 crore vs ₹525.84 crore YoY (−58.8%). Nine‑month loss (standalone) ₹629.52 crore vs ₹546.54 crore in 9M FY25, with total income shrinking sharply due to portfolio run‑off. AUM/loan book reduced from ₹5,554.45 crore as of Mar‑25 to ₹3,078.65 crore as of Dec‑25 reflecting conservative disbursement stance.
Management Commentary & Strategic Decisions
- Management attributes improving loss profile to recovery‑focused ground operations, better collections on recent‑vintage books, and technical write‑offs of stressed portfolios; write‑offs of ₹207.59 crore were executed in Q3 FY26 as part of portfolio cleansing.
- Strategic moves: merger of subsidiary Criss Financial Ltd (its LAP arm) received in‑principle approval; company raised ₹1,644 crore in funding during Q3, strengthened liquidity to ₹1,506 crore and maintained CRAR at 30.43%, ahead of regulatory benchmarks. Capital‑raising and covenant‑waivers obtained to support balance‑sheet repair while remaining cautious on aggressive growth until asset‑quality normalisation.
Q2 FY26 Earnings Results
- Revenue from Operations / Total Income: ₹239.5 crore (standalone) vs ₹304.1 crore in Q1 FY26 (−21.2% QoQ) and reduced vs same‑period FY25 due to deliberate book shrinkage.
- EBITDA / PPOP: Pre‑provision operating profit was approximately −₹40 crore, flat with Q1, reflecting pressure from higher operating costs despite some yield improvement.
- PAT: Net loss of about ₹249 crore in Q2 FY26 vs ₹360 crore in Q1 FY26 (30–31% smaller loss YoY); consolidated loss for the period also around ₹249 crore vs a smaller loss in same quarter prior year.
- Other key metrics: Net interest income ₹91 crore vs Q1, down about −20% QoQ, on a leaner micro‑loan book. Yield on portfolio improved to 19.6% (+21 bps QoQ), while asset quality at enterprise level showed Gross NPA at 5.62% and Net NPA at 1.17%. Disbursements jumped to ₹934 crore in Q2 FY26 vs ₹280 crore in Q1, signaling controlled ramp‑up of newer, better‑underwritten loans.
Management Commentary Q2
- Management highlighted operational improvement in collections, with x‑bucket collection efficiency improving to 98.7% by end‑Q2 and higher disbursements on tightened credit guardrails, which they expect to support better long‑term quality.
- Commentary stressed ongoing de‑risking of the loan book, rationalising exposure to stressed portfolios, and maintaining strong capital adequacy with net worth of roughly ₹2,200 crore and adequate liquidity buffer; guidance remains focused on stabilising asset quality ahead of prioritising aggressive growth.
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