Spandana Sphoorty Financial Reports Turnaround in Q1 FY27 with Net Profit of ₹11.88 Crore and Double-Digit AUM Growth

Microfinance lender Spandana Sphoorty Financial Limited (CIN: L65929TG2003PLC040648) has published its unaudited consolidated financial results for the first quarter ended June 30, 2026 (Q1 FY27). Demonstrating a solid recovery from the losses incurred in the corresponding period of the previous fiscal, the company posted a consolidated Profit After Tax (PAT) of ₹11.88 crore, driven by improved asset quality, strong collection efficiency, and a double-digit expansion in its assets under management (AUM).

Core Financial Performance and Earnings Growth

During Q1 FY27, Spandana Sphoorty's total revenue from operations stood at ₹283.91 crore, compared to ₹259.69 crore in Q4 FY26 and ₹300.46 crore in Q1 FY26. Total income reached ₹303.22 crore (reflecting a 9% quarter-on-quarter growth), up from ₹277.17 crore in Q4 FY26 and ₹304.12 crore in Q1 FY26.

Key operational earnings parameters for the quarter include:

Net Interest Income (NII): Expanded by 39% quarter-on-quarter to ₹135 crore, up from Q4 FY26 levels.

Yield on Portfolio: Improved by 182 basis points quarter-on-quarter to 24.6%, compared to 22.81% in Q4 FY26.

Finance Costs & Borrowing Costs: Finance expenses for the quarter stood at ₹132.08 crore, compared to ₹126.03 crore in Q4 FY26 and ₹153.75 crore in Q1 FY26. The marginal cost of borrowing dropped to 11.3% from 12.0% in Q4 FY26.

Operating Expenses: Employee benefit expenses were brought down to ₹106.22 crore (vs. ₹112.65 crore in Q4 FY26 and ₹145.72 crore in Q1 FY26), while other expenses stood at ₹46.10 crore. Total expenses for the quarter amounted to ₹285.66 crore.

Pre-Provision Operating Profit (PPOP): Stood at ₹40 crore for Q1 FY27, rising from ₹39 crore reported in Q4 FY26.

Impairment Reversal: Impairment on financial instruments reflected a net gain/reversal of ₹1.30 crore, contrasting sharply with the severe impairment costs of ₹422.17 crore incurred in Q1 FY26.

Profitability: Profit Before Tax (PBT) came in at ₹17.56 crore, compared to ₹8.02 crore in Q4 FY26 and a loss of ₹480.89 crore in Q1 FY26. After a deferred tax expense of ₹5.68 crore, the net profit attributable to owners of the company reached ₹11.88 crore (a 125% QoQ increase over ₹5.27 crore in Q4 FY26). Total comprehensive income for the quarter stood at ₹9.77 crore.

Earnings Per Share (EPS): Basic and diluted EPS for Q1 FY27 rebounded to ₹1.49 per share (face value ₹10.00), compared to ₹0.66 in Q4 FY26 and a negative ₹50.52 in Q1 FY26.

Portfolio Growth and Key Performance Metrics

Spandana Sphoorty maintained momentum across its portfolio metrics during the three months ended June 30, 2026:

Assets Under Management (AUM): Total AUM reached ₹4,887 crore, representing an 11% quarter-on-quarter growth over ₹4,420 crore as of March 31, 2026.

Disbursements: Total quarterly disbursements stood at ₹1,371 crore, compared to ₹1,539 crore in Q4 FY26 and ₹280 crore in Q1 FY26.

Collection Efficiency: Gross collection efficiency improved to 96.6% in Q1 FY27 (up from 95.3% in Q4 FY26), while net collection efficiency rose to 95.9% (up from 94.7% in Q4 FY26).

Asset Quality, Liquidity, and Balance Sheet Health

The company reported notable improvements in non-performing assets (NPAs) across both consolidated and standalone levels:

Consolidated NPAs: Gross NPA (GNPA) improved to 3.64% (down from 3.78% as of March 31, 2026), while Net NPA (NNPA) dropped to 0.68% (down from 0.73% as of March 31, 2026).

Standalone NPAs: Standalone GNPA declined to 2.91% (vs. 3.33% in March 2026), while standalone NNPA decreased to 0.56% (vs. 0.64% in March 2026).

Provision Coverage Ratio (PCR): Kept strong and stable at ~81%.

Liquidity & Funding: Spandana Sphoorty maintained a comfortable liquidity position of ₹1,316 crore at the end of June 2026. During the quarter, the lender successfully raised ₹1,597 crore in fresh borrowings, compared to ₹1,272 crore mobilized in Q4 FY26.

Capital Position: Net worth stood at ₹2,140 crore as of June 30, 2026 (with Paid-up Equity Share Capital at ₹79.97 crore and Other Equity at ₹2,049.42 crore). Capital to Risk-Weighted Assets Ratio (CRAR) remained robust at 33.8%, well above regulatory requirements.

Mr. Venkatesh Krishnan, MD & CEO, while announcing the results stated, "With the microfinance sector emerging from a challenging phase, Spandana is now on a growth trajectory, with all key indicators reflecting improvement. For the quarter ending 30 June 2026, Spandana reported PAT of ₹12 Cr, compared with ₹5 Cr in the previous quarter. Disbursement momentum remained strong, with ₹1,371 Cr disbursed during the quarter, of which approximately 61% loans were extended to new customers. AUM increased 11% QoQ to ₹4,887 Cr, from ₹4,420 Cr at the end of March 2026.

Our efforts remain focused on strengthening sourcing and improving portfolio quality. This is reflected in X-bucket collection efficiency of 99.5% for June 2026 and a further improvement in PAR 30+ to 4.4%, from 4.7% at the end of March 2026. We continue to engage with 90+ DPD customers, resulting in recoveries of ₹51 Cr during the quarter. Total recoveries from this pool over the past 18 months stood at ₹325 Cr. Consolidated GNPA improved by 15 bps QoQ to 3.64%.

In the coming quarters, we will evaluate growing in markets where Spandana's share remains low, revive underperforming branches through dedicated task force, roll out our new LOS platform, and launch an individual loan offering. With liquidity of ₹1,316 Cr at the end of June 2026, CRAR of 33.8%, and net worth of ₹2,140 Cr, Spandana is well positioned for future growth."

Shares of Spandana Sphoorty Financial Limited was last trading in BSE at Rs. 291.75 as compared to the previous close of Rs. 284.65. The total number of shares traded during the day was 24316 in over 830 trades.

The stock hit an intraday high of Rs. 298.75 and intraday low of 275.00. The net turnover during the day was Rs. 6994388.00.

Source : Equity Bulls

Keywords

SpandanaSphoortyFinancial INE572J01011 NBFC MFI Q1FY27 Q1FY2027 ResultUpdate