Spandana Sphoorty Financial Ltd Q2 FY26 Results

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 ₹48 Cr recoveries during Q2FY26. The positive trends during the quarter strengthened our confidence to deepen customer engagement, leading to a sequential increase in disbursements to ₹934 crore, compared with ₹280 crore in Q1FY26. The Company’s AUM stood at ₹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 ₹249 crore for Q2FY26. We continue to relook at every possibility for improvements. Our comfortable liquidity of ₹1,179 Cr 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.