Spandana Sphoorty Financial Ltd (SPANDANA)

Financial Services · Finance · NSE · Updated 29 September 2026

By StockFin Research TeamAI-Assisted AnalysisSource: BSE/NSE Filings

₹228.45↓ 7.98% (1Y)

🎯 Key Takeaways

Spandana Sphoorty Financial is transitioning from a distressed financial profile to a disciplined growth phase, marked by improving credit quality, targeted expansion, and capital structure optimization. Despite persistent losses and negative ROE, recent quarters show stabilization in operations and early signs of profitability, supported by strategic expansion and cost controls.
Revenue grew 9.3% QoQ to ₹284 in Q1FY27.
⚠️ Persistent negative ROE (-15.4%) and ROCE (1.0%) indicate profitability remains fragile despite recent improvements.

Market Cap: ₹2,025
P/B Ratio: 0.95
ROE: -15.3%
ROCE: 1.0%
Debt/Equity: 1.85
Promoter: 48.2%

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📖 The Story

Spandana Sphoorty Financial is transitioning from a distressed financial profile to a disciplined growth phase, marked by improving credit quality, targeted expansion, and capital structure optimization. Despite persistent losses and negative ROE, recent quarters show stabilization in operations and early signs of profitability, supported by strategic expansion and cost controls. Management is focused on scaling AUM to INR10,000 crores by March 2028 while improving ROA from current 1%.

📰 What's Happening

In Q1 FY27, PAT rose to INR12 crores from INR5 crores in March quarter, driven by 11% QoQ AUM growth to INR4,887 crores, improved credit metrics with annualized cost at 2.1%, and NIM expansion to 12.5%. The company added 61% new members, raised INR545 crores in CGS sanctions, and maintained 99.5% collection efficiency. Liquidity stood at INR1,316 crores with plans for INR6,000-6,500 crores disbursement this fiscal. Strategic updates include expansion in Tamil Nadu and Maharashtra, pilot testing of individual loans in Madhya Pradesh, and revival of 100 underperforming branches. A balance rights issue of INR200 crores is underway. Management targets AUM of INR10,000 crores by March 2028 and ROA improvement from current 1%.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	300	230	234	260	284
Operating Profit	-485	-337	-137	-9	-2
OPM %	-161.3%	-146.8%	-58.4%	-3.6%	-0.6%
Net Profit	-360	-249	-95	5	12
EPS	₹-49.95	₹-32.76	₹-11.88	₹0.66	₹1.49

The company has shifted from deep losses in Dec 2025 (NP of INR-95 crores, OPM of -58.4%) to profitability in Q1 FY27 (NP of INR12 crores, OPM of -0.6%), indicating early operational stabilization. This improvement aligns with management's focus on credit cost reduction (down to 2.1% from 3.2%) and NIM expansion (to 12.5% from 9.9%). The turnaround is supported by disciplined member acquisition (61% new additions), improved recovery rates, and targeted expansion in high-potential states. However, the path remains fragile, with profitability still dependent on scale and cost efficiency.

🔮 Management Outlook & What's Next

Management targets AUM of INR6,000-6,500 crores for the fiscal year ending March 2026 and INR10,000 crores by March 2028. Gross credit costs are expected to remain at 2.5-3%, with net credit costs targeted near 2% after recoveries. Recovery from 90+ pool is targeted at INR150-200 crores. OPEX is projected at INR675 crores for FY2026 with a 10% increase planned for FY2027. Stage 1 coverage is to improve toward industry levels of 50%+. Migration to a new LOS platform (Perfios) is expected by quarter-end. The company also plans to roll out its individual loan product pan-India following pilot in Madhya Pradesh.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2025	Mar 2026	Mar 2026
Equity Capital	71	71	80	80
Reserves	2,562	3,435	2,049	2,147
Borrowings	5,656	7,849	3,943	3,289
Total Liabilities	8,494	11,549	6,246	5,679
Fixed Assets	31	33	39	25
Investments	110	110	114	89
Total Assets	8,494	11,549	6,246	5,679

The balance sheet shows a significant reduction in total assets from INR8,494 crores in March 2025 to INR6,246 crores in March 2026, reflecting asset rationalization and portfolio pruning. Borrowings remain elevated at INR3,943 crores, but equity remains stable at INR80 crores with reserves growing to INR2,049 crores. The company is actively managing capital structure, as evidenced by the ongoing INR200 crores balance rights issue and renewed NCD issuance authorization up to INR4,000 crores. Liquidity is currently healthy at INR1,316 crores, supporting planned disbursements.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2025
Operating	+3,669
Investing	-119
Financing	-3,712
Net Cash Flow	-162

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	48.2%	48.2%	48.2%	48.2%
FII	20.3%	20.4%	19.9%	19.3%
DII	6.1%	5.8%	5.8%	5.7%
Public	21.9%	21.7%	21.9%	22.6%
# Shareholders	1,20,457	1,16,755	1,13,071	1,08,583

Institutional confidence appears to be stabilizing, with FII holding at 19.29% in Q1FY27 (down slightly from 19.89% in Q4FY26), while DII increased marginally to 5.69% from 5.79% in the prior quarter. Promoter holding remains steady at 48.16%. The growing number of shareholders (1,08,583 in Q1FY27) suggests retail participation is expanding. No signs of promoter pledging or significant dilution, indicating governance stability and sustained institutional interest.

⚖️ Peer Comparison — Finance

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
BAJFINANCE	6.13 L Cr	30.2	10.4%	—	3.82
BAJAJFINSV	2.80 L Cr	27.5	11.4%	—	5.50
SHRIRAMFIN	2.30 L Cr	17.3	11.5%	—	3.80
ICICIAMC	1.59 L Cr	31.8	111.5%	—	0.00
JIOFIN	1.45 L Cr	68.4	2.3%	—	0.17
CHOLAFIN	1.40 L Cr	24.2	9.3%	—	6.93
TATACAP	1.39 L Cr	25.4	8.4%	—	5.28
BAJAJHLDNG	1.21 L Cr	13.6	12.4%	—	0.00
MUTHOOTFIN	1.11 L Cr	9.8	14.4%	—	3.88
PFC	1.09 L Cr	4.2	9.8%	—	7.62

🔗 Peer Stock Analyses

BAJFINANCE BAJAJFINSV SHRIRAMFIN ICICIAMC JIOFIN

⚠️ Risk Factors

1. Persistent negative ROE (-15.4%) and ROCE (1.0%) indicate profitability remains fragile despite recent improvements. 2. High debt levels (D/E of 1.85) and ongoing capital raising through NCDs and rights issues could pressure financial flexibility if growth slows. 3. Expansion into new geographies and loan products (e.g., individual loans in Madhya Pradesh) introduces execution and underwriting risks. 4. Recovery from delinquent assets remains critical, with Stage 1 coverage needing to improve toward industry benchmarks of 50%+ to avoid asset quality deterioration.

📋 Recent Filings

🧠 Analyst's Read

Spandana is executing a disciplined turnaround with improving credit quality and targeted growth, but profitability and ROE remain structurally challenged. Investors should monitor execution of expansion plans, credit cost trajectory, and pace of AUM growth toward INR10,000 crores by 2028 as key near-term catalysts.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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