Spandana Sphoorty Financial Reports Strong Q1 FY27 Results, Noting Asset Quality Improvement and Growth Trajectory

Spandana Sphoorty Financial Reports Strong Q1 FY27 Results, Noting Asset Quality Improvement and Growth Trajectory​

Spandana Sphoorty Financial Limited reported a performance improvement in its unaudited results for the quarter ended June 30, 2026. The company noted stable operational parameters coupled with enhanced asset quality metrics, driving revenue growth across key areas.

The company’s Assets Under Management (AUM) expanded by 11% on a Quarter-on-Quarter (QoQ) basis, reaching ₹4,887 Cr. During the period, ₹1,371 Cr was disbursed, and portfolio originated under new credit rules accounted for 91% of microfinance AUM.

Operational Strengths and Asset Quality​

Spandana Sphoorty Financial highlighted robust portfolio management and efficiency enhancements during Q1 FY27. The Net Collection Efficiency rose to 95.9%, an improvement from 94.7% in Q4 FY26. Key metrics related to debt recovery included ₹51 Cr recovered in Q1 FY27, contributing to a cumulative recovery of ₹326 Cr over 18 months.

The company maintained high levels of collection efficiency within specific lending categories (X-bucket), with over 80% of MFI branches achieving above 99.5% X-bucket Collection Efficiency. Furthermore, the Portfolio at Risk (PAR) 30+ improved to 4.4%, down from 13.4% in June 2025.

Management identified several growth levers moving forward, including focusing on micro markets such as Maharashtra and Tamil Nadu, enhancing existing customer relationships, developing the individual loan portfolio, and migrating to a new, agile LOS platform.

Financial Performance Review​

The Q1 FY27 results showed improved profitability driven by better asset quality and recoveries. The Pre-Provision Operating Profit (PPOP) stood at ₹40 Cr. Gross Non-Performing Assets (GNPA) were recorded at 3.64% and Net Non-Performing Assets (NNPA) at 0.68%, both showing improvement compared to the figures reported at the end of March 2026 (3.8% GNPA and 0.7% NNPA).

The financial performance metrics for Q1 FY27 compared to the previous quarters are detailed below:

Balance Sheet and Efficiency Ratios​

The company reported a liquidity level of ₹1,316 Cr as of June 30, 2026, supported by an incremental funding amount of ₹1,597 Cr in Q1 FY27. The marginal cost of borrowing sequentially improved to 11.3% in Q1 FY27, down from 12.0% in Q4 FY26.

The Net Interest Margin (NIM) for Q1 FY27 stood at 12.5%, marking a significant increase of +253 bps compared to Q4 FY26 (9.9%). The Return on Assets (ROA) achieved was 0.7%.

Key financial components as of June 30, 2026, include:


The company’s balance sheet details highlight a diversified borrowing mix, with 47% of outstanding loans sourced from banks. The asset concentration across states stood at approximately 52% from the top four states.

SPANDANA Stock Price Movement​

Spandana Sphoorty Financial Limited shares closed today, gaining 4.78% to settle at ₹292.25 after an uptick from the previous close. The stock traded within an intraday range of ₹278.45 to ₹298.95, recording a volume of 526,955 shares.