Spandana Sphoorty Financial Limited has announced a leadership transition in its Chief Operating Officer position, with the Board of Directors approving both a resignation and a new appointment effective April 3, 2026. The changes were communicated to stock exchanges under Regulation 30 of SEBI LODR Regulations through official filing reference SSFL/Stock Exchange/2026-27/001.

Leadership Transition Details

The company's Board of Directors, through its resolution dated April 3, 2026, formally acknowledged two key developments in the COO position:

New COO Profile and Experience

Mr. Ganesh KV brings extensive experience to his new role as Chief Operating Officer. His professional background spans over three decades in financial services, with particular expertise in microfinance, retail banking, rural markets, and large-scale distribution operations.

Professional Background

Mr. Ganesh KV has held senior leadership positions across multiple prominent organizations:

Financial Services Experience:

• Chaitanya India Fin Credit Private Limited
• Dvara KGFS
• HDFC Bank
• ICICI Bank

Consumer and Distribution Companies:

• Parle Agro
• GM Pens (Reynolds)
• PepsiCo
• Asian Paints
• Eureka Forbes

Recent Leadership Roles

In his most recent employment with Chaitanya India Fin Credit Private Limited, Mr. Ganesh KV served in two key capacities. As President & Head – Internal Audit, he spearheaded the automation of audit processes while strengthening governance and compliance frameworks. Prior to this role, he served as President – Operations, where he managed business expansion initiatives, product development, pilot programs, and multi-state operational management.

Regulatory Compliance and Documentation

The leadership change was reported in accordance with SEBI Master Circular bearing reference number HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026. The filing was signed by Company Secretary Vinay Prakash Tripathi and included formal resignation documentation from Mr. Vishal Sharma.

Seamless Internal Transition

The appointment represents an internal promotion, as Mr. Ganesh KV was already serving as Chief Transformation Officer within Spandana Sphoorty Financial Limited. This internal transition ensures continuity in operations while bringing his transformation experience to the broader operational mandate of the COO role. The company has confirmed that Mr. Ganesh KV is not related to any existing directors, ensuring compliance with corporate governance requirements.

Spandana Sphoorty Financial Limited announced its unaudited financial results for the quarter ended December 31, 2025, reporting a standalone net loss of ₹82.54 crores. The microfinance institution continues to navigate challenges from previous years' loan portfolios while implementing recovery measures and maintaining strong capital adequacy ratios. During the earnings conference call held on January 27, 2026, newly appointed MD & CEO Venkatesh Krishnan outlined the company's recovery strategy and future growth plans.

Financial Performance Overview

The company's financial metrics for Q3FY26 reflect ongoing recovery efforts amid portfolio stress:

For the nine months ended December 31, 2025, the company reported a net loss of ₹629.52 crores compared to ₹546.54 crores in the corresponding period of the previous year. The company achieved PPOP positive results of ₹8 crores during the quarter compared to a loss of ₹40 crores in the previous quarter.

Portfolio Quality and Collection Performance

During the earnings call, management highlighted significant improvements in portfolio quality metrics. The new book sourced during the financial year, which constitutes 58% of the overall book, has demonstrated strong collection efficiency of 99.8%. Management expects this proportion to reach 90% by the end of the current financial year.

The company has established a dedicated team of 800 personnel for 90+ collections, which management plans to expand to 1,500 members and maintain at that level for the next couple of quarters.

Technical Write-offs and Portfolio Management

As a prudent and conservative measure, Spandana Sphoorty recognized technical write-offs with principal outstanding of ₹207.59 crores for Q3FY26 and ₹1,155.27 crores for the nine-month period. The selection of accounts for technical write-off was based on objective criteria identified by management as loss assets in line with the company's credit loss policy.

The company's cautious disbursement strategy resulted in a significant reduction of the loan book from ₹5,554.45 crores as of March 31, 2025, to ₹3,078.65 crores as of December 31, 2025. Despite the portfolio challenges, loans originated under enhanced credit guardrails have consistently delivered strong collection performance.

Capital Position and Liquidity

Spandana Sphoorty maintains a robust financial foundation despite operational challenges:

During Q3FY26, the company raised ₹1,644 crores through various funding sources. The liquidity position represents approximately 25% of the company's total assets, providing substantial buffer for operations and future growth requirements.

Leadership and Strategic Initiatives

The company appointed Mr. Ganesh KV as Chief Transformation Officer effective January 27, 2026. With over three decades of experience in financial services, microfinance, and retail banking, Ganesh has held senior leadership roles at Chaitanya India Fin Credit Private Limited, Dvara KGFS, HDFC Bank, and ICICI Bank.

MD & CEO Venkatesh Krishnan, who joined the company on November 27, 2025, outlined several strategic initiatives during the earnings call:

Regulatory Compliance and Future Outlook

The company's Qualifying Assets (QA) fell below the stipulated 60% threshold as of December 31, 2025, marking the first quarter post-implementation of the Reserve Bank of India (Non-Banking Financial Companies – Microfinance Institution) Directions, 2025. Management plans to effectively deploy available liquidity into business operations to increase QA to required levels within prescribed timelines.

For FY27, management expects gross slippages of approximately ₹225 crores and net slippages of around ₹50 crores, indicating a significant improvement in credit costs. The company targets monthly disbursements of ₹500 crores, gradually scaling to ₹550-600 crores, with an aim to achieve sustainable growth of 25-30% annually.

The Board of Directors granted in-principle approval for the proposed merger of Criss Financial Limited, a subsidiary, with the parent company. A Merger Steering Committee has been constituted to evaluate and finalize merger terms, subject to regulatory and shareholder approvals.

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