Spandana Sphoorty Financial Limited has filed its monitoring agency report for the quarter ended March 31, 2026, with BSE Limited and the National Stock Exchange of India Limited, pursuant to Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Regulation 82(2) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report was prepared by CARE Ratings Limited in its capacity as the designated monitoring agency for the company's rights issue.

Rights Issue Overview

The rights issue, with a total size of ₹400 crore, was structured as an issue of equity shares with an issue period running from August 01, 2025 to March 31, 2027. The company's promoters are Kangchenjunga Limited and Kedaara Capital Fund III LLP, and the company operates in the Non-Banking Financial Company (NBFC) sector. The following table summarises the key details of the issue:

Fund Utilisation in Q4FY26

According to the monitoring agency report, Spandana Sphoorty Financial neither received nor utilised any incremental amount from the rights issue during Q4FY26. Out of the total issue size of ₹400 crore, the company received 50% of the proceeds; however, the actual amount received stood at ₹199.35 crore owing to the rejection of some invalid applications submitted by applicants. The table below details the progress in utilisation of issue proceeds as at the end of Q4FY26:

No amount was utilised towards Object 1 (augmenting the capital base), General Corporate Purposes, or issue-related expenses during Q4FY26 specifically. The entire proceeds received till Q4FY26 have been utilised, with no unutilised funds deployed in any instrument. CARE Ratings confirmed there are no major or material deviations observed from the last monitoring agency report, and no deviation from the objects of the issue was noted.

Cost of Objects — No Revision

The cost of objects as originally stated in the Offer Document remains unchanged. The breakdown of the original cost allocation is as follows:

CARE Ratings noted that as against ₹15.64 crore earmarked for General Corporate Purposes, no utilisation has occurred under this head; instead, the amount has been utilised towards Object 1 of augmenting the capital base and resources for meeting funding requirements. The implementation of Object 1 is ongoing with a completion deadline of March 31, 2027, and no delay has been reported.

Sector Challenges and Company Recovery

CARE Ratings flagged that over the past few quarters, the company has witnessed a significant decline in scale along with deterioration in asset quality, and has been reporting losses since Q2FY25, owing to stress in the microfinance sector. The agency further noted that the company is in breach of some financial covenants, which provides an option to lenders and investors to exercise accelerated repayment for outstanding borrowings accounting for ₹42.7 crore (out of which Spandana Sphoorty Financial has received a waiver for ₹27 crore of debt) as on December 31, 2025. The current market price was noted at ₹227, which is more than the pending call amount of ₹115 but lower than the overall issue price of ₹230 per share.

In response, the Board of Directors noted that the improvement witnessed from Q2FY26 strengthened further during H2FY26, as the company continued its recovery from the structural and external challenges faced in FY25. The Board highlighted increasing disbursement volumes, renewed borrower engagement, and a steady upward trend in collection efficiency in current buckets during the year. It was also noted that loans originated in FY26 under enhanced credit guardrails have consistently demonstrated strong collection performance, reinforcing the effectiveness of the strengthened underwriting framework.

Compliance and Disclosure

The monitoring agency report was prepared based on a Chartered Accountant certificate from Raju & Prasad Chartered Accountants dated April 14, 2026, along with management certificates, bank statements, and the Offer Document. CARE Ratings confirmed that there is no conflict of interest in its relationship with Spandana Sphoorty Financial while monitoring and reporting the utilisation of issue proceeds. The report was signed by Jatin Arora, Assistant Director at CARE Ratings Limited, and the information is also being made available on the company's website.

Spandana sphoorty financial Limited has successfully completed a significant fundraising exercise through the allotment of non-convertible debentures on a private placement basis. The company announced the completion of this debt issuance on April 28, 2026, marking an important milestone in its capital mobilization efforts.

Debenture Allotment Details

The Management Committee of the Board of Directors approved the allotment through a resolution dated April 28, 2026. The debenture issuance represents a substantial capital raising initiative for the financial services company.

Debenture Characteristics

The non-convertible debentures carry several key features that make them attractive to institutional investors. These instruments are structured as listed, rated, senior, secured, and redeemable debentures, providing multiple layers of investor protection and market accessibility.

The debentures are:

• Listed: Providing liquidity through stock exchange trading
• Rated: Offering credit assessment for investor confidence
• Senior: Holding priority in the capital structure
• Secured: Backed by company assets
• Redeemable: With defined maturity and repayment terms

Regulatory Compliance

The allotment was conducted in accordance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This disclosure follows the company's earlier communication dated April 20, 2026, ensuring full transparency with stock exchanges and investors.

The company has duly informed both BSE Limited and National Stock Exchange of India Limited about this significant corporate action, maintaining compliance with all applicable listing regulations and disclosure requirements.