Spandana Sphoorty Financial Limited's Board of Directors, at its meeting held on May 5, 2026, approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The results were reviewed and recommended by the Audit Committee and carry an unmodified audit opinion from statutory auditor B S R & Co. LLP. The board also approved raising funds of up to ₹4,000 crore through the issuance of Non-Convertible Debentures (NCDs) on a private placement basis, in multiple tranches, subject to member approval. Subsequently, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company informed the stock exchanges that the audio recording of the investor/analyst conference call for Q4 & FY26, held on May 5, 2026, has been uploaded on the company's website. The transcript for the said call will also be submitted to the stock exchanges and uploaded on the company's website in due course.

Standalone Financial Performance

On a standalone basis, Spandana Sphoorty Financial reported a net profit of ₹5.49 crore for the quarter ended March 31, 2026, compared to a net loss of ₹410.19 crore in the same quarter of the previous year. For the full year ended March 31, 2026, the company reported a net loss of ₹624.05 crore, an improvement from a net loss of ₹956.74 crore in the previous year. The following table summarises the key standalone financial metrics:

Standalone Balance Sheet Highlights

The standalone total assets stood at ₹6,176.91 crore as at March 31, 2026, compared to ₹8,007.98 crore as at March 31, 2025. The gross loan book declined from ₹5,554.45 crore as at March 31, 2025 to ₹3,449.58 crore as at March 31, 2026. Total equity stood at ₹2,193.75 crore, comprising equity share capital of ₹79.97 crore and other equity of ₹2,113.78 crore.

Standalone Cash Flow Summary

For the year ended March 31, 2026, the company generated net cash of ₹506.28 crore from operating activities, compared to ₹3,782.97 crore in the previous year. Net cash from investing activities stood at ₹177.97 crore, against a net outflow of ₹200.21 crore in the prior year. Net cash used in financing activities was ₹1,170.89 crore, compared to ₹3,761.34 crore in the previous year. Cash and cash equivalents at the end of the year stood at ₹720.33 crore, down from ₹1,206.97 crore at the start of the year.

Consolidated Financial Performance

On a consolidated basis, which includes subsidiaries Criss Financial Limited (99.92% holding) and Caspian Financial Services Limited (100% holding), the group reported a net profit of ₹5.27 crore for Q4 FY26, compared to a net loss of ₹434.30 crore in Q4 FY25. Consolidated revenue from operations for Q4 FY26 stood at ₹259.69 crore, against ₹414.79 crore in Q4 FY25. For the full year, the consolidated net loss attributable to owners stood at ₹699.09 crore, compared to ₹1,035.10 crore in the previous year. Consolidated total assets were ₹6,246.37 crore as at March 31, 2026, against ₹8,493.53 crore as at March 31, 2025.

Consolidated Cash Flow Summary

For the year ended March 31, 2026, the group generated net cash of ₹882.47 crore from operating activities, compared to ₹3,681.31 crore in the previous year. Net cash from investing activities was ₹164.75 crore, against a net outflow of ₹132.00 crore in the prior year. Net cash used in financing activities was ₹1,513.71 crore, compared to ₹3,711.63 crore in the previous year. Consolidated cash and cash equivalents at the end of the year stood at ₹769.49 crore, down from ₹1,235.97 crore at the beginning of the year.

Key Regulatory and Sector-Specific Ratios

As at March 31, 2026, the company reported a Capital to Risk-Weighted Assets Ratio (CRAR) of 29.76%, well above the minimum regulatory requirement, with Tier I capital of ₹842.43 crore. The net worth stood at ₹2,193.75 crore and the debt-equity ratio was 1.74. The liquidity coverage ratio was 285.00%.

Loan Transfer Disclosures

During the year ended March 31, 2026, the company transferred loan assets through direct assignment. For the full year, 96,248 loans with an aggregate amount of ₹368.80 crore were transferred across 4 transactions, with a sale consideration of ₹331.92 crore and a retention of beneficial economic interest of ₹36.88 crore. Additionally, stressed loan assets with an aggregate principal outstanding of ₹493.55 crore (1,98,978 loans) were transferred to an Asset Reconstruction Company, with a net book value of ₹6.45 crore at the time of transfer and aggregate consideration of ₹34.55 crore.

Operating Environment and Management Commentary

During the year, the company operated in a challenging industry environment characterised by stress in the joint liability group lending model, borrower over-indebtedness, socio-political disruptions, and elevated field attrition. The company undertook technical write-offs during the nine months ended December 31, 2025, aggregating to a principal outstanding of ₹1,155.27 crore. Loans originated during FY2026 exhibited stable performance, while overall collection efficiency across all buckets improved steadily over the course of the year. The company was not compliant with certain financial covenants relating to its borrowings as at March 31, 2026, but has obtained waivers from the majority of lenders and is confident that no material demand for immediate repayment will be made. Management has assessed the company's ability to continue as a going concern and is of the view that no material uncertainty exists in this regard. A deferred tax asset of ₹640.63 crore has been recognised as at March 31, 2026, based on Management's assessment of future taxable profits. The implementation of new Labour Codes resulted in an increase in gratuity liability due to past service cost of ₹3.91 crore and an increase in leave liability of ₹3.68 crore, both recognised under employee benefit expenses for the year.

Subsidiary — Criss Financial Limited

The Board granted in-principle approval on January 10, 2026 for the proposed merger of subsidiary Criss Financial Limited with the company. A Merger Steering Committee has been constituted to evaluate and finalise the merger terms; the scheme is yet to be drafted and remains subject to requisite statutory, regulatory, shareholder, and creditor approvals. During FY26, Criss Financial Limited recognised technical write-offs of ₹175.04 crore and reported a net loss for the quarter and year ended March 31, 2026 amid persistent industry-wide challenges. The subsidiary has recognised a deferred tax asset of ₹61.95 crore based on probable future taxable income.

NCD Issuance and Fund Utilisation

The board approved an aggregate limit not exceeding ₹4,000 crore for issuance of NCDs on a private placement basis, in tranches, subject to member approval. With respect to the utilisation of proceeds from NCDs raised in December 2025 — amounting to ₹140 crore, ₹75 crore, and ₹200 crore respectively — the company confirmed full utilisation for on-lending purposes with no deviation from the stated objects. The outstanding borrowing of the company as on March 31, 2026 stood at ₹3,724.79 crore. The company holds credit ratings of CARE BBB+ (Stable) from CARE Ratings Limited and Crisil BBB+/Stable from Crisil Limited, and has confirmed it is not identified as a 'Large Corporate' under applicable SEBI frameworks.

Source: None/Company/INE572J01011/98c071d1eae049b3.pdf

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.