Spandana Sphoorty Q4FY26 Earnings Call Transcript: AUM Rises 12%, Returns to Profit
Spandana Sphoorty Financial Limited filed the transcript of its Q4 and FY26 earnings conference call with stock exchanges under SEBI Regulation 30, following earlier disclosures of the audio recording and newspaper publication of results. The company reported a 12% QoQ AUM growth to INR4,420 crores, X-bucket collection efficiency of 99.70%, and a return to profitability with a PAT of INR5 crores in Q4 FY26 against a loss of INR95 crores in Q3. Management targets AUM of INR6,500 crores by FY27-end and plans to add approximately 7 lakh new borrowers during the year.
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Spandana Sphoorty Financial Limited has filed the transcript of its Q4 and FY26 earnings conference call with BSE Limited and the National Stock Exchange of India Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transcript, filed vide reference SSFL/Stock Exchange/2026-27/025 on May 12, 2026, and digitally signed by Company Secretary Vinay Prakash Tripathi, covers the call held on May 05, 2026, to discuss the company's financial and operational performance for the quarter and year ended March 31, 2026. The document has also been made available on the company's official website.
Regulatory Disclosures and Filing Details
The transcript filing follows the company's earlier disclosures pertaining to the audio recording of the same conference call (reference SSFL/Stock Exchange/2026-27/022 dated May 05, 2026) and the newspaper publication of audited consolidated financial results in Financial Express and Nava Telangana under Regulation 47 of the SEBI LODR Regulations (reference SSFL/Stock Exchange/2026-27/023 dated May 06, 2026). The results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 05, 2026.
| Parameter: | Details |
|---|---|
| Conference Call Date: | May 5, 2026 |
| Transcript Filing Reference: | SSFL/Stock Exchange/2026-27/025 |
| Audio Recording Filing Reference: | SSFL/Stock Exchange/2026-27/022 |
| Newspaper Publication Filing Reference: | SSFL/Stock Exchange/2026-27/023 |
| Results Covered: | Quarter and year ended March 31, 2026 |
| Results Type: | Audited standalone and consolidated |
| Regulatory Reference (Transcript/Audio): | SEBI LODR Regulation 30 |
| Regulatory Reference (Publication): | SEBI LODR Regulation 47 |
| Newspapers: | Financial Express and Nava Telangana |
Consolidated Financial Results — Q4 & FY26
The audited consolidated financial results reflect the company's performance for the quarter and year ended March 31, 2026. All figures are in Rs. in crores unless otherwise stated.
| Particulars: | Q4 FY26 (Unaudited) | Q3 FY26 (Unaudited) | FY26 (Audited) | FY25 (Audited) |
|---|---|---|---|---|
| Total Income from Operations: | 259.69 | 234.27 | 1,023.96 | 414.79 |
| Net Profit/(Loss) before Tax: | 8.02 | (125.45) | (925.48) | (577.62) |
| Net Profit/(Loss) after Tax: | 5.27 | (95.00) | (699.15) | (434.30) |
| Total Comprehensive Income: | 4.46 | (107.54) | (702.79) | (451.61) |
| Paid-up Equity Share Capital: | 79.97 | 79.97 | 79.97 | 71.31 |
| Reserves (excl. Revaluation Reserve): | 2,049.60 | 2,040.95 | 2,049.60 | 2,561.98 |
| Securities Premium Account: | 2,427.67 | 2,427.67 | 2,427.67 | 2,241.08 |
| Net Worth: | 2,129.57 | 2,120.92 | 2,129.57 | 2,633.28 |
| Outstanding Debt: | 3,942.73 | 3,786.67 | 3,942.73 | 5,655.63 |
| Debt Equity Ratio: | 1.85 | 1.79 | 1.85 | 2.15 |
| Capital Redemption Reserve: | 152.69 | 152.69 | 152.69 | 152.69 |
| Basic EPS (Rs.): | 0.66 | (11.88) | (91.01) | (60.91) |
| Diluted EPS (Rs.): | 0.66 | (11.88) | (91.01) | (60.91) |
Key Standalone Financial Information
The following table presents key standalone financial highlights for the corresponding periods (Rs. in crores):
| Particulars: | Q4 FY26 (Unaudited) | Q3 FY26 (Unaudited) | FY26 (Audited) | FY25 (Audited) |
|---|---|---|---|---|
| Total Income from Operations: | 238.44 | 206.99 | 906.59 | 374.47 |
| Profit/(Loss) before Tax: | 8.33 | (108.88) | (624.05) | (544.80) |
| Net Profit/(Loss) after Tax: | 5.49 | (82.54) | (624.05) | (410.19) |
Business and Operational Highlights from the Conference Call
Managing Director and CEO Venkatesh Krishnan opened the call by highlighting a sequential recovery in disbursements, with the company averaging approximately INR500 crores per month during Q4, up from INR400 crores per month in Q3 and INR300 crores per month in Q2. The AUM closed at INR4,420 crores, marking a 12% quarter-on-quarter increase — the first AUM growth in eight quarters. New customers accounted for approximately 45% of sourcing during the quarter, comprising both new-to-credit and new-to-Spandana borrowers, with the overall customer base standing at just over 11.5 lakhs. The company reported a PAT of INR5 crores in Q4, against a loss of INR95 crores in Q3, marking the first profitable quarter in six quarters.
| Operational Metric: | Q4 FY26 | Q3 FY26 |
|---|---|---|
| AUM (Closing): | INR4,420 crores | INR3,948 crores |
| AUM Growth (QoQ): | 12% | — |
| Monthly Disbursements (Avg.): | ~INR500 crores | ~INR400 crores |
| X-Bucket Collection Efficiency: | 99.70% | 99.30% |
| AUM in 1–90 DPD: | 1.30% | 2.50% |
| GNPA: | 3.80% | 4.20% |
| NNPA: | 0.73% | 0.92% |
| Yield: | 22.80% | 22.40% |
| NIM: | 9.90% | 11.10% |
| Marginal Cost of Borrowings: | 12% | — |
| PPOP: | INR39 crores | INR8 crores |
| Capital Adequacy Ratio (CAR): | 35.90% | — |
| Opex: | ~INR161 crores | ~INR195 crores |
| New Borrowers Added: | ~1.2 lakh | ~63,000 |
CFO Ashish Damani noted that 80% of the AUM is now constituted under new guardrails and new Business Rules Engine (BRE), delivering a collection efficiency of 99.7% over eight months of seasoning. The company borrowed INR1,272 crores during the quarter, with total borrowings since the rights issue amounting to INR3,116 crores. Liquidity as at March 31, 2026 stood at INR1,438 crores. The disbursement yield was reported at 25.25%, with current loan pricing ranging between 23% and 26% depending on customer vintage.
Portfolio Quality, Credit Strategy, and Growth Outlook
On portfolio quality, the management highlighted that 98% of disbursements during the quarter were made to customers who were current on repayments, with Spandana maintaining a stricter internal threshold of not lending to borrowers 30 days or more past due — more stringent than the industry guardrail of 60 days. The lender overlap (Spandana plus three lenders) stood at approximately 4.8%, with 34% being exclusive Spandana customers, 37% Spandana plus one lender, and 25% Spandana plus two lenders. Loan rejection rates continued at 60%–65%. The micro-LAP portfolio in the group company and subsidiary stood at approximately INR322 crores, with GNPA at 1.2%. For Criss Financial's individual loan book, GNPA improved to 6.50% from 11.45% in the previous quarter, aided by an ARC transaction and improved collection efficiencies.
On growth, Venkatesh Krishnan indicated a target AUM of approximately INR6,500 crores by the end of FY27, with disbursements aimed at INR550 crores–INR600 crores per month as the year progresses. The company aims to add approximately 7 lakh new borrowers during FY27, targeting a total borrower base of closer to 1.6 million from the current 1.1 million. The management also indicated a medium-term opex-to-AUM target of 7%–8%, and noted that the existing branch network of 1,250 branches is equipped to support up to INR12,500 crores of AUM without significant additions to fixed costs. On the technology front, migration to a new Loan Origination System (LOS) platform being developed by Perfios is underway, with the individual loan product expected to go live either before the end of the current quarter or early next quarter, and JLG migration anticipated around October–November. The CFL merger process has commenced and is expected to take another five to six months.
Can Spandana sustain its Q4 profitability trajectory into FY27 given the planned aggressive borrower expansion of 7 lakh new customers, and what credit risk does rapid onboarding of new-to-credit borrowers introduce?
How might the completion of the CFL merger in the next five to six months impact Spandana's consolidated capital adequacy, opex structure, and overall AUM targets for FY27?
With the microfinance sector still navigating stress, how vulnerable is Spandana's 12% QoQ AUM recovery to a potential deterioration in rural household income or regulatory tightening on borrower indebtedness limits?
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