Spandana Sphoorty Financial has uploaded the audio recording of its earnings conference call for the first quarter of fiscal year 2026-27 (Q1FY27). The call was held on July 24, 2026, and covered the company's unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. This disclosure ensures transparency and provides investors with direct access to management's commentary on recent performance.

The audio recording is accessible via the company's investor relations page at https://spandanasphoorty.com/investors?id=4 . This step follows the initial announcement of the conference call, which was communicated to the stock exchanges on July 20, 2026, under reference number SSFL/Stock Exchange/2026-27/039.

Regulatory Compliance

The disclosure is made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was sent to both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE). The communication was signed by Vinay Prakash Tripathi, Company Secretary of Spandana Sphoorty Financial Limited.

Next Steps

While the audio recording is now available, the written transcript of the conference call is yet to be released. The company stated that the transcript will be submitted to the stock exchanges and uploaded to its website, www.spandanasphoorty.com , in due course. Investors are advised to monitor the investor relations section for this update.

Key Details

Spandana Sphoorty Financial Limited reported a consolidated net profit after tax (PAT) of ₹12 crore for the quarter ended June 30, 2026 (Q1FY27), a significant turnaround from the ₹360 crore loss in the same period last year. Revenue for the quarter stood at ₹2.84 billion rupees compared to ₹3 billion rupees in the year-ago period. The improvement in profitability was driven by an 11% quarter-on-quarter growth in assets under management (AUM) to ₹4,887 crore and strong disbursement momentum of ₹1,371 crore. Concurrently, ICRA Ratings changed the company's outlook to Stable from Negative, reflecting improved portfolio quality with gross non-performing assets (GNPA) declining to 3.64%.

The Board of Directors approved the unaudited financial results on July 23, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Vinay Prakash Tripathi, Company Secretary, submitted the investor presentation detailing the quarterly performance. Management highlighted that the company is on a growth trajectory with all key indicators reflecting improvement following a challenging phase for the microfinance sector.

Financial Performance Highlights

Total income rose 9% quarter-on-quarter to ₹303 crore in Q1FY27, compared to ₹277 crore in Q4FY26. Net interest income surged 39% to ₹135 crore, aided by a yield improvement of 182 basis points to 24.6%. Pre-provision operating profit (PPOP), excluding recoveries, stood at ₹16 crore, while PPOP including recoveries remained stable at ₹40 crore. The marginal cost of borrowing decreased to 11.3% from 12.0% in Q4FY26.

Disbursements totaled ₹1,371 crore, with approximately 61% extended to new customers. This compares to ₹1,539 crore in Q4FY26 and ₹280 crore in Q1FY26. Liquidity stood at ₹1,316 crore at the end of June 2026.

Asset Quality and Operational Metrics

Asset quality showed further improvement across multiple parameters. Consolidated GNPA fell by 15 basis points to 3.64%, while net NPA decreased to 0.68% from 0.73%. On a standalone basis, Stage III loan assets to gross loan assets stood at 2.91%, with net Stage III loan assets to gross loan assets at 0.56%. The provision coverage ratio (PCR) was maintained at approximately 81%.

Collection efficiency metrics strengthened across the board:

• Gross collection efficiency improved to 96.6% from 95.3%.
• Net collection efficiency rose to 95.9% from 94.7%.
• X-bucket collection efficiency reached 99.5% for June 2026.

The company engaged with customers having more than 90 days past due (DPD), resulting in recoveries of ₹51 crore during the quarter. Total recoveries from this pool over the past 18 months amounted to ₹325 crore.

Balance Sheet Strength and Rating Update

Spandana Sphoorty reported a net worth of ₹2,140 crore. The capital to risk-weighted assets ratio (CRAR) stood at 33.80%, compared to 35.90% at the end of March 2026. The company borrowed ₹1,597 crore during Q1FY27, an increase from ₹1,272 crore in Q4FY26, supporting its liquidity position.

The following table summarises the current credit ratings across agencies:

What the Numbers Show

The sharp rise in net interest income, outpacing total income growth, indicates effective asset-liability management through higher yields and lower funding costs. The simultaneous improvement in collection efficiency and reduction in GNPA — alongside a standalone net Stage III ratio of 0.56% — suggests that management's focus on portfolio quality is yielding tangible results. With over 60% of disbursements going to new customers, the company is actively expanding its borrower base while maintaining strict credit discipline, positioning it for sustainable growth in the recovering microfinance sector.