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.

Source:

Spandana Sphoorty Financial Limited has announced the successful completion of its postal ballot process, with shareholders approving three critical corporate governance resolutions on January 20, 2026. The microfinance company conducted the voting through remote e-voting mechanism, demonstrating strong shareholder confidence in the proposed leadership changes.

Postal Ballot Overview

The company initiated the postal ballot process through a notice dated December 17, 2025, seeking shareholder approval on key appointments and remuneration matters. The voting period extended from December 19, 2025, at 9:00 AM to January 17, 2026, at 5:00 PM, with KFin Technologies Limited serving as the service provider for the remote e-voting facility.

Resolution Results

All three resolutions received overwhelming shareholder support, with approval rates exceeding 99% across all categories. The voting results demonstrate strong confidence in the company's leadership decisions.

Resolution 1: Director Appointment

The ordinary resolution to approve the appointment of Venkatesh Krishnan (DIN: 02078403) as Director received 99.995% approval from shareholders.

Resolution 2: Managing Director Appointment

The special resolution for appointing and determining remuneration of Venkatesh Krishnan as Managing Director and Chief Executive Officer secured 99.994% shareholder approval.

Resolution 3: Chairperson Remuneration Revision

The ordinary resolution to approve revised annual remuneration for Chairperson and Independent Director Abanti Mitra (DIN: 02305893) received 99.992% approval.

Share Capital Structure

The company's paid-up equity share capital as of the record date stood at ₹79.97 crores, comprising both fully paid-up and partly paid-up equity shares. The voting structure reflects proportionate rights based on paid-up value.

Compliance and Process

The postal ballot process adhered to all regulatory requirements under the Companies Act, 2013, and SEBI Listing Regulations. Y. Ravi Prasada Reddy of RPR & Associates served as the scrutinizer, ensuring transparent and fair voting procedures. The company published advertisements in Financial Express and Nava Telangana newspapers on December 19, 2025, informing stakeholders about the postal ballot completion.

The successful completion of these resolutions positions the company for continued growth under new leadership while maintaining strong corporate governance standards. Company Secretary Vinay Prakash Tripathi confirmed that the voting results and scrutinizer's report would be made available on the company's website at www.spandanaspooorty.com .