Spandana Sphoorty Financial542759Earnings call transcript

Q2 FY27 call: AUM INR5,364 crores, GNPA 2.5%, PAT INR18 crores

Transcript of the Q2 FY27 earnings call held on October 30, 2026 is out.

By ScoutQuest · Thu 5 Nov 2026, 5:41 PM IST · 2 min read

AUM stood at INR5,364 crores, up 10% quarter-on-quarter, crossing the INR5,000 crores mark in recent quarters.
Disbursements in the quarter were INR1,481 crores: 54% to new customers, 11% to reactivated dropout borrowers and 35% to existing customers who met the guardrail principles.
GNPA eased to 2.5% from 3.6% at end-June, and NNPA to 0.5% from 0.68%.
X-bucket collection efficiency held at 99.6%, and the 31-90 day delinquency bucket was 0.55% against 0.73% at end-June.
96% of the microfinance book is now originated under the strengthened underwriting framework.

NIM improved to 13.6% from 12.5%, helped by a higher yield of 24.9% against 24.6% and lower financial cost.
Marginal cost of borrowing is 10.6%, a decline of 260 basis points since Q3 FY26; non-CGS borrowing was 10.8%.
PPOP rose to INR52 crores from INR16 crores in Q1; including write-backs it was INR79 crores against INR40 crores.
PAT was INR18 crores against INR12 crores in Q1.

The company raised INR1,622 crores during the quarter, which included INR995 crores under the CGS scheme.
Closing liquidity was INR1,379 crores as on September 30.
The partly paid rights issue saw INR400 crores infused; the second tranche was INR194 crores and 97% of first-tranche subscribers participated.
Banks formed about 57% of the borrowing mix, and debt raised over the period was INR7,485 crores.

Karnataka and Maharashtra were identified as two states where some stress could be experienced. The book in these two states is about INR600 crores, of which about 96% is current and 3% is in GNPA.
In Maharashtra, the branches were split into risk categories; 18 of the 127-odd branches are treated as critical branches with special focus. There, the company is staying away from onboarding new-to-credit customers, making norms for new-to-Spandana customers more stringent and giving repeat loans only after existing customers repay on time.

A new loan origination system has been piloted, and migration of all branches is expected over the next couple of months.
The CFL merger is progressing and the company is awaiting the regulator's approval, expected over the next 3 to 4 months.
Leadership is being strengthened with a leaner structure in some geographies; monthly opex is running at about INR50-odd crores.
Borrower additions were about 1.5 lakh in the quarter, borrowers per loan officer rose 15% to 211 and borrowers per branch improved 8%.

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