Shares of Spandana Sphoorty Financial Ltd shares in focus after a negative development on the credit ratings front.
ICRA Ratings has downgraded the company’s credit rating to A- (Negative) from A (Negative) for both its term loan of ₹2,105 crore and non-convertible debentures worth ₹423 crore. The outlook remains negative. The rating action reflects continued underperformance in asset quality and profitability for Q4 FY25 and a weak near-term outlook.
According to ICRA, the company’s gross Stage 3 assets rose to 5.6% as of March 2025 from 1.7% in March 2024. Delinquencies in loans overdue by over 30 days increased to 14.8%, highlighting persistent stress. Despite write-offs of ₹1,618 crore in FY25, credit costs surged to 16.5%, resulting in a consolidated net loss of ₹1,035 crore for FY25.
While the company’s capital adequacy ratio stood at 36.3% and liquidity remains adequate, it has breached certain financial covenants on debentures and term loans. The firm is yet to secure waivers for all such breaches. Moreover, the sudden exit of the CEO in April 2025 has added to management instability.
Meanwhile, shares of Spandana Sphoorty were trading at ₹282.85, up 0.25%, on NSE as of 1:05 PM.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
