Spandana Sphoorty Financial Limited reported a turnaround in its March quarter performance, posting a profit after tax (PAT) of ₹5 crore as key business metrics showed sequential improvement.
The microfinance lender’s assets under management (AUM) grew 12% quarter-on-quarter to ₹4,420 crore as of March 2026, marking the first meaningful growth in eight quarters. Disbursements also picked up sharply, rising 30% QoQ to ₹1,539 crore, indicating improving demand conditions in the microfinance segment.
The company’s financial performance reflected a recovery trajectory. Total income stood at ₹277 crore for the quarter, while net interest income came in at ₹97 crore. Yield improved to 22.8%, up 43 basis points sequentially, although the cost of borrowings increased to 13.2%, up 55 basis points QoQ. Pre-provision operating profit rose to ₹39 crore, compared to ₹8 crore in the previous quarter, supporting the return to profitability.
Asset quality indicators also showed improvement. Consolidated gross NPA declined to 3.78% in March 2026 from 4.24% in December 2025, while net NPA improved to 0.73% from 0.92% over the same period. The company maintained a provision coverage ratio of around 80%.
Collection efficiency strengthened during the quarter, with gross collection efficiency improving to 95.3% and net collection efficiency rising to 94.7%, reflecting better customer engagement and recovery efforts.
Commenting on the performance, Venkatesh Krishnan, Managing Director and CEO, said the microfinance sector has “turned a tough corner” after a prolonged challenging phase. He noted that improving market conditions and stronger portfolio quality helped the company return to profitability after six quarters. He added that the company is focusing on customer acquisition, technology transformation, cost optimisation, and recovery-led growth.
The company also highlighted that loans sourced under new lending norms now account for 80% of its microfinance portfolio, with net collection efficiency at 99.7%, indicating improved credit discipline.
Spandana ended the quarter with a healthy liquidity position of ₹1,438 crore and a capital adequacy ratio (CRAR) of 35.9%, providing a strong buffer to support future growth.
Overall, the Q4 performance signals a gradual recovery for Spandana, with improving asset quality, higher disbursements, and a return to profitability marking a shift in business momentum.