According to The Economic Times, Spandana Sphoorty Financial Ltd reported a net consolidated loss of ₹95 crore for Q3FY26, representing significant improvement from the ₹249 crore loss in the preceding quarter and ₹440 crore loss in the same period last year. This marks the sixth consecutive quarterly loss due to continued asset quality stress and loan write-offs. The microfinance company's disbursements grew 27% quarter-on-quarter to ₹1,188 crore, indicating operational recovery despite challenges. However, the gross loan book continued to contract to ₹3,079 crore at the end of December from ₹5,555 crore at the beginning of the fiscal year.
As reported by The Economic Times, the company demonstrated marked improvement in asset quality metrics. Gross non-performing assets (GNPA) fell to 4.24% at the consolidated level from 5.62% three months prior, showing significant progress in portfolio quality. Despite this improvement, the third quarter opened with gross slippages, primarily due to stress in the loan portfolio originating in prior years. The company recognized technical write-offs with principal outstanding of ₹208 crore in the quarter under review, with the total write-off amount reaching ₹1,155 crore for the first nine months of the fiscal year.
According to The Economic Times, Venkatesh Krishnan, MD & CEO, commented that "the microfinance sector inched closer to normalcy in the third quarter after six very challenging quarters." He highlighted that despite steady progress in collection efficiency, the third quarter opened with gross slippages, resulting in a loss primarily due to stress in the loan portfolio originating in prior years. Krishnan emphasized that Q3 disbursements were up 27% quarter-on-quarter and collection efficiency continues to improve across buckets, indicating gradual sector recovery.
As reported by The Economic Times, the company's capital position remained strong with a capital to risk-weighted assets ratio at 30.43%, providing adequate support for current operations and future growth projections. However, the lender continued to remain non-compliant with certain covenants while obtaining waivers from some lenders. Krishnan stated that the company has been in constant communication with its lenders and is confident that no material demand for immediate repayment of borrowed funds will be made due to non-compliance. The group has recognised a deferred tax asset of ₹643 crore as at December 31, 2025, based on probable future taxable income supported by revised business plans.
