Microfinance company Spandana Sphoorty Financial delivered robust financial performance in Q2FY27, reporting a consolidated net profit of ₹18 crore compared to ₹12 crore in Q1FY27. The company also posted a standalone net profit of ₹35 crore against ₹218 crore loss in the year-ago period. According to the latest company announcement, net interest income rose 25% QoQ to ₹169 crore, while pre-provision operating profit (PPOP) nearly doubled to ₹79 crore from ₹40 crore in Q1FY27. The sequential improvement was driven by total income growing 12% QoQ to ₹340 crore and yield improving to 24.9% from 24.6% in the previous quarter.
Asset quality metrics continued to show marked improvement across all key parameters. The gross non-performing assets ratio improved to 2.54% from 3.64% in the previous quarter, while net NPA stood at 0.50% against 0.68% over the same period. The company maintained a provision coverage ratio at around 80% at the end of the reporting cycle. Collection efficiency metrics demonstrated strong performance with gross collection efficiency improving to 97.9% in Q2FY27 from 96.6% in Q1FY27, and net collection efficiency reaching 97.3% compared to 95.9% previously. As per the company announcement, X-bucket collection efficiency across major states remained above 99.6%, indicating robust operational efficiency.
The company's operational metrics showed substantial improvement with assets under management growing 10% QoQ to ₹5,364 crore from ₹4,887 crore in June 2026. Disbursements increased 8% QoQ to ₹1,481 crore compared to ₹1,371 crore in Q1FY27, demonstrating strong business expansion momentum. The marginal cost of borrowing improved to 10.6% from 11.3% in the previous quarter, while the company maintained a strong capital position with liquidity of ₹1,379 crore and CRAR at 33.5%. According to MD & CEO Mr. Venkatesh Krishnan, the company has focused on strengthening four pillars of business - Portfolio Quality, Productivity, Capital and People - which are now translating into improved financial performance.
The company's balance sheet remains robust with net-worth of ₹2,343 crore and CRAR at 33.5% compared to 33.8% at the end of June 2026. Borrowed ₹1,427 crore during Q2FY27 versus ₹1,597 crore in Q1FY27, indicating controlled funding requirements. The company's borrowed funds cost improved to 10.6% from 11.3% in the previous quarter, contributing to better net interest margins. As per the company announcement, with operating rhythm gaining momentum and performance strengthening, Spandana is entering the next phase from a position of resilience, focusing on calibrated growth backed by disciplined execution and improving portfolio quality.
