Spandana Sphoorty Financial Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Spandana Sphoorty Financial Ltd filed with BSE on 31 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Spandana Sphoorty reported Q1 FY27 AUM growth of 11% quarter-on-quarter to Rs 4,887 crores, with PAT rising to Rs 12 crores from Rs 5 crores in the March quarter. Management cited improvement in NIM to 12.5%, a decline in marginal cost of borrowings to 11.3%, and X-bucket collection efficiency sustained at 99.5%. The company also disclosed plans to pilot an individual loan product in Madhya Pradesh and expand presence in Tamil Nadu and Maharashtra.
Numbers mentioned
AUM: INR4,887 crores (Q1 FY27)
p. 3
“Our AUM grew 11% quarter-on-quarter to INR4,887 crores.”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
New member addition: 61% (Q1 FY27)
p. 3
“New member addition was at 61% as compared to 46% rather in the March quarter.”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
X-bucket collection efficiency: 99.5% (Q1 FY27)
p. 3
“X-bucket collection efficiency, which is a very important parameter was at 99.5% as anticipated.”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
Annualized credit cost: 2.1% (Q1 FY27)
p. 3
“Annualized credit cost at 2.1% (Net credit cost remained negative in Q1, due to stronger recoveries during the period) against 3.2% in the March quarter.”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
90-plus pool collections: INR51 crores (Q1 FY27)
p. 3
“We managed to collect INR51 crores in the 90-plus pool.”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
Marginal cost of funding: 11.3% (Q1 FY27)
p. 3
“The marginal cost of funding came down to 11.3% as against 12% last quarter.”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
CGS sanctions: INR545 crores (Q1 FY27)
p. 3
“we managed to garner around INR545 crores of sanction under the credit guarantee scheme”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
Cost of borrowing: 12.8% (Q1 FY27)
p. 3
“Overall cost of borrowing came down to 12.8% as against 13.2% with bank share going up from 44% to 47%.”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
Share of new portfolio (post-April 2025 sourcing): 91% (Q1 FY27)
p. 3
“The share of new portfolio, which is sourcing effective 1st of April 2025, grew to 91%.”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
PAT: INR12 crores (Q1 FY27)
p. 3
“PAT was INR12 crores as against INR5 crores in the March '26 quarter.”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
ROA: 1% (Q1 FY27)
p. 6
“The current ROA is at 1%.”
Ashish Damani, page 6 of the filed PDF · View the filing
CGS utilized: INR200 crores (Q1 FY27)
p. 10
“INR500 crores sanctioned thus far, utilized is INR200 crores.”
Venkatesh Krishnan, page 10 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Credit cost — 2.5% to 3% · FY27
stated firmly by Venkatesh Krishnan
p. 6
“Very much. We are at, as I said, 2.1% for Q1 and the efforts are on to retain that.”
Venkatesh Krishnan, page 6 of the filed PDF · View the filing
ROA — 3.5% · FY28
stated as an aspiration by Ashish Damani
p. 6
“And our stated position is 3.5% kind of ROA is something that should be feasible in the kind of ROA tree that we have.”
Ashish Damani, page 6 of the filed PDF · View the filing
Net credit cost — closer to 2% · FY27
stated conditionally by Venkatesh Krishnan
p. 7
“Closer to 2%.”
Venkatesh Krishnan, page 7 of the filed PDF · View the filing
Disbursements — INR6,000 crores to INR6,500 crores · FY27
stated firmly by Venkatesh Krishnan
p. 7
“So, we are looking at anywhere between INR6,000 crores to INR6,500 crores.”
Venkatesh Krishnan, page 7 of the filed PDF · View the filing
Yield — 25.25%
stated conditionally by Ashish Damani
p. 8
“So our ideal yield at which we disburse is around 25.25%.”
Ashish Damani, page 8 of the filed PDF · View the filing
90-plus pool recoveries — INR150 crores to INR200 crores · FY27
stated conditionally by Venkatesh Krishnan
p. 9
“That pool is large enough, and we are going to collect anywhere between INR150 crores to INR200 crores.”
Venkatesh Krishnan, page 9 of the filed PDF · View the filing
Opex — around INR675 crores · FY27
stated as an aspiration by Ashish Damani
p. 10
“I think we should be more around INR675 crores or so for the full year this year.”
Ashish Damani, page 10 of the filed PDF · View the filing
Opex — 10% increase · FY28
stated as an aspiration by Ashish Damani
p. 10
“And next year should be just a 10% increase on that.”
Ashish Damani, page 10 of the filed PDF · View the filing
Stage 1 coverage — 50% in the 1 to 30 segment
stated as an aspiration by Venkatesh Krishnan
p. 11
“But yes, the focus is on to raise at least the bar to 50% in the 1 to 30 segment.”
Venkatesh Krishnan, page 11 of the filed PDF · View the filing
Rights issue proceeds — INR200 crores · this quarter
stated firmly by Venkatesh Krishnan
p. 4
“The balance rights issue money of INR200 crores, INR100 crores from the promoter and the balance INR100 crores from others who participated is expected this quarter, before the end of this quarter.”
Venkatesh Krishnan, page 4 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Yes, management confirmed the target remains, noting 2.1% achieved in Q1.
Answered by Venkatesh Krishnan
Asked by Harshit Khadka: Are you maintaining the 2.5% to 3% credit cost target for FY27?
p. 6
“Very much. We are at, as I said, 2.1% for Q1 and the efforts are on to retain that.”
Venkatesh Krishnan, page 6 of the filed PDF · View the filing
Management said current ROA is 1% and expects it to improve toward a 3.5% BAU target by FY28.
Answered by Ashish Damani
Asked by Harshit Khadka: What is the ROA target for FY27 and FY28?
p. 6
“The current ROA is at 1%. This should improve from here is the expectation for FY27.”
Ashish Damani, page 6 of the filed PDF · View the filing
Management said liquidity is being carried partly due to timing of quarter-end drawdowns but they will look to optimize it as conditions improve, while staying cautious.
Answered by Ashish Damani
Asked by Karthik Srinivas: Will liquidity levels come down and be redeployed into disbursements?
p. 6
“As the situation is improving, as the environment is improving, we will like to optimize on the overall liquidity that we will carry in the balance sheet.”
Ashish Damani, page 6 of the filed PDF · View the filing
Management confirmed incremental cost of borrowing improved to 11.3% from 12%, aided by rating and CGS borrowings, with further improvement expected.
Answered by Ashish Damani
Asked by Sajal Raj: Has the rating improvement translated into lower cost of borrowing, and what is the FY27 outlook?
p. 6
“We are at 11.3% against the 12% last quarter. The rating definitely has a role to play and any improvement there will translate into better pricing for the company.”
Ashish Damani, page 6 of the filed PDF · View the filing
Management said non-CGS borrowings were also available at good pricing and that more banking names are engaging with the company.
Answered by Ashish Damani
Asked by Abhijit Tibrewal: Could access to liabilities impede growth targets this year?
p. 7
“Of the INR1,597 crores that we have drawn, what was drawn under the CGS for the quarter was about INR200 crores. The rest is yet to be drawn.”
Ashish Damani, page 7 of the filed PDF · View the filing
Management said yields are close to the ideal disbursement yield of 25.25% and should see only marginal further improvement before stabilizing.
Answered by Ashish Damani
Asked by Abhijit Tibrewal: At what point will yields stabilize?
p. 8
“So yield going forward should see marginal improvement. But yes, then it should sustain from there.”
Ashish Damani, page 8 of the filed PDF · View the filing
Management said the last rate increase was October 2025 and there are no further plans to raise rates.
Answered by Venkatesh Krishnan
Asked by Shreepal Doshi: Have rates on the asset side been increased recently, and are further increases planned?
p. 8
“Just to add. Sorry, Shreepal, there are no further plans to increase the rates at this point in time.”
Venkatesh Krishnan, page 8 of the filed PDF · View the filing
Management said no adverse impact has been observed so far in the current month.
Answered by Venkatesh Krishnan
Asked by Shreepal Doshi: How is July collection efficiency trending amid monsoon/El Nino concerns?
p. 8
“Thus far, in line with what we have seen in the balance month of this year.”
Venkatesh Krishnan, page 8 of the filed PDF · View the filing
Management said no adversity has been observed in portfolio behavior so far.
Answered by Venkatesh Krishnan
Asked by Ashlesh Sonje: Are there early signs of elevated bounces or forward flows due to weak monsoon?
p. 9
“So the first point, as I said just before this question saying, as of now, we are not seeing any adversity in the way the portfolio is behaving.”
Venkatesh Krishnan, page 9 of the filed PDF · View the filing
Management guided to INR150-200 crores of collections from the roughly INR2,500 crore 90-plus pool, noting INR326 crores collected over the last 18 months.
Answered by Venkatesh Krishnan
Asked by Ashlesh Sonje: What is the target recovery amount from the 90-plus pool this year?
p. 9
“INR150 crores, INR200 crores of collections that we envisage for this year is going to come from the existing 90-plus pool, which is about roughly INR2,500 crores, of which, we have collected about INR300 crores last year.”
Venkatesh Krishnan, page 9 of the filed PDF · View the filing
Management guided full-year opex to around INR675 crores against INR760 crores last year, with a further 10% increase expected next year.
Answered by Ashish Damani
Asked by Meghna Luthra: How is opex expected to trend this year and next?
p. 10
“So against the last year full opex of about INR760-odd crores. I think we should be more around INR675 crores or so for the full year this year.”
Ashish Damani, page 10 of the filed PDF · View the filing
Management acknowledged the observation and said they are working to raise Stage 1 coverage, targeting at least 50% in the 1-to-30 segment.
Answered by Venkatesh Krishnan
Asked by Rajiv Mehta: Why is Stage 1 coverage lower than peers, and will it be raised?
p. 11
“Very much. It's a very valid observation. We are working on it.”
Venkatesh Krishnan, page 11 of the filed PDF · View the filing
Management guided to a little above INR6,000 crores exit AUM this year and around INR10,000 crores by March 2028.
Answered by Venkatesh Krishnan
Asked by Rajiv Mehta: What are the AUM targets for March 2027 and March 2028?
p. 11
“This year, we are aiming for about exit of about anywhere a little upwards of INR6,000 crores.”
Venkatesh Krishnan, page 11 of the filed PDF · View the filing
Management said growth must be calibrated and supported by process, controls and discipline rather than unchecked scale-up.
Answered by Venkatesh Krishnan
Asked by Prabal Gandhi: How is the company ensuring sustainability of AUM this cycle versus past cycles?
p. 13
“There are only 3 things in this industry one needs to take care of. One is your process and controls.”
Venkatesh Krishnan, page 13 of the filed PDF · View the filing
Management said Kedaara does not direct business decisions and has been supportive without interference, conducting monthly reviews.
Answered by Venkatesh Krishnan
Asked by Prabal Gandhi: How does Kedaara evaluate senior management performance?
p. 14
“Kedaara has no role to play, what to grow, which markets to grow, how to grow, what are the things we need to do, which are the areas we need to automate, everything is done by the management.”
Venkatesh Krishnan, page 14 of the filed PDF · View the filing
Risks flagged
Potential weak monsoon / El Nino impact on new-to-credit borrowers in certain districts
p. 4
“El Nino, much spoken about what's going to happen, time alone will say.”
Venkatesh Krishnan, page 4 of the filed PDF · View the filing
Elevated financial borrowing costs during the stress period
p. 12
“Our financial borrowing cost got elevated during the stress period.”
Ashish Damani, page 12 of the filed PDF · View the filing
Attrition of frontline staff affecting productivity and reliability
p. 12
“Third, which is very important for us to ensure that we are able to work on the attrition front and ensure that we retain people because over time, we realize that once the people are there on board, their productivity improves, reliability improves.”
Venkatesh Krishnan, page 12 of the filed PDF · View the filing
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