Spandana Sphoorty Financial Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Spandana Sphoorty Financial Ltd filed with BSE on 12 May 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 its AUM grew 12% quarter-on-quarter to Rs 4,420 crores, with disbursements averaging Rs 500 crores per month during Q4 FY26, up from Rs 400 crores in Q3. The company posted a PAT of Rs 5 crores, its first profitable quarter after six consecutive quarters of losses, while X-bucket collection efficiency stood at 99.7% and GNPA improved to 3.8% from 4.2% in the previous quarter. Management also discussed the migration to a new loan origination system built by Perfios, the CFL merger process, and plans to launch a new individual loan product through its subsidiary Criss Financial.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
AUM: INR4,420 crores (Q4 FY26)
p. 4
“AUM closing was INR4,420 crores, which is higher compared to last quarter AUM of INR3,948 crores.”
Ashish Damani, page 4 of the filed PDF · View the filing
Disbursement: around INR500 crores a month (Q4 FY26)
p. 3
“We managed to disburse around INR500 crores a month during the last quarter, which was up against the INR400 crores per month that we used to disburse in Q3”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
X-bucket collection efficiency: 99.7% (March 2026)
p. 4
“For March 2026, it was at 99.7% against 99.3% for December 2025.”
Ashish Damani, page 4 of the filed PDF · View the filing
GNPA: 3.8% (Q4 FY26)
p. 4
“The GNPA stood at 3.8% versus 4.2% in December.”
Ashish Damani, page 4 of the filed PDF · View the filing
NNPA: 0.73% (Q4 FY26)
p. 4
“The NNPA is now down to 0.73% against the 0.92% compared to the December quarter.”
Ashish Damani, page 4 of the filed PDF · View the filing
Capital adequacy ratio: 35.9% (as of March 31, 2026)
p. 5
“Accordingly, the capital adequacy is also very strong. CAR stood at 35.9% with a net worth of INR2,130 crores as of 31st of March.”
Ashish Damani, page 5 of the filed PDF · View the filing
PAT: INR5 crores (Q4 FY26)
p. 3
“we had for the first time after six quarters had a PAT of INR5 crores against a loss of INR95 crores in the previous quarter”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
Opex: INR161 crores (Q4 FY26)
p. 3
“Our opex came down to about INR161 crores last quarter as compared to INR195 crores”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
Yield: 22.8% (Q4 FY26)
p. 5
“So, it is at 22.8% compared to 22.4% in Q3.”
Ashish Damani, page 5 of the filed PDF · View the filing
NIM: 9.9% (Q4 FY26)
p. 5
“NIM contracted to 9.9% compared to 11.1% largely on the impact of cost of borrowings which we have seen in the previous quarter.”
Ashish Damani, page 5 of the filed PDF · View the filing
PPOP: INR39 crores (Q4 FY26)
p. 5
“Our PPOP has strengthened, we were at INR39 crores for Q4 compared to INR8 crores reported for Q3 FY26.”
Ashish Damani, page 5 of the filed PDF · View the filing
Cost of marginal borrowing: 12% (Q4 FY26)
p. 3
“We are adequately capitalized with capital adequacy at 35% and our cost of marginal borrowing at 12% for last quarter, comprised of 44% bank funding.”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
Criss Financial GNPA: 6.50% (Q4 FY26)
p. 11
“Last quarter it was about 11.45% GNPA, this quarter it is at 6.50%.”
Ashish Damani, page 11 of the filed PDF · View the filing
Micro-LAP GNPA: 1.2% (Q4 FY26)
p. 12
“So, micro-LAP is still around 1.2% in terms of GNPA, that's the number.”
Ashish Damani, page 12 of the filed PDF · View the filing
New borrowers added: 1.2 lakh (Q4 FY26)
p. 6
“we have added about 1.2 lakh new borrowers during the quarter against 63,000 odd in the last quarter”
Ashish Damani, page 6 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.
AUM — INR6,500 crores · FY27
stated conditionally by Venkatesh Krishnan
p. 6
“So, if all goes well, we should be closer to about INR6,500 crores AUM by FY27.”
Venkatesh Krishnan, page 6 of the filed PDF · View the filing
Disbursement — about INR550 crores to about INR600 crores
stated as an aspiration by Venkatesh Krishnan
p. 6
“we want to retain at that level for at least next three-four months and then aim for about INR550 crores to about INR600 crores as we progress and keep a sharper eye on the collection efficiency as well”
Venkatesh Krishnan, page 6 of the filed PDF · View the filing
Cost of borrowings — below 12.5% · FY27
stated conditionally by Ashish Damani
p. 5
“So, overall for the year, we believe it should be, below 12.5%.”
Ashish Damani, page 5 of the filed PDF · View the filing
Opex to AUM — 7% to 8% · medium term
stated as an aspiration by Venkatesh Krishnan
p. 10
“See, in the medium term, it should come down to about 7% to 8% opex to AUM, and in the near term, can INR160 crores come down?”
Venkatesh Krishnan, page 10 of the filed PDF · View the filing
Customer base — closer to1.6 million borrowers · next financial year end
stated as an aspiration by Ashish Damani
p. 6
“I think by the next financial year end, our goal is to add another 7 lakh new borrowers during the financial year, which should take us after the, let's say, dropouts or whatever to closer to1.6 million borrowers from the present 1.1 million that we have.”
Ashish Damani, page 6 of the filed PDF · View the filing
Customer satisfaction score — 95% score · either before the end of this quarter or early next quarter
stated firmly by Venkatesh Krishnan
p. 4
“we are aiming for a 95% score either before the end of this quarter or early next quarter, wherein we want to ensure that all our customers who try to reach out to us get the response on time”
Venkatesh Krishnan, page 4 of the filed PDF · View the filing
X-bucket collection efficiency — 99.5%
stated firmly by Venkatesh Krishnan
p. 13
“Any level of growth, I can't compromise on collection efficiency, especially in the X-bucket. It has to be 99.5%, I can understand some months hovering between 99.3% and 99.5%, some months going up to 99.6%.”
Venkatesh Krishnan, page 13 of the filed PDF · View the filing
LOS platform migration (individual loan product) — either before the end of this quarter or early next quarter
stated firmly by Venkatesh Krishnan
p. 3
“It has started moving and hopefully we should have our first product, which is the individual loan product, either before the end of this quarter or early next quarter and the JLG migration might happen sometime in October-November types.”
Venkatesh Krishnan, page 3 of the filed PDF · View the filing
CFL merger — another 5-6 months
stated firmly by Venkatesh Krishnan
p. 4
“On the merger front, the process has begun, might take another 5 -6 months, we are working on it.”
Venkatesh Krishnan, page 4 of the filed PDF · View the filing
Credit costs — between 2.5% to 3%
stated conditionally by Venkatesh Krishnan
p. 13
“So, which means that 0.50% flows, yearly 6% flows, even if you collect 50% back, your credit costs can hover between 2.5% to 3%, which is acceptable.”
Venkatesh Krishnan, page 13 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.
Cost of borrowings expected to stay around 12.5% or below; disbursement yield to inch up towards 25.25% ideal level as book mix improves.
Answered by Ashish Damani
Asked by Shreepal Doshi: How does management expect cost of funds and yield to move in FY27?
p. 5
“So, overall for the year, we believe it should be, below 12.5%.”
Ashish Damani, page 5 of the filed PDF · View the filing
Company added 1.2 lakh new borrowers in Q4 versus 63,000 previously and targets adding 7 lakh new borrowers next financial year.
Answered by Ashish Damani
Asked by Shreepal Doshi: What is driving new customer acquisition and where will the customer base end FY27?
p. 6
“So, there has been a clear focus on this aspect. I think by the next financial year end, our goal is to add another 7 lakh new borrowers during the financial year”
Ashish Damani, page 6 of the filed PDF · View the filing
SRO guardrails like the three-lender norm and Rs 2 lakh indebtedness FOIR are being followed, and Spandana avoids disbursing to customers overdue by 30+ days.
Answered by Venkatesh Krishnan
Asked by Pratyush Dammani: What entity-level and industry-level measures led to the new portfolio's high collection efficiency?
p. 7
“today, for instance, 98% of the disbursements that I did, the customers were regular. So, I don't lend to customers who are 30 plus on the day of disbursal”
Venkatesh Krishnan, page 7 of the filed PDF · View the filing
Management targets 7-8% opex to AUM in the medium term and sees some further room to bring down absolute opex from current levels.
Answered by Venkatesh Krishnan
Asked by Aviral Jain: Is there further opex optimization possible and what is the target opex ratio?
p. 10
“See, in the medium term, it should come down to about 7% to 8% opex to AUM, and in the near term, can INR160 crores come down? That's what we are aiming for.”
Venkatesh Krishnan, page 10 of the filed PDF · View the filing
Rejection rates continue to be 60-65% and may stay in that range for a while.
Answered by Venkatesh Krishnan
Asked by Aviral Jain: What are current rejection rates for new borrower applications?
p. 10
“Rejections continue to be in the range of 60% to 65%, and it may remain so for a while.”
Venkatesh Krishnan, page 10 of the filed PDF · View the filing
GNPA in Criss Financial improved to 6.50% from 11.45% aided by an ARC transaction and improving collection efficiency.
Answered by Ashish Damani
Asked by Rudraksh Raheja: How is the individual loan portfolio under Criss Financial performing, particularly on GNPA?
p. 11
“So, the numbers have come down. Last quarter it was about 11.45% GNPA, this quarter it is at 6.50%.”
Ashish Damani, page 11 of the filed PDF · View the filing
The individual loan will range between Rs 1 lakh and Rs 4 lakh with average tenure about 24 months.
Answered by Venkatesh Krishnan
Asked by Rudraksh Raheja: What ticket size and tenure will the new individual loan product offer?
p. 12
“The individual ticket size is going to be between INR1 lakhs and INR4 lakhs.”
Venkatesh Krishnan, page 12 of the filed PDF · View the filing
Risks flagged
El Nino and fertilizer issue could seasonally impact the portfolio
p. 4
“We've been hearing about the El Nino and fertilizer issue, so a lot of queries people keep asking how is it going to impact the portfolio.”
Venkatesh Krishnan, page 4 of the filed PDF · View the filing
Liquidity crunch in the market could push up cost of borrowings
p. 5
“You know, the cost of borrowings should be stacking up in the similar levels, more around 12.5% on a blended basis, largely because we do see that, you know, there will be some impact on the cost of borrowings because of the liquidity crunch you are explaining.”
Ashish Damani, page 5 of the filed PDF · View the filing
Rising EMI ticket sizes make it improbable for group members to cover a defaulting borrower's repayment
p. 9
“So, if a lady has not paid for three installments and to three different institutions, expecting others to pay is highly improbable.”
Venkatesh Krishnan, page 9 of the filed PDF · View the filing
High rejection rates persist due to caution in customer selection
p. 10
“Rejections continue to be in the range of 60% to 65%, and it may remain so for a while.”
Venkatesh Krishnan, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.