Spandana Sphoorty Financial's Q1 FY 2025-26 Quarterly Results

Result Summary

• Spandana Sphoorty Financial Ltd reported a 57.1% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 58.7%.
• Its expenses for the quarter were down by 18.2% QoQ and 19.4% YoY.
• The net profit decreased 380.0% QoQ and decreased 746.6% YoY.
• The earnings per share (EPS) of Spandana Sphoorty Financial Ltd declined at 50.52 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Spandana Sphoorty Financial Ltd is a prominent player in the Indian financial services sector, primarily engaged in providing microfinance solutions. The company offers financial services to low-income households, particularly focusing on women entrepreneurs in rural and semi-urban areas. Spandana Sphoorty operates within the microfinance industry, a sector known for its role in financial inclusion by providing credit to those who lack access to traditional banking services. As of the latest data available, no specific recent major developments have been noted for the company. The company is known for its commitment to empowering women through financial independence, enabling them to undertake entrepreneurial initiatives that contribute to their economic growth and stability.

Revenue

In the first quarter of the fiscal year 2026 (Q1FY26), Spandana Sphoorty Financial Ltd reported a total income of ₹304.12 crores. This represents a significant decline compared to the previous quarter (Q4FY25), where the total income was ₹709.60 crores, marking a quarter-over-quarter (QoQ) decrease of 57.1%. Furthermore, the year-over-year (YoY) comparison shows a 58.7% decrease from Q1FY25, when the total income was ₹736.98 crores. This substantial drop in revenue reflects a challenging quarter for the company, indicating a reduction in business operations or changes in market conditions that impacted income generation.

Profitability

The financial performance of Spandana Sphoorty in Q1FY26 shows a marked decline in profitability. The company reported a loss before tax of ₹480.89 crores, a stark contrast to a profit before tax of ₹172.17 crores in Q4FY25. This translates to a QoQ decline of 379.3%. Compared to Q1FY25, where the profit before tax was ₹75.05 crores, there's a YoY decrease of 740.8%. The tax expense for Q1FY26 was a negative ₹120.66 crores, compared to ₹43.51 crores in the previous quarter, indicating a reversal in tax liabilities. Consequently, the profit after tax for Q1FY26 was a loss of ₹360.23 crores, compared to a profit of ₹128.66 crores in Q4FY25, representing a 380.0% QoQ decline. The YoY decrease was 746.6% from a profit of ₹55.71 crores in Q1FY25. Earnings per share also reflected this downward trend, showing a decrease to ₹-50.52 in Q1FY26 from ₹17.71 in Q4FY25 and ₹7.70 in Q1FY25.

Operating Metrics

The operating metrics for Spandana Sphoorty Financial Ltd in Q1FY26 indicate a challenging period with significant declines across key financial indicators. Total expenses for the quarter amounted to ₹362.84 crores, which is an 18.2% reduction compared to the previous quarter's expenses of ₹443.59 crores. Year-over-year, the expenses decreased by 19.4% from ₹450.13 crores in Q1FY25. Despite the reduction in expenses, the substantial decline in total income led to negative impacts on profitability. The earnings per share metric, reflecting the company's performance from the shareholders' perspective, showed a significant decline to ₹-50.52 in Q1FY26, further highlighting the financial challenges encountered during this period.