Spandana Sphoorty Financial's Q2 FY 2025-26 Quarterly Results

Result Summary

• Spandana Sphoorty Financial Ltd reported a 21.3% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 66.1%.
• Its expenses for the quarter were down by 15.0% QoQ and 35.6% YoY.
• The net profit decreased 30.8% QoQ and increased 15.2% YoY.
• The earnings per share (EPS) of Spandana Sphoorty Financial Ltd declined at 32.76 during Q2 FY 2025-26.

Financial Statments for Q2 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 non-banking financial company (NBFC) that primarily operates in the microfinance sector. The company is engaged in providing financial services to low-income individuals and micro-entrepreneurs in India. The business model of Spandana Sphoorty centers around offering small loans to women, usually in rural and semi-urban areas, to foster entrepreneurship and improve their economic standing. Despite its focus on micro-lending, the company has expanded its reach over the years, offering a range of financial products tailored to the needs of its clientele. As of the data provided, there are no specific recent major developments available for the company.

Revenue

In the second quarter of the fiscal year 2026 (Q2FY26), Spandana Sphoorty Financial Ltd reported a total income of ₹239.49 crores. This represents a decline of 21.3% on a quarter-over-quarter (QoQ) basis from ₹304.12 crores in Q1FY26. On a year-over-year (YoY) comparison, the total income has decreased significantly by 66.1%, down from ₹706.57 crores in Q2FY25. This substantial reduction in revenue over both the quarterly and annual periods reflects broader challenges the company may be experiencing in its revenue generation capabilities during the specified period.

Profitability

The company's profitability metrics indicate a negative trend, with a loss before tax of ₹327.13 crores in Q2FY26. This represents an improvement of 32.0% QoQ from a loss of ₹480.89 crores in Q1FY26, yet still reflects a larger loss compared to the ₹288.61 crores reported in Q2FY25, marking a 13.3% YoY increase in losses. The tax expense for Q2FY26 was a negative ₹77.97 crores, showing a 35.4% reduction from Q1FY26 and a 7.9% increase compared to the same quarter last year. The profit after tax in Q2FY26 stood at a negative ₹249.16 crores, showing a 30.8% improvement QoQ from a loss of ₹360.23 crores in Q1FY26, but a 15.2% increase in losses YoY from ₹216.33 crores in Q2FY25.

Operating Metrics

Earnings per share (EPS) for Spandana Sphoorty Financial Ltd in Q2FY26 was reported at a negative ₹32.76. This is a 35.2% improvement compared to a negative ₹50.52 in Q1FY26, while representing an 8.0% increase in the negative EPS compared to a negative ₹30.34 in Q2FY25. The company has managed to reduce its total expenses by 15.0% QoQ from ₹362.84 crores in Q1FY26 to ₹308.46 crores in Q2FY26. Comparing this with the previous year, there has been a 35.6% reduction in expenses from ₹478.77 crores in Q2FY25. Despite these reductions, the financial data reflects ongoing challenges in achieving operational profitability within the analyzed period.