Spandana Sphoorty Financial Limited Q3FY26 Concall Decoded: From ₹12,000 Cr Glory to ₹3,948 Cr Reality — But 99.8% Collections Say “Plot Twist Incoming”

1. Opening Hook

After a few quarters that felt like a microfinance horror series — rising NPAs, collapsing AUM, and management reshuffles — Spandana finally brought popcorn instead of panic.

The new CEO’s first earnings call wasn’t a victory parade. It was more like a battlefield briefing: “We’ve taken hits. But we’re still standing.”

From ₹12,000 crore peak AUM to ₹3,948 crore today, the shrinkage has been brutal. Yet the new book is clocking 99.8% collection efficiency. That’s not survival — that’s defiance.

Credit costs are cooling. Disbursements are rising. Lenders are returning.

And yes, they even dared to talk about growth again.

But before you assume this is a comeback story, read on. Because microfinance has a habit of smiling before it bites.

It gets interesting from here.

2. At a Glance

AUM at ₹3,948 Cr – From ₹12K Cr to under ₹4K Cr. Minimalism, forced edition.
Disbursements ₹1,188 Cr (+27% QoQ) – Growth has entered the chat again.
Collection Efficiency 99.8% (New Book) – The good loans are behaving like saints.
GNPA 2.6% (vs 4.97%) – Suddenly, bad loans remembered discipline.
PPOP ₹8 Cr (vs -₹40 Cr) – Operating engine restarted.
Net Loss ₹95 Cr – Credit ghosts still haunting the P&L.
Borrowings Raised ₹1,700 Cr – Lenders blinking first.
Cash ₹1,626 Cr – Liquidity cushion thicker than the AUM growth.

3. Management’s Key Commentary

“The winds of change are quite visible both within the industry as well as at Spandana.”

(Translation: We’ve suffered enough. Now we’re allowed optimism 😏)

“The new book constitutes about 58% of the overall book… collection efficiency of 99.8%.”

(Translation: Old book caused the mess. New book is the redemption arc.)

“We did about ₹65 crores of collection in the 90+ bucket.”

(Translation: Recovery squads are working overtime.)

“We managed to raise close to about ₹1,700 crores in Q3.”

(Translation: Lenders trust us again… cautiously.)

“We have been PPOP positive first time in about 2-3 quarters.”

(Translation: Operations are breathing. Profitability is still in ICU.)

“We are trying to merge some of the non-productive branches… bring it down to about 1,250.”

(Translation: Growth dreams paused. Efficiency therapy started.)

“We expect roughly about ₹9,000-10,000 crores of AUM by FY28.”

(Translation: We fell hard. We plan to climb — slowly this time.)

4. Numbers Decoded

Metric	Q3 FY26	Q2 FY26	What It Really Means
AUM	₹3,948 Cr	₹3,880 Cr*	Sequential growth back (pre write-off).
Disbursement	₹1,188 Cr	₹935 Cr	Momentum rebuilding.
GNPA	2.6%	4.97%	Sharp clean-up effect.
Slippages	₹152 Cr	Higher	Stress moderating.
Write-offs	₹214 Cr	Elevated	Last big clean-up?
Yield	22.4%	19.6%	Less interest reversal distortion.
NIM	11.1%	8.4%	Operating leverage kicking in.
Cost of Borrowing	12.6%	12.2%	Still expensive money.

*Approx before adjustments

Sequential AUM growth should continue as repayments (~₹900 Cr/quarter) get offset by rising disbursements.

Credit cost guidance for FY27: ₹225 Cr gross, ₹50 Cr net.
That’s a dramatic normalization from current stress levels.

5. Analyst Questions

Q: Are rejection rates high due to guardrails?
A: 60% rejection rate.
(Translation: Compliance is strict. Growth isn’t free anymore.)

Q: Can disbursement hit ₹1,600-1,700 Cr in Q4?
A: Management guiding ₹1,500 Cr.
(Translation: Controlled aggression.)

Q: Has credit cost peaked?
A: “Most of write-offs done.”
(Translation: The worst is likely behind.)

Q: Break-even timeline?
A: “We should try next quarter.”
(Translation: It’s a stretch, but they’re serious.)

6. Guidance & Outlook

FY27 credit

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