Microfinance firm Spandana Sphoorty Financial Ltd reported a net loss of ₹83 crore for Q3FY26, significantly lower than the ₹218 crore loss recorded in the year-ago period.
The company’s net interest income (NII) rose 12.7% year-on-year to ₹94.5 crore. Assets under management (AUM) stood at ₹3,948 crore at the end of the quarter, marking a 3% decline from ₹4,088 crore in Q2FY26, while disbursements grew 27% QoQ to ₹1,188 crore.
Asset quality showed marked improvement, with standalone gross non-performing assets (GNPA) falling to 2.60% from 4.97% in September 2025, and net NPA at 0.50%.
The provision coverage ratio (PCR) remained steady at ~80%. The company attributed the progress to its cautious customer selection and improved portfolio performance, with 58% of FY26 microfinance AUM reporting 99.8% net collection efficiency.
Commenting on the results, Venkatesh Krishnan, MD & CEO, said, “The microfinance sector inched closer to normalcy in Q3FY26 after six very challenging quarters. Our Q3 disbursements were up 27% QoQ, and collection efficiency continues to improve across buckets. With comfortable liquidity of ₹1,626 crore, a CRAR of 40.3%, and gearing at 1.8x, we are well-positioned to drive future growth.”
The company is also exploring operational efficiencies, including a potential merger of its subsidiary Criss Financials Ltd with Spandana to optimise capital utilisation, diversify the asset base, and enhance operational agility.
Spandana has also factored in the financial impact of the new labour codes, resulting in incremental employee benefit expenses of ₹3.91–4.07 crore in gratuity and ₹3.68–4.34 crore in leave liabilities, while monitoring further clarifications from the government.
Shares of Spandana Sphoorty Financial Ltd ended higher on 6.18% at ₹252.75 on the NSE.
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