Spandana Sphoorty Financial Ltd

Spandana Sphoorty Financial Limited (SSFL) presented unaudited financial results for Q2 FY27 and H1FY27, highlighting key operational and financial metrics. The company reported a 10% quarter-over-quarter (QoQ) growth in Assets Under Management (AUM) to ₹5,364 crore, driven by increased disbursements of ₹1,481 crore, with 54% going to new customers and 11% to reactivated ones. X-bucket collection efficiency remained stable at 99.6%, with 81% of branches reporting efficiency above 99.5%. Profit Before Tax (PBT) improved to ₹37 crore, up from ₹18 crore in Q1 FY27, supported by higher yields and lower funding costs, which boosted Net Interest Margin (NIM) to 13.6%. The company also noted a reduction in Gross Non-Performing Assets (GNPA) to 2.54% and Net Non-Performing Assets (NNPA) to 0.50%. Liquidity remained strong, with ₹1,379 crore in cash reserves and a Capital to Risk-Weighted Assets Ratio (CRAR) of 33.5%. Strategic initiatives included the launch of a new Loan Origination System (LOS) platform, restructuring of the micro-LAP business, and progress on the CFL merger. The company emphasized its focus on improving recovery rates for 90+ delinquent loans and maintaining a diversified geographical presence with no single district exceeding 2.4% of AUM. Credit rating agencies have assigned stable or watch-positive outlooks to the company's bank facilities and debt instruments.

The document highlights improvements in financial metrics, stable collection efficiency, and strategic initiatives, indicating a positive outlook.