Microfinance firm Spandana Sphoorty suffers Rs 434 crore loss in Q4, revenue drops 38 pc

Mumbai, May 31 Hyderabad-based microfinance company Spandana Sphoorty Financial Limited has reported a net loss of Rs 434.3 crore year-on-year (YoY) for the fourth quarter ending March 31 (Q4 FY25).

This is a sharp reversal from the same quarter previous fiscal (Q4 FY24) when the company had posted a profit of Rs 128.6 crore, according to its stock exchange filing.

The company’s revenue from operations dropped significantly by 38 per cent, falling to Rs 414.8 crore in Q4 FY25 from Rs 669 crore in the same period in previous financial year.

At the operating level, Spandana reported a negative EBITDA of Rs 389 crore, compared to a profit of Rs 394.6 crore a year ago.

Spandana's business performance was hit by a challenging environment. The company adopted a cautious lending approach, leading to a major drop in activity.

Its assets under management (AUM) declined by 43 per cent year-on-year (YoY), falling to Rs 6,819 crore from Rs 11,973 crore as of March 2024.

Loan disbursements for the full year also fell sharply by 48 per cent to Rs 5,605 crore, as per its regulatory filing.

Asset quality continued to deteriorate. The company’s gross non-performing assets (GNPA) rose to 5.63 per cent in March 2025, up from 4.85 per cent in December 2024.

Net NPA also increased to 1.19 per cent from 0.98 per cent. However, Spandana maintained a healthy provision coverage ratio (PCR) of around 80 per cent, reflecting strong provisioning against bad loans.

Collection efficiency remained weak. Gross collection efficiency in Q4 FY25 stood at 91.5 per cent, slightly lower than the 92.4 per cent recorded in the previous quarter (Q3 FY25).

Net collection efficiency was almost unchanged at 90.9 per cent, the company announced in its filing.

Total income for FY25 slipped by 3 per cent YoY to Rs 2,424 crore. Net interest income (NII) also declined by 5 per cent to Rs 1,228 crore.

The yield on assets fell by 173 basis points to 22.5 per cent, while the cost of borrowings remained largely stable at 12 per cent.

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