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Spandana Sphoorty slips into red, posts Q4 loss of ₹434 crore, revenue tanks 38%Asset quality weakened during the year, with Gross Non-Performing Assets (GNPA) rising to 5.63% from 4.85% as of December 2024, and Net NPA at 1.19% versus 0.98% in the previous quarter. Shares of Spandana Sphoorty Financial Ltd ended at ₹290.25, up by ₹1.75 or 0.61% on the BSE.By Jomy Jos Pullokaran   May 30, 2025, 9:28:45 PM IST (Published)2 Min ReadMicrofinance company, Spandana Sphoorty Financial Ltd, on Friday (May 30) reported a net loss of ₹434.3 crore for the fourth quarter that ended March 31, 2025.

In the corresponding quarter of the previous fiscal, Spandana Sphoorty Financial posted a net profit of ₹128.6 crore. The company's revenue from operations tanked 38% to ₹414.8 crore as against ₹669 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA reported a loss of ₹389 crore in the fourth quarter of this fiscal over ₹394.6 crore in the corresponding period in the previous fiscal.

Also Read: CreditAccess Grameen, Spandana Sphoorty shares gain up to 9% on this MFIN decision

The company’s Assets Under Management (AUM) stood at ₹6,819 crore, marking a steep 43% year-on-year (YoY) decline from ₹11,973 crore as of March 2024. Disbursements for the year fell 48% to ₹5,605 crore compared to ₹10,688 crore in FY24, as the company adopted a cautious approach due to elevated stress and adverse market conditions.

Asset quality weakened during the year, with Gross Non-Performing Assets (GNPA) rising to 5.63% from 4.85% as of December 2024, and Net NPA at 1.19% versus 0.98% in the previous quarter. The Provision Coverage Ratio (PCR) remained robust at around 80%.

Collection efficiency remained under pressure. Gross collection efficiency stood at 91.5% in Q4FY25, marginally down from 92.4% in Q3FY25. Net collection efficiency was broadly flat at 90.9% compared to 90.7% in the previous quarter.

Also Read: Spandana Sphoorty in the red, posts Q3 loss of ₹394 crore; asset quality weakens

Borrowings for the year were calibrated to align with the company’s reduced disbursement and liquidity requirements, amounting to ₹4,482 crore in FY25 versus ₹10,441 crore in FY24. The company maintained sufficient liquidity, with ₹2,030 crore on its books as of March 2025.

On the financial front, total income declined 3% YoY to ₹2,424 crore, while net interest income fell 5% to ₹1,228 crore. Yield declined by 173 basis points to 22.5%, while the cost of borrowings improved slightly by 2 basis points to 12.0%.

Pre-Provision Operating Profit (PPOP) dropped 35% YoY to ₹608 crore. Elevated credit costs, driven by rising delinquencies, led to a net loss of ₹1,035 crore in FY25.

Also Read: ICRA revises Spandana Sphoorty outlook, citing asset quality concerns

The results came after the close of the market hours. Shares of Spandana Sphoorty Financial Ltd ended at ₹290.25, up by ₹1.75 or 0.61% on the BSE.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsearningsResults Boardroomshare market todaySpandana Sphoorty Financial