Spandana Sphoort Q1 FY26 Results (NSE: SPANDANA)
Signal: Steady quarter
The read
Inflection quarter: after 6 straight quarterly losses, consolidated PAT turns positive at ₹11.88 Cr (vs -₹360 Cr YoY), driven by impairment reversal to a credit (₹1.30 Cr vs ₹422 Cr expense YoY) as Stage-3 assets drop to 2.91% from prior peaks. Asset quality improving – net Stage-3 at 0.56% with 80.82% PCR – but revenue still -5.5% YoY, indicating AUM shrinkage. DTA of ₹522.65 Cr recognized on carryforward losses underscores the multi-year earnings drag still ahead. The turnaround is entirely credit-quality-driven, not organic growth; revenue momentum remains the key gap.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹283.91 Cr | -5.5% | 54.3% |
| EBIT | ₹17.56 Cr | N/A | |
| Net profit | ₹11.88 Cr | N/A | |
| EPS | ₹1.49 | N/A | |
| EBIT margin | 6.19% |
P&L walk
Consolidated profit turnaround driven by impairment reversal (credit of ₹1.30 Cr vs expense of ₹422.17 Cr YoY) and DTA credit; revenue still slightly negative YoY but recovering QoQ on lower provisions.
Segments
Single business segment – financing; no segment-level breakdown provided.
Key positives
- Consolidated PAT swing to ₹11.88 Cr profit from ₹360.23 Cr loss YoY – first positive quarter in 6 quarters.
- Impairment on financial instruments turned net credit of ₹1.30 Cr vs expense of ₹422.17 Cr YoY – sharp improvement in credit costs.
- Stage III loan assets ratio improved to 2.91% (from elevated levels) with net Stage III at just 0.56% and PCR at 80.82% – asset quality healing.
- CRAR strong at 28.65% – well above regulatory minimum, providing capital buffer.
- Liquidity Coverage Ratio at 399.60% – strong liquidity position.
Key concerns
- Consolidated revenue still declining YoY (-5.5%) despite QoQ improvement – AUM/growth remains pressured.
- Profitability heavily reliant on impairment credit and deferred tax (₹5.68 Cr DTA credit) – core operating income ex-provisions remains thin.
- Finance costs still high at ₹132 Cr vs revenue ₹284 Cr – cost of borrowing weighs on net margins.
- DTA of ₹522.65 Cr on carryforward losses means tax-paying future profits will be deferred for years; earnings quality uncertain.
Research and educational content only. Not investment advice.