Spandana Sphoorty Financial Ltd

In an exchange filing, the company stated that Periasamy has stepped down to pursue other career opportunities. Following his resignation, and based on the recommendation of the nomination and remuneration committee, the board has approved the appointment of Vijay Mohan Reddy as the new chief compliance officer. His appointment is effective from 18 September 2025, for a period of three years, ending on 17 September 2028. The appointment has been made in accordance with the Reserve Bank of India's guidelines under the Scale Based Regulation (SBR) framework issued on 22 October 2021, and subsequent RBI notification on compliance functions dated 11 April 2022. Reddy holds a Master's degree in Law and is a Fellow Member of the Institute of Company Secretaries of India. He brings over 18 years of experience in legal, secretarial, and compliance functions across leading NBFCs and microfinance institutions, including Bharat Financial Inclusion (formerly SKS Microfinance), TruCap Finance, and Spandana Sphoorty itself. He has played a key role in regulatory compliance and capital market activities such as IPO preparation, QIP issuance, and listing of debt securities. His experience also includes implementing regulatory frameworks under SEBI, RBI, Companies Act, FEMA, and managing interactions with regulators. The company confirmed that Reddy is not related to any director on the board. Spandana Sphoorty Financial is primarily engaged in the business of microfinance, providing small-value unsecured loans to low-income customers in semi-urban and rural areas. The company's consolidated net profit jumped 44.6% to Rs 202.48 crore on 13.3% rise in revenue from operations to Rs 2,098.97 crore in Q1 FY26 over Q1 FY25. Powered by Capital Market - Live

Spandana Sphoorty Financial announced that the 22th Annual General Meeting(AGM) of the company will be held on 16 September 2025.Powered by Capital Market - Live

Net loss of Spandana Sphoorty Financial reported to Rs 360.23 crore in the quarter ended June 2025 as against net profit of Rs 55.71 crore during the previous quarter ended June 2024. Sales declined 57.68% to Rs 300.46 crore in the quarter ended June 2025 as against Rs 709.89 crore during the previous quarter ended June 2024. ParticularsQuarter EndedJun. 2025Jun. 2024% Var. Sales300.46709.89 -58 OPM %-108.6943.91 - PBDT-476.6579.46 PL PBT-480.8975.05 PL NP-360.2355.71 PL Powered by Capital Market - Live

Spandana Sphoorty Financial will hold a meeting of the Board of Directors of the Company on 14 August 2025.Powered by Capital Market - Live

Spandana Sphoorty Financial has fixed 24 July 2025 as record date for rights issue. Powered by Capital Market - Live

Spandana Sphoorty Financial will hold a meeting of the Board of Directors of the Company on 18 July 2025.Powered by Capital Market - Live

The Board of Spandana Sphoorty Financial at its meeting held on 15 July 2025 has approved the issuance of partly paid-up equity shares of the Company of face value of Rs 10/- each for an amount not exceeding Rs 400 crore by way of a rights issue to the eligible equity share. Powered by Capital Market - Live

Spandana Sphoorty Financial will hold a meeting of the Board of Directors of the Company on 15 July 2025.Powered by Capital Market - Live

Crisil Ratings stated that the rating action is driven by higher than anticipated moderation in profitability on account of continued asset quality pressure resulting in elevated credit costs. Apart from asset quality challenges, the business risk profile has also been constrained by slower than expected revival in business. As on 31 March 2025, the gross and net non-performing assets (GNPA and NNPA, respectively) increased to 5.6% (24.9% including write-offs) and 1.2%, from 1.5% and 0.3% as on 31 March 2024. This surge in asset quality metrics was a factor of pervading ground level challenges like over-indebtedness and high attrition of field staff since Q1 2025 and challenges in states like Karnataka. This led the company to incur incremental credit costs of Rs 603 crore for Q4 2025, resulting in an annual credit cost (as a % of average managed assets) of 17% for fiscal 2025 ' significantly higher than 2.1% for fiscal 2024. Therefore, reported loss for Q4 2025 was Rs 434 crore as against a loss of Rs 440 crore for the previous quarter of fiscal 2025 and a profit of Rs 129 crore for the corresponding quarter of the previous fiscal. As these challenges are likely to continue over majority of Q1 2026 as well, the company's asset quality and profitability are expected to remain vulnerable over the near to medium term and start improving materially only by the latter half of fiscal 2026. The pace and magnitude at which asset quality and overall profitability restore to normalcy, will remain a key monitorable and a rating sensitivity factor. In the interim, the company's plan of raising up to Rs 750 crore of equity capital - announced in January 2025 ' is expected to partly offset the impact of accumulating losses on the networth. Any material change in the quantum of equity proposed to be raised and/or a significant delay in the timing of this infusion will be a key monitorable. The overall rating continues to reflect the company's established track record in the microfinance sector along with regional diversity in asset base and healthy capitalisation. Tier I and overall capital adequacy ratios (CAR) were comfortable at 36% and gearing was low at 2.1 times on March 31, 2025. These strengths, however, are partially offset by moderation is asset quality and profitability due to susceptibility to inherent risks of the microfinance sector and average resource profile. Spandana Sphoorty Financial (SSFL), along with its subsidiaries, is engaged in lending, providing small-value unsecured loans to low-income customers in semi-urban and rural areas. The tenure of these loans is generally 1-2 years. While SSFL extends microfinance loans, its subsidiaries extend other services such as loans against property, business loans and personal loans. Powered by Capital Market - Live

Spandana Sphoorty Financial announced that CARE Ratings has downgraded rating has downgraded rating to CARE A- (Stable), for existing instruments of the Company. Long term rating (Rs 800 crore) - CARE A- (Stable); downgraded from CARE A Negative Non convertible debentures (Rs 500 crore) - CARE A- (Stable); downgraded from CARE A Negative Non convertible debentures (Rs 200 crore) - CARE A- (Stable); downgraded from CARE A Negative Commercial paper (Rs 100 crore) - CARE A2+; downgraded from CARE A1 Powered by Capital Market - Live