Spandana Sphoorty Financial disclosed consolidated total operating revenue of ₹2.3 billion for Q2 FY26 but reported a consolidated net loss of ₹2.49 billion, reflecting ongoing sectoral challenges and elevated credit costs affecting profitability.
                                        
                        
	Spandana Sphoorty Financial Limited, a prominent microfinance institution, announced its unaudited consolidated financial results for the quarter ended September 30, 2025. The company reported total operating revenue of ₹2.3 billion, underscoring sustained business scale despite macroeconomic headwinds.
	 
	However, the consolidated net loss stood at ₹2.49 billion, driven by elevated credit costs and higher provisioning related to asset quality pressures in the microfinance sector. Reduced disbursements and cautious lending practices amid regulatory adjustments have also impacted profitability.
	 
	The company’s Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) remain significant, reflective of the stressed operating environment. Despite these challenges, Spandana maintains healthy liquidity and aims to strengthen its portfolio through focused risk management and disciplined credit strategies.
	 
	Management remains optimistic about gradual recovery as market conditions normalize, with ongoing integration of technology to improve efficiency and customer engagement.
	 
	Key Highlights
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		Consolidated total revenue: ₹2.3 billion for Q2 FY26.
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		Consolidated net loss: ₹2.49 billion due to elevated credit costs.
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		Microfinance sector challenges impact asset quality and profitability.
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		Regulatory and lending prudence slow disbursements.
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		Significant GNPA and NNPA levels persist.
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		Strong liquidity position maintained amid stress.
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		Focus on risk management and digital innovations for recovery.
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		Management expects gradual market stabilization in upcoming quarters.
	Sources: Spandana Sphoorty Financial official filings, Business Standard, Economic Times