Spandana Sphoorty Records ₹18.2 Cr Net Profit in Q2-27; Revenue Jumps 41% YoY

Key numbers

Market Cap	₹1,513.56 CrMFI Sector
Promoter Holding	48.16%No Pledge
RSI	42.06Neutral Zone
Basic EPS TTM	₹-40.88Annualised

Key highlights

• Consolidated Revenue from Operations reached ₹325 crore, up 41.3% from ₹230 crore YoY
• Net Profit grew 52.9% on a sequential basis to ₹18.2 crore from ₹11.9 crore in Q1-27
• Operating Margin improved significantly to 10.9% compared to 5.8% in the June 2026 quarter
• Company mobilised ₹194.41 crore during the quarter through the First and Final Call of its Rights Issue
• Deferred Tax Asset reassessment resulted in a ₹7.92 crore charge related to the Criss Financial merger
• Board approved a Reminder-cum-Forfeiture Notice for unpaid call money of ₹115 per equity share

Operational Turnaround and Margin Expansion

Spandana Sphoorty Financial demonstrated a significant operational turnaround in the second quarter of FY27, with consolidated revenue from operations rising to ₹325 crore from ₹230 crore in the prior year period. This 41% year-on-year growth was accompanied by a sharp improvement in operating margins, which expanded to 10.9% from 5.8% in Q1-27. Profit before tax stood at ₹37.0 crore, a complete reversal from the ₹327 crore loss reported in Q2-26.

The company’s total income reached ₹340 crore, supported by interest income and net gains on fair value changes, despite a slight sequential dip in other income which fell from ₹19.3 crore to ₹15.5 crore.

Capital Infusion and Rights Issue Progress

During the quarter ended September 30, 2026, the company successfully mobilised capital through its rights issue mechanism. Spandana Sphoorty received ₹194.41 crore from the First and Final Call on partly paid-up shares. To address the remaining outstanding amounts, the Board has approved a Reminder-cum-Forfeiture Notice for shareholders who have not yet paid the ₹115 per share call money.

This amount comprises ₹5 towards face value and ₹110 towards securities premium. These proceeds are intended to augment the capital base to meet funding requirements for the company’s core microfinance business activities and overall business growth.

Amalgamation and Tax Adjustments

• The merger of wholly owned subsidiary Criss Financial Limited into the company is in progress with an appointed date of April 1, 2025.
• A deferred tax asset charge of ₹7.92 crore was recognised during the quarter following a reassessment of tax losses from the amalgamating entity.
• Total tax expense for the quarter stood at ₹18.71 crore, entirely comprised of deferred tax adjustments.
• Consolidated total comprehensive income for the period reached ₹7.98 crore after accounting for cash flow hedge impacts.
• Regulatory and stakeholder approvals for the merger are anticipated to be finalised in the October-November 2026 window.

Outcome of Board Meeting

The issuance of the Reminder-cum-Forfeiture Notice to the holders of partly paid-up equity shares in respect of which the First and Final Call money remains unpaid, calling upon such shareholders to pay the outstanding First and Final Call amount of ₹115 per partly paid-up equity share.

Market Context and Forward Guidance

Market performance reflected short-term volatility, with the stock closing down 4.9% at ₹189.26 on the result announcement day. The company’s market capitalisation stands at ₹1,513.56 crore, and while it remains below its 52-week high of ₹319.4, the quarterly results indicate a recovery trend. Management has maintained its earlier guidance targeting an exit Asset Under Management of ₹6,000 crore to ₹6,500 crore by March 31, 2027.

However, FII holdings saw a marginal decrease of 1.44% during the quarter, bringing their current stake to 17.85%.

What to watch next

• Final regulatory approval for the amalgamation of Criss Financial Limited expected by Nov 2026
• Deadline for payment of outstanding call money following the forfeiture notice
• Progress toward the targeted FY27 exit AUM of ₹6,000-6,500 crore by March 2027

“The meeting of the Board commenced at 12:15 p.m. and concluded at 04:00 p.m.”

Spandana Sphoorty Financial · financial snapshot

Share price	₹189.26
Market capitalisation	₹1,513.56 Cr
Revenue (annual)	₹1,023.96 Cr
Net profit (annual)	-₹699.09 Cr
Revenue (latest quarter)	₹283.91 Cr+9.33% vs previous quarter
Net profit (latest quarter)	₹11.88 Cr+125.43% vs previous quarter
P/E (TTM)	-4.63×Sector 19.05×
Promoter holding	48.16%0.00% QoQ
FII holding	17.85%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.