Here's a summary of the investor presentation: **1. Financial Highlights:** Spandana reported a Q1 FY26 loss of ₹360 Cr, improving from Q4 FY25's ₹434 Cr loss, but a significant decline YoY due to high impairment costs.

AUM contracted 27% QoQ to ₹4,958 Cr due to cautious disbursement.

Net Interest Income was ₹113 Cr.

Asset quality (GNPA 4.88%, NNPA 0.96%) remained largely stable QoQ.

Post-rights issue, CRAR is strong at 46%, with comfortable liquidity of ₹1,731 Cr. **2. Strategic Initiatives & Growth Drivers:** A ₹400 Cr rights issue successfully closed, bolstering capital for future growth.

The company is in a rebuilding phase, focusing on stricter credit underwriting and operational agility with new interventions like geo-tagging and enhanced KYC.

RBI's qualifying asset relaxation offers flexibility for new product development.

Branch and manpower rationalization are underway to drive efficiencies. **3. Business Developments:** Beyond the rights issue, the company is leveraging its existing customer base, with about 50% eligible for fresh loans, most having low indebtedness (less than ₹0.01 Cr). Efforts are ongoing to recover from non-performing assets, recovering ₹41 Cr this quarter. **4. Market Position & Competitive Advantage:** Despite a volatile environment, collection efficiency shows stable trends.

The company maintains a diversified borrowing mix and positive asset-liability management.

AUM concentration in top states has reduced, indicating broader reach and reduced geographical risk. **5. Investor Implications:** The focus on strengthening the balance sheet and improving credit quality is a positive signal.

While AUM contraction and losses present near-term challenges, strong capitalization and strategic shifts in underwriting could support long-term growth potential and improve profitability as the rebuilding phase progresses.