Spandana Sphoorty Financial's Q2 FY26 and H1 FY26 investor presentation highlights a strong operational turnaround.

Disbursements surged to ₹934 Cr in Q2 (up 233% QoQ), with AUM at ₹4,088 Cr.

Asset quality improved significantly, with X-bucket collection efficiency at 98.7% in September and a 99.9% net collection efficiency for the new loan portfolio.

GNPA and NNPA stood at 4.97% and 0.97%. Key strategic moves include raising loan processing fees to 1.5% and increasing interest rates to 23-26% (effective Sep/Oct 2025). The company is optimizing operations, having merged 101 branches and rationalized manpower, leading to reduced operating costs.

Recovery efforts are robust, collecting ₹48 Cr from overdue loans in Q2. Financially, a successful rights issue bolstered the balance sheet, reflecting a strong CRAR of ~47% and liquidity around ₹1,270 Cr by October.

Net-worth is ₹2,227 Cr.

While Q2 reported a PAT of -₹249 Cr, partly reflecting a prudent ₹86 Cr in technical write-offs, management anticipates better yields from Q3. They see a significant opportunity to disburse ₹5,500-6,000 Cr to eligible customers, signaling future growth.