Spandana Sphoorty Financial Ltd. (SPANDANA) AI Stock Analysis

• Market Cap: ₹23.08B
• Dividend Yield: N/A
• Average Volume (3M): 20.03K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.57
• Revenue Growth: -26.77%
• EPS Growth: -431.45%
• Country: IN
• Employees: 13,097
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -50.50
• Shares Outstanding: 88,639,500
• 10 Day Avg. Volume: 27,182
• 30 Day Avg. Volume: 20,032
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹269.00
• Price Target Upside: 3.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: ₹269.00 ▲(3.52% Upside)

The overall stock score is primarily impacted by financial performance challenges, including negative profitability and high leverage. Technical analysis provides some positive momentum, but valuation concerns due to the negative P/E ratio weigh heavily on the score.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates successful market penetration and product adoption, crucial for long-term sustainability in the microfinance sector.

Market Position

Spandana's focus on microfinance for underserved populations positions it well in a niche market, providing a competitive edge and potential for sustained growth.

Social Impact

By targeting financial inclusion, Spandana not only addresses a critical social need but also builds a loyal customer base, enhancing its brand and long-term prospects.

Negative Factors

Profitability Challenges

Negative profitability indicates inefficiencies or rising costs, which could hinder future growth and require strategic adjustments to improve margins.

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.

Cash Flow Issues

Negative cash flow from operations suggests liquidity challenges, which could constrain the company's ability to fund operations and growth initiatives without external financing.

Spandana Sphoorty Financial Ltd. Business Overview & Revenue Model

Company Description

Spandana Sphoorty Financial Ltd. (SPANDANA) is a prominent non-banking financial company (NBFC) in India, primarily focused on providing microfinance solutions to underserved populations. The company operates in the microfinance sector, offering small-ticket loans to low-income households, particularly targeting women entrepreneurs in rural and semi-urban areas. SPANDANA aims to empower these communities by facilitating financial inclusion and promoting sustainable livelihood through its range of financial products.

How the Company Makes Money

Spandana Sphoorty Financial Ltd. generates revenue primarily through the interest income from its microfinance lending operations. The company provides small loans to individuals, typically women, for income-generating activities and charges interest on these loans, which forms the bulk of its revenue. Additionally, SPANDANA may earn fees from loan processing and other financial services. The company also leverages partnerships with banks and financial institutions to secure funding, which it then lends out at higher interest rates, thereby earning a margin. Efficient collection mechanisms and maintaining high repayment rates are critical to sustaining its revenue model.

Spandana Sphoorty Financial Ltd. Financial Statement Overview

Summary

Spandana Sphoorty Financial Ltd. demonstrates strong revenue growth but struggles with profitability and cash flow. The negative net income and high leverage in 2025 are concerning, indicating a need for financial restructuring to improve profit margins and cash flow.

Income Statement

Spandana Sphoorty Financial Ltd. shows significant revenue growth from 2020 to 2025 but faces challenges with profitability. The net profit margin turned negative in 2025, pointing to potential inefficiencies or increased costs. The gross profit margin is reasonable, but the decline in EBIT margin over time indicates rising operational expenses. Despite a positive trajectory in revenue, the company must address its declining profitability.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio, signaling considerable leverage and potential financial risk. The equity ratio has decreased over the years, pointing to increased reliance on debt. Return on equity was positive in earlier years but turned negative in 2025 due to net losses. The company needs to improve its capital structure to enhance stability.

Cash Flow

Cash flow analysis reveals negative operating cash flow in recent years, impacting the company's liquidity position. Free cash flow remains negative, suggesting challenges in generating cash from operations. The operating cash flow to net income ratio is unfavorable, indicating inefficiency in converting profits into cash. Improving cash flow generation is critical for future growth.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.47B	24.24B	15.20B	13.27B	12.44B	14.15B
Gross Profit	12.03B	14.69B	12.69B	5.98B	5.04B	8.64B
EBITDA	7.03B	6.30B	6.92B	4.91B	7.94B	6.39B
Net Income	-4.72B	-10.35B	5.01B	694.68M	123.10M	1.45B
Balance Sheet
Total Assets	100.64B	84.94B	133.83B	70.76B	93.83B	85.77B
Cash, Cash Equivalents and Short-Term Investments	17.56B	18.44B	17.98B	11.33B	10.05B	13.10B
Total Debt	67.46B	56.56B	94.25B	37.72B	60.74B	53.73B
Total Liabilities	-35.07B	58.60B	97.38B	39.86B	62.83B	58.26B
Stockholders Equity	35.07B	26.33B	36.45B	30.88B	30.99B	27.49B
Cash Flow
Free Cash Flow	0.00	-12.98B	-27.33B	8.49B	-21.84B	-17.70B
Operating Cash Flow	0.00	-12.76B	-27.07B	8.63B	-21.71B	-17.54B
Investing Cash Flow	0.00	48.28B	863.90M	362.18M	-1.75B	4.82B
Financing Cash Flow	0.00	-37.12B	32.05B	-13.07B	24.33B	23.48B

Spandana Sphoorty Financial Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 259.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPANDANA, the sentiment is Neutral. The current price of 259.85 is above the 20-day moving average (MA) of 252.55, below the 50-day MA of 262.66, and below the 200-day MA of 282.81, indicating a neutral trend. The MACD of 1.29 indicates Negative momentum. The RSI at 52.86 is Neutral, neither overbought nor oversold. The STOCH value of 52.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SPANDANA.

Spandana Sphoorty Financial Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.93%	3.81%	9.73%	1.22%
PAISALO	60 Neutral	₹34.27B	16.61		0.26%	13.28%	-6.07%
ARMANFIN	57 Neutral	₹15.01B	242.08		―	0.02%	-96.51%
MUTHOOTMF	54 Neutral	₹28.22B	5.23		―	―	―
SPANDANA	52 Neutral	₹23.08B	26.37		―	-26.77%	-431.45%
CENTRUM	43 Neutral	₹15.05B	―		―	58.12%	22.23%
SURYODAY	―	₹13.50B	16.83		―	―	―

Spandana Sphoorty Financial Ltd. Corporate Events

Spandana Sphoorty Faces Credit Rating Downgrade Amidst Financial Challenges

Spandana Sphoorty Financial Limited has experienced a downgrade in its credit rating by ICRA Limited, moving from [ICRA]A- (Negative) to [ICRA]BBB+ (Negative). This downgrade reflects the company’s weakened profitability and asset quality, alongside a significant decline in its assets under management. The company’s operating efficiencies have deteriorated, and it faces challenges in managing credit costs and maintaining its capital base. The downgrade may impact its ability to attract investment and could have implications for its financial stability and stakeholder confidence.

Spandana Sphoorty Faces Credit Rating Downgrade Amidst Operational Challenges

Spandana Sphoorty Financial Ltd. has experienced a downgrade in its credit rating from IND A-/Negative to IND BBB+/Negative by India Ratings & Research, reflecting ongoing stress in its asset quality and profitability. The downgrade is attributed to increased borrower indebtedness, operational challenges, and external factors such as political movements and adverse weather conditions. Despite these challenges, the company maintains a geographically diversified loan portfolio and a healthy capitalisation profile. However, its cost of borrowing remains high compared to peers, and the company faces significant sectoral risks associated with the microfinance industry.

Spandana Sphoorty Announces Virtual AGM and Annual Report Release

Spandana Sphoorty Financial Limited has announced the publication of a public notice regarding its 22nd Annual General Meeting (AGM), scheduled for September 16, 2025. The AGM will be conducted through video conferencing, and the company has completed the dispatch of its Annual Report for the financial year 2024-25. This move aligns with regulatory compliance and ensures shareholder engagement through digital means, reflecting the company’s commitment to transparency and accessibility.

Spandana Sphoorty Announces Virtual AGM for 2025

Spandana Sphoorty Financial Limited has announced the scheduling of its 22nd Annual General Meeting (AGM) on September 16, 2025, which will be conducted via video conferencing. This meeting will allow shareholders to participate remotely, with e-voting available from September 12 to September 15, 2025. The announcement underscores the company’s commitment to maintaining shareholder engagement and compliance with regulatory requirements.

Spandana Sphoorty Releases 2024-25 Sustainability Report

Spandana Sphoorty Financial Ltd. has released its Business Responsibility and Sustainability Report for the financial year 2024-25, in compliance with SEBI regulations. This report, which is part of the company’s annual report, highlights the company’s commitment to sustainable business practices and its focus on responsible financial operations. The report’s availability on the company’s website indicates a transparent approach to stakeholder engagement and corporate responsibility.

Spandana Sphoorty to Engage with Investors at Equirus Annual India Conference 2025

Spandana Sphoorty Financial Limited has announced its participation in the Equirus Annual India Conference 2025, scheduled for August 20, 2025, in Mumbai. This engagement is part of the company’s efforts to engage with investors and stakeholders, potentially impacting its visibility and investor relations positively.

Spandana Sphoorty Announces Rights Issue Details

Spandana Sphoorty Financial Limited has announced the publication of a post-issue advertisement in various newspapers regarding its rights issue of partly paid-up equity shares. This move is in compliance with the SEBI ICDR Regulations, and the company has detailed the subscription, allotment basis, and credit date of these shares. The indicative date for listing these shares is set for around August 18, 2025, which could potentially enhance the company’s market presence and provide stakeholders with new investment opportunities.