Spandana Sphoorty Financial Ltd. (SPANDANA) AI Stock Analysis

• Market Cap: ₹17.48B
• Dividend Yield: N/A
• Average Volume (3M): 30.91K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.54
• Revenue Growth: -26.77%
• EPS Growth: -431.45%
• Country: IN
• Employees: 13,097
• Sector: Financial
• Sector Strength: 69
• Industry: Financial - Credit Services
• EPS (TTM): -50.50
• Shares Outstanding: 71,305,145
• 10 Day Avg. Volume: 16,981
• 30 Day Avg. Volume: 30,906
• 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: ₹271.00
• Price Target Upside: 9.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: ₹271.00 ▲(9.03% Upside)

The overall score of 48 reflects significant concerns about financial performance, particularly in terms of profitability and cash flow. Despite technical indicators showing a balanced market sentiment, the negative valuation metrics underscore the need for substantial financial improvement. The lack of dividends and earnings call insights further limits the stock's attractiveness.

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: Negative
• Last Price: 248.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 248.55 is below the 20-day moving average (MA) of 255.33, below the 50-day MA of 264.21, and below the 200-day MA of 290.98, indicating a bearish trend. The MACD of -7.61 indicates Positive momentum. The RSI at 39.33 is Neutral, neither overbought nor oversold. The STOCH value of 50.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	67 Neutral	¥850.21B	13.22	9.24%	2.92%	7.76%	9.30%
PAISALO	64 Neutral	₹27.64B	13.42		0.33%	13.28%	-6.19%
ARMANFIN	60 Neutral	₹15.93B	246.55		―	0.02%	-96.51%
CENTRUM	51 Neutral	₹16.05B	―		―	58.12%	22.23%
SPANDANA	48 Neutral	₹17.48B	26.37		―	-26.77%	-431.45%
MUTHOOTMF	―	₹26.94B	5.03		―	―	―

Spandana Sphoorty Financial Ltd. Corporate Events

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.