Spandana Sphoorty Financial Ltd. (SPANDANA) AI Stock Analysis

• Market Cap: ₹22.27B
• Dividend Yield: N/A
• Average Volume (3M): 15.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -45.13%
• EPS Growth: -1646.01%
• Country: IN
• Employees: 13,097
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -11.88
• Shares Outstanding: 88,639,500
• 10 Day Avg. Volume: 7,350
• 30 Day Avg. Volume: 15,734
• PEG Ratio: <0.01
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -1.34
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ₹237.00 ▼(-9.14% Downside)

Spandana Sphoorty Financial Ltd. shows strong revenue growth but is hindered by significant profitability and cash flow challenges, reflected in a low financial performance score. Technical indicators suggest a positive trend, but valuation concerns due to negative earnings and lack of dividends weigh heavily on the overall score.

Positive Factors

Focused microfinance market position

A clear strategic focus on underserved, predominantly female microborrowers creates durable customer stickiness and predictable demand. Long-term ties with communities and tailored group lending models support consistent loan origination, cross-sell potential and resilience to competitors over months.

Large operational scale

A sizeable employee base signals broad branch and field presence, enabling deep distribution across regions. Scale supports efficient loan sourcing, risk diversification across geographies and institution-level expertise, helping sustain origination volumes and operational continuity over the medium term.

Historical revenue expansion

Sustained top-line growth indicates underlying demand for microcredit and the company’s ability to scale lending operations. Even with recent margin pressure, a growing loan book provides a structural platform to restore profitability through cost control, product repricing or diversification over coming quarters.

Negative Factors

High leverage and weakened capital structure

Elevated debt-to-equity increases interest burden and reduces financial flexibility, making the firm more vulnerable to funding stress or rate hikes. Over months this constrains growth, limits room for strategic investment, and may force capital raising or deleveraging actions that dilute stakeholders or slow expansion.

Negative operating and free cash flow

Persistent negative operating and free cash flow means the business cannot internally fund its loan growth or service obligations, relying on external financing. Structurally weak cash conversion raises liquidity risk, increases funding costs, and pressures margins and solvency over the medium term.

Earnings deterioration and margin stress

A sharp decline into net losses and extreme EPS contraction erodes retained earnings and capital buffers. Sustained unprofitability undermines the firm’s ability to reinvest, attract stable funding, or rebuild equity, forcing operational or strategic changes that can impair growth prospects across forthcoming quarters.

Spandana Sphoorty Financial Ltd. Business Overview & Revenue Model

Company Description

Spandana Sphoorty Financial Limited engages in the microfinance business in India. The company provides income generation loans for low-income households; loans against the property; personal loans for business development, purchase of livestock, house construction/renovation, and other needs; gold loans for agriculture, business, and short-term liquidity needs; and interim loans, as well as business loans. It also offers loans for women to expand their existing income-generating activities, smoothening household cash flows, and acquiring productive assets. The company serves low-income customers in semi-urban and rural areas with approximately 982 branches. Spandana Sphoorty Financial Limited was founded in 1998 and is based in Hyderabad, India.

How the Company Makes Money

Spandana Sphoorty Financial Ltd. generates revenue primarily through the interest income earned on its microloans and other financial products offered to clients. The company lends money to low-income individuals, predominantly women, who often lack access to traditional banking services. The interest charged on these loans constitutes a significant portion of SPANDANA's revenue stream. Additionally, the company may also earn fees from loan processing and other ancillary services. Key partnerships with local self-help groups and community organizations enhance its outreach and customer base, allowing for higher loan disbursement volumes. Furthermore, the company may benefit from funding through various financial institutions, which helps in maintaining liquidity and expanding its lending capacity.

Spandana Sphoorty Financial Ltd. Financial Statement Overview

Summary

Spandana Sphoorty Financial Ltd. demonstrates strong revenue growth but faces significant challenges in profitability and cash flow management. The high leverage and negative net income in 2025 are concerning, highlighting the need for strategic financial restructuring.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.50B	21.60B	22.16B	12.68B	13.85B	13.55B
Gross Profit	3.69B	6.85B	8.83B	5.52B	6.17B	8.00B
EBITDA	-16.77B	-13.55B	6.92B	296.70M	4.91B	2.26B
Net Income	-14.51B	-10.35B	5.01B	123.10M	694.68M	1.45B
Balance Sheet
Total Assets	0.00	84.94B	133.83B	93.83B	70.76B	85.77B
Cash, Cash Equivalents and Short-Term Investments	0.00	20.04B	17.98B	10.93B	11.33B	13.10B
Total Debt	0.00	56.56B	94.25B	60.74B	37.72B	53.73B
Total Liabilities	-26.33B	58.60B	97.38B	62.83B	39.86B	58.26B
Stockholders Equity	26.33B	26.33B	36.45B	30.99B	30.88B	27.49B
Cash Flow
Free Cash Flow	0.00	-12.98B	-27.33B	-21.84B	8.49B	-17.70B
Operating Cash Flow	0.00	-12.76B	-27.07B	-21.71B	8.63B	-17.54B
Investing Cash Flow	0.00	48.28B	863.90M	-1.75B	362.18M	4.82B
Financing Cash Flow	0.00	-37.12B	32.05B	24.33B	-13.07B	23.48B

Spandana Sphoorty Financial Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 260.85
• 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 260.85 is above the 20-day moving average (MA) of 244.68, above the 50-day MA of 257.52, and below the 200-day MA of 260.97, indicating a neutral trend. The MACD of -3.98 indicates Negative momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 52.96 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	9.92%	3.81%	9.73%	1.22%
PAISALO	65 Neutral	₹31.13B	14.88	―	0.29%	11.75%	-6.52%
ARMANFIN	60 Neutral	₹16.97B	-1,538.01	―	―	-6.03%	-100.77%
SURYODAY	57 Neutral	₹14.73B	21.51	―	―	―	―
MUTHOOTMF	51 Neutral	₹30.30B	-8.40	―	―	-10.17%	-181.71%
SPANDANA	48 Neutral	₹22.27B	-1.67	―	―	-45.13%	-1646.01%
CENTRUM	39 Underperform	₹11.27B	-7.86	―	―	47.88%	11.61%

Spandana Sphoorty Financial Ltd. Corporate Events

Spandana Sphoorty Uploads Q3 and 9M FY26 Earnings Call Audio for Investors

Spandana Sphoorty Financial Limited has notified stock exchanges that the audio recording of its investors and analysts conference call discussing the unaudited consolidated and standalone financial results for the third quarter and nine months ended 31 December 2025 has been uploaded to the company’s website. The firm added that a detailed transcript of the call will be filed with the exchanges and made available online in due course, improving disclosure and access to its financial commentary for shareholders and market participants.

Spandana Sphoorty Files Monitoring Report on ₹400 Crore Rights Issue Utilisation

Spandana Sphoorty Financial Limited has disclosed that CARE Ratings Limited, acting as the appointed monitoring agency, has submitted its report for the quarter ended 31 December 2025 on the utilisation of proceeds from the company’s Rs 400 crore rights issue of equity shares. The filing, made to both BSE and NSE in compliance with SEBI listing and capital-raising regulations, signals that the deployment of rights issue funds is being independently reviewed and formally reported, underscoring governance, regulatory adherence and transparency for investors and other stakeholders; the company has also made the monitoring report available on its website for public access.

Spandana Sphoorty Seeks Shareholder Nod on New CEO Appointment and Board Pay Revision via Postal Ballot

Spandana Sphoorty Financial Ltd. has initiated a postal ballot process, conducted exclusively through remote e-voting, to seek shareholder approval for key changes to its leadership and board compensation. The resolutions include the appointment of Venkatesh Krishnan as a director as well as Managing Director and Chief Executive Officer, along with the revision of annual remuneration for Chairperson and Independent Director Abanti Mitra. The e-voting window runs from 19 December 2025 to 17 January 2026, with results to be declared on or before 20 January 2026, signaling an important governance and management reset that could influence the company’s strategic direction and oversight framework.

Spandana Sphoorty Financial Approves ₹150 Crore NCD Issuance

Spandana Sphoorty Financial Limited has announced the approval of issuing up to 15,000 listed, rated, senior, secured, redeemable, taxable, non-convertible debentures (NCDs) with a face value of ₹1,00,000 each, including a green shoe option of 7,500 NCDs, through a private placement. This issuance, amounting to ₹150 crore, is set to enhance the company’s financial flexibility and support its growth initiatives, with the NCDs being listed on BSE Limited and offering an interest rate of 11.25% per annum, payable monthly.

Spandana Sphoorty Releases Q2 & H1FY26 Financial Call Recording

Spandana Sphoorty Financial Ltd. announced the availability of an audio recording from its recent investor and analyst conference call, which discussed the company’s unaudited financial results for the quarter and half-year ending September 30, 2025. This move reflects the company’s commitment to transparency and effective communication with its stakeholders, potentially impacting investor confidence and market perception.