Spandana Sphoorty posts Rs 360-crore loss in Q1; fourth in a row

High asset quality stress and drop in business volume as well as income pulled microfinance company Spandana Sphoorty Financial into a consolidated net loss of ₹360 crore in the first quarter of the fiscal, making it the fourth consecutive quarterly loss.

The lender had earned a consolidated net profit of ₹56 crore in the year-ago period. Thereafter, it reported losses in every quarter. Its consolidated income fell 59% year-on-year to ₹304 crore against ₹734 crore. Provisions to cover bad loans were higher at ₹422 crore compared with ₹209 crore.

"The losses for the quarter ended June 30, 2025, were mainly due to significant impairment losses (including technical write-offs) arising from credit deterioration of loans to customers," the company said in a stock exchange filing.

It wrote off loans to the tune of ₹581 crore in the June quarter, contributing to the elevated credit costs.

"This will be improved going forward by strengthening on-ground recovery. Accordingly, the company expects to generate sufficient taxable profits to fully utilize the losses," the company said in a joint statement by chairperson Abanti Mitra and interim chief executive officer Ashish Kumar Damani. The consolidated loss before tax for the June quarter was ₹481 crore. Spandana recognized a deferred tax asset of ₹544 crore to extent it is considered recoverable, based on future taxable income supported by revised approved business plans and budgets.