Spandana AUM grows 31% year on year with fewer branches

Spandana Sphoorty Financial Limited grew assets under management (AUM) 31% year on year to Rs 5,364 crore at September 2026 while operating 265 fewer branches and employing 3,492 fewer people than a year earlier. Spandana also reported higher borrowers per branch, borrowers per loan officer and average microfinance outstanding, alongside Rs 1,481 crore of Q2 FY27 disbursements.

How did Spandana grow AUM with fewer branches?

Spandana increased AUM to Rs 5,364 crore at September 2026 from Rs 4,088 crore a year earlier, and from Rs 4,887 crore at June 2026. The 31% year-on-year and 10% quarter-on-quarter increase coincided with Q2 FY27 disbursements of Rs 1,481 crore, up 8% from Rs 1,371 crore in Q1 FY27.

First-half FY27 disbursements reached Rs 2,853 crore, compared with Rs 1,214 crore in H1 FY26, a 135% increase. In Q2 FY27, 54% of loans were disbursed to new customers and 11% to reactivated customers. Loans originated since April 2025 accounted for 96% of Spandana's microfinance institution, or MFI, portfolio at September 2026.

What changed in Spandana's branch and employee base?

Spandana operated 1,438 branches at September 2026, down from 1,703 at September 2025 and 1,443 at June 2026. Monthly branches declined by 154 year on year to 945, weekly branches declined by 80 to 348, and CFL branches declined by 31 to 145.

Total employees fell to 9,908 at September 2026 from 13,400 a year earlier and 10,195 at June 2026. Loan officers and customer relationship associates totalled 6,650, down from 8,679 at September 2025, although Spandana's own loan officer and customer relationship associate count increased to 6,203 from 6,077 at June 2026.

The active customer base rose to 11.4 lakh at September 2026 from 11.1 lakh in June 2026, but remained below 15.5 lakh a year earlier. AUM nevertheless increased by Rs 477 crore during the September quarter, consistent with a higher amount outstanding per active customer; the presentation does not separate the effects of ticket size, customer mix and repeat lending.

Are Spandana's branches and loan officers serving more borrowers?

Spandana's standalone productivity measures show 832 borrowers per branch at September 2026, compared with the two-year low of 769, an 8% increase. Borrowers per loan officer reached 211 from the two-year low of 184, a 15% increase, as the branch and employee base had declined from September 2025 levels.

Average MFI outstanding was Rs 45,600 at September 2026, more than double the two-year low of Rs 22,600. The increase in average outstanding accompanied the rise in AUM to Rs 5,364 crore despite the active customer base remaining 4.1 lakh below its September 2025 level.

Spandana linked the reported measures to its two-year “4P” turnaround efforts, which included a restructured field hierarchy and strengthened management roles. The presentation identifies the organisational changes but does not quantify how much each one contributed to the Rs 1,276 crore year-on-year AUM increase.

Has the leaner model coincided with better collections and costs?

Spandana reported gross collection efficiency of 97.9% in Q2 FY27, up from 96.6% in Q1 FY27 and 92.9% in Q2 FY26. Net collection efficiency reached 97.3%, compared with 95.9% in the preceding quarter and 92.4% a year earlier, while standalone X-bucket collection efficiency was 99.6% in September 2026.

Portfolio at risk of 30 days or more fell to 3.1% at September 2026 from 9.5% a year earlier, while portfolio at risk of 90 days or more declined to 2.5% from 5.6%. Gross non-performing assets were 2.54% in Q2 FY27, down from 3.64% in Q1 FY27, and net non-performing assets declined to 0.50% from 0.68%.

Operating expenses to AUM declined to 11.4% in Q2 FY27 from 13.3% in Q1 FY27 and 16.3% in Q2 FY26. Employee benefit expense was Rs 103 crore, compared with Rs 106 crore in Q1 FY27 and Rs 130 crore in Q2 FY26, while total expenses fell 4% quarter on quarter to Rs 148 crore as total income increased 12% to Rs 340 crore.

What do Spandana's Q2 FY27 financial results show?

Spandana reported pre-provision operating profit including recoveries of written-off loans of Rs 79 crore in Q2 FY27, up 98% from Rs 40 crore in Q1 FY27. Profit before tax increased to Rs 37 crore from Rs 18 crore, while profit after tax rose to Rs 18 crore from Rs 12 crore; in Q2 FY26, profit before tax was a loss of Rs 327 crore.

Net interest income increased 25% quarter on quarter to Rs 169 crore. Yield rose by 24 basis points to 24.9%, cost of borrowing fell by 48 basis points to 12.3%, and net interest margin increased to 13.6% from 12.5% in Q1 FY27.

Liquidity was Rs 1,379 crore at September 2026, compared with Rs 1,316 crore at June 2026, and the consolidated capital-to-risk-weighted-assets ratio was 33.5%. Spandana also reported a marginal borrowing cost of 10.6% in Q2 FY27, down from 13.2% in Q3 FY26, with banks accounting for 57% of Rs 4,724 crore in borrowings outstanding.

Conclusion

Spandana's September 2026 figures show portfolio growth alongside a materially smaller physical network and employee base. AUM increased 31% year on year to Rs 5,364 crore as borrowers per branch reached 832, average MFI outstanding reached Rs 45,600, and operating expenses to AUM declined by 488 basis points from Q2 FY26 to 11.4%.

The next disclosures to watch are progress on the new loan-origination-system pilot, the restructuring of the micro loan-against-property business toward ticket sizes of Rs 5 lakh to Rs 15 lakh, and the CFL merger, which Spandana said was progressing as planned. The company also reported Rs 46 crore of recoveries in 90-plus-day accounts in Q2 FY27, down from Rs 51 crore in Q1 FY27, while it continues field collections, calling and data-analytics initiatives.