Spandana Sphoorty Financial AUM Reaches Rs 5,364 Crore in Q2

Spandana Sphoorty Financial Limited reported assets under management of Rs 5,364 crore in Q2 FY27, a 10% increase from the preceding quarter, while disbursements totalled Rs 1,481 crore. The milestone matters because the microfinance lender crossed Rs 5,000 crore of AUM for the first time in recent quarters after a period of operational disruption.

What did Spandana report for Q2 FY27?

Spandana reported a 10% quarter-on-quarter rise in AUM to Rs 5,364 crore in Q2 FY27 from Rs 4,887 crore in Q1 FY27. Management described the quarter as its third consecutive good quarter following a series of turbulent periods. The company also said it added about 1.5 lakh new customers, representing a 10% sequential increase.

Quarterly disbursements rose 8% sequentially to Rs 1,481 crore. Of this amount, 54% was disbursed to new customers, 11% to reactivated dropout borrowers and 35% to existing customers. The mix indicates that new customer acquisition formed the largest part of quarterly lending activity.

Revenue from operations was Rs 325 crore, compared with Rs 230 crore in Q2 FY26, according to the Q2 FY27 investor presentation. Total income was Rs 340 crore versus Rs 240 crore a year earlier. Profit after tax stood at Rs 18 crore, while profit before tax was reported at Rs 37 crore, compared with Rs 18 crore in Q1 FY27.

How did lending, collections and asset quality change?

Spandana said its gross non-performing asset ratio improved to 2.54% in Q2 FY27 from 3.64% in Q1 FY27. X-bucket collection efficiency was 99.6% in September 2026, according to the investor presentation. These indicators are relevant for a microfinance lender because collections and delinquency trends directly affect credit costs and profitability.

The company said loans originated since April 2025 accounted for 96% of its microfinance portfolio and continued to perform strongly. Borrowers per loan officer increased 15% quarter on quarter. Management also stated that monthly operating expenditure remained around Rs 50 crore.

The reported yield improved to 24.9%. Marginal cost of borrowing was 10.6%, including Credit Guarantee Scheme funding, while non-CGS borrowing cost was 10.8%. Banks accounted for about 57% of the borrowing mix. The company raised Rs 1,427 crore of debt during the quarter and had utilised Rs 995 crore raised under the CGS scheme.

What is Spandana's FY27 disbursement outlook?

Spandana reaffirmed its full-year FY27 disbursement guidance of Rs 6,000 crore to Rs 6,500 crore. Management linked the outlook to borrower demand, while noting tighter operating guardrails in Maharashtra. It also referred to state government support as a factor helping to stabilise conditions amid weather-related risks.

The company is shifting more attention towards secured lending and expanding its Micro-LAP business, or micro loan-against-property segment. Management said the Micro-LAP business was being restructured with a focus on mid-tier micro-LAP. The CFL merger was also stated to be progressing as planned.

Management said it sees a path to restoring earlier profitability levels by FY29 through calibrated growth and stronger asset-quality management. This remains management guidance and is subject to risks highlighted in the company's forward-looking statements, including uncertainty around operating and credit conditions.

Why do these numbers matter for investors and the microfinance sector?

The AUM increase and improved gross NPA ratio show that Spandana's lending book expanded while reported asset quality improved during the quarter. The company has also increased its share of lending to new customers, which can support portfolio expansion but requires continued collection discipline as these loans mature.

For investors, the combination of Rs 18 crore in quarterly profit, a 24.9% yield and a 10.6% marginal borrowing cost provides context on current earnings and funding conditions. The company reported available liquidity of Rs 1,379 crore and a capital adequacy ratio of 33.5%, according to the investor presentation.

The wider microfinance industry remains sensitive to borrower repayment patterns, local operating restrictions and weather-linked disruptions. Spandana's reference to tighter guardrails in Maharashtra underlines that growth targets depend not only on loan demand but also on the operating environment and credit controls in key markets.

Conclusion

Spandana's Q2 FY27 update showed sequential expansion in AUM, higher disbursements and an improvement in reported gross asset quality. AUM reached Rs 5,364 crore, revenue from operations rose 42% year on year to Rs 325 crore, and the lender reported a Rs 18 crore profit after tax.

Investors will next watch progress toward the Rs 6,000 crore to Rs 6,500 crore FY27 disbursement guidance, collection performance in Maharashtra and the execution of the secured-lending and Micro-LAP strategy. Management's stated FY29 profitability restoration path will also depend on disciplined growth, funding costs and asset quality.