Spandana Sphoorty Financial share price dropped by 9.6% on Monday, June 2, 2025. The stock hit a low of ₹262.35 on the BSE after the company announced disappointing financial results for the fourth quarter of FY25.

By 12:50 PM, the share price had recovered slightly but was still down 6.7% at ₹270.65 per share, while the BSE Sensex was marginally down by 0.10% at 81,369.78. The company’s total market value stood at ₹1,929.87 crore. Over the past year, the stock had risen 63%, outperforming the Sensex’s 7% gain. 

Spandana Sphoorty Q2 FY25 Earnings: Net Loss of ₹434.3 Crore in Q4FY25

The sharp drop in share price was mainly due to the company's poor performance in the January–March quarter. On Friday, May 30, 2025, Spandana reported a net loss of ₹434.3 crore for Q4 FY25. This is a major fall compared to the ₹128.64 crore profit it made during the same period the previous year.

The company’s revenue from operations also took a hit. It stood at ₹414.79 crore, down 38% from ₹669.09 crore a year ago, reflecting weaker business activity.

AUM and Disbursements See Major Decline

Spandana’s total AUM dropped 43% year-on-year, from ₹11,973 crore to ₹6,819 crore. The company also reported a 48% decline in loan disbursements, which fell from ₹10,688 crore to ₹5,605 crore in FY25. These numbers suggest reduced lending activity and slowing growth.

Other Key Financial Metrics

• The company's Net Interest Income (NII) was ₹1,228 crore, slightly lower than ₹1,289 crore the previous year—a 5% fall.
• Gross Non-Performing Assets (GNPA) stood at 4.85%, and Net NPA (NNPA) was at 0.96%, indicating stress in the asset quality.

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About Spandana Sphoorty Financial Ltd

Spandana Sphoorty Financial is a NBFC that focuses on rural areas. It is also classified as a Microfinance Institution (MFI). The company mainly provides income-generating loans to women from low-income households, under the Joint Liability Group (JLG) lending model.

Conclusion

Spandana Sphoorty’s weak Q4 results have raised concerns among investors, leading to a sharp fall in its share price. The significant losses, along with declining revenue, AUM, and disbursements, point to deeper operational challenges. Investors should closely monitor the company’s future performance and strategic direction before taking any investment decision. Consulting a financial advisor is also recommended.

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