Spandana Sphoorty Returns to Profitability with ₹18 Crore Net Profit in Q2 FY27

Microfinance institution Spandana Sphoorty Financial has reported a consolidated net profit of ₹18 crore for the second quarter ended September 30, 2026 (Q2 FY27), according to reports by The Economic Times. Cruxal and Alpha Tribe noted the consolidated net profit at ₹18.2 crore. This financial performance marks a full turnaround from a consolidated net loss of ₹249 crore recorded during the corresponding period of the previous financial year (Q2 FY26), while also improving sequentially from a net profit of ₹12 crore recorded in Q1 FY27.

The turnaround in performance reflects operational recovery across the lender's operating network, supported by lower credit impairment costs, rising operating revenue, and improved asset quality metrics.

Revenue Growth and Operational Performance

According to financial data published by Cruxal, consolidated total income for Q2 FY27 grew by 41.7% year-on-year to ₹340 crore, compared to ₹240 crore in Q2 FY26. Revenue from operations increased by 41.3% year-on-year to reach ₹325 crore, up from ₹230 crore in the same period of the prior year. On a standalone basis, which reflects the core microfinance operations of Spandana Sphoorty, net profit stood at ₹35 crore for Q2 FY27, compared to a standalone net loss of ₹218 crore in Q2 FY26, as per The Economic Times.

Pre-provision operating profit (PPOP) reached ₹79 crore during the quarter, reversing a pre-provision loss of ₹40 crore recorded in Q2 FY26. Asset quality metrics registered notable improvements during the period. The Gross Non-Performing Assets (GNPA) ratio declined to 2.54% in Q2 FY27, down from 3.64% in Q1 FY27 and 5.62% in Q2 FY26. The Net Non-Performing Assets (NNPA) ratio decreased to 0.50%, compared to 0.68% in the previous quarter and 1.17% in Q2 FY26. The Provision Coverage Ratio (PCR) remained stable at around 80%. As documented by Cruxal, credit impairment charges on financial instruments declined sharply to ₹42 crore in Q2 FY27, down from ₹287 crore in Q2 FY26, signaling lower asset-quality stress across loan portfolios.

Disbursements, Borrowing Costs, and Capital Base

Assets under management (AUM) expanded by 31% year-on-year to reach ₹5,364 crore at the end of September 2026, representing a 10% sequential increase over ₹4,887 crore reported at the end of June 2026, according to The Economic Times. Loan disbursements grew 8% sequentially to ₹1,481 crore in Q2 FY27 from ₹1,371 crore in Q1 FY27, as per Business Line and release details.

Collection efficiency metrics showed steady operational control. Gross collection efficiency reached 97.9% in Q2 FY27, up from 96.6% in Q1 FY27, while net collection efficiency rose to 97.3% from 95.9% in the preceding quarter. X-bucket collection efficiency across major operating states maintained levels above 99.6%. The company's marginal cost of borrowing improved to 10.6% from 11.3% in Q1 FY27, aiding net interest margin expansion. Capital adequacy ratio (CRAR) remained at 33.5%, supported by liquidity reserves of ₹1,379 crore.

Spandana Sphoorty MD & CEO Venkatesh Krishnan stated that strategic focus across four pillars—Portfolio Quality, Productivity, Capital, and People—is driving financial recovery and laying the groundwork for calibrated growth. On the capital front, Business Standard reported that the company raised ₹194.41 crore during Q2 FY27 through the First and Final Call of its Rights Issue. The Board also approved a Reminder-cum-Forfeiture Notice regarding unpaid call money of ₹115 per equity share.

What this means for BFSI jobs

The stabilization of financial performance across microfinance institutions (MFIs) like Spandana Sphoorty after an extended credit-cost cycle indicates easing operational risk across non-banking financial companies (NBFCs). As highlighted in reports by Business Upturn, this recovery reduces the likelihood of structural staff downsizing and provides improved job stability for field personnel, branch management, and credit assessment teams.

At the same time, operational discipline remains central to sustained turnaround. Cruxal reported that Spandana Sphoorty’s employee benefit expenses dropped to ₹103 crore in Q2 FY27 from ₹130 crore in Q2 FY26. This reflects ongoing efforts toward productivity optimization and strict cost management across MFI operations.

Hiring priorities across NBFCs and MFIs are increasingly shifting toward specific core operational functions. With collection efficiency targets set above 97–99%, demand is concentrated on roles in field recovery management, early-stage collection strategy (particularly X-bucket retention), localized credit risk evaluation, and borrower relationship management. Furthermore, the reduction in borrowing costs to 10.6% highlights growing demand for skilled professionals in treasury management, debt syndication, and capital raising for non-banking institutions.

Across the broader Indian banking and financial services domain, job market activity remains active. Current listings on Finploy show 41,106 open BFSI positions nationwide. Major hiring hubs include Mumbai with 11,219 roles, Pune with 1,080 roles, Chennai with 1,000 roles, Bengaluru with 963 roles, Hyderabad with 789 roles, Bangalore with 570 roles, Thane with 503 roles, and Kolkata with 425 open roles.