Spandana Sphoorty Financial (Spandana) reported audited results for the quarter and year ended 31 March 2026 and returned to profit after tax in the fourth quarter. Management said improving portfolio quality and recoveries supported a profit after tax of Rs 50 mn after six quarters. Collection efficiency in the highest risk bucket reached 99.7 per cent in March 2026.

Fourth quarter disbursements rose 30 per cent quarter on quarter to Rs 15,390 mn, while assets under management at the end of March were Rs 44,200 mn, up 12 per cent quarter on quarter. The portfolio under new lending norms now represents 80 per cent of the microfinance book and maintains a net collection efficiency of 99.7 per cent. Gross and net collection efficiencies were 95.3 per cent and 94.7 per cent, respectively.

Asset quality showed steady improvement with consolidated gross non-performing assets at three point seven eight per cent and consolidated net non-performing assets at zero point seven three per cent, improving from four point two four per cent and zero point nine two per cent at the end of December 2025. Provision coverage ratio remained around 80 per cent. The one- to ninety-day book fell to 1.3 per cent from 2.5 per cent.

Recoveries from accounts more than ninety days past due rose to Rs 1,330 mn in the second half of the year from Rs 900 mn in the first half. Total income for the quarter was Rs 2,770 mn, with net interest income of Rs 970 mn and a yield of 22.8 per cent, up by 43 basis points. Pre-provision operating profit improved to Rs 390 mn from Rs 80 mn, and cost of borrowings increased to 13.2 per cent.

Net-worth was Rs 21,300 mn, capital adequacy was 35.9 per cent, and liquidity was Rs 14,380 mn at the end of March 2026, which the company said supports growth. Management highlighted new customer acquisition, technology transformation, cost optimisation and recoveries as the main enablers.