Spandana Sphoorty Financial Limited has reported strong operational traction for Q2 FY26, led by a sharp rebound in disbursements and improved asset quality performance under its new credit norms.The company disbursed Rs 9.34 billion during the quarter, marking a 233 per cent increase quarter-on-quarter from Rs 2.80 billion in Q1 FY26. Assets under management (AUM) stood at Rs 40.88 billion, an 18 per cent sequential decline from Rs 49.58 billion in June 2025, as the company continued to rebalance its portfolio.Standalone gross and net NPAs were reported at 4.97 per cent and 0.97 per cent, respectively, while on a consolidated basis, GNPA and NNPA stood at 5.62 per cent and 1.17 per cent. Provision coverage remained robust at around 80 per cent. The company’s gross collection efficiency improved to 92.9 per cent in Q2 FY26 from 91.1 per cent in the previous quarter, and net collection efficiency rose to 92.4 per cent.Despite operational improvements, profitability was impacted by elevated impairment costs from legacy portfolios and a higher cost structure. Total income stood at Rs 2.39 billion (down 21 per cent QoQ), net interest income at Rs 910 million (down 20 per cent QoQ), and pre-provision operating profit remained at Rs (400) million. The company reported a net loss of Rs 2.49 billion for the quarter.Ashish Damani, Interim CEO, President and CFO, Spandana Sphoorty Financial said, “The trends developing in Q2FY26 have been encouraging after a challenging period for the microfinance industry. Our new portfolio, built under stricter credit norms, is performing well with only 0.1 per cent delinquency, reflecting the effectiveness of our risk framework. We also achieved recoveries worth Rs 480 million during the quarter.”He added that the company maintains a comfortable liquidity buffer of Rs 11.79 billion, a capital adequacy ratio (CRAR) of 47 per cent, and gearing of 1.5x, positioning it well for future growth. “The improving macro environment and rural demand indicators give us confidence to deepen customer engagement and scale sustainably,” he noted.