Spandana Sphoorty Financial Limited is a leading microfinance institution in India. The company primarily provides small loans to low-income women in rural and semi-urban areas. These loans help women start or expand small businesses, support their families, and improve their quality of life. Over the years, Spandana has grown into one of the most recognized NBFC-MFIs (Non-Banking Financial Company – Micro Finance Institution) in the country.economictimes.in
However, FY2024–25 was a challenging year for the company. It reported a significant loss of ₹434 crore. Its total loan book, or Assets Under Management (AUM), dropped by 43% to ₹6,819 crore. The company also faced concerns from auditors related to internal controls and fraud risks. These issues affected investor confidence and raised questions about the company’s stability.
Despite the tough year, Spandana is not giving up. The company has announced major plans to turn things around in FY2025–26. A key step in this recovery is a ₹750 crore capital raise, including a ₹400 crore rights issue. This means the company is offering existing shareholders the chance to buy more shares at a lower price to bring in fresh funds. These funds will be used to strengthen the company’s financial position and support future growth.
Spandana also plans to expand its operations into new regions like Bihar, Uttar Pradesh, and Rajasthan. This will help reduce regional risks and allow the company to serve more borrowers. It is also investing in technology—introducing e-KYC processes and hiring more field officers to improve efficiency and customer service.
Under the leadership of MD & CEO Shalabh Saxena and Interim CEO Ashish Damani, the management is focusing on better governance, improved borrower discipline, and stronger risk control systems. Their goal is to rebuild trust and ensure sustainable growth in the coming years.
Analysts are optimistic about Spandana’s future. They expect the company’s revenue and earnings to grow over 100% annually, with profitability returning by FY2026. The company’s ROE (Return on Equity), which is currently negative, is expected to turn positive as early as FY2027.
In conclusion, Spandana Sphoorty Financial is in a rebuilding phase after a tough year. With a clear plan for raising capital, expanding its presence, and improving operations, the company is working hard to regain its position in the microfinance sector. If it successfully executes these plans, Spandana could once again become a key player in India’s financial inclusion story.
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