Spandana Sphoorty posts Rs 360 crore Q1 loss on unhealthy mortgage influence
The lender had earned a consolidated web revenue of Rs 56 crore within the 12 months in the past interval. Thereafter, it reported losses in each quarter.
Its consolidated revenue fell 59% year-on-year at Rs 304 crore in opposition to Rs 734 crore. Provisions to cowl unhealthy loans had been greater at Rs 422 crore as in contrast with Rs 209 crore.
“The losses for the quarter ended June 30, 2025 had been primarily resulting from important
impairment losses (together with technical write offs) arising from credit score deterioration of loans to clients,” the corporate mentioned in a inventory change submitting.
It wrote off loans to the tune of Rs 581 crore within the June quarter, contributing to the elevated credit score prices.
“This can be improved going ahead by strengthening on-ground restoration. Accordingly, the Firm expects to generate adequate taxable income to totally make the most of the losses,” the corporate mentioned in a joint assertion by chairperson Abanti Mitra and interim chief government officer Ashish Kumar Damani.
The consolidated loss earlier than tax for the June quarter was Rs 481 crore.
Spandana acknowledged a deferred tax asset of Rs 544 crore to the extent it’s thought of recoverable, based mostly on possible future taxable revenue supported by revised accepted enterprise plans and budgets.
The lender’s standalone mortgage e book contracted to Rs 3877 crore on the finish of June from Rs 5555 crore three months previous to that. Gross non-performing property ratio was at 4.88% on the finish of June as in contrast with 4.85% three months again. Internet NPA remained at 0.96%.
The corporate’s consolidated property beneath administration stood decrease at Rs 4958 crore, as in contrast with Rs 11723 crore a 12 months again. The GNPA for the consolidated stability sheet was 5.49% in opposition to 2.60% a 12 months again.
Spandana was non-compliant with sure covenants associated to portfolio in danger, gross NPA, tangible web price, and quarterly profitability as of and for the quarter ended June 30. It has obtained waivers in respect of such non-compliant covenants from few of the lenders.
“The corporate has been in fixed communication with its lenders and is assured that no demand for speedy reimbursement of borrowed funds can be made resulting from non-compliance with the covenants,” it mentioned.
The corporate administration is of the view that it might have the ability to realise all its property and discharge all its liabilities within the regular course of enterprise. “There aren’t any materials uncertainties on the corporate’s potential to proceed as a going concern,” it mentioned.
It has a powerful capital place, with tier I capital of ₹1,245.53 crores and a capital to risk-weighted property ratio of 37%. It has efficiently raised recent funding of Rs 200 crore by a partly paid rights concern of shares. The stability Rs 200 crore of the Rs 400-crore rights concern can be realised at a later date.
