Event Type and Details:

  • The document contains the transcript of an earnings conference call held on Friday, October 30, 2026, to discuss the financial and operational performance for the quarter and half year ended September 30, 2026 (Q2 and H1 FY27).
  • The call was moderated and included a question-and-answer session with analysts.

Management Participants:

  • Mr. Venkatesh Krishnan – Managing Director and Chief Executive Officer
  • Mr. Ashish Damani – Chief Financial Officer

Financial and Operational Highlights Disclosed:

  • AUM crossed INR5,000 crores for the first time in recent quarters, reaching INR5,364 crores with 10% quarter-on-quarter growth
  • Added 1.5 lakh new subscribers (10% increase over previous quarter)
  • 65% share of new to Spandana or new to credit customers (4% growth over previous quarter)
  • Monthly operational expenditure maintained around INR50 crores
  • Yield improved to 24.9%
  • Marginal cost of borrowing at 10.6% (10.8% excluding CGS scheme)
  • Borrowing mix had 57% share from banks
  • Raised INR1,427 crores of debt during the quarter
  • GNPA at 2.54%, NNPA at 0.5% (corrected from initial 1.5% mention)
  • PAT of INR18 crores (INR35 crores standalone before DTA reversal impact)
  • PPOP grew to INR52 crores (INR79 crores with write-backs)
  • Disbursement of INR1,481 crores (54% to new customers, 11% to reactivated borrowers, 35% to existing customers)
  • Collection efficiency (X-bucket) at 99.6%
  • Liquidity position: INR1,379 crores as of September 30, 2026
  • Raised INR1,622 crores during quarter (including INR995 crores under CGS scheme)

Strategic Updates and Forward-looking Statements:

  • New LOS system piloted, with complete branch migration expected over next couple of months
  • Merger with Criss Finance Limited initiated, awaiting regulatory approval (expected in 3-4 months)
  • Strengthening leadership team with leaner structure
  • Raised INR194 crores of second tranche of partly paid shares (97% participation from first tranche subscribers)
  • Identified potential stress areas in Maharashtra and Karnataka due to drought conditions (INR600 crores exposure)
  • In Maharashtra, 18 out of 127 branches classified as critical with special focus
  • Micro-LAP business (INR305 crores) targeting INR1,000 crores over 2-3 years with focus on INR5-15 lakh ticket size
  • ROA target of 3.5-4% in BAU scenario, ROE target of 14-15%
  • AUM target of INR10,000 crores by March 2028
  • Next capital raise expected middle of next year

Compliance Statement:

  • The transcript was submitted to stock exchanges in compliance with previous communications (Ref: SSFL/Stock Exchange/2026-27/072 dated October 24, 2026 and SSFL/Stock Exchange/2026-27/080 dated October 30, 2026)

Additional Notes Section

  • The document is a transcript of the conference call, edited for factual errors, with audio recordings on stock exchanges taking precedence in case of discrepancy
  • The transcript includes detailed financial metrics and management commentary on performance and outlook
  • Multiple analyst questions addressed during the Q&A session covering collection trends, growth outlook, regional impacts, product strategy, and financial guidance