Pursuant to Regulation 30, 33 & 52 read with Schedule III and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, as amended from ....
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SPA Capital Services Ltd's Board approved the unaudited standalone financial results for the quarter ended June 30, 2025 (Q1 FY26). Total revenue from operations jumped sharply to Rs 10.69 crore from Rs 4.06 crore in the same quarter last year, driven largely by other revenue from operations (Rs 6.96 crore) and sale of services (Rs 3.63 crore). Net profit rose to Rs 0.186 crore from Rs 0.101 crore, with EPS of Rs 0.61 versus Rs 0.33. However, the statutory auditor (M/s DHANA & Associates) flagged an 'Emphasis of Matter' in the limited review report, noting that the company has not provided interest of Rs 19.24 lakh on certain loans (departure from accrual basis) and has not made any provision on Rs 3.14 crore of loans given to various parties on which no interest is being charged, which under RBI NBFC guidelines qualify as loss assets. As a result, profit is overstated by Rs 3.14 crore and loan assets are overstated by the same amount.
Strong top-line growth in Q1 is positive, but the auditor's emphasis on non-provisioning of interest and loss assets is a serious red flag – it means headline profits and loan book quality may not be accurately reflected, and shareholders should expect potential downward restatement and provisioning pressure in coming periods. The stock could see negative reaction on governance and asset quality concerns despite the optical profit growth.