Monitoring Agency report for the quarter ended March 31, 2026.
SPANDANA · price
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CARE Ratings Limited submitted its monitoring agency report for Spandana Sphoorty Financial's Rs 400 crore rights issue. In Q4FY26, the company neither received nor utilized any incremental amount from the rights issue. Out of the planned Rs 400 crore, the company received only Rs 199.35 crore (after rejection of invalid applications), and this entire amount has been utilized towards augmenting the capital base. The remaining Rs 199.35 crore remains unutilized. The monitoring agency flagged significant concerns including the company's decline in scale, asset quality deterioration, and losses since Q2FY25 due to microfinance sector stress. Some financial covenants are breached, giving lenders the option to accelerate repayment of Rs 42.7 crore (waiver received for Rs 27 crore). However, the agency noted progressive stabilization since Q2FY26 with improving disbursements, collection efficiency, and strong performance of FY26-originat ed loans under enhanced credit guardrails.
The monitoring report shows no fund misuse but raises red flags about the company's financial health and covenant breaches. The stock trades at Rs 227, below the rights issue price of Rs 230, indicating market skepticism despite signs of operational recovery.