Spandana Sphoorty Financial Limited has informed the Exchange about Credit Rating
SPANDANA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 1.0 pts less than Nifty Microcap 250 and 1.4 pts less than its Finance peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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ICRA has downgraded Spandana Sphoorty Financial's rating to [ICRA]BBB+ (Negative) from [ICRA]A- (Negative) on its Rs. 2,105 crore term loan and Rs. 423 crore non-convertible debentures, totaling Rs. 2,528 crore. The downgrade is driven by sustained weakness in profitability and asset quality, with the company posting a consolidated net loss of Rs. 360.2 crore in Q1 FY2026 (return on managed assets of negative 16.8%) and a Rs. 1,035.2 crore loss in FY2025. Its loan book (AUM) has shrunk sharply to Rs. 4,958 crore in June 2025 from Rs. 11,973 crore in March 2024, while 30+ day overdue loans spiked to 13.4% from 3.0% over the same period. NCDs worth Rs. 293.6 crore and term loans of Rs. 138 crore are in breach of debt covenants, though most have received waivers from investors. The company has comfortable liquidity of Rs. 1,653 crore in cash and equivalents and bolstered capital via a Rs. 400 crore rights issue in July 2025, but the Negative outlook indicates further downgrade risk if metrics don't improve.
This is a clear negative for shareholders—the multi-notch downgrade with a Negative outlook signals deep financial stress, likely higher future borrowing costs, and limited room for growth. The stock may see selling pressure, and any recovery in the stock price hinges on the company stabilizing asset quality and returning to profitability over the next few quarters.