Spandana Sphoorty Financial Limited

Financial Services — Credit Services · NSE

₹212.60+₹0.78 (+0.37%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Spandana Sphoorty Financial Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Spandana Sphoorty Financial Limited engages in the microfinance business in India. The company provides joint liability group based microfinance for women entrepreneurs; loans against the property; and individual loans.

IndustryCredit Services

SectorFinancial Services

Employees9,405

Annual revenue₹916 Cr

How does it make money?

Turns over ₹916 Cr a year. Of every ₹100 of sales, about ₹-76 reaches shareholders as profit, with ₹-25 left at the operating level before interest, tax and depreciation. Each of its 9,405 employees supports ₹9.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹9.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 41.6% and earnings to grow about 236.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+41.6%

Est. earnings growth+236.7%

Analysts4

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -28% while net margin moved -7959% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-28%

Margin effect-7959%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 33.2 points over the period

Quality vs. Valuation

Company Quality

39/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

36/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

Nothing stands out as clearly improving on the years of data available.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 0.4% to -32.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 0.4% to -26.5% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -763.9x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹699 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 63.7 points, from 38.6% to -25.1%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -1028.0x to -763.9x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 38.6% to -25.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 0.4% to -32.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -27%✓ -25.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ -32.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ -763.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 2 neutral · 6 weak

Market Cap

₹1,884 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.80x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-42.49

Loss-making

Negative earnings per share — the business is losing money

ROE

-32.8%

Weak

Weak capital efficiency

ROCE

-26.5%

Weak

Low return on total capital employed

Debt/Equity

1.85x

High

High leverage

Revenue Growth (YoY)

-57.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

32.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹878 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

5.1x

Operating Margin

10.2%

Average

Average margins

Net Margin

-116.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

219.4 / 232.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,268 Cr	₹2,216 Cr	₹2,160 Cr	₹916 Cr	-10.3%
EBITDA	₹490 Cr	₹799 Cr	₹510 Cr	-₹230 Cr	—
EBITDA Margin	38.6%	36.0%	23.6%	-25.1%	—
PAT (Net Profit)	₹12 Cr	₹501 Cr	-₹1,035 Cr	-₹699 Cr	—
EPS	₹1.65	₹65.98	₹-138.06	₹-91.01	—
ROE	0.4%	13.7%	-39.3%	-32.8%	—
ROCE	0.4%	9.9%	-32.7%	-26.5%	—
Total Debt	₹6,074 Cr	₹9,425 Cr	₹5,656 Cr	₹3,943 Cr	-13.4%
Free Cash Flow	-₹2,184 Cr	-₹2,705 Cr	₹3,659 Cr	₹878 Cr	—

🔴 Revenue has shrunk at 10.3% a year over 3 years.

🔴 EBITDA has turned negative, from ₹490 Cr to -₹230 Cr.

🔴 EBITDA Margin has fallen from 38.6% to -25.1% over 3 years (-63.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹12 Cr to -₹699 Cr.

🔴 EPS has turned negative, from ₹1.65 to ₹-91.01.

🔴 ROE has fallen from 0.4% to -32.8% over 3 years (-33.2 pts).

🔴 ROCE has fallen from 0.4% to -26.5% over 3 years (-26.8 pts).

🟢 Total Debt has shrunk at 13.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2,184 Cr to ₹878 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,246 Cr

Total Liabilities

₹4,117 Cr

Cash & Equivalents

₹769 Cr

Operating Cash Flow

₹882 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

6.3%

Insider Holding

47.5%

Analyst Consensus

Recommendations

2 Buy · 2 Hold · 1 Sell

Target Price (Mean)

₹263.75

+24.1% vs CMP

Target Range

₹200 – ₹375

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

3 mixed3 general

SPANDANA Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Spandana Sphoorty Financial Share Price: 7 Stock Signals to Watch Now

Univest, 05 Oct

Spandana Sphoorty Share Price Falls After Q1 Results

Kalkine India, 24 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Spandana Sphoorty Financial - PP posts ₹12 Cr PAT in Q1FY27

scanx.trade, 23 Jul

Spandana Sphoorty Financial reports consolidated net profit of Rs 11.88 crore in the June 2026 quarter

Business Standard, 24 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Compare BOM.OXYGEN with

Equitymaster, 11 Oct

Watch Items

Revenue growth is negative (-57.6%) on the latest reported period — check if this is one-off or a trend.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 3 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x · see Key things to watch ↑