Transcript of earnings call for the quarter ended June 30, 2026.

Ref: SSFL/Stock Exchange/2026-27/052 July 31, 2026 To To BSE Limited, National Stock Exchange of India Limited, Department of Corporate Services Listing Department P. J. Towers, 25th Floor, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (E) Mumbai – 400001 Mumbai – 400051 Scrip Code: 542759 and 890221 Symbol: SPANDANA and SSFLPP Dear Sir/Madam, Subject: Transcript of conference call held on Friday, July 24, 2026. Ref: Company letter ref no. Ref: SSFL/Stock Exchange/2026-27/039 dated July 20, 2026. In furtherance to our above-mentioned letter, please find enclosed herewith a transcript of the conference call held on Friday, July 24, 2026, to discuss the financial and operational performance of the Company for the quarter ended June 30, 2026. The aforesaid information shall also be made available on the website of the Company at www.spandanasphoorty.com. Kindly take the above on record. Thanking you. Yours sincerely, For Spandana Sphoorty Financial Limited Vinay Prakash Tripathi Company Secretary Encl: As Above Spandana Sphoorty Financial Limited CIN - L65929TG2003PLC040648 Galaxy, Wing B, 16th Floor, Plot No.1, Sy No 83/1, Hyderabad Knowledge City, TSIIC, Raidurg Panmaktha, Hyderabad – 500081, Telangana Ph: +9140-48126666 | contact@spandanasphoorty.com | www.spandanasphoorty.com “Spandana Sphoorty Financial Limited Q1 FY27 Earnings Conference Call” July 24, 2026 E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchanges on 24th July 2026 will prevail. MANAGEMENT: MR. VENKATESH KRISHNAN – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER – SPANDANA SPHOORTY FINANCIAL LIMITED MR. ASHISH DAMANI – CHIEF FINANCIAL OFFICER – SPANDANA SPHOORTY FINANCIAL LIMITED Page 1 of 13 Spandana Sphoorty Financial Limited July 24, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Spandana Sphoorty Financial Limited Q1 FY27 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company and it may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Venkatesh Krishnan, MD and CEO, Spandana Sphoorty Financial, for his opening remarks. Thank you, and over to you, sir. Venkatesh Krishnan: Good morning, all. Thanks for joining this Q1 FY27 call. This is the first time we are holding the call in the morning. So we can safely say it is a new morning for Spandana and a morning filled with hope. A few quantitative and qualitative aspects before I hand over the mic to my colleague, CFO, Ashish Damani. It was a good quarter that went by on multiple fronts. Our AUM grew 11% quarter-on-quarter to INR4,887 crores. New member addition was at 61% as compared to 46% rather in the March quarter. Overall, members added also increased to 1.38 lakh during the quarter as compared to 1.1-odd lakhs in the March quarter. X-bucket collection efficiency, which is a very important parameter was at 99.5% as anticipated. Annualized credit cost at 2.1% (Net credit cost remained negative in Q1, due to stronger recoveries during the period) against 3.2% in the March quarter. We managed to collect INR51 crores in the 90-plus pool. The marginal cost of funding came down to 11.3% as against 12% last quarter. And we managed to garner around INR545 crores of sanction under the credit guarantee scheme, and sanctions are still coming, and there are quite a few sanctions in the pipeline as well. Overall cost of borrowing came down to 12.8% as against 13.2% with bank share going up from 44% to 47%. The share of new portfolio, which is sourcing effective 1st of April 2025, grew to 91%. And of course, the most important thing is that PAT was INR12 crores as against INR5 crores in the March '26 quarter. Liquidity and capital adequacy are areas wherein at this point in time, we are holding good. On the qualitative front, we realize that the top 5 states contribute about 60% of our total share, which is Madhya Pradesh, Bihar, Andhra, Telangana, Odisha and West Bengal. Two states we really want to grow in the coming quarters are Tamil Nadu, where our share currently is just about INR16 crores out of the industry of INR38,000 crores. Page 2 of 13 Spandana Sphoorty Financial Limited July 24, 2026 And Maharashtra, where we are at about INR288 crores as against the industry of INR24,000 crores. So 1.1% share, we want to at least double it to 2% share. Individual loan product is ready to be piloted in 8 branches in Madhya Pradesh. So we are putting about 8 -10 people. Over the next 3 months, we want to test it out because this is a completely different product, better underwritten with eNACH facility. We want to just check what is the acceptability. Of course, this is going to be for existing customers to begin with. But in the days to come, we will migrate to new to Spandana customers as well, anyone who's got a track record elsewhere. Like in any other business, you will always have many of the branches doing well and a few branches not doing well. We carved out 100 branches where there was scope for improvement, either on the business or collections of both. And we're trying to put a separate team to revive this because merger or closure in microfinance rarely leads to success. So we said that this time around, we are going to revive these branches, and we are quite hopeful these 100 branches can really turn out to be significant contributors in the times to come. El Nino, much spoken about what's going to happen, time alone will say. But proactively, the credit and business have worked together a strategy how to deal with new customers who are not exposed to any form of credit who are staying in a rented premise, so on and so forth. So we put some game plan for select districts and states that are likely to be impacted. So it's a wait and watch with adequate controls. The balance rights issue money of INR200 crores, INR100 crores from the promoter and the balance INR100 crores from others who participated is expected this quarter, before the end of this quarter. We have a new Chief Business Officer for South. That position was vacant for a couple of months, has recently joined us. He is going to take care of Andhra, Telangana, Tamil Nadu, Karnataka and Kerala, comes with a lot of experience. So with that, we have all the complements of the 4 Chief Business Officers - North, South, East, West, state heads are there. So overall business is looking good, but that should not lead to complacency. So we are putting our head down to ensure that we stay focused on basics and the basic is how we are able to collect on the due date, how we are following up on the 1 to 90 bucket, the 90-plus pool is a large pool for us. So ensuring that we keep collecting as much as possible. This is the last year we're going to focus on the so-called 90-plus book because after that, we don't have expect customers who are 2 years or more thereafter paying us. And then, of course, focusing on productivity and disbursals. So all in all, we seem to be on the right direction, keeping fingers crossed for the coming quarters. But at this point in time, we are happy with how the revived Spandana is shaping up. With that, I hand it over to Ashish, my colleague. Page 3 of 13 Spandana Sphoorty Financial Limited July 24, 2026 Ashish Damani: Thanks, Venki. Good morning, everybody. Thank you for joining in this call. I'd like to cover some of the highl [Showing first 8,000 characters — download PDF for full document]