Spandana Sphoorty Financial Limited — Credit Ratings, 12-06-2025: Credit Rating

CARE Ratings has downgraded Spandana Sphoorty Financial Limited’s long-term ratings to A- (Stable) from A (Negative) and short-term commercial paper ratings to A2+ from A1. This reflects a sharp deterioration in financial health, with a consolidated net loss of ₹1,035 crore in FY2025 versus a ₹501 crore profit in FY2024, rising gross stage 3 assets at 5.63%, and elevated credit costs. Tangible net worth slipped to ₹2,138 crore, though capital adequacy remains robust at 37.1%, and liquidity is adequate with free cash of ₹1,324 crore. The downgrade may result in slightly higher borrowing costs and more cautious investor sentiment until financial performance stabilizes.