Spandana Sphoorty Financial Limited

rs,

Exchange/2025-26/025 May 30, 2025 To BSE Limited, Department of Corporate Services P. J. Towers, 25th Floor, Dalal Street, Mumbai – 400001 To National Stock Exchange of India Limited, Listing

₹6,819

ment approach adopted as delinquencies increased during the year • AUM at the end of March 2025 was ₹6,819 Cr - YoY decline of 43% • Standalone GNPA & NNPA was 4.85% & 0.96% at the end of March-25 vs. 1.43%

43%

linquencies increased during the year • AUM at the end of March 2025 was ₹6,819 Cr - YoY decline of 43% • Standalone GNPA & NNPA was 4.85% & 0.96% at the end of March-25 vs. 1.43% & 0.29% respectively at

4.85%

year • AUM at the end of March 2025 was ₹6,819 Cr - YoY decline of 43% • Standalone GNPA & NNPA was 4.85% & 0.96% at the end of March-25 vs. 1.43% & 0.29% respectively at the end of March-24 Executive

0.96%

UM at the end of March 2025 was ₹6,819 Cr - YoY decline of 43% • Standalone GNPA & NNPA was 4.85% & 0.96% at the end of March-25 vs. 1.43% & 0.29% respectively at the end of March-24 Executive Summary

1.43%

6,819 Cr - YoY decline of 43% • Standalone GNPA & NNPA was 4.85% & 0.96% at the end of March-25 vs. 1.43% & 0.29% respectively at the end of March-24 Executive Summary Continuing improvement in lead i

0.29%

- YoY decline of 43% • Standalone GNPA & NNPA was 4.85% & 0.96% at the end of March-25 vs. 1.43% & 0.29% respectively at the end of March-24 Executive Summary Continuing improvement in lead indicator

98.9%

Executive Summary Continuing improvement in lead indicators: • X-bucket Collection Efficiency at 98.9% (ex-Karnataka) & 98.6% overall in March 2025 • Recovery of ₹52 Cr & ₹96 Cr in Q4FY25 & FY25 respec

98.6%

ntinuing improvement in lead indicators: • X-bucket Collection Efficiency at 98.9% (ex-Karnataka) & 98.6% overall in March 2025 • Recovery of ₹52 Cr & ₹96 Cr in Q4FY25 & FY25 respectively from GNPA / Writ

₹52

X-bucket Collection Efficiency at 98.9% (ex-Karnataka) & 98.6% overall in March 2025 • Recovery of ₹52 Cr & ₹96 Cr in Q4FY25 & FY25 respectively from GNPA / Write-off pool Sufficient liquidity: • Mainta

₹96

Collection Efficiency at 98.9% (ex-Karnataka) & 98.6% overall in March 2025 • Recovery of ₹52 Cr & ₹96 Cr in Q4FY25 & FY25 respectively from GNPA / Write-off pool Sufficient liquidity: • Maintained liqu

₹2,030

Y25 & FY25 respectively from GNPA / Write-off pool Sufficient liquidity: • Maintained liquidity of ₹2,030 Cr as on 31 March 2025 to meet short- and medium-term needs • Company well capitalized with CRAR of

“• X-bucket Collection Efficiency at 98.9% (ex-Karnataka) & 98.6% overall in March 2025 • Recovery of ₹52 Cr & ₹96 Cr in Q4FY25 & FY25 respectively from GNPA / Write-off pool”

“• Maintained liquidity of ₹2,030 Cr as on 31 March 2025 to meet short- and medium-term needs • Company well capitalized with CRAR of 37.1% as on 31 March 2025”

“… resulting in elevated PAR • Industry wide PAR across buckets increased during FY25 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Industry PAR 30+* 18.8% 16.2% 12.9% • PAR 31 – 90 increased from 1.2% in Mar-24 to 2.7% by Mar-25.”

Continuing improvement in lead indicators

1

Sufficient liquidity

1

Equity raise

1

Envisioning future growth

1

On track to raise confidence capital

1

Continuing improvement in lead indicators

• X-bucket Collection Efficiency at 98.9% (ex-Karnataka) & 98.6% overall in March 2025 • Recovery of ₹52 Cr & ₹96 Cr in Q4FY25 & FY25 respectively from GNPA / Write-off pool

Sufficient liquidity

• Maintained liquidity of ₹2,030 Cr as on 31 March 2025 to meet short- and medium-term needs • Company well capitalized with CRAR of 37.1% as on 31 March 2025

Equity raise

• • Board Committee formed to oversee capital raise including a possible rights issue in Q2FY26 with promoter ₹750 Cr capital raise approved by shareholders in March 2025 participation

Envisioning future growth

• Multiple technology driven controls to be introduced across customer journey to strengthen credit underwriting • Engagement with over 50% of existing quality borrowers to be prioritized in FY26 for fresh disbursements • Reassessment of branches to improve efficiencies Underlying indicators show continuing upward trend in green shoots Microfinance industry traversed a turbulent FY25 Green shoots continue to gain momentum Industry Portfolio* (₹ L Cr) • Pace of flows into higher buckets has slowed down in the recent months • Industry reporting X-bucket collection efficiency of ~99% for March 2025 4.3 • Normalization expected by end of Q2FY26 4.2 (11.6)% 4.1 3.9 3.8 Multiple challenges have impacted the industry in FY25… • Variety of issues impacted the microfinance industry in FY25 resulting in 11.6% decline of portfolio to ₹3.8 L Cr in Mar-25 from ₹4.3 L Cr in Mar-24. • Issues include extreme climate conditions, deteriorating borrower discipline, increasing borrower leverage, third par

On track to raise confidence capital

• Comfortable liquidity; ~24% assets held as cash and equivalents • 37% CRAR at the end of March-2025 • ₹750 Cr capital raise approved by shareholders in March 2025 • Board Committee formed to oversee capital raise including a possible rights issue in Q2FY26 with promoter participation CRAR (%) 36.0% 37.1% Dec-24 Mar-25 7 ALM remains positive across maturity buckets Positive ALM (₹ Cr)* Maturity profile* (in months) 1,883 1,719 1,569 1,552 1,394 1,506 943 2,623 9.4 7.4 10.3 8.2 478 492 375 567 442 389 58 26 upto 1m 1m to 2m 2m to 3m 3m to 6m 6m to 12m 1Y to 3Y 3Y to 5Y Over 5Y Assets Liabilites Mar-25 Dec-24 Avg. residual maturity of assets Avg. residual maturity of borrowing • • Positive ALM on cumulative basis with assets maturing faster than liabilities Closing liquidity of ₹1,977 Cr as on 31 Mar 2025 * Standalone 8 Spandana seeing improvements in lead indicators X-Bucket Net Collection Efficiency (%) Recovery from 90+ (₹ Cr) 98.0% 97.8% 97.9% 97.9% 97.7% 97.1% 96.7% 96.4% 98.9% 98.