SPA Capital Services reports profit, but auditor flags missing provisions

Tipsheet Editorial — Tue, 26 May 2026 18:36:29 GMT

The NBFC reported a net profit of ₹0.83 crore, but the auditor warned that missing interest and loan provisions would slash that figure to ₹0.06 crore.

What’s new

Auditor Dhana & Associates issued a qualified opinion on FY26 results.
The company failed to provide for ₹0.77 crore in interest and ₹3.14 crore in bad loans.
Adjusted net worth would drop to ₹13.92 crore from the reported ₹17.83 crore.

Why it matters

This is the sixth year in a row the auditor has qualified the results for the same accounting failures. For a small NBFC, ignoring RBI prudential norms on loan classification and interest accrual is a persistent governance red flag.

What we’re watching

Whether the RBI intervenes regarding the repeated non-compliance.
Any management response to the six-year streak of qualified opinions.
The impact of these adjustments on the company's actual solvency.

The full read

SPA Capital Services reported a net profit of ₹0.83 crore for FY26, but the numbers come with a heavy caveat. Statutory auditor Dhana & Associates issued a qualified opinion, citing the company's failure to provide for ₹0.77 crore in interest expenses and ₹3.14 crore in loans classified as loss assets under RBI norms. If these items were properly accounted for, the company's net profit would collapse to ₹0.06 crore. Similarly, the reported net worth of ₹17.83 crore would fall to ₹13.92 crore. This is the sixth consecutive year the auditor has flagged these same issues. Persistent deviations from accrual accounting and regulatory norms suggest that the company's financial health is far more fragile than its headline profit implies.

Primary source: BSE · NSE

SPA Capital reports ₹0.83 cr profit, but auditor flags major gaps.

Tipsheet Editorial — Tue, 26 May 2026 18:12:29 GMT

The NBFC's auditor qualified the FY26 results for the sixth year running, citing missing interest provisions and misclassified bad loans.

What’s new

SPA Capital reported a net profit of ₹0.83 cr for FY26, up from ₹0.49 cr in FY25.
Auditor Dhana & Associates qualified the results over ₹77 lakh in missing interest expenses.
The auditor also flagged ₹3.14 cr in loans that should have been classified as loss assets.

Why it matters

This is the sixth year the auditor has issued the same qualifications, pointing to a chronic disregard for RBI prudential norms. Investors should treat the reported profit as a fiction; the real bottom line is nearly zero.

What we’re watching

Whether the RBI takes enforcement action against the company for repeated non-compliance.
Any change in the auditor's stance in the coming quarters.
The company's ability to maintain solvency given the persistent asset quality issues.

The full read

SPA Capital Services reported a net profit of ₹0.83 crore for FY26, but the figure is misleading. Statutory auditor Dhana & Associates qualified the results, noting that the company failed to account for ₹77 lakh in interest expenses and neglected to classify ₹3.14 crore in loans as loss assets under RBI guidelines. Once these items are adjusted, the company's actual profit shrinks to a mere ₹0.06 crore. This is not a one-off error. The auditor has flagged these exact issues for six consecutive years. The recurring nature of these qualifications shows the company is operating in persistent breach of regulatory standards. For a nano-cap NBFC, this pattern of misclassification and under-provisioning is a structural red flag that renders the reported earnings effectively meaningless.

Primary source: BSE · NSE

SPA Capital Services Ltd. (SPACAPS) — Tipsheet

SPA Capital Services reports profit, but auditor flags missing provisions

What’s new

Why it matters

What we’re watching

The full read

SPA Capital reports ₹0.83 cr profit, but auditor flags major gaps.

What’s new

Why it matters

What we’re watching

The full read