SPA Capital reports ₹0.83 cr profit, but auditor flags major gaps.
The NBFC's auditor qualified the FY26 results for the sixth year running, citing missing interest provisions and misclassified bad loans.
— 1 earlier story on SPA Capital Services Ltd. →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 this 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.
Questions answered
- What did the auditor specifically flag in the FY26 results?
- Dhana & Associates flagged two main issues: the company failed to provide for ₹77 lakh in interest expenses and did not classify ₹3.14 crore in loans as loss assets as required by RBI norms.
- How do these qualifications affect the company's reported profit?
- The company reported a profit of ₹0.83 crore. After adjusting for the missing interest provisions and the required loan write-downs, the profit drops to ₹0.06 crore.
- Is this a new issue for SPA Capital?
- No. The auditor noted that this is the sixth consecutive year that these specific qualifications have been raised.
- What does the auditor's report imply about the company's accounting?
- The report indicates a persistent departure from accrual accounting and RBI-mandated prudential norms, which raises concerns about the accuracy of the company's financial health.
Story so far
All notes on SPACAPS →- 26 May 2026 · 6:12 PM IST SPA Capital reports ₹0.83 cr profit, but auditor flags major gaps.
- 1d ago SPA Capital Services reports profit, but auditor flags missing provisions