Sampada Laghubitta Reports Profit for Q2 FY 2082/83

12th February 2026, Kathmandu

Sampada Laghubitta Bittiya Sanstha Limited has officially released its unaudited financial statements for the second quarter of the fiscal year 2082/83. The institution reported a net profit of NPR 86.03 million for the period ending Poush 2082, reflecting a strong recovery and operational resilience. This performance is particularly noteworthy given the current headwinds in the microfinance sector in Nepal, which include credit quality concerns and regulatory shifts.

Sampada Laghubitta Reports Profit

As a national level microfinance institution licensed as a Gha class entity by Nepal Rastra Bank, Sampada Laghubitta continues to strengthen its presence in rural and underserved areas.

Financial Performance and Profitability Analysis

The second quarter results indicate that the company has successfully balanced its interest income growth against rising impairment charges.

Net Interest Income: For the first half of the year, the company generated NPR 300.79 million in net interest income. The second quarter alone contributed NPR 139.35 million, driven by gross interest income of NPR 646.03 million against interest expenses of NPR 345.24 million.

Net Profit: The cumulative net profit up to Poush 2082 reached NPR 61.71 million, but the standalone profit for the second quarter stood at a robust NPR 86.03 million, indicating a significant bounce back from earlier impairment pressures.

Operating Income: Total operating income for the year to date was recorded at NPR 398.09 million, supported by fee and commission income of NPR 56.91 million.

Impairment Charges: To maintain a healthy credit profile, the institution recognized NPR 138.02 million in impairment charges (provisioning) for the first half of the year, with NPR 92.77 million allocated during the second quarter alone.

Balance Sheet Growth and Capital Adequacy

The institution balance sheet remains expansive, with significant growth in cash reserves and a stable lending portfolio.

Total Assets: As of Poush 2082, the total assets reached NPR 10.65 billion, a steady increase from NPR 10.25 billion at the end of the previous fiscal year.

Loans and Advances: The company has deployed NPR 6.33 billion in loans to its customers. The management focus has shifted toward high quality lending and recovery to manage the Non Performing Loan (NPL) ratio.

Cash and Liquidity: One of the standout features of the report is the high liquidity position, with cash and cash equivalents standing at NPR 2.87 billion, providing a strong buffer for future disbursements.

Equity and Reserves: Total equity stands at NPR 1.80 billion, comprising NPR 700.85 million in share capital and NPR 1.10 billion in reserves and retained earnings.

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Key Financial Ratios and Regulatory Metrics

Sampada Laghubitta has shown improvement in its capital base, although asset quality remains an area of close monitoring.

Capital Fund to RWA: The capital adequacy ratio improved to 10.09 percent, up from 8.66 percent in the previous year, showing a stronger capital cushion.

Non Performing Loan (NPL) Ratio: The NPL ratio rose to 7.15 percent from 4.56 percent in the previous period. This increase is a trend seen across the microfinance industry in Nepal as borrowers face economic slowdowns.

Loan Loss Provision to NPL: The institution has increased its provisioning coverage to 49.26 percent, ensuring it is better prepared for potential defaults.

Credit to Deposit and Borrowing Ratio: This ratio stands at 110.8 percent, indicating a highly utilized resource base for lending activities.

Shareholder Value and Market Information (NEPSE: SMPDA)

The stock remains an active component of the microfinance sub index on the Nepal Stock Exchange.

Last Traded Price: NPR 870.00 (as of February 11, 2026).
Annualized Earnings Per Share (EPS): NPR 24.55.
Net Worth per Share: NPR 1,521.
Price to Earnings (P/E) Ratio: While the reported P/E for the quarter is high due to accounting adjustments, the trailing P/E based on current market price and annualized earnings is approximately 35 times.

Operational Outreach and Expansion

Sampada Laghubitta currently operates through a network of 155 branches across 44 districts. The institution has successfully reached 180,727 families, emphasizing financial literacy and technology adoption. The transition to tablet banking and digital credit monitoring is expected to further reduce operational costs in the coming quarters.

Challenges and Strategic Outlook

The management has highlighted several key challenges, including member duplication among multiple microfinance providers and the difficulty in retaining skilled field staff. To mitigate these risks, the company is focusing on:

Remote Area Priority: Expanding services into underserved regions where competition is lower and the need for financial inclusion is higher.
Financial Literacy: Providing entrepreneurial training to members to ensure the productive use of loan funds.
Technology Adoption: Leveraging digital tools to improve productivity and member service delivery.

Conclusion

The Sampada Laghubitta Q2 Report for FY 2082/83 demonstrates a clear path toward profitability and capital strength. With a net profit of NPR 86.03 million and a growing net worth per share of NPR 1,521, the institution is well positioned to navigate sectoral challenges. While the rise in the NPL ratio to 7.15 percent requires careful management, the institution high liquidity and improved capital adequacy provide a stable foundation for the remainder of the fiscal year.

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