Can I transit through Germany with an unused Schengen visa issued by Spain?

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As an Indian national you would ordinarily need an Airport Transit Visa in order to make an airside transit at a German airport. However, holding a valid type C visa from any Schengen state exempts you from this requirement.

See the Schengen Visa Code, article 3(5)(a).

Whether you have the right paperwork for the transit will be checked by the airline rather than the German authorities. The airline is not competent to judge whether the reasons for issuing the visa still apply (which is what could create a problem at the border if you tried to enter the Schengen area on a visa that clearly doesn't match your stated plans); they merely check that you have a visa of the right kind.

And even so, logically the exemption from airport transit visas that comes with a type C visa will practically always be something you use on a different trip than the one your visa was issued for -- because on the trip your visa was issued for you won't need to transit anyway but to enter the Schengen area. So you're not using the exemption in a way it wasn't intended to be used.

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