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Five-Star Business Finance Results: Latest Quarterly Results & Analysis

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Five-Star Business Finance Ltd. 29 Apr 2026 12:12 PM
Result PDF

Q4FY26 & FY26 Result Announced for Five-Star Business Finance Ltd.

Finance company Five-Star Business Finance announced Q4FY26 & FY26 results

Q4FY26 Financial Highlights:

  • Total Revenue from operations: Rs 81,694.54 lakh in Q4FY26, compared to Rs 81,506.51 lakh in Q3FY26 (up 0.23% QoQ) and Rs 75,227.14 lakh in Q4FY26 (up 8.60% YoY).
  • Total Income: Rs 82,605.82 lakh in Q4FY26, compared to Rs 82,222.38 lakh in Q3FY26 (up 0.47% QoQ) and Rs 75,974.98 lakh in Q4FY26 (up 8.73% YoY).
  • Profit for the period: Rs 26,926.78 lakh in Q4FY26, compared to Rs 27,702.78 lakh in Q3FY26 (down 2.80% QoQ) and Rs 27,912.39 lakh in Q4FY26 (down 3.53% YoY).
  • Total Comprehensive Income: Rs 27,715.75 lakh in Q4FY26, compared to Rs 27,159.20 lakh in Q3FY26 (up 2.05% QoQ) and Rs 27,759.31 lakh in Q4FY26 (down 0.16% YoY).
  • Earnings Per Equity Share (Basic): Rs 9.14 in Q4FY26, compared to Rs 9.41 in Q3FY26 (down 2.87% QoQ) and Rs 9.49 in Q4FY26 (down 3.69% YoY).

Q4FY26 Financial Highlights:

  • Total Revenue from operations: Rs 3,21,812.35 lakh for FY26, compared to Rs 2,84,783.96 lakh for FY25 (up 13.00% YoY).
  • Total Income: Rs 3,24,597.17 lakh for FY26, compared to Rs 2,86,602.39 lakh for FY25 (up 13.26% YoY).
  • Profit for the year: Rs 1,09,874.53 lakh for FY26, compared to Rs 1,07,248.99 lakh for FY25 (up 2.45% YoY).
  • Total Comprehensive Income: Rs 1,10,649.40 lakh for FY26, compared to Rs 1,06,958.83 lakh for FY25 (up 3.45% YoY).
  • Earnings Per Equity Share (Basic): Rs 37.31 for FY26, compared to Rs 36.61 for FY25 (up 1.91% YoY).
  • Net Cash used in operating activities: (Rs 26,428.49 lakh) for FY26, compared to (Rs 1,04,495.09 lakh) for FY25.
  • Dividend: The Board recommended a Final Dividend of Rs 2/- per equity share (200% of face value of Rs 1/-) for the financial year ended March 31, 2026.

Business Highlights:

  • Asset Quality: Gross Stage 3 Assets Ratio stood at 3.37% as of March 31, 2026, compared to 1.79% as of March 31, 2025. Net Stage 3 Assets Ratio was 2.00% as of March 31, 2026, against 0.88% as of March 31, 2025.
  • Capital Adequacy: The Capital to risk-weighted assets ratio stood at 51.89% as of March 31, 2026.
  • Liquidity: The Liquidity Coverage Ratio (LCR) was 258% as of March 31, 2026.
  • Net Worth: Net worth (Equity share capital Other equity) increased to Rs 7,38,015.36 lakh as of March 31, 2026, from Rs 6,30,460.67 lakh in the previous year.
  • NBFC Status: The Company is a Systemically Important Non-Deposit taking Non-Banking Finance Company (NBFC-ND-SI) registered with the Reserve Bank of India.
  • Employee Stock Options: During the year ended March 31, 2026, 4,38,178 options were exercised by employees and allotted.
  • Share Warrants: During FY26, 3,10,000 convertible share warrants were exercised, and equity shares were allotted. 1,00,000 warrants lapsed post-year-end upon the expiry of 18 months.
  • Personnel Extension: The Board approved the extension of the tenure of Mr. Jayaraman S as the Chief Risk Officer for a further period of 3 years effective June 01, 2026.

Lakshmipathy Deenadayalan, Chairman & Managing Director, said: FY26 will go down as one of the most challenging years for Five Star. The asset quality headwinds faced by MFIs and unsecured loan lenders over the last couple of years creeped into the portfolios of secured loans lenders, especially those providing small ticket loans. As a Company providing loans to small business owners and selfemployed individuals, with a higher proportion of MFI overlap, this resulted in increased DPDs and NPA for Five Star during the course of this financial year; however the actions taken by us over the last few quarters have helped us tide over these challenges and I am very happy to state that the worst is behind us and the coming quarters will see us moving in one direction i.e. “Onwards and Upwards”.

The current quarter has been very encouraging with collection efficiencies across buckets showing excellent improvements and getting back to robust levels. I want to share few collection metrics that clearly show this trend:

  • For the Q4FY26, we clocked a unique customer collection efficiency (excluding NPA loans) of 98.1%, which is the one of the best in the history of the Company.
  • Our x-bucket collections for the quarter came in at 99.3%, which has helped contain forward flows from x-bucket.
  • Our slippage ratio (defined as increase in NPAs write offs as a % of the opening standard AUM) has dropped from 1.09% in Q3FY26 to 0.70% in Q4FY26. This has helped our NPA remain largely stable between quarters at 3.37% for Q4FY26.
  • Credit cost has remained largely stable at 1.88% of average AUM for Q4FY26 compared to 1.76% for Q3FY26.
  • After quarters of continued drop, the current proportion of our portfolio has moved up almost by a percentage point, from 81.77% in Q3FY26 to 82.69% in Q4FY26.

With our collections strategies in place and our collection efforts showing strong traction, we started to refocus on disbursements and portfolio growth during the current quarter. While our full year disbursement of Rs 4,676 crore was slightly short compared to the previous year, our disbursement for the quarter came in at Rs 1,213 crore, an increase of 24% over the previous quarter. The trends across collections, disbursements and asset quality are clear and we will continue to build on the progress that we have made during the year, in the coming quarters and years.

As I had stated post our Q3 results, we were in the process of building a full-fledged collection vertical, right up to senior people at HO, and I am happy to state that this has gone fully operational starting from Q1FY27, and this would have a positive impact on collections and asset quality.

My sincere gratitude goes out to all our lenders who continued to support us during the current financial year. During the quarter ended March 31, 2026, we availed incremental debt of Rs 928 crore at an all-inclusive cost of 8.53%. The funding of USD 100 million provided by Asian Development Bank, one of the largest developmental financial institutions across the globe, is a shot in the arm and we are hopeful that they would continue to support us in our endeavour to make funds available to lower-income group women borrowers. Our cost of funds for the quarter dropped from 9.12% in Q3FY26 to 8.95% in Q4FY26 and for the full year, we saw a drop in our cost of funds from 9.64% in FY25 to 9.21% in FY26. Despite dropping yields on incremental disbursements by about 200 bps, our spread dropped only by 50 bps compared to last financial year.

For the quarter, we achieved a PAT of Rs 269 crore, 3% lower as compared to previous quarter, primarily on account of staff related incentives that were given to spur business and collections. I want to take this opportunity to reinforce the fact that we have managed to achieve AUM growth of 11% and PAT growth of 2% even during one of the most difficult years, which shows the strength of the business model and our execution capability. Our RoAUM and RoE for FY26 remain healthy at 8.68% and 16.06% respectively.

This year also saw Five Star face people related challenges with the exit of a Senior Management Professional, but our results for the year clearly indicate that this exit has had no impact on our performance, which is a testimony to the strength and depth of our team, both at the Management and Branch levels.

As we step into a new financial year, we are geared to get back on the track of growth and well-poised to achieve AUM growth of around 20% for FY27 and thereafter. As in the past, we will aim at achieving strong yet sustainable growth, quality and profitability through robust credit underwriting, strong collections, and proactive risk management backed by use of appropriate technology and AI and supported by a diversified and cost-effective funding profile.

The way we handled the challenges gives me immense confidence and clearly shows that we have emerged stronger and well-ready to scale new highs in the coming years.

Result PDF

Result PDF

Finance company Five-Star Business Finance announced Q3FY26 results

  • Revenue: Rs 81,506.51 lakh against Rs 72,737.51 lakh during Q3FY25, change 12%.
  • PBT: Rs 36,881.3 lakh against Rs 36,512.67 lakh during Q3FY25, change 1%.
  • PAT: Rs 27,702.78 lakh against Rs 27,385.9 lakh during Q3FY25, change 1%.
  • EPS: 9.41 for Q3FY26.

Result PDF

Finance company Five-Star Business Finance announced Q2FY26 results

  • Total income of Rs 807 crore; YoY growth of 14%.
  • PBT of Rs 382 crore; YoY growth of 7%.
  • PAT of Rs 286 crore; YoY growth of 7%.
  • ROA at 7.49%; QoQ increase of 25 bps and YoY decrease of 87 bps.
  • ROE at 16.91%; QoQ increase of 34 bps and YoY decrease of 211 bps.
  • Distribution:
    • The Company has increased its branch presence to 800 branches across 11 states / UT.
    • During the quarter, the company opened 33 new branches.
    • Disbursals – The Company disbursed an amount of Rs 1,196 crore in Q2FY26 as against Rs 1,251 crore in Q2FY25.
  • Assets under Management:
    • AUM as of September 30, 2025 ended at Rs 12,847 crore, growth of 18% on YoY basis and 3% on qo-q basis.
    • AUM is well distributed across 0.49 mn active loans.
  • Collections & Asset Quality:
    • Overall Collection efficiency and Unique customer collection efficiency for the quarter stood at 96.7% and 95.1% respectively.
    • 30 DPD ended at 12.17% as of September 30, 2025.
  • Provisions:
    • ECL provision carried on books was 243 crore (excluding ECL maintained on inter-corporate deposits), which translates to 1.89% of the overall AUM.
    • Stage 3 provision was at 153 crore leading to a provision coverage ratio on stage 3 assets of 45.19%
  • Borrowings:
    • Total borrowings including debt securities are at Rs 8,376 crore as on September’25.
    •  The Company carries a liquidity of Rs 2,360 crore as on September ’25.
    • Cost of incremental debt during the quarter dropped sharply to 8.56% (as against the cost of incremental debt of 8.59% for the previous quarter).
    • Cost of funds on overall borrowing book for the quarter was at 9.27% as against 9.54% for the quarter ended June 30, 2025.

Lakshmipathy Deenadayalan, Chairman & Managing Director, said: "As we had updated in the last quarter, we have seen a stable performance from Five Star during the current quarter, across various metrics. The downtrend that we witnessed in Q1FY26 has been arrested in the current quarter, and from here onwards, we believe that we would see some green shoots emerging in Q3 and a much stronger performance in Q4.

We have taken several strategies and actions towards this across sourcing, credit underwriting, collections and risk oversight. These are marked out as focus areas for us in the quarters to come, and we believe these will pave the way for building a bigger and stronger portfolio in the coming quarters.

While our asset quality and credit cost have seen marginal impact in the current quarter as compared to the previous quarter, these still stack up better than many of our peers operating in the small ticket secured / unsecured loans space. As I had said in the past also, we believe that a trend reversal is likely on the horizon and is expected to play out over the next couple of quarters.

Our investment in physical infrastructure and people continues as can be seen from the addition of 33 branches and 769 Business & Collections Officers during Q2FY26. During this quarter, we disbursed Rs 1,196 crore of loans as against Rs 1,290 crore in Q1FY26, and the drop in disbursements can be attributed to the additional controls that have been implemented for the first time during this quarter towards onboarding the right customers. With our system getting attuned to these changes, we should start seeing increase in disbursements and increased AUM growth in the quarters to come.

Our collections from unique customers and overall collections have remained stable compared to the previous quarter. Collections from unique customers stood at 95.1%, the same as last quarter, and we saw an improvement in the overall collections efficiency which went up from 96.3% in Q1FY26 to 96.7% in Q2FY26. These metrics show early signs of revival, though in a gradual manner.

During the quarter, we availed incremental debt of Rs 1,068 crore and the cost of incremental debt came in at 8.56%, which is marginally lower than the cost of incremental debt borrowed during the previous quarter. Cost of funds on the book has dropped by about 27 bps, and given our cost of incremental debt, we should see improvement in the cost of funds for the full year. With incremental yields on assets coming in lower than the book yields, we expect to bridge a good portion of the yield drop through drop in cost of funds. We continue to have a robust liquidity on the balance sheet of Rs 2,360 crore.

For the quarter, we achieved a PAT of 286 crore, 7% higher as compared to the PAT for the previous quarter. Even during these extremely challenging times, we have been able to achieve healthy return ratios, as can be evidenced in the increase in RoA from 7.24% in Q1FY26 to 7.49% in the current quarter and increase in RoE from 16.57% in the previous quarter to 16.91% in the current quarter."

Result PDF

Finance company Five-Star Business Finance announced Q1FY26 results

  • Assets Under Management (AUM) stood at Rs 12,458 crore, registering a 20% year-on-year growth
  • Disbursements were Rs 1,290 crore, down 2% YoY
  • Gross Stage 3 Assets rose to 2.46% from 1.41% in Q1FY25
  • Net Stage 3 Assets increased to 1.25% from 0.68% YoY
  • Profit After Tax (PAT) stood at Rs 266 crore, up 6% YoY
  • Net Interest Margin came in at 16.43%, slightly down by 29 bps YoY
  • Return on Assets declined to 7.24% from 8.23% in Q1FY25
  • Return on Equity stood at 16.57%, down from 18.95% YoY

Commenting on the results, Lakshmipathy Deenadayalan, Chairman & Managing Director, said, "The effect of overleverage crisis on secured portfolio that we witnessed during the last quarter continued during 1QFY26 as well, at slightly heightened intensity, leading to impact on asset quality metrices of Five Star. As a Company focused on “Quality Growth”, our efforts were skewed more towards addressing the asset quality, leading to slightly muted growth on a y-o-y basis.

We have consistently maintained very strong asset quality over the last many years; compared against this backdrop, there was an uptick in our DPD and NPA numbers during the quarter. However, viewed in isolation, our NPA numbers shall stack up better than many of our peers operating in the small ticket secured / unsecured loans space. We also believe that a trend reversal is likely on the horizon and is expected to play out over the next couple of quarters, with likely normalization by 2HFY26.

We continue to invest in physical infrastructure which forms the foundation on which the business and collections functions are anchored. We added 19 branches during Q1FY2026 leading to a strongbranch network of 767 branches across 10 states and 1 union territory. During this quarter, we disbursed Rs 1,290 crore of loans as against Rs 1,460 crore in Q4FY2025, clearly reflecting a philosophy of cautious but quality growth.

On the collections and asset quality fronts, the numbers were muted for the quarter, as can be seen from the table above. We are taking all measures to ensure quick turnaround and bring back our asset quality to be one of the best in the industry.

During the quarter, we availed incremental debt of Rs 450 Cr and the cost of incremental debt came in at 8.59%, which is significantly lower by 70 bps than the cost of incremental debt borrowed during the previous quarter. Cost of funds on the book has almost dropped by about 10 bps, and given our cost of incremental debt, we are confident of bringing this to much lower levels in the quarters to come. We continue to have a robust liquidity on the balance sheet of Rs 2,065 Cr.

For the quarter, we achieved a PAT of 266 crore, 6% higher as compared to the PAT for Q1FY25. The normalisation in our credit cost in the quarters to come shall have a positive impact on our profitability."

Result PDF

Finance company Five-Star Business Finance announced Q4FY25 results

Financial Highlights:

  • Total income of Rs. 760 crore; YoY growth of 23%.
  • PBT of Rs.371 crore; YoY growth of 18%.
  • PAT of Rs.279 crore; YoY growth of 18%.
  • ROA at 8.04%; QoQ decrease of 6 bps and YoY decrease of 39 bps.
  • ROE at 18.36%; QoQ decrease of 13 bps and YoY decrease of 29 bps.
  • Distribution:
    • The Company has increased its branch presence to 748 branches across 11 states / UT.
    • During the quarter, the company opened 19 new branches.
    • Disbursals – The Company disbursed an amount of Rs 1,460 crore in Q4FY25 as against Rs 1,336 in Q4FY24.
  • Assets under Management:
    • AUM as of March 31, 2025 ended at Rs 11,877 crore, growth of 23% on YoY basis and 6% on QoQ basis.
    • AUM is well distributed across 0.46 mn active loans.
  • Collections & Asset Quality:
    • Collection efficiency for the quarter stood at 97.7%. Unique customer collection efficiency for the quarter stood at 96.2%.
    • 30 DPD ended at 9.65% as of March 31, 2025.
  • Provisions:
    • ECL provision carried on books was 193 crore (excluding ECL maintained on inter-corporate deposits), which translates to 1.63% of the overall AUM.
    • Stage 3 provision was at 109 crore leading to a provision coverage ratio on stage 3 assets of 51.31%.
  • Borrowings:
    • Total borrowings including debt securities are at Rs 7,922 crore as on March’25.
    • The company continues to carry a liquidity of Rs 2,295 crore as on March’25.
    • Cost of incremental debt during the quarter dropped sharply to 9.29% (as against the cost of incremental debt of 9.56% for the previous quarter).
    • Cost of funds on overall borrowing book for the quarter was at 9.63%.

Lakshmipathy Deenadayalan, Chairman & Managing Director, said: "It has been a good quarter for Five Star, and the most notable happening during the current quarter was that we were back on track as far as our disbursements are concerned, recording a QoQ disbursement growth of 55%. We had consciously slowed down our disbursements last quarter to get to an AUM growth of 25% and we were able to put our disbursements on track this quarter. Our portfolio grew by 6% on QoQ basis and 23% for the full year. The disruption in Karnataka on account of the ordinance made us pause our disbursements in the state leading a shortfall in growth for the full year. But, as a company, we are focused on “Quality Growth” and not growth for the sake of growth.

There was a small uptick in our DPD and NPA numbers during the quarter, as a result of the trickling effect of overleverage crisis on secured portfolio coupled with the disruption in Karnataka. But I can still say confidently that this would still be the best asset quality amongst companies lending to our borrower profile.

During this quarter, we disbursed Rs 1,460 crore of loans as against INR 941 crore in Q3FY25 recording a disbursement growth of 55%. We added 19 branches during Q4FY25 leading to a strong branch network of 748 branches across 10 states and 1 union territory. We continue to invest in and maintain an appropriate infrastructure framework which will ensure that the Company has the right framework to manage risk in an appropriate manner.

On the collections front, we saw a good set of numbers for Q4, despite the headwinds mentioned above. Our unique customer collections came in at 96.2 %, which is a very marginal drop from the previous quarter, and we had an overall collection efficiency of 97.7%. When viewed from a sectoral context, both are impressive numbers. Consequent to the slight drop in collections, there was also a marginal increase in gross NPA by 17 bps from 1.62% in Q3FY25 to 1.79% in the current quarter. We also saw a marginal inch-up in our 30 which stood at 9.65% as of Q4FY25. We will continue our sharp focus on collections to ensure that the asset quality remains one of the best in the industry.

\During the quarter, we availed incremental debt of Rs 1,100 crore and the cost of incremental debt came in at 9.29%, which is 27 bps lower than the cost of incremental debt borrowed during the previous quarter. We continue to diversify our borrowing sources leading to our borrowing from banks dropping from 79% in March’24 to 63% in March’25. Cost of funds on the book has almost remained flat at 9.63% for the quarter. In addition to unavailed sanctions of Rs 100 crore, we continue to have a robust liquidity on the balance sheet of Rs 2,295 crore.

Our profitability remains one of the best in the industry and we achieved a PAT of 279 crore for the quarter, which is 18% higher than the PAT achieved in Q4FY24. For the full year, we touched the 4-digit PAT for the first time in the history of Five Star. We clocked a PAT of 1,073 crore as against 836 crore for FY24, a growth of 28%. To commemorate this achievement, the Board has also recommended a dividend of Rs 2 per share, which works out to 200% on the face value and translating to a dividend payout of 5.5%. I would also like to assure that this would not have any major impact on our capital adequacy or our need for capital in the future."

Result PDF

Finance company Five-Star Business Finance announced Q3FY25 results

  • Total income of Rs. 731 crore; YoY growth of 28%.
  • PBT of Rs.365 crore; YoY growth of 26%.
  • PAT of Rs.274 crore; YoY growth of 26%.
  • ROA at 8.10%; QoQ decrease of 26 bps and YoY decrease of 15 bps.
  • ROE at 18.49%; QoQ decrease of 53 bps and YoY increase of 75 bps.
  • Distribution:
    • The Company has increased its branch presence to 729 branches across 10 states / UT.
    • During the quarter, the company opened 69 new branches.
    • Disbursals – The Company disbursed an amount of Rs 941 crore in Q3FY25 as against Rs 1,209 crore in Q3FY24.
  • Assets under Management:
    • AUM as of December 31, 2024 ended at Rs 11,178 crore, growth of 25% on YoY basis and 2% on QoQ basis.
    • AUM is well distributed across 0.44 mn active loans.
  • Collections & Asset Quality:
    • Collection efficiency for the quarter stood at 98%. Unique customer collection efficiency for the quarter stood at 96.7%.
    • 30 DPD ended at 9.16% as of December 31, 2024.
  • Provisions:
    • ECL provision carried on books was 185 crore (excluding ECL maintained on inter-corporate deposits), which translates to 1.66% of the overall AUM.
    • Stage 3 provision was at 91 crore leading to a provision coverage ratio on stage 3 assets of 50.20%.
  • Borrowings:
    • Total borrowings including debt securities are at Rs 7,362 crore as on December’24.
    • The company continues to carry a liquidity of Rs 2,145 crore as on December’24.
    • Cost of incremental debt during the quarter almost remained flat at 9.56% as against Q2FY25.
    • Cost of funds on overall borrowing book for the quarter was at 9.63%.

Lakshmipathy Deenadayalan, Chairman & Managing Director, said: Any Financial Institution needs to take care of 2 important functions – business and collections – to ensure that they deliver strong results across quarters. Five Star is fundamentally a collections first Company, which is also reflected in our result during the current quarter. The track record of the Company over the last many years clearly demonstrate that we will be able to maintain strong asset quality even in the most challenging times and this quarter is no different. We continue to maintain our philosophy of asset quality being the first focus followed by profitability and growth.

Needless to say, the last 2-3 quarters have been challenging for the entire financial services sector, especially for the small ticket lenders and more so from a collections perspective, given the overleverage and consequent stress build up. The last couple of quarters saw the unsecured lenders go through significant stress, which continues in Q3FY25 as well. Given a crisis of this magnitude, there will be some trickling effect on the other lenders as well, and there was a marginal impact that was witnessed by Five Star during this quarter.

However, I am happy to say that despite the marginal impact witnessed during the quarter, our asset quality and profitability continue to remain robust, when compared with many other players operating in this space. We have also grown a portfolio during the quarter, albeit at a slightly slower pace, with a view to be in line with our growth guidance.

During this quarter, we disbursed Rs 941 crore of loans as against INR 1,251 crore in Q2FY25, with a clear view to bring down to our portfolio growth in line with our guidance. We added 69 branches during Q3FY25 (a combination of fresh branches and branches that were split from the existing branches which have reached a certain size), leading to a branch network of 729 branches across 9 states and 1 union territory. We continue to invest in and maintain an appropriate infrastructure framework which will ensure that the Company has the right framework to manage risk in an appropriate manner.

On the collections front, we saw a good set of numbers for Q3, despite the headwinds mentioned above. Our unique customer collections came in at 96.7 %, which is a very marginal drop from the previous quarter, and we had a total collection efficiency of 98%. When viewed from a sectoral context, both are impressive numbers. Consequent to the slight drop in collections, there was also a marginal increase in gross NPA by 15 bps from 1.47% in Q2FY25 to 1.62%. We also saw a marginal inch-up in our 30 , which stood at 9.16% as of Q3FY25. We will continue our sharp focus on collections to ensure that the asset quality remains one of the best in the industry.

During the quarter, we received incremental debt sanctions of Rs 1,400 crore, availing Rs 1,045 crore. We continue to diversify our borrowing sources and towards this we obtained funding from HDFC Mutual Fund, HSBC Mutual Fund and SIDBI during this quarter. This has helped bring down our bank borrowing from 70% as of September’24 to 65% as of December’24.On a YoY basis, the proportion of our borrowing from banks has dropped from 84% in December’23 to 65% in December’24. Cost of funds on the book has almost remained flat at 9.63% for the quarter. In addition to unavailed sanctions of Rs 600 crore, we have a robust liquidity on the balance sheet of Rs 2,145 crore.

Result PDF

Finance company Five-Star Business Finance announced Q2FY25 results

  • Total income of Rs 706 crore; YoY growth of 35%.
  • PBT of Rs 358 crore; YoY growth of 34%.
  • PAT of Rs 268 crore; YoY growth of 34%.
  • ROA at 8.36%; QoQ increase of 13 bps and YoY decrease of 11 bps.
  • ROE at 19.02%; QoQ increase of 7 bps and YoY increase of 194 bps.
  • Assets under Management:
    • AUM as of September 30, 2024 ended at Rs 10,927 crore, growth of 32% on YoY basis and 6% on QoQ basis.
    • AUM is well distributed across 0.43 mn active loans.
  • Collections & Asset Quality:
    • Collection efficiency for the quarter stood at 98.4%. Unique customer collection efficiency for the quarter stood at 97%.
    • 30 DPD ended at 8.44% as of September 30, 2024.
  • Provisions:
    • ECL provision carried on books was 180 crore, which translates to 1.65% of the overall AUM.
    • Stage 3 provision was at 83 crore leading to a provision coverage ratio on stage 3 assets of 51.80%
  • Borrowings:
    • Total borrowings including debt securities are at Rs 6,880 crore as on September’24.
    • The company continues to carry a liquidity of Rs 1,699 crore as on September’24.
    • Cost of incremental debt during the quarter was 9.52% as against 9.47% in Q1FY25.
    • Cost of funds on overall borrowing book remains flat at 9.65%.

Lakshmipathy Deenadayalan, Chairman & Managing Director, said: We have had a good quarter in Q2, despite some sectoral headwinds, especially those being faced by unsecured lenders. Being a fully secured lending product coupled with strong underwriting and collections methodologies has helped Five-Star come out with a good set of results even during the current quarter.

During this quarter, we disbursed Rs 1,251 crore of loans as against Rs 1,318 crore in Q1FY2025. This is a conscious strategy to moderate our portfolio growth for the full year, leading to a slight drop in disbursements on a QoQ basis. On a YoY basis, we registered a disbursement growth of 4%. We added 113 branches during Q2FY2025 (a combination of fresh branches and branches that were split from the existing branches which have reached a certain size), leading to a strong branch network of 660 branches across 9 states and 1 union territory.

On the collections front, we saw a good set of numbers for Q2, despite the headwinds mentioned above. Our unique customer collections came in at 97 %, which is a very marginal drop from the previous quarter and we had a total collection efficiency of 98.4%. When viewed from a sectoral context, both are impressive numbers. Consequent to the slight drop in collections, there was also a marginal increase in gross NPA by 6 bps from 1.41% in Q1FY25 to 1.47% and our 30 as of Q2FY25 stood at 8.44%.

During the quarter, we also raised incremental debt sanctions of Rs 420 crore, though we availed Rs 575 crore including spillovers from some earlier sanctions. Our intent to diversify our borrowing sources got a fillip as we were able to onboard 2 AMCs as lenders to us – Kotak Mutual Fund and Nippon Mutual Fund. Our proportion of borrowing from banks dropped from 74% as of June’24 to 70% as of September’24. On a YoY basis, the proportion of our borrowing from banks has dropped from 85% in Sep’23 to 70% in Sep’24. Cost of funds on the book has almost remained flat at 9.65% for the quarter. We continue to have a robust liquidity on the balance sheet of Rs 1,699 crore along with unavailed sanctions of Rs 245 crore.

Result PDF

Finance company Five-Star Business Finance announced Q1FY25 results:

Financial Highlights: 

  • Total income of Rs 669 crore; YoY growth of 38%
  • PBT of Rs.336 crore; YoY growth of 37%
  • PAT of Rs.252 crore; YoY growth of 37%
  • ROA at 8.23%; QoQ decroreease of 20 bps and YoY decroreease of 18 bps.
  • ROE at 18.95%; QoQ incroreease of 30 bps and YoY incroreease of 233 bps.

Business Highlights:

  • Distribution:
    • The Company has incroreeased its branch presence to 547 branches acroreoss 10 states / UT.
    • During the quarter, the company opened 27 new branches.
    • Disbursals – The Company disbursed an amount of Rs 1,318 crore, up by 16% on YoY basis and marginally down by 1% on QoQ basis.
  • Assets under Management:
    • AUM as of June 30, 2024 ended at Rs 10,344 crore, growth of 36% on YoY basis and 7% on QoQ basis.
    • AUM is well distributed acroreoss 0.41 million active loans
  • Collections & Asset Quality:
    • Collection efficiency for the quarter stood at 98.5%. Unique customer collection efficiency for the quarter stood at 97.2%.
    • 30 DPD ended at 8.11% as of June 30, 2024.
  • Provisions:
    • ECL provision carried on books was 170 crore, which translates to 1.63% of the overall AUM.
    • Stage 3 provision was at 76 crore leading to a provision coverage ratio on stage 3 assets of 52.08%
  • Borrowings:
    • Total borrowings including debt securities are at Rs 6,724 crore as on June’24.
    • The company continues to carry a liquidity of Rs 1,891 crore as on June’24.
    • Cost of incroreemental debt during the quarter was 9.47% which improved by 11 bp on QoQ basis.
    • Cost of funds on overall borrowing book was at 9.65%, up by 1 bps on QoQ basis.

Commenting on the results, Lakshmipathy Deenadayalan, Chairman & Managing Director, said, This is a very special quarter for Five Star as we touched the 5-digit AUM for the first time – we croreossed the AUM of 10,000 croreores in this quarter. Five Star continues its journey of strategic and execution excellence which is reflected acroreoss the various verticals – business, croreedit, collections, fundraising, technology, risk management, etc.

Barring marginal impact of heat and elections, the quarter saw robust momentum acroreoss various aspects. During this quarter, we disbursed Rs 1,318 croreores of loans which is almost flat to the previous quarter. On a YoY basis, we registered a disbursement growth of 16%. We added 27 branches during Q1FY2025, leading to a strong branch network of 547 branches acroreoss 9 states and 1 union territory.

On the collections front, we saw a good set of numbers for Q1. We had a collection efficiency of 98.5% and unique customer collections came in at 97.2%. There was a marginal incroreease in gross NPA by 3 bps from 1.38% in Q4FY24 to 1.41% and in 30 by 22 bps from 7.89% in Q4FY24 to 8.11% being a typical Q1 phenomenon.

During the quarter, we also raised incroreemental debt sanctions of Rs 850 crore availing Rs 825 crore. We were able to obtain a large ticket sanction from IFC, one of the largest DFI acroreoss the globe. IFC subscroreibed to our NCDs for a quantum of INR 500 crore. We are progressing well on our intent to diversify our borrowing sources with the proportion of our borrowing from banks dropping from 84% as of June’23 to 74% as of June’24. Cost of funds on the book has almost remained flat at 9.65% for the quarter. We continue to have a robust liquidity on the balance sheet of Rs 1,891 crore along with unavailed sanctions of Rs 400 crore.

We continued to growconsistentlyanddeliveredan AUMgrowth of 36%YoY.PAT for Q1FY25grew at 37% as compared to Q1FY24, with one of the best ROA and ROE ratios.

Result PDF

Finance company Five-Star Business Finance announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

  • Total income of Rs 619 crore; YoY growth of 41%.
  • PBT of Rs 313 crore; YoY growth of 40%.
  • PAT of Rs 236 crore; YoY growth of 40%.
  • ROA at 8.43%; QoQ increase of 18 bps and YoY decrease of 19 bps.
  • ROE at 18.65%; QoQ increase of 91 bps and YoY increase of 255 bps.

FY24 Financial Highlights:

  • Total income of Rs 2,195 crore; YoY growth of 44%.
  • PBT of Rs 1,116 crore; YoY growth of 39%.
  • PAT of Rs 836 crore; YoY growth of 39%.
  • ROA at 8.42%; YoY decrease of 20 bps.
  • ROE at 17.60%; YoY increase of 257 bps.

Commenting on the results, Lakshmipathy Deenadayalan, Chairman & Managing Director, said, " Q4 was a very strong quarter across the 3 aspects of quality, profitability and growth. During this quarter, we disbursed Rs 1,336 crore of loans as against Rs 1,209 crore during Q3FY24, a sequential growth of ~11%. We added 40 branches during Q4FY24, leading to a strong branch network of 520 branches to deliver quality service to our customers.

On the collections front, we saw improvement in numbers on a sequential basis. Our collection efficiency for the quarter was at 99.5% and unique customer collections came in at 97.8%, both of which were better than the numbers recorded for Q3FY24. Our gross NPA also dropped by 2 bps from 1.40% in Q3FY24 to 1.38% during the current quarter; we saw improvement across our DPD buckets with our 30 coming down from 8.35% last quarter to 7.89% during the current quarter. We are very confident of continuing our strong momentum in the coming financial year as well.

During the quarter, we also raised incremental debt sanctions of Rs 900 crore availing Rs 950 crore. We were able to obtain a large ticket sanction from NABARD, on of the largest domestic DFI, at competitive pricing, which would augur well from a diversification perspective. While not in Q4FY24, IFC, one of the largest DFI across the globe, subscribed to our NCDs in the month of April 2024 for a quantum of INR 500 crore. We are progressing well on our intent to diversify our borrowing sources, and all this has come in with no material impact on the allinclusive pricing. Our cost of incremental debt remained almost the same as Q3FY24 and we were able to avail fresh funding at 9.58% during the quarter. Cost of funds on the book also remained flattish at 9.64% for the quarter. We continue to have a robust liquidity on the balance sheet of Rs 1,879 crore along with unavailed sanctions of Rs 425 crore.

We continued to grow consistently and delivered an AUM growth of 39% YoY. PAT for Q4FY24 grew at 40% as compared to Q4FY23 and we closed with a full year PAT of 836 crore, with one of the best ROA and ROE ratios."

Result PDF

Non-banking Financial company Five-Star Business Finance announced Q2FY24 results:

1. Financial Performance:
- AUM increased by 44% YoY and 9% QoQ, reaching Rs 8,264 crores.
- Disbursements for the quarter amounted to Rs 1,204 crores, a 50% YoY growth, and Rs 2,336 crores for the half year, a 70% increase compared to the same period last year.
- PAT for the quarter stood at Rs 199 crores, a 38% YoY rise, and Rs 383 crores for the half year, a 35% increase compared to the previous year.

2. Asset Quality:
- Gross Stage 3 assets (NPA) stood at 1.35% of AUM, while net Stage 3 (NPA reduced by impairment allowance) was 0.68% of AUM.
- NPA numbers decreased from the previous quarter, with 30 DPD reducing from 9.68% to 8.59% during the current quarter.

3. Operational Highlights:
- Five-Star Business Finance added 70 branches during Q2FY2024, bringing the total branch network to 456.
- Collection efficiency for the quarter was 100.3%, and improvements were seen across various DPD buckets.

Commenting on the results, Lakshmipathy Deenadayalan, Chairman & Managing Director, Five-Star Business Finance, said, "Five Star continued to witness strong traction across business and disbursal demand and collections momentum. During the quarter, we disbursed Rs 1,204 Crores of loans as against Rs 1,132 Crores in the sequential quarter and also registered a disbursement growth of 50% on Y-o-Y basis. We added 70 branches during Q2FY2024, our highest ever branch additions in a quarter, resulting in a strong branch network of 456 branches, to deliver quality service to our customers.

On the collections front, we saw a strong set of numbers, across the metrics of collections efficiency and 30 DPD. We had a collection efficiency of 100.3% for the quarter and improvement across the various DPD buckets. We saw a decrease in NPA numbers as compared to the previous quarter (1.35% in Q2FY24 vs 1.41% in Q1FY24), our 30 came down from 9.68% last quarter to 8.59% during the current quarter. We are very confident that the strong growth in disbursements and collection efficiencies pave the way for a strong trajectory across growth, quality and profitability.

We continued to grow consistently and delivered an AUM growth of 44% Year on Year. PAT for Q2FY2024 has grown at 38% as compared to Q2FY2023 and our ROA and ROE stand as one of the best in the industry."

 

 

Result PDF

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