Five-Star Business Finance Limited has informed the Exchange regarding a press release dated July 28, 2025, titled "Investor Press Release on the Financial and Operational Performance of the Company for the quarter ended June 30, 2025".
FIVESTAR · price
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Awaiting price reaction for this filing.
Five-Star Business Finance reported Q1FY26 PAT of Rs 266 Cr, up 6% year-on-year but down 5% from the previous quarter. AUM grew 20% YoY to Rs 12,458 Cr, while disbursements fell 2% YoY and 12% QoQ to Rs 1,290 Cr as the company prioritised asset quality over growth. Asset quality weakened sharply, with Gross Stage 3 Assets rising to 2.46% from 1.41% a year ago and Net Stage 3 Assets climbing to 1.25% from 0.68%. NIM compressed to 16.43% (-29 bps YoY) and ROA declined to 7.24% (-99 bps YoY). Management cited ongoing spillover from the broader overleverage crisis and expects normalisation by 2HFY26. On the positive side, cost of incremental debt fell to 8.59% (from 9.29%), liquidity buffer stood at Rs 2,065 Cr, and the branch network expanded to 767 with 19 new additions.
Short-term sentiment may be negative due to rising NPAs, falling disbursements, and compressed margins/returns. However, strong liquidity, declining borrowing costs, and management's confidence in asset quality normalisation by H2FY26 provide some comfort for patient investors.