IndoStar Capital Finance Limited has informed the Exchange regarding Board meeting held on August 13, 2025, inter-alia, to approve unaudited financial results of the Company for the quarter ended June 30, 2025
INDOSTAR · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
IndoStar Capital Finance's board approved its unaudited Q1 FY26 (quarter ended June 30, 2025) results. Total income rose modestly to Rs 34,361 lakhs (vs Rs 31,060 lakhs in Q1 FY25). However, the company recorded a massive Rs 49,039 lakhs impairment on financial instruments (vs Rs 2,095 lakhs), driven by Rs 16,109 lakhs in loan write-offs and a Rs 25,507 lakhs incremental provision on security receipts. Excluding the one-time gain, the company posted a pre-tax loss of Rs 47,151 lakhs. A one-time exceptional gain of Rs 1,17,595 lakhs from the sale of its housing finance subsidiary (Niwas Housing Finance) to Witkopeend B.V. for Rs 1,70,595 lakhs swung the bottom line to a reported profit after tax of Rs 53,544 lakhs and basic EPS of Rs 39.28. Asset quality stands at Gross Stage 3 of 4.04% and Net Stage 3 of 1.68%, with capital adequacy at 32.72% and debt-equity at 1.73.
Reported numbers look stellar only because of a one-time divestment gain; the core lending business is clearly under stress with a sharp jump in loan write-offs and provisions. Excluding the exceptional item, the company is in deep operating loss. Shareholders should focus on the underlying asset quality deterioration and watch for the AGM proposal to raise fresh debt securities.