IndoStar Capital Finance Limited has informed the Exchange regarding a press release dated August 13, 2025, titled "Press Release with respect to the unaudited financial results of the Company for the quarter ended June 30, 2025 ".
INDOSTAR · price
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Awaiting price reaction for this filing.
IndoStar Capital Finance reported a standalone Q1 FY26 profit after tax of ₹535 crore, up sharply from just ₹10.8 crore a year ago, but almost entirely driven by a one-time gain of ₹1,176 crore from selling its full subsidiary Niwas Housing Finance (proceeds received on July 17, 2025). Assets under management rose 9% year-on-year to ₹7,783 crore, with retail vehicle finance up 14% to ₹7,232 crore. However, fresh disbursements fell sharply by 39% year-on-year to ₹858 crore, and core operating profit before provisions dropped about 41% to ₹18.9 crore as operating expenses rose over 24%. Bad loans stood at Gross Stage 3 of 4.04% and Net Stage 3 of 1.68%, while the company wrote off ₹161 crore of loans past 210 days and made ₹255 crore of extra provisions on certain security receipts.
The big headline profit is essentially a one-time divestiture gain and not a sign of stronger day-to-day earnings — investors should focus on the weaker underlying numbers, especially the sharp fall in disbursements and the decline in pre-provision profit. On the positive side, the company now has a cleaner, simpler structure as a focused vehicle finance and micro-LAP NBFC, with stronger capital adequacy of 32.7% and lower leverage at 1.7x, which should support future growth.