Investor Presentation of IndoStar Capital Finance Limited in connection with Audited Result for the quarter and Financial year ended March 31, 2026
INDOSTAR · price
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IndoStar Capital Finance reported strong FY26 results with PAT jumping 148% to Rs 130.2 crore from Rs 52.6 crore in FY25. AUM grew modestly to Rs 8,056 crore from Rs 7,963 crore, driven by Vehicle Finance (Rs 7,500 crore) and rapidly scaling Micro LAP (Rs 175 crore vs Rs 52 crore). Net Interest Margin expanded significantly to 7.8% from 5.6%, while cost of borrowings improved to 10.4% from 10.9%. Capital adequacy strengthened to 36.1% from 28.5%. Asset quality showed some pressure with Gross Stage 3 at 4.8% (up from 4.5%), though Net Stage 3 improved to 2.1%. The company made additional Rs 326.13 crore provisions on Security Receipts, bringing PCR on SRs to 63%. Collection efficiency remained strong at 97.3% in Q4FY26.
The sharp PAT recovery and NIM expansion indicate operational efficiency gains and better asset-liability management. Higher provisions and increased ECL (5.3% of total loan assets) may weigh on near-term earnings but provide a cleaner balance sheet. The company is well-capitalized for growth while managing legacy assets.