Press Release with respect to Unaudited Financial Statement for the quarter ended June 30, 2025
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Star Housing Finance Ltd reported its Q1 FY26 results on August 15, 2025. Assets Under Management grew 16% year-on-year to Rs. 546.58 crore, with disbursements of Rs. 24.41 crore during the quarter. Interest income rose 11% y-o-y and Net Interest Margin stood at 6.61%. However, profitability took a hit — Profit Before Tax fell to Rs. 1.77 crore (from Rs. 3.91 crore) and Profit After Tax dropped to Rs. 1.38 crore (from Rs. 3.02 crore) year-on-year. Asset quality remained largely stable with Gross NPA at 1.65% and Net NPA at 1.13%. The board approved raising up to Rs. 50 crore via Non-Convertible Debentures, recommended a final dividend of 10 paise per share, and proposed increasing authorised share capital from Rs. 50 crore to Rs. 125 crore, all subject to shareholder approval.
Mixed signals for shareholders — strong loan book growth and stable asset quality are positives, but the sharp drop in profits and rising leverage may concern investors. The proposed capital raise and NCD issuance signal management's intent to fund future growth, but also mean potential dilution or added debt obligations if approved.