Unaudited Financial Results for the quarter ended 30th June 2025
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Star Housing Finance reported Q1 FY26 total income of Rs. 2,181.25 lakhs, up modestly from Rs. 2,095.90 lakhs in Q1 FY25 (~4% growth). However, profit after tax fell sharply to Rs. 138.41 lakhs from Rs. 301.85 lakhs a year ago, a decline of about 54%, as total expenses grew from Rs. 1,705.29 lakhs to Rs. 2,004.05 lakhs. EPS (basic) stood at Rs. 0.18 vs Rs. 0.38 earlier. The board also recommended a Rs. 0.10 per share dividend for FY25 and approved a Rs. 50 crore NCD private placement, an increase in authorised capital from Rs. 50 crore to Rs. 125 crore, the reclassification of some promoter-group shareholders, and the appointment of Mr. Shakir Sheikh as Chief Compliance Officer for three years. Independent Director Mr. Chinnathambi Ilango and Executive Director Mr. Kavish Jain also resigned. Asset quality remained healthy with Gross NPA at 1.65% and Net NPA at 1.13%, and the debt-to-equity ratio stood at 2.69.
Sharp YoY drop in profit despite stable revenue points to margin pressure and rising costs, which is a negative signal for near-term earnings. The dividend, NCD issuance plan and authorised capital hike suggest the company is preparing to raise funds, which may lead to dilution or higher debt, but the board changes and promoter reclassification add governance uncertainty in the short term.