Quarterly Financial Results
Five-Star Business Finance Q1 FY27 Results: PAT Rises 2% to ₹271.4 Crore, AUM Crosses ₹13,722 Crore
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- Five-Star Business Finance reported steady Q1 FY27 performance with Assets Under Management (AUM) reaching ₹13,721.8 crore, loan disbursements touching a record quarterly high, and profit after tax increasing 2% YoY to ₹271.4 crore.
- The company maintained healthy profitability while continuing branch expansion and improving operational efficiency.
PRICE-SENSITIVE TRIGGER
Event: Five-Star Business Finance announced its unaudited Q1 FY27 financial results and investor presentation for the quarter ended 30 June 2026.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: The company reported record quarterly loan disbursements, double-digit AUM growth, stable asset quality metrics and reaffirmed confidence in achieving its FY27 growth guidance.
Metrics:
Key Financial Metrics:
- Loan Portfolio (AUM): ₹13,721.8 crore (+10% YoY, +4% QoQ)
- Loan Disbursements: ₹1,496.4 crore (+16% YoY, +23% QoQ)
- Profit After Tax (PAT): ₹271.4 crore (+2% YoY, +1% QoQ)
- Gross NPA: 3.46%
- 30+ DPD: 12.38%
- Net Interest Margin (NIM): 19.97%
- Return on Average AUM (ROA): 8.11%
- Return on Equity (ROE): 14.46%
Revenue Mix:
- Record Quarterly Loan Disbursements: ₹1,496.4 crore, the highest quarterly disbursement in the company’s history.
What Happened ?
Five-Star Business Finance delivered a quarter in line with management expectations, supported by record loan disbursements and continued expansion of its secured lending portfolio.
The company strengthened its distribution network, maintained strong customer collections despite seasonally weaker conditions, and improved operational efficiency through technology-led underwriting and collections.
Management indicated that the company has returned to a stronger growth trajectory while preserving asset quality and profitability.
key details
Business & Operational Highlights:
- Quarterly loan disbursements reached a record ₹1,496.4 crore, reflecting strong demand across target customer segments.
- Assets Under Management increased to ₹13,721.8 crore, supported by sustained portfolio growth.
- Customer collection efficiency (excluding NPA loans) remained robust at 97.9%, while X-bucket collections stood at 99.2%.
- Credit cost improved sequentially to 1.85% from 1.88% in the previous quarter.
Distribution Expansion:
- Branch network expanded to 856 branches across 11 States and Union Territories.
- The company added 12 new branches during Q1 FY27.
- Operations continue to focus on contiguous expansion across Southern India while strengthening presence in Madhya Pradesh, Maharashtra, Uttar Pradesh, Chhattisgarh, Rajasthan and Gujarat.
Funding & Liquidity:
- The company borrowed ₹450 crore during the quarter at an all-inclusive borrowing cost of 8.33%.
- Cost of funds reduced to 8.80% from 8.95% in Q4 FY26.
- Lower funding costs helped preserve lending spreads despite softer lending yields.
Technology & Operating Efficiency:
Five-Star continued strengthening its digital lending platform through:
- AI and machine learning-based credit analytics.
- Cloud-native loan origination infrastructure.
- Digital collection systems with 86% of collections completed digitally.
- Average loan turnaround time maintained at 8 days.
Note:
- The company remains focused on secured lending to small business owners and self-employed borrowers using its proprietary underwriting model backed by residential property collateral.
Risk Analysis
Summary:
- While business momentum remained healthy, future performance depends on maintaining collection efficiency, sustaining asset quality and executing growth without increasing credit costs.
Key Risks:
- Gross NPA remained at 3.46%, requiring continued focus on collections.
- Growth depends on maintaining strong disbursement momentum and underwriting discipline.
- Borrowing costs remain sensitive to liquidity conditions and interest rate movements.
- Forward-looking statements remain subject to economic and regulatory developments.
Worst Case:
- Any deterioration in collection efficiency, higher credit costs or slower loan growth could affect profitability and returns.
Risk Level: Medium
Company Commentary
Managing Director Lakshmipathy D said the quarter delivered the strongest loan disbursements in the company’s history and marked a return to a stronger growth trajectory.
Management highlighted:
- Record quarterly disbursements supported business growth.
- Customer collections remained resilient despite seasonal weakness.
- Asset quality indicators continued to improve sequentially.
- Lower borrowing costs strengthened lending spreads.
- The company remains confident of achieving its FY27 growth guidance while maintaining growth, profitability and portfolio quality.
Official Exchange Filing: Five-Star Business Finance Limited
