Five-Star Business Finance (FIVESTAR) investor relations material

Executive summary

• Navigated a challenging year with asset quality headwinds, achieving 11% AUM growth and 2% PAT growth in FY26, with management expecting growth ahead and targeting ~20% AUM growth for FY27.

• Collection efficiency rebounded to 98.1% in Q4 FY26, among the best in company history, and digital collections improved to 84%.

• Senior management exits had no impact on performance, reflecting strong team depth.

• Audited financial results for FY26 were approved with an unmodified audit opinion; final dividend of INR 2 per share recommended.

• Amendments to the Code of Fair Disclosures and extension of Chief Risk Officer's tenure were approved.

Financial highlights

• Loan portfolio stood at ₹132,246 Mn as of Q4FY26, up 11% year-over-year, with disbursements of ₹46,757 Mn for FY26.

• Q4 FY26 PAT was INR 269 crore, with full-year PAT at INR 1,099 crore, up 2% year-over-year.

• Net Interest Margin for FY26 was 19.86%; Return on Equity was 16.06% for FY26.

• Total income for FY26 was INR 3,24,597.17 lakh, and total assets as of March 31, 2026, were INR 15,78,973.88 lakh.

• Net worth stands at INR 7,380 crore; cash and cash equivalents increased to INR 1,61,789.52 lakh.

Outlook and guidance

• Management guides for 20% AUM growth in FY27 and similar rates for the next 2-3 years, focusing on sustainable growth, quality, and profitability.

• Credit cost guidance for FY27 is 1.7%-1.75%, with a steady-state expectation of 1.5%-1.6% in subsequent years.

• ROA expected to be 8.25%-8.5% for FY27, with stable margins and leverage expected to improve ROE.

• OpEx to AUM ratio expected to remain around 7%-7.25% despite growth and investments in collections.

• The company operates as a systemically important non-deposit taking NBFC, with no reportable segments other than financing.