Five-Star Business Finance (FIVESTAR) Q1 26/27 earnings summary

Executive summary

• Achieved record quarterly loan disbursements of INR 1,496 crores (INR 14,964 Mn), up 23% sequentially and 16% year-over-year.

• AUM reached INR 13,722 crores (INR 137,218 Mn), growing 4% sequentially and 10% year-over-year.

• Collection efficiency remained robust at 97.9% (unique customer), with ex-bucket collections at 99.2%.

• Active loan customers crossed 500,000 as of June 30, 2026.

• Net interest margin stood at 19.97%, with PAT for the quarter at INR 271 crores (INR 2,714 Mn).

Financial highlights

• Total income for Q1FY27 was INR 8,387 Mn (₹83,874.12 lakhs), up year-over-year and sequentially.

• Net interest income reached INR 6,672 Mn, a 10% increase year-over-year.

• Return on average AUM was 8.11%, and return on equity was 14.46%.

• Credit cost dropped to 1.85% from 1.88% sequentially.

• Operating expenses as a percentage of average loan portfolio rose to 7.31% from 6.69% year-over-year.

Outlook and guidance

• Management remains confident in meeting full-year growth guidance, targeting 20% loan growth for FY 2027.

• Credit cost guidance for FY 2027 is 1.7%-1.9%, trending toward the lower end.

• Gross NPA expected to fall below 3% in coming quarters.

• Operating leverage expected to improve from FY 2028, with cost-to-assets dropping to 5.25%-5.5% in steady-state.

• No loans were transferred or acquired during the quarter, and the company has no subsidiaries, associates, or joint ventures.