Five-Star Business Finance (FIVESTAR) Q3 24/25 earnings summary

Executive summary

• Overcame regulatory, over-leverage, and liquidity challenges, maintaining strong asset quality and collection efficiency.

• AUM grew 25.4% year-over-year to INR 11,178 crores (₹111,781 Mn) as of Dec 31, 2024, with 729 branches and 441,625 live accounts.

• Q3FY25 PAT rose 26% year-over-year to ₹2,739 Mn; 9MFY25 PAT up 32% year-over-year to ₹7,934 Mn.

• Unaudited financial results for the quarter and nine months ended December 31, 2024, were approved with an unmodified review report.

• The company operates as a systemically important non-deposit taking NBFC, focused on secured, small-ticket lending in India.

Financial highlights

• Disbursements for Q3 were INR 940 crores (₹9,408 Mn), down 22-25% year-over-year, as per guided slowdown.

• Net profit for Q3FY25 was INR 274 crores (₹2,739 Mn), a 26% year-over-year increase.

• Net total income for Q3FY25 grew 27% year-over-year to ₹5,597 Mn; PPOP up 29% to ₹3,884 Mn.

• Gross NPA increased to 1.62% (up 22 bps year-over-year); net NPA at 0.81%.

• Liquidity buffer at INR 2,145 crores (₹21,447 Mn), plus INR 600 crores (₹6,000 Mn) in unavailed sanction lines.

Outlook and guidance

• Q4 expected to return to normal business growth after a strategic Q3 slowdown.

• Guidance for 25% AUM growth remains unchanged for the current and next financial year.

• Credit cost guidance maintained at 75-100 basis points medium-term.

• Focus remains on expanding branch network and increasing field officer strength to drive portfolio growth.

• Further clarity on FY26 growth to be provided after Q4.