Five-Star Business Finance (FIVESTAR) Q4 24/25 earnings summary

Executive summary

• Achieved strong performance in FY25 with AUM growing 23.2% year-over-year to INR 11,877 crore (₹118,770 Mn), 748 branches, and 0.46 Mn active loans, despite a challenging regulatory environment.

• Disbursements rebounded, growing 9% year-over-year in Q4FY25 to ₹14,599 Mn; FY25 disbursements totaled ₹49,697 Mn, up 2%.

• PAT for FY25 reached INR 1,073 crore (₹10,725 Mn), up 28% from FY24; Q4 PAT was INR 279 crore (₹2,791 Mn), up 18% year-over-year.

• Board recommended a final dividend of INR 2 per share (200% of face value), subject to shareholder approval.

• Audited financial results for FY25 were approved with an unmodified audit opinion; key management appointments and regulatory amendments were made.

Financial highlights

• Total income for FY25 was ₹2,86,602.39 lakhs, up from ₹2,19,510.08 lakhs in FY24.

• Net worth increased 21% year-over-year to ₹63,046 Mn as of March 2025.

• Net interest margin for Q4FY25 was 16.84%; FY25 NIM was 16.75% (down 64 bps year-over-year).

• Cost-to-income ratio (including credit cost) at 36.63%, within guidance.

• Capital adequacy ratio stood at 50.10% as of March 31, 2025.

Outlook and guidance

• FY26 AUM growth guidance maintained at 25%, with expectations of stable asset quality and credit cost at 75-100 bps.

• Earnings growth for FY26 expected at 12%-15% due to full impact of lower yields; ROA expected at 7.5%-8%, ROE to remain stable.

• Strategy focuses on expanding branch network, increasing average ticket size, and deeper penetration in core geographies.

• No further yield reductions anticipated unless cost of funds drops significantly.

• Final dividend record date set for August 14, 2025.