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

Executive summary

• Achieved strong performance in Q4 and FY25, with AUM growing 23% year-over-year to ₹118,770 Mn and 748 branches as of March 31, 2025.

• PAT for FY25 reached ₹10,725 Mn, up 28% YoY; Q4 PAT at ₹2,791 Mn, up 18% YoY.

• Disbursements for Q4FY25 were ₹14,599 Mn, up 9% YoY; FY25 disbursements totaled ₹49,697 Mn, up 2%.

• Board recommended a final dividend of ₹2 per share (5.5% payout ratio), marking transition to a regular dividend-paying company.

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

Financial highlights

• Net total income for Q4FY25 grew 21% YoY to ₹5,844 Mn; PPOP rose 19% to ₹3,965 Mn.

• Net worth increased 21% YoY to ₹63,046 Mn; capital adequacy ratio at 50.10% as of March 31, 2025.

• Yield dropped to 23.7% for the quarter due to a 200 bps lending rate cut; NIM for Q4FY25 was 16.84%.

• Cost to income ratio at 36.63% for Q4FY25; ROA at 8.04%; ROE at 18.36%.

• Gross Stage 3 assets increased to 1.79% (up 41 bps YoY); net NPA at 0.88%.

Outlook and guidance

• FY26 AUM growth guidance maintained at 25%, with earnings growth expected at 12%-15% due to full-year impact of lower yields.

• Credit cost guidance remains at 75-100 bps for the medium term, with expectations to be at the lower end for FY26.

• Branch expansion to continue, targeting 75-100 new/split branches in FY26, with focus on productivity and established geographies.

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

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