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Earnings Call

Five-Star Business Finance Earnings Call: Key Takeaways

Management is navigating a 'behavioral' credit crisis in small-ticket loans by prioritizing collection stability over disbursement growth, resulting in moderated loan book expansion.

Highlights
Revenue growthStable 9M PAT at ₹830cr; disbursements moderated to ₹976cr.
MarginsNIMs compressed 50bps YoY due to lower disbursement yields.
Order bookAUM growth moderated; prioritizing collection efficiency over volume.
Management confidenceCautiously optimistic; focusing on 'fixing the problem' before accelerating.

Growth

PAT grew 5% YoY to ₹830cr for 9M FY26, though Q3 disbursements fell 18% QoQ to prioritize asset quality.

Outlook

Targeting growth acceleration in FY27 after stabilizing collections and fully integrating the new 2,452-person vertical.

Risks

Persistent stress in Stage 3 assets and rising slippages reflect borrower over-leverage and poor credit culture contagion.

Source

Earnings Call filed with NSE, NSE: FIVESTAR. Summary written with AI assistance from the document.

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Five-Star Business Finance Ltd: key numbers

Share price
₹520.95
Market cap
₹15,378 Cr
Revenue (annual)
₹3,218 Cr
Net profit (annual)
₹1,099 Cr
P/E (TTM)
13.9×Sector 22.0×
Promoter holding
18.61%+0.00% QoQ
FII holding
43.97%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Employee Stock Options

Five-Star Business Finance Employee Stock Options

Five-Star Business Finance allotted 7,040 equity shares under its 2018 ESOP scheme. Paid-up capital rose to ₹29.52 Crore following the option exercise.