| Revenue growth | PAT grew 5% for 9M; Q3 PAT flat YoY at ₹277cr. |
|---|---|
| Margins | NIMs compressed 50bps YoY; yields dropped 20bps, offset by lower borrowing costs. |
| Demand visibility | Moderating; intentional slowdown in disbursements to ensure asset quality stability. |
| Management confidence | Balanced but cautious, prioritizing 'fixing the problem' over aggressive expansion. |
Growth
PAT grew 5% YoY to ₹830cr for 9M; however, quarterly disbursements dropped 18% sequentially.
Outlook
Guided for revival in Q4 and FY27; incremental debt cost attractive at 8.19%.
Risks
Persistent stress in small-ticket loans (<₹3 lakh) and rising slippages in Stage 3 assets.
Last quarter's promises, checked
Delivered
- Guided AUM growth ~20% for FY27 → delivered 11% for FY26 (= BEAT - exceeded previous low-growth year)
- Guided Cost of Funds drop → delivered 9.21% from 9.64% YoY (= BEAT)
- Guided slippage reduction → delivered 0.7% from 1.9% QoQ (= BEAT)
Partly delivered
- Guided branch expansion 60-75 → delivered 90 in FY26 (= PARTIAL - exceeded target but now slowing down)
Missed
- Guided PAT growth → delivered 3% QoQ decline (= MISS)
- Guided Yield stability → delivered 2% drop over 1.5 years (= MISS)
Earnings Call filed with NSE, NSE: FIVESTAR. Summary written with AI assistance from the document.
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.
More from Five-Star Business Finance Ltd
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Five-Star Business Finance Earnings Call Transcript: Key Takeaways
Five-Star Business Finance delivered a record quarter with disbursements reaching 1,496 crores, signaling a strong recovery in growth momentum after four quarters of asset quality stabilization.
- Call
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- Key figure
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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 business momentum.
Five-Star Business Finance Earnings Call: Key Takeaways
Management is navigating a 'behavioral' credit crisis in small-ticket loans, choosing slow growth and aggressive collections over technical write-offs. While PAT is stable, elevated slippages and moderated disbursements signal significant near-term stress.