| Revenue growth | PAT grew 5% YoY for 9M FY26; disbursements moderated significantly. |
|---|---|
| Margins | NIMs compressed 50bps YoY due to lower yields and opex. |
| Demand visibility | Slowing; company is intentionally curbing demand to manage asset quality. |
| Management confidence | Cautious; focusing on 'fixing problems' before accelerating business growth. |
Growth
PAT grew 5% YoY to ₹830cr for 9M FY26; disbursements fell 18% QoQ as management prioritized collection efficiency.
Outlook
Targets recovery in Q4 FY26; expects cost of funds to drop 10-15bps over next 6 months.
Risks
Persistent behavioral stress in microfinance-linked borrowers leads to elevated Stage 3 assets and potential margin compression.
Last quarter's promises, checked
Delivered
- Guided Q4 recovery → 98.1% unique customer collection efficiency (= BEAT)
- Guided lower cost of funds → dropped from 9.12% to 8.95% QoQ (= BEAT)
- Guided ADB debt closure → raised $100M from ADB (= BEAT)
Partly delivered
- Branch expansion → opened 90 vs 96 previous year (= PARTIAL)
Missed
- Prior guidance of 25% growth → delivered 11% AUM growth (= MISS)
- Credit cost target 0.8-1% → delivered 1.88% (= 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
- Guides 20% growth
Five-Star Business Finance Investor Presentation: Key Takeaways
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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
Five-Star is navigating a self-induced growth slowdown to fix a 'behavioral' asset quality crisis in the small-ticket segment. Management is prioritizing collection stability and 'credit culture' over immediate disbursement acceleration.