Five-Star Business Finance Ltd: Q1 FY27 Earnings & Performance Briefing

Five-Star Business Finance Ltd reported its financial and operational performance for the first quarter of FY27 (ending June 30, 2026), demonstrating consistent operational momentum, disciplined asset quality, and record disbursement volumes. 1. Financial Highlights Net Profit (PAT): Recorded at ₹271.4 crore, marking a 2% year-on-year (YoY) increase from ₹266.3 crore in the corresponding quarter of the previous fiscal year. Income Growth: Net Interest Income (NII) expanded by 10.2% YoY to ₹636.1 crore. Total income stood at ₹839 crore, representing a 6% YoY growth. Profit Before Tax (PBT): Grew by 2% YoY to ₹362 crore. 2. Operational & Business Scale Record Disbursements: The company achieved its highest-ever quarterly disbursements of ₹1,496 crore, translating to robust growth of 23% sequentially (QoQ) and 16% YoY. AUM Expansion: Assets Under Management (AUM) reached ₹13,722 crore, registering a 10% YoY and 4% QoQ growth. The portfolio is well-diversified across 0.50 million active loans. 3. Asset Quality & Credit Discipline Collection Efficiency: Unique non-NPA customer collection efficiency remained strong at 97.9%, with X-bucket collections nearly flawless at 99.2%. Current bucket AUM improved to 83.30%, up from 82.69% in Q4 FY26. Provisioning & Credit Cost: Credit cost improved to 1.85% of average AUM (down from 1.88% QoQ). Expected Credit Loss (ECL) provisions stood at ₹244 crore (1.78% of overall AUM), with a Stage 3 Provision Coverage Ratio (PCR) of 40.14%. 4. Yields, Funding & Network Expansion Return Metrics: Return on Assets (RoAUM) stood at a healthy 8.11%, while Return on Equity (RoE) came in at 14.46%. Cost of Borrowing: The overall cost of funds declined by 15 bps QoQ to 8.80%. The company successfully raised incremental debt of ₹450 crore at an attractive all-inclusive cost of 8.33%.