Star Housing Finance Reports Solid Revenue & EBIDT Growth but Net Profit Plunges.

Star Housing Finance posted a steady top-line performance in the June 2025 quarter, though bottom-line earnings declined sharply due to higher provisions and financial costs. Sales grew 15% YoY to ₹21.8 crore from ₹18.9 crore in June 2024, supported by loan book expansion and rising disbursements. EBIDT increased 22% YoY to ₹14.9 crore from ₹12.2 crore, reflecting operating efficiency and healthy margin improvement. However, net profit dropped 54% YoY to ₹1.38 crore from ₹3.02 crore, as elevated provisioning for NPAs and higher interest expenses weighed heavily on earnings. EPS declined 55% YoY to ₹0.17 from ₹0.38 last year, underscoring the pressure on shareholder returns. At the current market price of ₹26, Star Housing Finance commands a market capitalization of ₹206 crore and trades at a PE of 21.7, which appears reasonable relative to its growth trajectory. Summary: While Star Housing Finance continues to expand its business with rising sales and operating profits, the steep fall in net profit and EPS reflects stress from higher costs and provisions. Sustained profitability will depend on improving asset quality and controlling financial expenses.