Financial Performance Summary

Key Financial Metrics (Q1FY27 vs Comparative Periods)

| Particulars | Q1FY27 | Q1FY26 | Y-o-Y Change | Q4FY26 | Q-o-Q Change |

| AUM (₹ Cr) | 13,722 | 12,458 | +10% | 13,225 | +4% |

| Disbursements (₹ Cr) | 1,496 | 1,290 | +16% | 1,213 | +23% |

| Gross Stage 3 Assets (%) | 3.46% | 2.46% | +1.00% | 3.37% | +0.09% |

| Net Stage 3 Assets (%) | 2.10% | 1.25% | +0.85% | 2.00% | +0.10% |

| PAT (₹ Cr) | 271 | 266 | +2% | 269 | +1% |

| Net Interest Margin* (%) | 19.97% | 19.99% | -0.02% | 20.07% | -0.10% |

| Return on Average AUM (%) | 8.11% | 8.80% | -0.69% | 8.37% | -0.26% |

| Return on Equity (%) | 14.46% | 16.57% | -2.11% | 15.09% | -0.63% |

*Net Interest Margin computed as a % of Average AUM.

Additional Financial Highlights

  • Total Income: ₹839 Cr with year-on-year growth of 6%
  • PBT: ₹362 Cr with year-on-year increase of 2%
  • Credit Cost: 1.85% of average AUM for Q1FY27 compared to 1.88% for Q4FY26

Operational Performance

Distribution Network

  • Total branches: 856 across 11 states/UT
  • New branches opened during quarter: 12
  • Active loans: 0.50 million (500,000)

Collections & Asset Quality

  • Unique customer collection efficiency (excluding NPAs): 97.9% (98.1% in Q4FY26)
  • X-bucket collections: 99.2% (99.3% in Q4FY26)
  • Current bucket AUM proportion: 83.30% (82.69% in Q4FY26)
  • Slippage ratio: 0.70% (similar to Q4FY26)
  • 30+ DPD: 12.38% as of June 30, 2026

Provisions

  • ECL provision carried on books: ₹244 Cr (excluding ECL on inter-corporate deposits)
  • ECL as percentage of overall AUM: 1.78%
  • Stage 3 provision: ₹191 Cr
  • Provision coverage ratio on stage 3 assets: 40.14%

Borrowings & Liquidity

  • Total borrowings including debt securities: ₹7,866 Cr as of June 2026
  • Liquidity carried: ₹1,847 Cr as of June 2026
  • Cost of incremental debt during quarter: 8.33%
  • Cost of funds on overall borrowing book: 8.80% (8.95% for Q4FY26)

Management Commentary

Mr. Lakshmipathy Deenadayalan, Chairman & Managing Director, stated that Q1 FY27 represents a positive beginning to the new fiscal year with strong traction in disbursement and stabilization momentum. He highlighted:

  • Disbursements of ₹1,496 Cr represent the highest quarterly disbursement ever
  • Collection metrics show clear improvement and stabilization
  • Expects headline NPA numbers to begin normalizing over next couple of quarters
  • Company remains confident of delivering full-year growth guidance of 20% AUM growth
  • Funding cost reduced by 15 bps sequentially despite uncertain liquidity conditions
  • Company aims to achieve strong yet sustainable growth through robust credit underwriting, strong collections, and proactive risk management

Company Background

Five-Star Business Finance Limited is a Non-Banking Finance Company (NBFC-ND-SI) registered with Reserve Bank of India primarily offering small loans for business purposes, asset creation and other economic purposes to small business customers and self-employed individuals.