IndoStar Capital Finance Limited – Q1 FY27 Financial Results
IndoStar Capital Finance Limited, a middle‑layered non‑banking finance company registered with the Reserve Bank of India, reported its quarter‑ended June 30 2026 results. Disbursements reached ₹1,235 crore, representing a 44% year‑on‑year increase from Q1 FY26. The company’s Asset‑under‑Management (AUM) stood at ₹8,244 crore as of 30 June 2026, a 6% rise over the same quarter last year.
Net interest income (NII) climbed to ₹219.5 crore, up 39% YoY, driven by higher portfolio yields and a reduction in borrowing costs. Operating expenses rose 6.5% QoQ to ₹129.4 crore, but were 7.1% lower YoY at ₹139.3 crore. Pre‑provision operating profit (PPOP) was ₹92.9 crore, essentially flat versus the prior quarter and up 391.5% YoY from ₹18.9 crore in Q1 FY26. Profit after tax (PAT) turned positive at ₹11.5 crore, a reversal from the ₹424 crore loss recorded in Q4 FY26, marking a 535.4% YoY improvement.
The weighted average cost of funds fell to 9.9% in Q1 FY27 from 10.7% in Q1 FY26, an 80‑basis‑point improvement, while the incremental cost of fund was 9.1%. Gross Stage‑3 assets were 4.84% and Net Stage‑3 assets 2.48% as of 30 June 2026. The capital adequacy ratio (CAR) for the standalone entity was 34.8%, up from 32.9% in Q1 FY26 but down from 36.1% in Q4 FY26. Leverage (D/E) remained at 1.5x, improving from 1.7x in Q1 FY26.
Strategically, IndoStar expanded its branch footprint to 468 branches across 24 states and union territories, adding 14 new branches during the quarter. The micro‑LAP network grew from 108 to 125 branches, leveraging the existing vehicle‑finance branch base. Retail loan portfolio growth was supported by 3% QoQ growth in vehicle finance and 24% QoQ growth in micro‑LAP.
The company highlighted ongoing enhancements to its credit risk framework, including refined underwriting, proprietary scorecards, and early‑warning systems, as well as continued digital transformation through e‑applications, e‑NACH, e‑agreements, and scorecard‑based credit decisioning.