• Event Type: Q4 FY26 Earnings Conference Call and post-results investor interaction.
• Date and Time: The call was held on Thursday, May 28, 2026, at 12:00 noon IST.
• Stated Purpose: To discuss the Audited Financial Results of the Company for the quarter and Financial Year ended March 31, 2026.
• Management Participants: Mr. Randhir Singh (Managing Director and Executive Vice Chairman) and Mr. Jayesh Jain (Chief Financial Officer). The call was moderated by Mr. Aryan Sumra from MUFG.
• Availability of Materials: The transcript and a detailed investor presentation are available on the company's website at www.indostarcapital.com. The presentation includes additional information and data based on past feedback.
• UPSI Statement: The moderator's opening remarks included a standard caution that some statements may be forward-looking and involve risks and uncertainties, referring listeners to the company's filings and presentation for details.
Financial Period Discussed: The call pertained to the company's performance for Q4 FY26 and the full Financial Year ended March 31, 2026.
Forward-Looking Statements & Strategic Themes:
Management provided a detailed 3-year strategic framework through FY29, modelled around the following targets:
- Target 35% CAGR growth in disbursements.
- Aim for a Profit After Tax (PAT) target of INR 450 crores to INR 500 crores by FY29.
- This growth is expected to be supported by the planned addition of about 100 branches over the next 3 years, portfolio-level productivity gains of 10-15%, and favorable operating leverage.
The strategic overview highlighted a year of structural transformation across three core pillars:
1. Institutionalizing Credit Underwriting: Strengthened underwriting with data analytics and proprietary scorecards, leading to a 68% reduction in "non-starter" cases (0+ DPD in last 6 months) from 3.29% to 1.05%.
2. Calibrated Growth & Capacity Building: Expanded frontline sales force by 30% in H2 FY26 to 1,600, further increased to 1,700 by the time of the call. Diversified the portfolio mix, reducing MHCV disbursements from 57% in FY24 to 31% in FY26 and increasing Passenger Vehicle disbursements from 8% to 23%.
3. Operational Efficiency & Digitization: Executed "Project Leap," identifying annualized cost efficiencies of INR 51 crores (INR 27 crores realized in FY26). Digital adoption reached 84% for Vehicle Finance and near 100% for Micro LAP, reducing turnaround time by 25%.
Additional Notes Section
• Attachments: The regulatory filing intimates that the transcript of the call was enclosed and is available on the company website.
• Financial Data: The announcement itself did not contain financial figures; however, the attached transcript of the call contained extensive financial and operational data disclosed by management during the event.
Key Financials from the Call Transcript:
Q4 FY26 Performance:
- Disbursements: INR 1,306 crores (up 17% QoQ and 21% YoY).
- AUM: INR 8,056 crores (up 5% QoQ).
- Vehicle Finance Disbursements: INR 1,254 crores; Yield: 17.2%.
- Micro LAP Disbursements: INR 52 crores (up 73% QoQ); Yield: 21.8%; AUM: INR 175 crores.
- Net Interest Income: INR 215 crores (up 20% YoY).
- Net Interest Margin: 8.7% (vs. 5.9% in Q4 FY25).
- Loan Yield: 16.9%.
- Operating Expenses: INR 122 crores (largely stable).
- Provisions: An additional INR 326 crores provision was taken against the Security Receipts (SR) portfolio, elevating total provision coverage to 63% and reducing the net carrying value to INR 589 crores. A management overlay of INR 49 crores was also created due to the West Asia crisis.
- Net Loss: INR 424 crores for the quarter due to the one-time provisioning.
FY26 Annual Performance:
- Net Interest Income: INR 772 crores (up 16% YoY).
- Net Interest Margin: 7.8% (vs. 5.6% in FY25).
- Operating Expenses: INR 506 crores (vs. INR 482 crores in FY25).
- Profit After Tax: INR 130 crores (vs. INR 53 crores in FY25).
- Asset Quality: Gross Stage 3 assets at 4.8%; Net Stage 3 at 2.1%.
- Collection Efficiency: ~97%.
- Capital Adequacy Ratio: 36.1%; Debt-to-Equity: 1.5x.
- Cost of Funds: Improved to 10.2% from 11%; Incremental borrowing cost at 9%.