IndoStar Capital Finance Limited submitted its unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2026 to BSE Limited and National Stock Exchange of India Limited pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Operational and Financial Highlights:

  • Disbursements: ₹1,235 crore in Q1 FY27, representing 44% growth compared to Q1 FY26
  • Asset Under Management (AUM): ₹8,244 crore as of June 30, 2026, showing 6% growth over Q1 FY26
  • Net Interest Income: ₹219.5 crore in Q1 FY27, up 38.9% year-over-year from ₹158.0 crore in Q1 FY26
  • Operating Expenses: ₹129.4 crore in Q1 FY27, decreased by 7.1% year-over-year from ₹139.3 crore in Q1 FY26
  • Pre-Provision Operating Profit (PPOP): ₹92.9 crore in Q1 FY27, remaining stable compared to ₹93.3 crore in Q4 FY26 (-0.4% quarter-over-quarter)
  • Profit After Tax (PAT): ₹11.5 crore in Q1 FY27, compared to a loss of ₹424.0 crore in Q4 FY26 and profit of ₹535.4 crore in Q1 FY26
  • Capital Adequacy Ratio (CAR): 34.8% standalone as of Q1 FY27, compared to 36.1% in Q4 FY26 and 32.9% in Q1 FY26
  • Leverage (Debt-to-Equity): 1.5x in Q1 FY27, unchanged from Q4 FY26, and improved from 1.7x in Q1 FY26
  • Cost of Funds: Weighted average cost declined to 9.9% in Q1 FY27 from 10.7% in Q1 FY26 (80 basis points improvement); Incremental cost of funds stood at 9.1%
  • Asset Quality: Gross Stage 3 assets at 4.84% and Net Stage 3 assets at 2.48% as of June 30, 2026

Business Focus and Strategy:

IndoStar is a retail-focused, middle-layered NBFC registered with RBI, focused on secured, high-yielding lending across:

  • Used Vehicle Finance (VF)
  • Micro Loans Against Property (M-LAP)

The company targets credit needs of underbanked, underserved income-generating segments across tier 3, 4 & 5 markets.

Strategic Initiatives Progress:

  • Credit Strengthening: Enhanced credit risk framework through improved underwriting, refined customer selection filters, proprietary scorecards, and early warning systems
  • Digital Transformation: Advanced digital lending journey through E-Application, E-NACH, E-Agreement, and scorecard-based credit decisioning
  • Growth Drivers: Scaled retail loan portfolio with 3% QoQ growth in Vehicle Finance and 24% QoQ growth in Micro LAP
  • Branch Expansion: Expanded network to 468 branches across 24 states and union territories, adding 14 branches during the quarter
  • Network Leverage: Expanded Micro LAP network from 108 to 125 branches using existing Vehicle Finance branch infrastructure

Corporate Structure:

The company is professionally managed and institutionally owned with Brookfield & Everstone as co-promoters.