IndoStar Q2 FY27 Results Overview

IndoStar Capital Finance Limited (ICF), a middle‑layered non‑banking finance company registered with the RBI, announced its financial performance for the quarter and half‑year ended 30 September 2026.

The company reported disbursements of ₹1,399 crore, a 51 % increase year‑on‑year, reflecting robust demand in its used‑vehicle finance (VF) and micro‑loans against property (M‑LAP) businesses. Asset‑under‑management (AUM) grew to ₹8,459 crore, up 12 % YoY.

Net interest income (NII) reached ₹242.3 crore, up 27 % YoY and 10 % quarter‑on‑quarter from ₹219.5 crore in Q1 FY27. Operating expenses rose to ₹133.2 crore, a 10 % YoY increase and 3 % QoQ. Pre‑provision operating profit climbed to ₹109.2 crore, marking a 58 % YoY rise and 18 % QoQ improvement. Profit after tax was ₹13.1 crore, up 10.5 % YoY from ₹11.4 crore in the same quarter last year.

The standalone capital adequacy ratio (CAR) improved to 36.0 %, compared with 34.8 % in Q1 FY27 and down from 37.2 % in Q2 FY26. Leverage (debt‑to‑equity) increased to 1.6 x, from 1.5 x in the prior quarter and 1.4 x a year earlier.

Funding costs continued to improve, with the weighted average cost of funds falling to 9.7 % from 10.4 % in Q2 FY26, a 70‑basis‑point reduction; the incremental cost of funds for the quarter was 9.1 %.

Asset quality remained stable, with gross Stage 3 assets at 4.5 % and net Stage 3 assets at 2.4 % as of 30 September 2026.

Portfolio growth was driven by a 3 % QoQ increase in vehicle finance and a 29 % QoQ expansion in the Micro‑LAP segment. Exposure to new‑to‑credit customers remained limited.

The branch network expanded to 475 locations across 24 states and union territories, adding seven new branches during the quarter. Co‑located Micro‑LAP branches grew from 125 to 154, leveraging the existing vehicle‑finance footprint.

Brookfield and Everstone are identified as co‑promoters, underscoring the institutionally owned nature of the NBFC. IndoStar is listed on BSE (541336) and NSE (INDOSTAR) with ISIN INE896L01010.

Safe harbor disclaimer: The release contains forward‑looking statements and is for informational purposes only; actual results may differ due to various risks and uncertainties.