IndoStar Capital Finance Limited held a Q2 FY27 Earnings Conference Call on Friday, October 30, 2026, at 12:00 noon IST. The call was conducted to discuss the company's Unaudited Financial Results for the quarter and half year ended September 30, 2026.

The management participants included:

  • Mr. Randhir Singh – Managing Director and Executive Vice Chairman
  • Mr. Jayesh Jain – Chief Financial Officer

The conference was moderated by Ms. Ayushi Gupta from MUFG Intime India Private Limited, the company's Investor Relations Advisors.

The transcript of the call was filed with the stock exchanges (BSE and NSE) on November 05, 2026, and is also available on the company's website at www.indostarcapital.com.

The call included forward-looking statements and involved risks and uncertainties. Participants were referred to the investor presentation and other filings on the company's website for more details.

Financial and Operational Highlights Discussed

Business Performance:

  • Retail disbursements for Q2 FY27 stood at INR 1,399 crores (vs. INR 927 crores YoY)
  • H1 FY27 retail disbursements were INR 2,634 crores
  • Assets Under Management (AUM) stood at INR 8,459 crores as of September 30, 2026
  • Retail AUM accounted for 97% of overall AUM at INR 8,204 crores

Vehicle Finance Business:

  • Disbursements: INR 1,325 crores in Q2 FY27
  • AUM: INR 7,923 crores
  • Gross Stage 3 assets improved to 4.4% (from 4.7% previous quarter)
  • Net Stage 3 assets improved to 2.4% (from 2.5%)
  • Portfolio diversification: MHCV share reduced from 31% to 27%, Passenger Vehicle share increased from 23% to 31%

Micro LAP Business:

  • Disbursements: INR 74 crores in Q2 FY27 (up 174% YoY)
  • AUM: INR 280 crores (up 177% YoY)
  • Gross Stage 3 assets: 0.18%
  • 99.6% of portfolio current
  • Average ticket size: INR 8.9 lakhs
  • Weighted average LTV: ~40%
  • Disbursement yield: ~20%

Asset Quality Improvements:

  • Share of prime customers (CIBIL ≥725) improved to 85% in Q2 FY27 from 80% in Q2 FY26
  • 95% of recent disbursements have CIBIL scores ≥700
  • Early delinquency stable at ~2.4%
  • 30+ delinquency on disbursements (Jan-Sep 2026) down 71% compared to same period 2024
  • Pre-January 2025 portfolio reduced from 65% to 26% of AUM

Financial Performance:

  • Net total income: INR 242 crores for Q2 FY27 (vs. INR 190 crores YoY)
  • Pre-provision operating profit: INR 109 crores
  • Released precautionary management overlay of INR 49 crores created in Q4 FY26
  • Impairment and credit cost: INR 96 crores for the quarter
  • Profit after tax: INR 13 crores for Q2 FY27 (vs. INR 11 crores YoY)
  • H1 FY27 PAT: INR 25 crores

Liability Management:

  • Weighted average cost of borrowing: 9.7%
  • Incremental borrowing cost: 9.1%
  • Liquidity: INR 827 crores
  • Capital adequacy ratio: 36%
  • Completed direct assignment transaction of INR 132 crores

Strategic Initiatives:

  • Field sales force increased from 1,235 to 1,868 (51% growth)
  • Branch network expanded from 454 to 475 branches
  • Verticalization of sales team across CV, PV, FE, and CE verticals
  • Micro LAP expansion to 9 states and 1 union territory (154 co-located branches)
  • Data science and AI implementation across credit and collection processes
  • STP rates: 74% in used car, 68% in CV business

Guidance and Outlook:

  • Reaffirmed 35% CAGR disbursement growth target over 3 years
  • Targeting PAT of INR 450-500 crores in FY29
  • Targeting 2% ROAA from H2 FY28
  • Expecting Micro LAP to contribute 10-15% of portfolio in 3 years
  • Expect significant reduction in credit costs from Q4 FY27 onwards
  • Normalized credit cost expected to be 2-2.5%

Additional Notes Section

The document includes the complete transcript of the earnings conference call. No separate attachments were mentioned in the provided text. The announcement contains detailed financial data and operational metrics as presented during the earnings call.