Five-Star Business Finance Limited has reported its financial performance for the quarter and year ended March 31, 2026. Despite a challenging fiscal year, the company achieved a 11% growth in Assets Under Management (AUM) and a 2% increase in Profit After Tax (PAT). The company remains focused on its strategic growth path, citing robust collection efficiencies and a strong, diversified funding profile as it enters the new financial year.
Financial Performance Overview
For the quarter ended March 31, 2026 (Q4FY26), Five-Star Business Finance reported a Profit After Tax (PAT) of ₹2,693 million. The company’s Loan Portfolio stood at ₹132,246 million, reflecting an 11% year-on-year growth. The Net Interest Margin for the quarter was recorded at 20.07%, with a Return on Equity of 15.09%.
Annual Results and Operational Metrics
For the full financial year FY2026, the company achieved a total PAT of ₹10,988 million. Key operational indicators remained steady, with the branch network expanding to 844 locations across 11 states and union territories. The company emphasized its strong collection capabilities, noting a customer collection efficiency of 98.1% for the quarter, excluding NPA loans.
Credit Quality and Risk Management
Asset quality remained resilient during the period, with the Gross NPA reported at 3.37% as of March 31, 2026. The slippage ratio showed improvement, declining from 1.09% in Q3FY26 to 0.70% in Q4FY26. The management highlighted the efficacy of their proprietary underwriting model, which utilizes ecosystem checks and physical verification to serve informal income segments effectively.
Strategic Outlook
Looking ahead, the company is well-poised to maintain its growth trajectory. The management has set a target of achieving AUM growth of around 20% for FY2027. The strategy for the upcoming year continues to prioritize sustainable growth, robust credit underwriting, and the integration of AI and advanced technology to enhance collection efficiency and risk management.
Source: BSE
