Five-Star Business Finance reported an 18% year-over-year growth in Assets Under Management (AUM), reaching ₹12,847 Cr for the quarter ended September 30, 2025 (Q2 FY26). Net Profit After Tax (PAT) stood at ₹286 Cr, a 7% increase compared to the previous quarter. The company added 33 new branches and 769 Business & Collections Officers during the quarter.
Financial Performance Overview
Five-Star Business Finance announced its financial results for the quarter ended September 30, 2025 (Q2 FY26), showcasing steady growth and strategic improvements. Key highlights include:
- AUM: Reached ₹12,847 Cr, reflecting an 18% year-over-year increase.
- Disbursements: Recorded at ₹1,196 Cr.
- PAT: Increased to ₹286 Cr, up 7% from the previous quarter (Q1 FY26).
- Net Interest Margin: 16.41%.
- Return on Assets: 7.49%.
- Return on Equity: 16.91%.
Asset Quality
The company maintained a focus on asset quality, with the following key metrics:
- Gross Stage 3 Assets: 2.64%.
- Net Stage 3 Assets: 1.46%.
Strategic Initiatives and Network Expansion
Five-Star Business Finance continued to expand its operational footprint and strengthen its customer engagement:
- Added 33 new branches, expanding the network to 800 branches across 11 states / UT.
- Increased the number of Business & Collections Officers by 769.
Management Commentary
Mr. Lakshmipathy Deenadayalan, Chairman & Managing Director, commented on the results, noting the stable performance and strategies in place for future growth. He highlighted improvements in sourcing, credit underwriting, collections, and risk oversight as focus areas.
Borrowings and Liquidity
The company maintains a strong liquidity position:
- Total borrowings stood at ₹8,376 Cr as of September 30, 2025.
- Maintained liquidity of ₹2,360 Cr.
Source: BSE