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Informist, Wednesday, Oct. 29, 2025

 

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--Five-Star Business Jul-Sept net profit INR 2.86 bln 
--Analysts saw Five-Star Business Jul-Sept net profit INR 2.77 bln 
--Five-Star Business Jul-Sept net profit INR 2.86 bln vs INR 2.68 bln yr ago 
--Five-Star Business Jul-Sept revenue INR 7.99 bln vs INR 7.02 bln year ago 
--Five-Star Business Apr-Sept net profit INR 5.52 bln vs INR 5.20 bln yr ago 
--Five-Star Business Apr-Sept revenue INR 15.86 bln vs INR 13.68 bln yr ago 
 

 

By Rati Chaphekar

 

MUMBAI – Five-Star Business Finance Ltd.'s net profit for the September quarter beat analysts' expectations, on the back of a double-digit on-year growth in interest income. The lender's revenue rose despite a rise in total expenses during the quarter.

 

The non-banking financial company posted a net profit of INR 2.86 billion, up nearly 7% from the year-ago period. Analysts expected the company to post a net profit of INR 2.77 billion. The company's total revenue from operations was INR 7.99 billion, up almost 14% on year. The rise in revenue was largely due to a near-14% rise in interest income, which is the lender's primary source of income. The company's interest income for the September quarter was INR 7.73 billion, up from INR 6.79 billion a year ago. Sequentially, the interest income rose marginally.

 

The lender's total expenses rose to INR 4.25 billion, up more than 22% from INR 3.48 billion in the year-ago quarter. The total expenses were up because of a significant rise in employee benefit expenses, which were at INR 1.44 billion, up 15% from the same period last year. The finance cost of the lender rose by 10% to INR 1.8 billion, from INR 1.63 billion in the year-ago quarter.

 

Five-Star Business Finance's assets under management were at INR 128.47 billion, up 18% on year from INR 109.27 billion in the previous quarter. The lender's net interest margin for the reporting quarter was 16.41%, down 52 basis points on year. Return on assets was 7.49%, down 87 bps on year. Return on equity fell to 16.91%, down 211 bps on year.

 

"While our asset quality and credit costs have seen a marginal impact in the current quarter as compared to the previous quarter, these still stack up better than many of our peers operating in the small ticket secured / unsecured loans space," Lakshmipathy Deenadayalan, chairperson and managing director of the company, said in a press release. "As I had said in the past also, we believe that a trend reversal is likely on the horizon and is expected to play out over the next couple of quarters."

 

The expected credit loss provisions of the non-bank finance company were INR 2.43 billion, 1.89% of the overall assets under management. The provision coverage ratio on stage three assets was 45.19% for the September quarter. Total borrowings, including debt securities, were INR 83.76 billion as on Sept. 30. The lender's total liquidity as on Sept. 30 was INR 23.60 billion.

 

At 1426 IST, shares of Five Star Business Finance were up over 10% at INR 591.80 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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