More Stories

Informist, Wednesday, Jan. 28, 2026

By Shumaila Firoz  

MUMBAI – Five-Star Business Finance Ltd.'s net profit for the December quarter rose marginally on year but failed to beat the Street's view due to rising impairment on financial instruments and employee benefits expenses.

The non-banking financial company reported a net profit of INR 2.77 billion, up over 1% on year for the reporting quarter, but declined over 3% from the trailing quarter. Total revenue from operations rose to INR 8.15 billion, up 12% on year and nearly 2% on quarter, due to a sharp rise in fees and commission income, which rose over 44% on year to INR 115 million. Other income also rose nearly 95% on year to INR 71.59 million.

Interest income, the company's primary source of revenue was INR 7.96 billion, up nearly 12% on year, and close to 3% sequentially, reflecting continued expansion of the loan portfolio, up 16% on year. 

The Street had expected the non-banking financial company to earn a net profit of INR 2.81 billion for the December quarter. However, profitability was constrained by higher expenses. Total expenses increased nearly 24% on year at INR 4.53 billion. Of this, INR 1.6 billion was on account of employee benefit expenses, up nearly 24% on year. The company had also seen a rise in impairment on financial instruments at INR 570.95 million, up over 145% on year. The company has made a provision of INR 20.9 million for the implementation of labour codes.

The lender's net interest margin for the December quarter was 16.04%, down 52 basis points on year, and 37 bps on quarter. Return on assets was reported 7%, down over 1% on year, while return on equity was 15.80%, down over 2% on year. 

The non-banking financial company's assets under management were at INR 129.6 billion, up 16% on year. Its capital adequacy ratio for the reporting quarter was 51.63%. 

Its topline was INR 24.01 billion for the nine months ended December, up from INR 20.96 billion in the same period a year ago, while its bottom line was INR 8.29 billion for the nine months ended December, up from INR 7.93 billion in the same period a year ago.

Wednesday, shares of Five-Star Business Finance fell more than 2% to INR 501.30 on the National Stock Exchange.  End

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.