Five-Star Business Finance Share Price

Conference Call with Five-Star Business Finance Management and Analysts on Q4FY26 & Full Year Performance and Outlook. Listen to the full earnings transcript.

• Trendlyne
• 3 weeks 1 day ago

Finance company Five-Star Business Finance announced Q4FY26 & FY26 results Q4FY26 Financial Highlights: Total Revenue from operations: Rs 81,694.54 lakh in Q4FY26, compared to Rs 81,506.51 lakh in Q3FY26 (up 0.23% QoQ) and Rs 75,227.14 lakh in Q4FY26 (up 8.60% YoY). Total Income: Rs 82,605.82 lakh in Q4FY26, compared to Rs 82,222.38 lakh in Q3FY26 (up 0.47% QoQ) and Rs 75,974.98 lakh in Q4FY26 (up 8.73% YoY). Profit for the period: Rs 26,926.78 lakh in Q4FY26, compared to Rs 27,702.78 lakh in Q3FY26 (down 2.80% QoQ) and Rs 27,912.39 lakh in Q4FY26 (down 3.53% YoY). Total Comprehensive Income: Rs 27,715.75 lakh in Q4FY26, compared to Rs 27,159.20 lakh in Q3FY26 (up 2.05% QoQ) and Rs 27,759.31 lakh in Q4FY26 (down 0.16% YoY). Earnings Per Equity Share (Basic): Rs 9.14 in Q4FY26, compared to Rs 9.41 in Q3FY26 (down 2.87% QoQ) and Rs 9.49 in Q4FY26 (down 3.69% YoY). Q4FY26 Financial Highlights: Total Revenue from operations: Rs 3,21,812.35 lakh for FY26, compared to Rs 2,84,783.96 lakh for FY25 (up 13.00% YoY). Total Income: Rs 3,24,597.17 lakh for FY26, compared to Rs 2,86,602.39 lakh for FY25 (up 13.26% YoY). Profit for the year: Rs 1,09,874.53 lakh for FY26, compared to Rs 1,07,248.99 lakh for FY25 (up 2.45% YoY). Total Comprehensive Income: Rs 1,10,649.40 lakh for FY26, compared to Rs 1,06,958.83 lakh for FY25 (up 3.45% YoY). Earnings Per Equity Share (Basic): Rs 37.31 for FY26, compared to Rs 36.61 for FY25 (up 1.91% YoY). Net Cash used in operating activities: (Rs 26,428.49 lakh) for FY26, compared to (Rs 1,04,495.09 lakh) for FY25. Dividend: The Board recommended a Final Dividend of Rs 2/- per equity share (200% of face value of Rs 1/-) for the financial year ended March 31, 2026. Business Highlights: Asset Quality: Gross Stage 3 Assets Ratio stood at 3.37% as of March 31, 2026, compared to 1.79% as of March 31, 2025. Net Stage 3 Assets Ratio was 2.00% as of March 31, 2026, against 0.88% as of March 31, 2025. Capital Adequacy: The Capital to risk-weighted assets ratio stood at 51.89% as of March 31, 2026. Liquidity: The Liquidity Coverage Ratio (LCR) was 258% as of March 31, 2026. Net Worth: Net worth (Equity share capital + Other equity) increased to Rs 7,38,015.36 lakh as of March 31, 2026, from Rs 6,30,460.67 lakh in the previous year. NBFC Status: The Company is a Systemically Important Non-Deposit taking Non-Banking Finance Company (NBFC-ND-SI) registered with the Reserve Bank of India. Employee Stock Options: During the year ended March 31, 2026, 4,38,178 options were exercised by employees and allotted. Share Warrants: During FY26, 3,10,000 convertible share warrants were exercised, and equity shares were allotted. 1,00,000 warrants lapsed post-year-end upon the expiry of 18 months. Personnel Extension: The Board approved the extension of the tenure of Mr. Jayaraman S as the Chief Risk Officer for a further period of 3 years effective June 01, 2026. Lakshmipathy Deenadayalan, Chairman & Managing Director, said: FY26 will go down as one of the most challenging years for Five Star. The asset quality headwinds faced by MFIs and unsecured loan lenders over the last couple of years creeped into the portfolios of secured loans lenders, especially those providing small ticket loans. As a Company providing loans to small business owners and selfemployed individuals, with a higher proportion of MFI overlap, this resulted in increased DPDs and NPA for Five Star during the course of this financial year; however the actions taken by us over the last few quarters have helped us tide over these challenges and I am very happy to state that the worst is behind us and the coming quarters will see us moving in one direction i.e. “Onwards and Upwards”. The current quarter has been very encouraging with collection efficiencies across buckets showing excellent improvements and getting back to robust levels. I want to share few collection metrics that clearly show this trend: For the Q4FY26, we clocked a unique customer collection efficiency (excluding NPA loans) of 98.1%, which is the one of the best in the history of the Company. Our x-bucket collections for the quarter came in at 99.3%, which has helped contain forward flows from x-bucket. Our slippage ratio (defined as increase in NPAs + write offs as a % of the opening standard AUM) has dropped from 1.09% in Q3FY26 to 0.70% in Q4FY26. This has helped our NPA remain largely stable between quarters at 3.37% for Q4FY26. Credit cost has remained largely stable at 1.88% of average AUM for Q4FY26 compared to 1.76% for Q3FY26. After quarters of continued drop, the current proportion of our portfolio has moved up almost by a percentage point, from 81.77% in Q3FY26 to 82.69% in Q4FY26. With our collections strategies in place and our collection efforts showing strong traction, we started to refocus on disbursements and portfolio growth during the current quarter. While our full year disbursement of Rs 4,676 crore was slightly short compared to the previous year, our disbursement for the quarter came in at Rs 1,213 crore, an increase of 24% over the previous quarter. The trends across collections, disbursements and asset quality are clear and we will continue to build on the progress that we have made during the year, in the coming quarters and years. As I had stated post our Q3 results, we were in the process of building a full-fledged collection vertical, right up to senior people at HO, and I am happy to state that this has gone fully operational starting from Q1FY27, and this would have a positive impact on collections and asset quality. My sincere gratitude goes out to all our lenders who continued to support us during the current financial year. During the quarter ended March 31, 2026, we availed incremental debt of Rs 928 crore at an all-inclusive cost of 8.53%. The funding of USD 100 million provided by Asian Development Bank, one of the largest developmental financial institutions across the globe, is a shot in the arm and we are hopeful that they would continue to support us in our endeavour to make funds available to lower-income group women borrowers. Our cost of funds for the quarter dropped from 9.12% in Q3FY26 to 8.95% in Q4FY26 and for the full year, we saw a drop in our cost of funds from 9.64% in FY25 to 9.21% in FY26. Despite dropping yields on incremental disbursements by about 200 bps, our spread dropped only by 50 bps compared to last financial year. For the quarter, we achieved a PAT of Rs 269 crore, 3% lower as compared to previous quarter, primarily on account of staff related incentives that were given to spur business and collections. I want to take this opportunity to reinforce the fact that we have managed to achieve AUM growth of 11% and PAT growth of 2% even during one of the most difficult years, which shows the strength of the business model and our execution capability. Our RoAUM and RoE for FY26 remain healthy at 8.68% and 16.06% respectively. This year also saw Five Star face people related challenges with the exit of a Senior Management Professional, but our results for the year clearly indicate that this exit has had no impact on our performance, which is a testimony to the strength and depth of our team, both at the Management and Branch levels. As we step into a new financial year, we are geared to get back on the track of growth and well-poised to achieve AUM growth of around 20% for FY27 and thereafter. As in the past, we will aim at achieving strong yet sustainable growth, quality and profitability through robust credit underwriting, strong collections, and proactive risk management backed by use of appropriate technology and AI and supported by a diversified and cost-effective funding profile. The way we handled the challenges gives me immense confidence and clearly shows that we have emerged stronger and well-ready to scale new highs in the coming years. Result PDF

• Trendlyne
• 3 weeks 1 day ago

Conference Call with Five-Star Business Finance Management and Analysts on Q3FY26 Performance and Outlook. Listen to the full earnings transcript.

• Trendlyne
• 3 months 3 weeks ago