Five-Star Business Finance Limited has made the audio recording of its earnings conference call available to investors and stakeholders. The call, held on July 27, 2026, discussed the financial performance for the quarter ended June 30, 2026. This disclosure ensures transparency regarding the company's operational and financial updates for Q1FY27.

The release of the recording is in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company notified both The National Stock Exchange of India Limited and BSE Limited regarding the availability of the audio file.

Earnings Call Details

The earnings conference call was conducted on July 27, 2026. It covered the results for the quarter ended June 30, 2026. Investors can access the recording directly from the company's investor relations page.

Regulatory Compliance

The notification was issued by Vigneshkumar S M, Company Secretary & Compliance Officer. The company has requested that this intimation be taken on record by the exchanges. The registered office of Five-Star Business Finance Limited is located in Chennai.

What the Numbers Show

While the specific financial metrics are not detailed in this filing, the availability of the earnings call recording allows analysts and investors to review management's commentary on revenue, profitability, and strategic initiatives for the quarter. The focus remains on regulatory adherence and timely disclosure of material information to the market.

Five-Star Business Finance Limited reported a standalone net profit of ₹271.4 crore for Q1FY27, marking a 1.9% year-on-year increase from ₹266.3 crore in Q1FY26. The NBFC achieved its highest-ever quarterly disbursements at ₹1,496 crore, up 16% YoY and 23% sequentially, driving Assets Under Management (AUM) growth of 10% to ₹13,722 crore. This operational momentum offset slight margin compression, as the company navigated higher employee costs while maintaining robust collection efficiency.

The Board of Directors, meeting on July 25, 2026, approved the unaudited financial results reviewed by Statutory Auditors M/s Deloitte Haskins & Sells under Regulation 33 and Regulation 52 of the SEBI LODR Regulations. The audit firm issued an unmodified limited review report. Additionally, the Board submitted the security cover certificate for non-convertible debentures as per Regulation 54(2) and 54(3) of the SEBI LODR Regulations. The company also appointed Mr. Sreeram Ranganathan Iyer as an Additional Director in the capacity of Non-Executive Independent Director, effective July 25, 2026, subject to shareholder approval at the upcoming Annual General Meeting scheduled for August 31, 2026.

Key Financial Metrics

The following table summarizes the key financial performance indicators for the quarter:

Total revenue from operations grew 5.4% to ₹828.9 crore, primarily supported by a rise in interest income to ₹807.6 crore from ₹764.7 crore in the prior year quarter. Fees and commission income also increased to ₹13.6 crore from ₹9.6 crore. However, total expenses rose 9.1% to ₹476.8 crore, largely due to higher employee benefit expenses of ₹188.9 crore compared to ₹156.1 crore in the previous year. Impairment on financial instruments stood at ₹61.8 crore, up from ₹47.8 crore YoY.

Operational Highlights and Asset Quality

Chairman & Managing Director Lakshmipathy Deenadayalan highlighted that Q1FY27 represents a positive beginning to the fiscal year, underpinned by strong traction in disbursements and stabilization in collections. Unique customer collection efficiency (excluding NPAs) remained strong at 97.9%, compared to 98.1% in Q4FY26. X-bucket collections stood at 99.2%, reflecting sustained repayment discipline. The slippage ratio remained steady at 0.70%, similar to Q4FY26, while credit cost improved to 1.85% of average AUM from 1.88% in the preceding quarter.

The table below captures key asset quality metrics:

Gross Stage 3 Assets increased marginally to 3.46% from 3.37% in Q4FY26 and 2.46% in Q1FY26. Net Stage 3 Assets rose to 2.10% from 2.00% in Q4FY26. Total ECL provisions stood at ₹244 crore (excluding inter-corporate deposits), translating to 1.78% of overall AUM. The debt-equity ratio improved to 1.03 from 1.11, signaling a stronger capital base.

Funding and Liquidity

The company availed incremental debt of ₹450 crore during the quarter at an all-inclusive cost of 8.33%. The cost of funds on the overall borrowing book eased sequentially to 8.80% from 8.95% in Q4FY26, a reduction of 15 basis points, despite uncertain liquidity conditions. Total borrowings, including debt securities, stood at ₹7,866 crore as of June 30, 2026. The company maintained liquidity of ₹1,847 crore, resulting in a liquidity coverage ratio of 296%. Net Interest Margin (NIM), computed as a percentage of Average AUM, remained stable at 19.97%, down slightly from 20.07% in Q4FY26.

What the Numbers Show

While revenue growth remained healthy at 5.4%, the net profit margin contracted slightly to 32.36% from 33.66% in Q1FY26. This divergence indicates that cost pressures, particularly in employee benefits and impairments, outpaced top-line gains. However, the significant improvement in disbursement volumes (+23% QoQ) and AUM growth (+10% YoY) suggests that the company is successfully scaling its portfolio. The stabilization of credit costs and steady slippage ratios indicate that asset quality remains manageable despite the marginal rise in Stage 3 assets. The reduction in cost of funds supports future margin expansion if yield trends stabilize.