Five-Star Business Finance Limited has announced its earnings for the fourth quarter and fiscal year ended March 31, 2026, reporting a Profit After Tax (PAT) of INR 269 crores for the quarter and INR 1,099 crores for the full year. Despite facing asset quality headwinds during the financial year, the company managed to grow its full-year PAT by 2% compared to the previous year. The management stated that the worst of the asset quality challenges is behind them, citing robust collection metrics and a stabilization in non-performing assets.

Financial Performance and Key Metrics

The company’s operational performance showed marked improvement in Q4 FY26. Disbursements for the quarter reached INR 1,213 crores, a 24% increase over the previous quarter, while full-year disbursements totaled INR 4,675 crores. This activity supported an 11% portfolio growth for the year. The cost of funds improved, dropping to 8.95% in Q4 from 9.12% in the preceding quarter, and to 9.21% for the full year from 9.64% in the prior year.

Asset Quality and Collection Efficiency

Management emphasized that collection efficiencies have returned to robust levels. The unique customer collection efficiency for the quarter stood at 98.1%, while x-bucket collections were recorded at 99.3%. Consequently, the slippage ratio dropped significantly from 1.9% in Q3 to 0.7% in Q4. The Gross NPA remained largely stable at 3.37%. The proportion of customers in current buckets improved to 82.69% in Q4 from 81.77% in Q3.

Strategic Outlook and Guidance

Looking ahead to FY27, five star business finance is targeting an AUM growth of approximately 20%. The company aims to achieve disbursements between INR 6,500 crores and INR 7,000 crores in the coming year. Management guided for a credit cost of 1.7% to 1.75% for FY27, with a steady-state target of 1.5% to 1.6% in the longer term. The firm also plans to expand its branch network by opening 60 to 75 new branches in FY27, focusing on geographic diversification into states like Maharashtra, Rajasthan, and Gujarat.

Funding and Capital Adequacy

During the quarter, the company availed incremental debt of INR 928 crores at an all-inclusive cost of 8.53%. A notable development was the raising of USD 100 million from the Asian Development Bank (ADB), with USD 50 million drawn during the quarter. The company’s net worth stands at approximately INR 7,380 crores, with a healthy provision coverage ratio of 1.84% on overall assets and 41.4% on Stage-3 assets. The Board of Directors has declared a dividend consistent with the previous financial year.

Five-Star Business Finance Limited has announced a scheduled meeting with investors and analysts, specifically EQT Partners, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made to the National Stock Exchange of India Limited and BSE Limited on May 05, 2026.

Meeting Details

The company officials are scheduled to meet EQT Partners on May 06, 2026, via a physical one-on-one interaction. The relevant details of the scheduled meeting are outlined below:

Disclosure and Compliance

In line with regulatory requirements, Five-Star Business Finance Limited has clarified that all discussions during the meeting will be based solely on publicly available information. The company has explicitly stated that no unpublished price sensitive information (UPSI) is intended to be discussed during the session.

The company also noted that a copy of the Investor Presentation has been uploaded to its official website and was previously intimated to the Stock Exchanges via a letter dated April 28, 2026, ensuring broader public accessibility. The notification was signed by Vigneshkumar SM, Company Secretary & Compliance Officer, and included a standard disclaimer regarding potential changes to the schedule due to exigencies on the part of the host or the company.